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Q. What is CD ratio in Banking industry?
Answer: Cash Deposit Ratio
Notes: The correct answer is "Cash Deposit Ratio." The CD ratio in the banking industry measures the proportion of a bank's total deposits that are lent out as loans. A higher CD ratio indicates more aggressive lending, while a lower ratio suggests a more conservative approach. Typically, a healthy CD ratio ranges from 60% to 80%. This metric is crucial for assessing liquidity and risk management in banks.

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