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When capital adequacy line is equal to the savings per worker function then "normal expected returns to investor".
<h3>What is
capital adequacy/requirement ratio?</h3>
The capital adequacy ratio (CAR) gauges a bank's level of capital retention in relation to its level of risk. The CAR of banks must be monitored by national regulators in order to ascertain how well it can withstand an acceptable amount of loss.
The components of capital adequacy are-
- The Capital Adequacy Ratio (CAR) aims to ensure that banks have an adequate amount of capital to safeguard depositors' funds.
- (Tier 1 Capital + Tier 2 Capital) / Risk-Weighted Assets is the calculation for CAR.
- The BIS's capital standards have tightened up in recent years.
- By reducing the likelihood of bank insolvency, capital adequacy ratios promote the effectiveness and stability of a country's financial system.
- A bank with a high capital adequacy ratio is typically thought to be secure and likely to fulfill its financial obligations.
The principle of capital adequacy are-
- High-quality and loss-absorbing capital are both necessary.
- The Basel III criteria for common stock, along with supplementary tier 1 and tier 2 capital, are applied to establish the quality of capital, with retained earnings being the most important factor.
To know more about the capital requirement, here
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Answer:
This statement can be justified by giving the following arguments
Democracy promotes equality. It gives equal treatment to every person.
It involves every person in the decision-making process. Every citizen has a right to information.
The passion for respect and freedom are the bases of democracy. It accepts the dignity of women as a necessary ingredient of society. Democracy recognizes the principle of equal treatment to women unlike non-democratic governments.
The same is true of caste inequalities. Democracy in India has strengthened the claims of the disadvantaged and discriminated cases for equal status and opportunity.
Also, democracy has to meet the expectations of citizens and people have the right to complain about the functioning of democracy.
Explanation:
Answer:
1. End impunity · 2. Reform public administration and finance management · 3. Promote transparency and access to information · 4. Empower citizens.
Explanation:
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