In the context of monetary economics and banking dynamics, consider the following statements:1.Loans create deposits, establishing a dual relationship between banking liquidity and credit.2.An elevated Credit-Deposit (CD) ratio automatically indicates severe systemic funding vulnerability in all cases according to recent RBI findings.
UPSC · current affairs quiz
Quiz · Credit Deposit Ratio and Bank Liquidity Dynamics
Two Prelims-style questions on this topic from 28 September 2026. Choose an option to check yourself, then open the full note or today’s full quiz.
Which of the following Basel III metrics requires commercial banks to maintain a stable funding profile in relation to their off-balance-sheet assets and activities?