What is CRAR?

CRAR also known as Capital Adequacy Ratio (CAR) is the ratio of a bank’s capital to its risk.
CRAR is decided by central banks and bank regulators to prevent commercial banks from taking excess leverage and becoming insolvent in the process.
The Basel III norms stipulated a capital to risk-weighted assets of 8%.
In India, scheduled commercial banks are required to maintain a CAR of 9% while Indian public sector banks are emphasized to maintain a CAR of 12% as per RBI norms.
It is arrived at by dividing the capital of the bank with aggregated risk-weighted assets for credit risk, market risk, and operational risk.
RBI tracks CRAR of a bank to ensure that the bank can absorb a reasonable amount of loss and complies with statutory Capital requirements.
The higher the CRAR of a bank the better capitalized it is.

Exp)

Statement 1 is incorrect. The dwarf planet Ceres, which lies in the asteroid belt between Mars and Jupiter now, has the status of an “ocean world”.
Statement 2 is correct: The dwarf planet was first spotted by Giuseppe Piazzi in 1801, who assumed that Ceres was the missing planet between Mars and Jupiter.
Statement 3 is correct: It was classified as a dwarf planet in 2006 and is the first dwarf planet to be orbited by a spacecraft. In 2015, NASA’s Dawn reached it to study its surface, composition and history.

About Hilsa Fish

IUCN status: Least Concerned
The Hilsa is a species of fish related to the herring, in the family Clupeidae.
It is a very popular and sought-after food fish in the Indian Subcontinent.
Though it’s a saltwater fish, it migrates to sweet waters.
It is the national fish of Bangladesh and state symbol in the Indian states of West Bengal and Tripura.
The fish contributes about 12% of the total fish production and about 1.15% of GDP in Bangladesh.

Exp) Death Valley and its location

Death Valley is a desert valley in Eastern California, in the northern Mojave Desert, bordering the Great Basin Desert.
It is one of the hottest places on Earth, along with deserts in the Middle East and the Sahara.
The valley is extremely dry because it lies in the rain shadow of four major mountain ranges (including the Sierra Nevada and the Panamint Range).
Moisture moving inland from the Pacific Ocean must pass eastward over the mountains to reach Death Valley; as air masses are forced upward by each range, they cool and moisture condenses, to fall as rain or snow on the western slopes.
When the air masses reach Death Valley, most of the moisture has already been lost and there is little left to fall as precipitation.

Explanation: The Subsidiary Alliance System was “Non-Intervention Policy” used by Lord Wellesley who was the Governor-General (1798-1805) to establish British Empire in India. According to this system, every ruler in India had to accept to pay a subsidy to the British for the maintenance of British army. In return, British would protect them from their enemies which gave British enormous expansion.  Subsidiary Alliance introduced by Lord Wellesley was nothing to do with Napoleon danger. Hence option b does not apply.