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Which situation would most likely reduce a bank’s CASA ratio?

hard Q8 of 15
Banking Awareness - Types Of Bank Accounts
Which situation would most likely reduce a bank’s CASA ratio?
AIncrease in salary account openings
BGrowth in current account balances
CImproved digital savings services
DHigher reliance on fixed deposits
Step-by-Step Solution

  1. Step 1: Identify what lowers CASA proportion.

    CASA ratio falls if non-CASA deposits rise.

  2. Step 2: Match with the option.

    Fixed deposits are non-CASA deposits.

  3. Final Answer:

    Higher reliance on fixed deposits → Option D

  4. Quick Check:

    More FD share = lower CASA ratio ✅
Quick Trick: FD growth without CASA growth hurts CASA ratio.
Common Mistakes:
MISTAKES
  • Assuming CASA rises with any deposit growth.
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