26. Local Area Banks can issue bonds and debentures to raise additional capital.
a) True.
b) False.
27. The interest rates offered by Local Area Banks are usually higher than those offered by commercial banks.
a) True.
b) False.
28. Local Area Banks are required to maintain a minimum Capital Adequacy Ratio (CAR) of:
a) 8%.
b) 10%.
c) 12%.
d) 15%.
29. Local Area Banks generally charge a higher rate of interest on loans compared to commercial banks.
a) True.
b) False.
30. Which of the following is NOT a reason for the establishment of Local Area Banks in India?
a) To provide employment opportunities in rural areas.
b) To boost agricultural productivity.
c) To enhance financial services for the underbanked population.
d) To increase competition in the banking sector.
