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What is the full form of CASA in banking ?

  • A.Cash and Security Account
  • B.Current Account Savings Account
  • C.Credit and Settlement Authority
  • D.Central Asset Servicing Agency

Answer: C

Correct answer: Current Account Savings Account

CASA refers to the combined balances a bank holds in current and savings accounts. These deposits carry little or no interest, so a high CASA ratio lowers a bank’s cost of funds and improves its margins.

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