In the CAMELS bank-rating system, the letter ‘A’ stands for:

A Average quality

B Asset quality

C Adequate quality

D Annual quality

Correct Answer: Option B

The components of a bank's condition that are assessed:

(C)apital adequacy

(A)ssets

(M)anagement Capability

(E)arnings

(L)iquidity (also called asset liability management)

(S)ensitivity (sensitivity to market risk, especially interest rate risk)