The table below shows different combinations of regulatory ratio adjustments for a commercial bank. All other things being equal, identify which one of the combinations is most likely to increase the bank's resilience to sudden financial crises.
| Liquidity ratio | Capital adequacy ratio | |
|---|---|---|
| A | Decrease | Increase |
| B | Increase | Decrease |
| C | Decrease | Decrease |
| D | Increase | Increase |
Decrease liquidity ratio, Increase capital adequacy ratio
Increase liquidity ratio, Decrease capital adequacy ratio
Decrease liquidity ratio, Decrease capital adequacy ratio
Increase liquidity ratio, Increase capital adequacy ratio
