DMPQ: Define the following terms; a) Tier -1 capital b) Tier -2 capital c) CAR d) Public debt( Economy)

Tier-1 capital:     Tier 1 capital, used to describe the capital adequacy of a bank, is core capital that includes equity capital and disclosed reserves. Tier 1 capital is essentially the most perfect form of a bank’s capital — the money the bank has stored to keep it functioning through all the risky transactions it performs, such as trading/investing and lending.