The most subjective and also significant segment of the 4 C's of credit for giving final approval is:
A) capacity
B) collateral
C) character
D) conditions

Question

Quizplus · Accepted Answer

Character refers to a borrower's reputation, trustworthiness, and reliability. This is the most subjective aspect of credit evaluation, as it is difficult to measure objectively. However, lenders often place a great deal of weight on a borrower's character, as it can be indicative of their overall likelihood to pay back the loan. Collateral and capacity are also important factors in determining creditworthiness, but are more concrete and measurable. Conditions refer to external economic factors and how they may impact the borrower's ability to repay the loan.

The Most Subjective and Also Significant Segment of the 4