A bank is considering making a loan to John Carter.John is a commissioned sales broker.Some months he earns as much as $10,000 and in other months he earns virtually nothing.Which aspect of evaluating a consumer loan would this be concerned with?

Question

Quizplus · Accepted Answer

Evaluating John's income level is important in determining his ability to repay the loan, as his income is variable and unpredictable. The bank will want to ensure he has the means to make regular payments on the loan, even in months when his income is low. The other options listed are not directly relevant to this aspect of evaluating a consumer loan.

A Bank Is Considering Making a Loan to John Carter