When reviewing loan applications,Jessica,a loan officer at A+ Credit Union,always examines the amount of cash and marketable securities that applicants have on hand.She reviews historical,current,and projected cash flows of a business to gauge whether applicants are able to repay the loan.These activities best describe which of the five "Cs" of credit?

Question

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Jessica is assessing the applicant's ability to repay the loan by examining cash flows, which relates to the "Capacity" of the borrower.

When Reviewing Loan Applications,Jessica,a Loan Officer at A+ Credit Union,always