Which of the following "C's" defines the customer's ability to conserve assets?
A) Capacity
B) Character
C) Collateral
D) Conditions

Question

Quizplus · Accepted Answer

Capacity refers to the borrower's ability to repay a loan, including their ability to conserve assets. It takes into account factors such as income, expenses, and existing debt. Character refers to the borrower's credit history and reputation, collateral refers to property pledged as security for a loan, and conditions refer to external factors that may affect the borrower's ability to repay the loan.

Which of the Following "C's" Defines the Customer's Ability to Conserve