The credit decision involves
A)granting credit to all applicants.
B)looking at the borrower's collateral.
C)investigating the customer.
D)making sure that the customer is a good credit risk.
E)all of the above.

Question

Quizplus · Accepted Answer

The credit decision involves evaluating the borrower's creditworthiness and determining whether they are a good credit risk. This involves investigating the customer's financial history, credit score, and capacity to repay the loan. While collateral may be considered, it is not the sole factor in the credit decision. Granting credit to all applicants is not a sound business practice as it could result in significant losses for the lender. Therefore, D is the best choice as it accurately reflects the essence of the credit decision.

The Credit Decision Involves