Scenario 9-2. Ryan has just graduated from college with a business degree. He has a wonderful idea for a new business called Ryan's Road Machines. He would like to sell a variety of all-terrain vehicles (ATVs) for the personal use of his selected clientele. Outstanding customer service will be his competitive advantage as he provides individual service to each of his customers. He has just one small problem, no capital. He knows that he must meet the five C's of credit when looking at external funding in order to prove his creditworthiness.
-In Scenario 9-2, at the present, the economy is growing rapidly. In fact, it is growing so rapidly, there is a continuing discussion that interest rates may need to be raised in order to slow economic growth. These factors refer to which of the five C's?

Question

Quizplus · Accepted Answer

The factors described, including the rapidly growing economy and discussions about raising interest rates to slow economic growth, refer to "Conditions." This C of credit assesses the overall economic and industry conditions that can affect a borrower's ability to repay a loan.