Which one of the five Cs of credit refers to the general economic situation in the customer's line of business?
A) Capacity
B) Character
C) Conditions
D) Capital
E) Collateral

Question

Quizplus · Accepted Answer

Conditions refer to the general economic situation in the customer's line of business, as well as any specific conditions that may affect the customer's ability to repay their debt. The other Cs refer to the customer's ability to repay (Capacity), their reputation and past behavior (Character), their assets (Capital and Collateral).

Which One of the Five Cs of Credit Refers to the General