With regards to credit analysis, this reflects whether assets are available to provide security for the potential credit.
A) Conditions
B) Capacity
C) Capital
D) Collateral

Question

Quizplus · Accepted Answer

Collateral refers to assets that can be used as security for a potential credit. This provides an added layer of assurance for the creditor and is an important factor in credit analysis. Conditions (A) refer to the economic, competitive, or regulatory factors that may impact the borrower's ability to repay the credit. Capacity (B) refers to the borrower's ability to generate sufficient cash flow to repay the credit. Capital (C) refers to the borrower's net worth or equity, which can indicate the level of financial resources available to repay the credit.

With Regards to Credit Analysis, This Reflects Whether Assets Are