One of the following lists constitutes the five Cs of credit. Select the correct one.

Question

Quizplus · Accepted Answer

The five Cs of credit are character, capacity, capital, collateral, and conditions. These factors help lenders assess the creditworthiness of potential borrowers. "Character" refers to the borrower's reputation for paying debts on time, "capacity" assesses the borrower's ability to repay the loan, "capital" refers to the borrower's financial resources and stability, "collateral" is the assets that can be used to secure the loan, and "conditions" refer to the economic and industry conditions that could impact the borrower's ability to repay the loan.

One of the Following Lists Constitutes the Five Cs of Credit