One of the five C's of credit is capacity.Most likely,what information would potential creditors consider in evaluating your capacity?
A)Your marital status
B)Your age
C)Your leverage ratios
D)Your liquidity ratios
E)Both C and D are correct answers.

Question

Quizplus · Accepted Answer

Potential creditors would consider both leverage and liquidity ratios when evaluating an individual's capacity to repay the loan. Leverage ratios like debt-to-income ratio and debt-to-asset ratio provide insight into an individual's ability to manage debt obligations. On the other hand, liquidity ratios like current ratio and quick ratio reveal the availability of liquid assets to make timely loan payments. Marital status and age are not relevant factors for evaluating capacity.

One of the Five C's of Credit Is Capacity