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Terry May,a Loan Officer with First National Bank,calculates Liquidity and Debt

Question 108

Multiple Choice

Terry May,a loan officer with First National Bank,calculates liquidity and debt ratios for the Lava Lamp Company and also examines their cash flow statement.What step in the lending process is Terry performing?


A) Finding prospective customers
B) Evaluating a customer's character and sincerity
C) Making a site visit and evaluating a customer's credit history
D) Evaluating a prospective customer's financial condition
E) Assessing possible collateral and signing the loan agreement

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