A credit applicant's ________ reflects its ability to repay the requested credit.
A) character
B) capacity
C) capital
D) collateral

Question

Quizplus · Accepted Answer

Capacity refers to the borrower's ability to repay the credit, based on factors such as income and debt-to-income ratio. Character refers to the borrower's reliability and trustworthiness, while capital refers to the borrower's financial assets and net worth. Collateral refers to assets that can be used to secure the loan in case of default.

A Credit Applicant's ________ Reflects Its Ability to Repay the Requested