The credit applicant's ________ is the financial strength of the applicant as reflected by its ownership position.
A) character
B) capacity
C) capital
D) collateral

Question

Quizplus · Accepted Answer

Capital refers to the financial strength of the applicant as reflected by its ownership position, such as its assets and equity. This is an important factor considered by lenders when evaluating a credit application, as it indicates the applicant's ability to repay the debt. Character refers to the applicant's reputation and willingness to pay, capacity refers to their ability to make payments, and collateral refers to the assets offered as security for the loan.

The Credit Applicant's ________ Is the Financial Strength of the Applicant