The lender uses a credit application to determine whether the borrower has the ____ to handle the debt.
A)character and confidence
B)confidence and capacity
C)acumen and capacity
D)character and capacity
E)credit and character

Question

Quizplus · Accepted Answer

The lender uses a credit application to determine whether the borrower has the character and capacity to handle the debt. Character refers to the borrower’s trustworthiness and willingness to pay back the debt, while capacity refers to the borrower’s ability to pay back the debt based on their income and expenses. Acumen and credit are not typically factors evaluated in a credit application. Confidence may be a desirable trait, but it is not directly relevant to the borrower’s ability to handle debt.

The Lender Uses a Credit Application to Determine Whether the Borrower