Which of the following are the "5 Cs of Credit"?
A)Character,Capacity,Compensation,Collateral,Conditions
B)Character,Cash,Credit,Collateral,Collectability
C)Character,Capacity,Capital,Collateral,Conditions
D)Cash,Capacity,Capital,Compensation,Collectability
E)Cash,Capacity,Capital,Collateral,Collectability

Question

Quizplus · Accepted Answer

The "5 Cs of Credit" are Character, Capacity, Capital, Collateral, and Conditions. Choice A has "Compensation" instead of "Capital," Choice B has "Cash" and "Credit" which are not part of the original "Cs," and Choice D has "Compensation" instead of "Collateral." Only Choice C has the correct combination of the 5 Cs.

Which of the Following Are the "5 Cs of Credit