Multiple Choice
Which one of the following five Cs of credit is NOT correctly defined?
A) Capacity-Whether the borrower has enough other credit available to pay off the loan in the event of cash flow problems.
B) Capital-The borrower's equity.
C) Character-A measure of the borrower's intention/willingness to repay the loan.
D) Conditions-Assessing how economic conditions could affect the borrower's ability to repay the loan.
E) Collateral-An asset of the borrower that the lender may seize in the event of default on the loan.
Correct Answer:
Verified
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