When Evaluating Credit, a Customer Who Could Sell Assets to Pay

question 68

Multiple Choice

When evaluating credit, a customer who could sell assets to pay off a loan is said to have

• A) collateral.
• B) creditworthiness.
• C) character.
• D) capacity.

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Definitions:

Percent

A unit of measure expressing a number as a fraction of 100, commonly used to describe proportions and rates.

Mates

Refers to individuals paired for reproductive purposes or colloquially used to refer to friends or companions.

Socioeconomic Class

A division of society based on social and economic status.

Waist-To-Hip Ratio

A measurement used to assess the distribution of body fat, calculated by dividing the circumference of one’s waist by the circumference of one’s hips, with implications for health and attractiveness.