Which of the Following Is Not One of the 'Five

question 59

Multiple Choice

Which of the following is not one of the 'five C's' of deciding which customers should be granted credit?

• A) capacity
• B) capability
• C) capital
• D) character

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Definitions:

Present Value

The modern-day valuation of a future monetary sum or stream of cash flows, factoring in a specific rate of return.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Landlords

Owners of property who rent it out to tenants, earning income from the lease agreements.

Paying Rent

The act of making a payment for the temporary use of a property or space owned by another individual or entity.