Which One of the Five Cs of Credit Refers to the Financial

question 201

Multiple Choice

Which one of the five Cs of credit refers to the financial reserves of a customer?

• A) Capacity.
• B) Character.
• C) Conditions.
• D) Capital.
• E) collateral

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Definitions:

Long-run Equilibrium

Long-run equilibrium occurs when all producers in a market are producing at their minimum long-run average cost, and no new firms wish to enter or exit the market.

Average Cost

The total cost of production divided by the number of goods produced, also known as unit cost.

Marginal Cost

The increase in total cost that arises from an extra unit of production.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in price or other factors.