Considering the 5 C's of Credit, What Does Collateral Signify

question 131

Multiple Choice

Considering the 5 C's of credit, what does collateral signify?

• A) The customer's willingness to meet credit obligations.
• B) The customer's ability to meet credit obligations out of operating cash flows.
• C) The customer's financial reserves.
• D) A pledged asset in the case of default.
• E) General economic conditions in the customer's line of business.

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Definitions:

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