Charles Rickman Is Applying for a Loan from the Bank

question 186

Multiple Choice

Charles Rickman is applying for a loan from the bank.The bank has determined that he has never been late making payments on past loans.Which of the 5 Cs of credit is the bank looking at?

• A)Character
• B)Capacity
• C)Capital
• D)Collateral
• E)Conditions

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Definitions:

Stagflation

A situation in the economy where inflation and unemployment rates are high simultaneously.

Keynesian Demand Management

A strategy based on Keynesian economics that entails adjusting the level of demand in the economy through monetary and fiscal policy to manage economic cycles.

Economy Control

The use of various tools and policies by a government to regulate and oversee the economy’s health and stability.

Stagflation

A condition of slow economic growth and relatively high unemployment – a period of stagnation – accompanied by rising prices (inflation).