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Opportunities and Threats Are Usually Driven by Changes in One

question 17

True/False

Opportunities and threats are usually driven by changes in one of the 5Cs.


Definitions:

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, is due to be paid in full.

Disbursement Float

The amount of time it takes for money to be withdrawn from one account and cleared in another, affecting the available balance.

Collection Float

The time period between when a check is deposited into a bank account and the time the funds are available and officially credited to the account.

Book Balance

refers to the current balance in a company’s accounting records, not including any pending transactions that have not yet been cleared or settled.

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