Capacity, Which Is One of the Traditional "Five Cs" of Credit

question 61

Multiple Choice

Capacity, which is one of the traditional "five Cs" of credit analysis, refers to the ____.

• A) general economic climate and its effect on the applicant's ability to pay
• B) willingness of the applicant to meet its financial obligations
• C) financial strength of the applicant (i.e., net worth)
• D) ability of an applicant to meet its financial obligations