Leo's Application to Metro Bank for a Credit Card Is

question 12

Multiple Choice

Leo's application to Metro Bank for a credit card is denied on the basis of what Leo believes is an inaccurate credit report. Leo should

• A)immediately apply for a credit card with a different financial institution.
• B)appeal the denial to the appropriate federal or state agency.
• C)obtain his credit report and notify the reporting agency of inaccuracies.
• D)file a suit against the bank, alleging a violation of federal credit laws.

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Definitions:

Times Interest Earned Ratio

A financial metric assessing a company’s ability to meet its interest obligations from its operating income.

Income Tax Payments

Income tax payments are the amounts of money a company or individual must pay to the government, based on the income earned over a tax period.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debts.

Debt-To-Equity Ratio

The debt-to-equity ratio is a measure of financial leverage, indicating the proportion of company financing that comes from creditors and investors, calculated as total liabilities divided by shareholders' equity.