A Negative Credit Decision Cannot Be Based on an Applicant's

question 148

True/False

A negative credit decision cannot be based on an applicant's plans for having children.

---

Definitions:

Profitability Index

A financial tool used to determine the desirability of an investment by dividing the present value of future cash flows by the initial investment cost.

Internal Rate of Return

A metric used in capital budgeting to estimate the profitability of potential investments.

Firm's Cost

The total expenses incurred by a business in the process of producing and selling its goods or services, including both fixed and variable costs.

Reinvestment Assumption

An assumption in finance that future cash flows from an investment will be reinvested at a constant rate.