A Credit Application That Asks for Criminal Convictions from the Last

question 117

True/False

A credit application that asks for criminal convictions from the last five years violates the ECOA.

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Definitions:

Direct Materials

Raw materials that can be directly traced to the production of goods, forming a significant part of manufacturing costs.

Net Cash Inflows

The total amount of money received from operations, investments, and financing activities, minus the amount of money spent.

Operating Income

The profit realized from a company's everyday core business operations, excluding deductions of interest and taxes.

Cash Payback Period

The duration needed for an investment to generate cash flows sufficient to recover the initial cost of the investment.