Creditors Are Interested in Assessing a Borrower's Capacity and Character

question 25

Multiple Choice

Creditors are interested in assessing a borrower's capacity and character, as well as overall economic conditions when reviewing a loan application.Which of the following would make a bank more willing to lend funds?

• A)A small business faces deteriorating business conditions because of a recession in the overall economy.
• B)The owner of a small business has been personally bankrupt twice.
• C)A retail store has been diligent in making all of its payments on time and in full over the past five years.
• D)A large corporation missed an interest payment on one of its bond issues last month.

---

Definitions:

Solidarity Movement

A social or political movement that unites individuals or groups across divides to support a common cause, often associated with labor and human rights.

Justice for Janitors

A social movement and campaign initiated by the Service Employees International Union aimed at improving wages, working conditions, and recognition for janitors.

Social Movement Unionism

A form of unionism that ties labor rights to broader social issues, such as environmental justice, racial equality, and anti-globalization efforts.

Grassroots Mobilization

The process of organizing and motivating a broad base of people at the local level to participate in campaigns or movements, often relating to political or social issues.