Which One of the Five Cs of Credit Refers to the General

question 36

Multiple Choice

Which one of the five Cs of credit refers to the general economic situation in the customer's line of business?

• A)capacity
• B)character
• C)conditions
• D)capital
• E)collateral

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Definitions:

Construct Validity

The extent to which an assessment accurately gauges what it professes to evaluate.

Reliable

Pertains to the consistency of a measure or instrument; if the results are repeatable under the same conditions.

Valid

Refers to the extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.

Criterion Validity

Criterion validity refers to how well one measure predicts an outcome based on the criteria of another measure.