Generally, Banks Make Loans on the Basis of What Are

question 29

Multiple Choice

Generally, banks make loans on the basis of what are termed the five Cs: character, capacity, capital, collateral, and condition. In the case of entrepreneurs, _____ and _____ become the leading consideration, because the new business's performance estimates are based purely on forecasts.

• A) capital; collateral
• B) character; collateral
• C) capacity; condition
• D) capital; character
• E) character; capacity

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Definitions:

Larynx

A structure in the throat containing the vocal cords; it is involved in breathing, producing sound, and protecting the trachea against food aspiration.

Alveoli

are the tiny air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place.

Gas Exchange

The biological process by which gases (mainly oxygen and carbon dioxide) are transferred between the blood and the external environment during the act of breathing.

Vocal Folds

Muscular membranes in the larynx that produce sound when air is expelled through them, also known as vocal cords.