Which of These Are Two Approaches a Bank Can Use

question 27

Multiple Choice

Which of these are two approaches a bank can use to evaluate a customer's current capacity to handle more debt?

• A)Fixed payments-to-income ratio; payments-on-debt
• B)Fixed payments; debt-to-income ratio
• C)Variable payments; debt-to-income ratio
• D)Fixed payments; debt-to-wealth ratio

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Definitions:

Nonrefundable Plane Ticket

A type of airline ticket that cannot be returned for a refund, typically offered at a lower price than refundable tickets.

Overnight Mail

Overnight mail is a shipping service that guarantees delivery of a package or letter to its destination by the next business day.

Loads of Laundry

Units or batches of clothing, linens, and other textiles laundered together in a single process.

Pages

Physical or digital sheets on which written or printed information is displayed; not a standard economic term.