The "Five Cs of Credit" Are Character, Capacity, Capital, Conditions

question 5

True/False

The "five Cs of credit" are character, capacity, capital, conditions, and collateral.

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Definitions:

Mutual Fund

An investment vehicle that pools money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities.

No-load Mutual Fund

A mutual fund that does not charge any type of sales load or commission to investors.

Expense Ratio

Expense Ratio is the annual fee that mutual funds, exchange-traded funds (ETFs), and other pooled investment products charge their shareholders, expressed as a percentage of assets under management.

Rate of Return

The profit or deficit experienced from an investment, represented as a percentage of the investment's starting price.