One of the Five C's of Credit Is Capacity

question 77

Multiple Choice

One of the five C's of credit is capacity. Most likely, what information would potential creditors consider in evaluating your capacity?

• A) your marital status
• B) your age
• C) your leverage ratios
• D) your liquidity ratios
• E) Both C and D are correct answers.

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Definitions:

Elderly People

Individuals of an older age, often defined as being 65 years or older, who may experience various social, health, and economic challenges unique to their age group.

Elderspeak

A simplified speech register used by younger people when communicating with the elderly, often characterized by a slower rate, exaggerated intonation, and simpler vocabulary.

Ageism

Discrimination or prejudice against individuals based on their age, often targeting older adults but can affect younger people too.

Cognitive Impairment

A reduction in cognitive abilities such as memory, decision-making, or problem-solving.