Which of the Five Cs of Credit Would Your Actual

question 71

Multiple Choice

Which of the five Cs of credit would your actual home be in relation to your mortage?

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

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Definitions:

Passive Asset Allocation

An investment strategy that aims to build a portfolio mimicking a market index's composition, requiring minimal buying and selling.

Proportions

The quantitative relationship between two amounts, showing the number of times one value contains or is contained within the other.

Portfolio Management

The act of making investment decisions to meet specified investment goals for the benefit of the investors.

Active Asset Allocation

Active Asset Allocation is a strategy in which an investor adjusts the proportions of various assets in a portfolio based on current market conditions and forecasts to try to maximize returns.