Which of the Following Loan Applicant Characteristics Is Not Relevant

question 52

Multiple Choice

Which of the following loan applicant characteristics is not relevant in the credit approval decision?

• A)Leverage position of the borrower.
• B)Borrower income.
• C)Value of collateral.
• D)Borrower reputation.
• E)None of these.

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Definitions:

Personal Property

Personal Property refers to movable assets owned by an individual or corporation, excluding real estate or buildings.

Commercial Office

A workspace designated for activities related to business, administrative tasks, or professional services.

Books

Official records kept by a company detailing its financial transactions, assets, and liabilities.

Lien

In its most extensive meaning, it is a charge on property for the payment or discharge of a debt or duty; a qualified right; a proprietary interest that, in a given case, may be exercised over the property of another.