Credit Scoring Models Are Used by Lenders To

question 25

Multiple Choice

Credit scoring models are used by lenders to:

• A) determine the borrowers capacity to pay.
• B) aid in the prediction of default or bankruptcy.
• C) determine the optimal debt equity ratio.
• D) Both determine the borrowers capacity to pay and aid in the prediction of default or bankruptcy.
• E) Both determine the borrowers capacity to pay and determine the optimal debt equity ratio.