A Loan Officer Is Examining Your Income and the Amount

question 47

Multiple Choice

A loan officer is examining your income and the amount of your existing debt payments in deciding whether to make a loan to you today.Which aspect of the 5 Cs of lending is the loan officer most likely looking at?

• A)Character
• B)Capacity
• C)Capital
• D)Collateral
• E)Conditions

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Definitions:

Discount Period

The timeframe during which a discount is offered for prompt payment on sales.

Merchandise Sold

The products that a retailer, wholesaler, or distributor has sold to customers during a specific period.

Gross Profit

The income left over for a company once it has covered the costs involved in manufacturing and selling its products, or in offering its services.

Merchandise Sold

Products or goods that have been sold to customers, typically referring to transactions within the retail or wholesale sector.