Jane Calvert Is Applying for a Loan from a Bank

question 104

Multiple Choice

Jane Calvert is applying for a loan from a bank.The bank knows she owns a house worth $150,000 and a car with a trade-in value of $15,000 as well as other personal assets worth approximately $50,000.Which one of the 5 Cs of credit is the bank looking at?

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

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Definitions:

Increase by

To grow or expand in value or size by a certain amount or percentage.

Grow at

"Grow at" refers to the rate at which a company, asset, or economy expands over a specific period, indicating its development and performance pace.

Required Return

The lowest percentage of annual income required to seduce investors, whether individual or corporate, to a particular security or project.

Constant Dividend

A dividend policy where a firm pays out a fixed amount of dividends each year to its shareholders regardless of the firm's earnings.