In the 5 Cs of Credit,collateral Is an Asset That

question 115

True/False

In the 5 Cs of credit,collateral is an asset that you pledge to a financial institution to obtain a loan.

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Definitions:

Reciprocity

The exchange of goods and services, of approximately equal value, between two parties.

Social Obligations

Social obligations refer to the duties or responsibilities imposed by society upon its members, which could involve participating in community service, adhering to societal norms, or fulfilling familial roles.

Making Profits

The process of generating financial gain from business activities after subtracting all expenses, taxes, and costs.

Gaining Prestige

The process of acquiring respect, honor, or recognition from others within a social group.