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:

Test-retest Reliability

This refers to the consistency of scores on a test or assessment when the same individuals take the test again under similar conditions after a time interval.

Interquartile Range

Provides the range of the middle 50% of scores around the median. Because it eliminates the top and bottom quartiles, the quartile range is most useful with skewed curves because it offers a more representative picture of where a large percentage of the scores fall.

Internal Consistency

A method of determining reliability of an instrument by looking within the test itself, or not going “outside of the test” to determine a reliability estimate as is done with test-retest or parallel forms reliability. Some types of internal consistency reliability include split-half (or odd-even), Cronbach’s Coefficient Alpha, and Kuder-Richardson.

Licensure Exam

A standardized test that individuals must pass to obtain a license to practice in certain professions, ensuring they meet the required competency standards.