In Making Credit Decisions,which of the Following Items Is Considered

question 85

Multiple Choice

In making credit decisions,which of the following items is considered a market-specific factor?

• A)Whether the reputation of the borrower enhances the credit application.
• B)Whether the current debt-equity ratio is sufficiently low to not impact the probability of repayment.
• C)Whether the debt can be secured by specific property.
• D)Whether the position of the economy in the business cycle phase would affect the probability of borrower default.

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Definitions:

Sharecroppers

Laborers who farm land owned by another person and pay rent either in cash or as a portion of the crop, commonly in the post-Civil War South in the United States.

Cotton

A soft, fluffy staple fiber that grows in a boll around the seeds of cotton plants, used in the textile industry.

Cotton Production

The cultivation and harvesting of cotton plants, primarily for the textile industry, historically a major driver of the economy, especially in the American South.

Egypt

A country in North Africa, known for its ancient civilization and notable landmarks like the Pyramids and the Great Sphinx of Giza.