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

question 93

Multiple Choice

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

• A)Whether the borrower's capital structure is beyond the point where additional debt increases the probability of loss of principal or interest.
• B)Whether the relative level of interest rates will encourage the borrower to take excessive risks.
• C)Whether property can be pledged as collateral.
• D)Whether the volatility of earnings could present a period where the periodic payment of interest and principal would be at risk.

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Definitions:

Neurocognitive Disorder

A decline in mental function due to a medical condition or disease affecting the brain.

Age 85

A descriptor of individuals who have reached the age of eighty-five years; often associated with discussions on aging, health, and senior care.

Non-hispanic White

Refers to individuals in the United States who identify as White without Hispanic or Latino origins.

African Americans

An ethnic or racial group in the U.S. whose ancestors predominantly originated from sub-Saharan Africa.