Which of the Following Is NOT a Valid Credit Application

question 9

Multiple Choice

Which of the following is NOT a valid credit application question?

• A) How much of a loan are you requesting?
• B) What is the account number for your checking account?
• C) What is the name of the nearest relative not living with you?
• D) How many dependents do you have?
• E) All of these are valid credit application questions.

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Definitions:

Economic Profits

The excess of total revenues over total costs, including both explicit costs and opportunity costs, indicating a return beyond the normal profit level.

Accounting Profits

The net earnings of a company as calculated by subtracting total expenses from total revenues, according to standard accounting practices.

Perfect Competitor

A theoretical market structure where many firms sell homogeneous products, entry and exit from the market are free, and all participants have perfect information.

Perfectly Elastic

Perfectly elastic describes a situation where the quantity demanded or supplied changes by an infinite amount in response to any change in price, represented graphically as a horizontal line.