Which of the Following Loan Applicant Characteristics Is Not Relevant

question 85

Multiple Choice

Which of the following loan applicant characteristics is not relevant in the credit approval decision?

• A)Leverage position of the borrower.
• B)Borrower income.
• C)Value of collateral.
• D)Borrower reputation.
• E)None of the above.

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Definitions:

Price Elasticity

The examination of demand sensitivity to price modifications of a particular good.

Perfectly Elastic

A state of demand or supply in which the quantity demanded or supplied changes infinitely in response to any change in price.

Constant Price

An economic term that refers to prices that have been adjusted for inflation, allowing for comparison of purchasing power over time.

Uniform Price

A pricing strategy where goods or services are sold at the same price to all customers, regardless of the quantity purchased.