A Loan Officer Uses a Credit Scoring System to

question 20

Multiple Choice

A loan officer uses a credit scoring system to

• A)compare the interest rate on a loan to interest rates on other assets with comparable risk.
• B)keep track of the fraction of a bank's assets tied up in loans to a single individual or business.
• C)predict statistically whether an individual is likely to default on a loan.
• D)match any particular loan with the deposits being used to fund it.

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Definitions:

Consumer Values

The principles and standards that individuals consider important and prioritize when making purchasing decisions.

Health and Wellness

The holistic state of being in good physical and mental health, often pursued through balanced diet, regular exercise, and stress management.

Mainstream U.S. Culture

The set of shared beliefs, values, customs, behaviors, and artifacts that the members of society use to cope with their world and with one another, which are transmitted from generation to generation through learning.

Hispanics

An ethnic group consisting of people of varied racial ancestries who identify with the cultures connected to Spanish language and heritage.