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:

Discarded

Refers to the process of eliminating or ignoring elements or information that are deemed irrelevant or unnecessary.

Opened

Opened refers to making something accessible or removing restrictions to allow entry or an unobstructed view.

Proposition

This term, already defined, can also refer to the content of what is expressed by a sentence.

Economy

The system of production, distribution, and consumption of goods and services in a particular geographic region.