What Is the Minimum Credit Score Required by Financial Institutions

question 88

Multiple Choice

What is the minimum credit score required by financial institutions?

• A)Varies by institution
• B)500
• C)550
• D)600

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Definitions:

Return on Assets

A profitability ratio that measures how efficiently a company is using its assets to generate earnings.

Return on Debt

A measurement of a company's effectiveness in generating earnings from its debt, showing how well a company uses borrowed funds.

Cost of Equity

The return that investors expect for providing capital to a company, effectively the compensation for the risk of investing in the company.

Debt-Equity Ratio

An indicator of a business's financial risk, computed by dividing the total amount of its liabilities by the equity owned by shareholders.