Which of the Following Is True of Credit Scoring

question 250

Multiple Choice

Which of the following is true of credit scoring?

• A) It audits the amount of assets the applicant has available for use in securing the credit.
• B) It specifies the terms of sale for customers who have been extended credit by a firm.
• C) It is an ongoing review of a firm's accounts receivable to determine whether customers are paying according to the stated credit terms.
• D) It applies statistically derived weights to an applicant's scores on key financial and credit characteristics.

---

Definitions:

Strike-Slip Fault

A type of fault where rocks on either side move horizontally past one another, typically a result of shear stress.

Oblique-Slip Faults

Faults that exhibit both vertical and horizontal movement, combining characteristics of strike-slip and dip-slip (normal or reverse) faults.

Ductile Behavior

The ability of a material to undergo significant deformation under stress before breaking, often applied to metals and geological formations.

Brittle Deformation

The breaking or fracturing of a rock under stress, without significant deformation.