An Applicant's Capacity to Repay Its Requested Credit Can Be

question 293

Multiple Choice

An applicant's capacity to repay its requested credit can be found through

• A) financial statement analysis.
• B) bank account balances.
• C) the applicant's payment history.
• D) the level of assets the applicant can pledge toward the loan.

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Definitions:

Financing

The process of providing funds for business activities, making purchases, or investing.

Term

In finance, refers to the length of time until a financial contract expires. In other contexts, it can mean a specific period or duration.

Secondary Capital Market

The financial market where investors buy and sell securities they already own, as opposed to the primary market where securities are issued for the first time.

10-Year Bond

A long-term debt security issued by governments or corporations with a maturity of ten years.