The Most Important of the Five Cs of Credit When

question 9

Multiple Choice

The most important of the five Cs of credit when evaluating a consumer loan application is:

• A) cash.
• B) capacity.
• C) character.
• D) conditions.
• E) competition.

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Definitions:

Peace of Mind

A state of mental and emotional tranquility, free from stress or worry.

Availability Heuristic

A cognitive shortcut based on the first examples that spring to mind when considering a particular topic, idea, strategy, or choice.

Estimated Probability

A statistical measure expressing the likelihood of a specific event occurring based on current evidence or past occurrences.

Instances

Specific examples or occurrences of a particular event, situation, or phenomenon.