The Only Quantitative Measure of a Consumer Loan Applicant's Character

question 5

Multiple Choice

The only quantitative measure of a consumer loan applicant's character is their:

• A) down payment.
• B) home equity.
• C) time on the job.
• D) credit report.
• E) credit card balance.

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Definitions:

Transfer Payments

Non-compulsory payments made by the government to individuals or other entities, without a direct exchange of services or goods; examples include pensions and subsidies.

Government Securities

Financial instruments issued by the government to borrow money from investors, typically with a promise to pay back with interest.

Deficit Finance

The practice of funding government spending by borrowing rather than from taxation, leading to budget deficits.

Fiscal Policy

Government strategies involving taxation and spending to influence the economy, aiming at achieving economic stability and growth.