Credit Scoring Models Are Used to Discriminate Between Good and Bad

question 11

Multiple Choice

Credit scoring models are used to discriminate between good and bad credit applicants.Which of the following items is a major weakness of this approach?

• A)they cannot be applied to a company receiving numerous consumer credit applications
• B)they are too time consuming to apply
• C)they can only take one customer attribute into account at a time
• D)they do not look at collateral

---

Definitions:

Streetwalkers

Individuals, often prostitutes, who solicit customers for sexual services in public places, typically on the streets.

Economic Necessity

Economic necessity refers to the critical need to earn a living and support oneself and one’s family, often driving individual choices and actions.

Commercial Transactions

Exchanges of goods, services, or financial assets in the course of business activities.

Streetwalkers

A term often associated with individuals who engage in prostitution on public streets.