Which One of the Following 5 Cs of Credit Is

question 26

Multiple Choice

Which one of the following 5 Cs of credit is NOT correctly defined?

• A) Capacity - Whether the borrower has enough other credit available to pay off the loan in the event of cash flow problems.
• B) Capital - The borrower's equity.
• C) Character - A measure of the borrower's intention/willingness to repay the loan.
• D) Conditions - Assessing how economic conditions could affect the borrower's ability to repay the loan.
• E) Collateral - An asset of the borrower that the lender may seize in the event of default on the loan.

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Definitions:

Normal Faulting

A type of faulting where the crust is extended and the hanging wall moves down relative to the footwall.

Partly Metamorphic

Relating to rocks that have been partially altered in structure or composition by heat, pressure, or chemical processes.

High Pressure

A condition of the atmosphere where the air pressure is higher than the surrounding area, often leading to stable weather conditions.

Metamorphic Conditions

Conditions under which rocks undergo transformation in terms of mineralogy, texture, and structure due to heat and pressure without melting.