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:

Accounting Records

Documentation kept by businesses and organizations to track their financial transactions, assets, and liabilities for the purpose of financial management and reporting.

Quilled Clothing

Clothing decorated with quills, typically from porcupines, used by various Indigenous peoples of North America as a form of ornamentation.

Competitive Dances

Dance events where individuals or teams perform routines in various styles to be judged on criteria such as technique, creativity, and expression.

Beaded

Pertaining to or decorated with beads; often used in reference to jewelry, clothing, and adornments.