Asked by MATTANAPORN CHANTIYANON on Jul 01, 2024
Verified
By definition, the five Cs of credit include all of the following EXCEPT:
A) Character.
B) Capital.
C) Conditions.
D) Credit scoring.
E) Capacity.
Credit Scoring
The process of quantifying the probability of default when granting consumer credit.
Conditions
The specific requirements, terms, or circumstances that define an agreement or situation.
Capacity
The maximum output that a business can produce under normal conditions over a certain period of time.
- Acquire knowledge on the critical aspects and constituents of credit assessment, embodying the five Cs of credit.
Verified Answer
SW
Sarah Wagner6 days ago
Final Answer :
D
Explanation :
Credit scoring is not one of the traditional five Cs of credit. The five Cs are Character, Capacity, Capital, Collateral, and Conditions. Credit scoring is a method used to evaluate the creditworthiness of a borrower, but it is not one of the five Cs.
Learning Objectives
- Acquire knowledge on the critical aspects and constituents of credit assessment, embodying the five Cs of credit.