ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a measure of financial ability to repay a loan
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Capacity
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Character
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Collateral
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Capital
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Explanation:
Detailed explanation-1: -In this ratio, total monthly debt payments are divided by monthly gross income. Gross income means the income of the borrower before paying taxes and other deductions. This method is helpful for lenders to identify a borrower’s ability to repay the loan.
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