ECONOMICS (CBSE/UGC NET)

ECONOMICS

CREDIT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following is not one of the “Three C’s” of credit?
A
Character
B
Capacity
C
Consignment
D
Collateral
Explanation: 

Detailed explanation-1: -Students classify those characteristics based on the three C’s of credit (capacity, character, and collateral), assess the riskiness of lending to that individual based on these characteristics, and then decide whether or not to approve or deny the loan request.

Detailed explanation-2: -Answer and Explanation: 3. Candor is not part of the 5cs’ of credit.

Detailed explanation-3: -The five Cs of credit are character, capacity, capital, collateral, and conditions.

Detailed explanation-4: -Credit default risk. Concentration risk. Probability of Default (POD) Loss Given Default (LGD) Exposure at Default (EAD) 4 days ago

There is 1 question to complete.