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21) The key dimension of credit selection which analyzes an

Question : 21) The key dimension of credit selection which analyzes an : 1415272

 

21) The key dimension of credit selection which analyzes an applicant's record of meeting past obligations is ________.

A) collateral

B) capacity

C) character

D) capital

22) ________ is a procedure resulting in a number reflecting an applicant's credit strength, derived as a weighted average of the scores obtained on a variety of key financial and credit characteristics.

A) Credit scoring

B) Aging of receivables

C) CAPM

D) The economic order quantity model

23) The key dimension of credit selection which analyzes an applicant's ability to repay the requested credit focused on cash flows available is ________.

A) collateral

B) capital

C) conditions

D) capacity

24) ________ are established to evaluate a customer's creditworthiness and to determine the minimum requirements for extending credit to a customer.

A) Lines of credit

B) Credit limits

C) Collection agencies

D) Credit standards

25) Which of the following is true of credit scoring?

A) It audits the amount of assets the applicant has available for use in securing the credit.

B) It specifies the terms of sale for customers who have been extended credit by a firm.

C) It is an ongoing review of a firm's accounts receivable to determine whether customers are paying according to the stated credit terms.

D) It applies statistically derived weights to an applicant's scores on key financial and credit characteristics.

26) The key dimension of credit selection which analyzes the amount of assets an applicant has available for use in securing the credit is ________.

A) capital

B) collateral

C) capacity

D) conditions

27) Which of the following is one of the five C's of credit?

A) coordination

B) cost

C) character

D) control

28) A credit applicant's ________ reflects its ability to repay the requested credit.

A) character

B) capacity

C) capital

D) collateral

29) A credit applicant's ________ is his or her financial strength as reflected by his or her ownership position.

A) character

B) capacity

C) capital

D) collateral

30) A credit applicant's ________ reflects his or her record of meeting past obligations.

A) condition

B) capacity

C) control

D) character

 

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