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Capacity, Which Is One of the Traditional "Five Cs" of Credit

Question 61

Multiple Choice

Capacity, which is one of the traditional "five Cs" of credit analysis, refers to the ____.


A) general economic climate and its effect on the applicant's ability to pay
B) willingness of the applicant to meet its financial obligations
C) financial strength of the applicant (i.e., net worth)
D) ability of an applicant to meet its financial obligations

Correct Answer:

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