The Reason Why Character Is an Important Consideration in a Loan

Multiple Choice

The reason why character is an important consideration in a loan request is that...

A) a good borrower always chooses a higher interest rate to distinguish itself from a bad one
B) a good borrower always chooses a lower interest rate to distinguish itself from a bad one
C) a borrower's credit reputation is a good indication of its incentive to default
D) a good borrower has more collateral to pledge
E) all of the above