BUSN 380 STUDY Career Path Begins/busn380study.com BUSN 380 STUDY Career Path Begins/busn380study.com | Page 47

25

Question 7. 7. (TCO 3) If a bank needs to examine the value of a
specific asset when you are applying for a loan, this process refers to
which aspect of the five Cs of lending?
Character
Capacity
Collateral
Capital
Conditions
Question 8. 8. (TCO 3) When a lender examines your job situation
and the security of your employment, it is considering which area of
lending?
Capacity
Character
Capital
Collateral
Conditions
Question 9. 9. (TCO 3) Which one of the selections can be categorized
as an advantage of credit?
The use of credit can lead to court action and bankruptcy.
The use of credit can lead to overspending.