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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.