Mult-Choice 2 Pts each 1 A Values driven credit culture A Focuses on short-term
ID: 332395 • Letter: M
Question
Mult-Choice 2 Pts each 1 A Values driven credit culture A Focuses on short-term earnings B attracts high-isk high-return borrowers C Has conservative underwriting and does not permit significant loan concentrations D has aggressive underwriting and high loan concentrations 2 Which is not one of the 5 C's of bad credit? A Contingencies B Carelessness C Competition D Character 3 Which is not one of the 5 C's of good credit? A Capacity B Conditions C Competition D Character 4 Which is not one of the 5 C's of good credit? Capital Conditions Character Communication 5 Which is not one of the 5 C's of bad credit? A Contingencies B Collateral C Competition D ComplacencyExplanation / Answer
1. The correct answer is option C.
Credit culture is nothing but the principles that focus on lending activity and how risk is analyzed by the management. Values driven credit culture include credit quality with strong risk management system and the priority is given to safety of bank. The outcome is based on profit from loans and fewer loan losses.
2. The correct answer is option D.
Credit history gives information about the individual repayment of debt on a loan. The 6 C's of bad credit include complacency, carelessness, communication, contingencies, competition, and cluelessness.
3. The correct answer is option C.
Credit history gives information about the individual repayment of debt on a loan. The five C's of good credit include character, capital, capacity. conditions and collateral.
4.
The correct answer is option D.
Credit history gives information about the individual repayment of debt on a loan. The five C's of good credit include character, capital, capacity. conditions and collateral.
5. The correct answer is option b.
Credit history gives information about the individual repayment of debt on a loan. The 6 C's of bad credit include complacency, carelessness, communication, contingencies, competition, and cluelessness.
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