Which of the following are the '5 Cs of Credit'?
A)Character, Capacity, Compensation, Collateral, Conditions
B)Character, Cash, Credit, Collateral, Collectability
C)Cash, Capacity, Capital, Compensation, Collectability
D)Character, Capacity, Capital, Collateral, Conditions

Question

Quizplus · Accepted Answer

The correct '5 Cs of Credit' are Character, Capacity, Capital, Collateral, and Conditions. Choice A includes Compensation, which is not one of the 5 Cs, and Choice B includes Cash and Collectability, which are not commonly included in the 5 Cs. Choice C includes Cash and Compensation, which are not the correct terms.

Which of the Following Are the '5 Cs of Credit