When evaluating the creditworthiness of a customer, the term capital refers to the:
A) type of goods the customer wishes to obtain.
B) customer's financial reserves.
C) types of assets the customer wants to pledge as collateral.
D) customer's willingness to pay bills in a timely fashion.
E) nature of the customer's line of work.

Question

Quizplus · Accepted Answer

Capital refers to the customer's financial reserves, which are used to assess their ability to repay debt. It is a measure of the customer's assets minus any liabilities or debts.

When Evaluating the Creditworthiness of a Customer, the Term Capital