The key dimension of credit selection which analyzes an applicant's ability to repay the requested credit focused on cash flows available is ________.
A) collateral
B) capital
C) conditions
D) capacity

Question

Quizplus · Accepted Answer

Capacity measures an applicant's ability to repay a loan through analyzing their cash flows available. Collateral refers to assets that can be used as security for a loan, capital refers to an applicant's financial strength and resources, and conditions refer to external factors that may impact an applicant's ability to repay a loan (e.g. economic conditions, industry trends).

The Key Dimension of Credit Selection Which Analyzes an Applicant's