A credit manager typically gives primary attention to ________ in extending credit to an applicant.
A) collateral and capacity
B) collateral and conditions
C) character and capacity
D) character and capital

Question

Quizplus · Accepted Answer

A credit manager typically gives primary attention to the applicant's character and capacity in extending credit. Character refers to the applicant's reputation and history of paying bills on time. Capacity refers to the applicant's ability to repay the loan based on their income and other debts. While collateral and conditions may also be considered, they are typically not as important as character and capacity. Capital is not usually a factor in extending credit, as it refers to the applicant's financial resources and is not necessarily indicative of their ability to repay a loan.

A Credit Manager Typically Gives Primary Attention to ________ in Extending