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

Question

Quizplus · Accepted Answer

The "5-C's of Credit" are Character, Capacity, Capital, Collateral, and Conditions. Choice C is the only one that has all the correct terms. Choice A has Compensation instead of Capital, while Choice B has Cash and Credit instead of Capital and Conditions. Choice D has Cash and Compensation instead of Capital and Conditions.

Which of the Following Are the "5-C's of Credit