Module: General Practice
Q105: Scenario: "A bank manager is evaluating a loan application. He specifically looks at the borrower's personal integrity, reputation in the market, and willingness to repay, rather than just the financials."
Concept: Which of the "5 Cs of Credit" is the manager assessing in this scenario?
✅ Correct Answer: C
Correct Option: C Concept: The 5 Cs of Credit (Banker's Perspective). Definition: 1. Character: Integrity, reputation, and willingness to pay (The scenario). 2. Capacity: Cash flow and ability to repay.
3. Capital: The borrower's own contribution ("Skin in the game"). 4. Collateral: Security or assets pledged.
5. Conditions: Economic environment and loan terms.
3. Capital: The borrower's own contribution ("Skin in the game"). 4. Collateral: Security or assets pledged.
5. Conditions: Economic environment and loan terms.