How do lenders define collateral when using the Five Cs of Credit?
What will be an ideal response?
A specific asset of some value that the borrower pledges to the lender. It can be taken away by the lender and sold to satisfy the debt if the borrower does not pay the loan.
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A part of the data cleaning process that identifies data that are out of range or logically inconsistent, or that have extreme values, is called consistency checks
Indicate whether the statement is true or false
Under which of the following circumstances is it permissible for a company to make default in the repayment of monies due on bonds that it has issued?
A) When the company is unprofitable B) When the directors have been unable to declare a divided C) When an annual general meeting has not been held within the timeframe required by law. D) All of the above E) None of the above
Stimulus Industries Inc. has 2014 total current assets of $14,871,000. Last year the total current assets were equal to $12,462,000. The change in total current assets is a ________ of cash in the amount of ________
A) source; $14,871,000 B) source; $2,409,000 C) use; $2,409,000 D) There is not enough information to answer this question.
Hedging is accomplished by combining the exposed asset with a hedge asset to create a two asset portfolio in which the two assets react in relatively equal directions to an exchange rate change
Indicate whether the statement is true or false.