Podcast Beta
Questions and Answers
What is the primary consideration for determining the maturity of a loan?
What is the primary purpose of requiring collateral in lending?
What is a key factor to consider when establishing an interest rate?
What is the primary consequence of failing to repay a loan on time?
Signup and view all the answers
What is the primary component of the 'five Cs of credit' that refers to a borrower's payment habits?
Signup and view all the answers
What is the purpose of the 'five Cs of credit' in lending?
Signup and view all the answers
What is the primary responsibility of bankers in assessing credit risk?
Signup and view all the answers
What led to the relaxation of credit standards in the lending industry?
Signup and view all the answers
What is the term for the phenomenon where lenders prioritize winning deals over prudent risk assessment?
Signup and view all the answers
What is the primary focus of a banker's attention in a competitive lending environment?
Signup and view all the answers
What is the consequence of a lender's decision to relax credit standards to win business?
Signup and view all the answers
What is the significance of collateralization in credit risk management?
Signup and view all the answers
What is a potential consequence of liberal credit during a period of economic prosperity?
Signup and view all the answers
What type of loan is repayable upon demand or has an indefinite maturity date?
Signup and view all the answers
What is the primary source of repayment for a self-liquidating loan?
Signup and view all the answers
What type of credit is granted by government institutions?
Signup and view all the answers
What is the primary characteristic of a long-term loan?
Signup and view all the answers
What is a potential risk associated with collateralized loans?
Signup and view all the answers