6．Which of the following is one of the four Cs of credit analysis?

A)   Capacity.

B)   Commitment.

C)   Capital.

D)   Contracts.

7．Within the context of the 4-C’s of credit analysis, which of the following most accurately describes the “capacity” of a firm?

A)   The terms and conditions of the loan agreement.

B)   The assets offered as security for the debt and the value of those assets.

C)   The integrity of management and their commitment toward repayment of the loan.

D)   The availability of cash flow and other assets required by a corporation to repay its obligations.

8．Within the context of the 4-C’s of credit analysis, which of the following most accurately describes the “character” of a firm?

A)   The availability of cash flow and other assets to repay the loan.

B)   The integrity of management and its commitment toward the repayment of the loan.

C)   The assets offered as security for the loan.

D)   The terms and conditions of the loan agreement.

9．All of the following are elements of the "4 C's" of credit analysis EXCEPT:

A)   Coverage.

B)   Capacity.

C)   Collateral.

D)   Character.

10．Which of the following is NOT one of the criteria used to conduct a credit examination?

A)   Character.

B)   Consideration.

C)   Capacity.

D)   Covenants.

6．Which of the following is one of the four Cs of credit analysis?

A)   Capacity.

B)   Commitment.

C)   Capital.

D)   Contracts.

The correct answer was  A)

The four Cs of credit are character, capacity, collateral, and covenants.

7．Within the context of the 4-C’s of credit analysis, which of the following most accurately describes the “capacity” of a firm?

A)   The terms and conditions of the loan agreement.

B)   The assets offered as security for the debt and the value of those assets.

C)   The integrity of management and their commitment toward repayment of the loan.

D)   The availability of cash flow and other assets required by a corporation to repay its obligations.

The correct answer was  D)

Capacity is one of the 4 C's of credit analysis and deals with generation of cash flows.

8．Within the context of the 4-C’s of credit analysis, which of the following most accurately describes the “character” of a firm?

A)   The availability of cash flow and other assets to repay the loan.

B)   The integrity of management and its commitment toward the repayment of the loan.

C)   The assets offered as security for the loan.

D)   The terms and conditions of the loan agreement.

The correct answer was  B)

"Character" is the integrity of the firm's management and its commitment to the loan.

9．All of the following are elements of the "4 C's" of credit analysis EXCEPT:

A)   Coverage.

B)   Capacity.

C)   Collateral.

D)   Character.

The correct answer was  A)

The other "C" is covenants.

10．Which of the following is NOT one of the criteria used to conduct a credit examination?

A)   Character.

B)   Consideration.

C)   Capacity.

D)   Covenants.

The correct answer was  B)

The four C's of credit are character, capacity, collateral, and covenants.