Question

Which of the following is not one of the three C's of Credit:
a. capital
b. capacity
c. character
d. collateral

Answer 1

Answer:

the correct answer is C. Character.

Explanation:

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Answer 2

'Character' does not constitute one of the three C's of credit.

What are the three C's of credit?

In the study of credit, the three C's have been confined to being the essentials of the credit world. As per this study, the three C's of credit stand for:

1. Capital – denoting the amount of credit to be offered
2. Capacity – denoting the total utilized limits
3. Collateral – denoting the collaterals being offered as security

Hence, option C; Character is not one of the three C's of credit.

Learn more about three C's of credit here:

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