Which of the following statements (is) are TRUE about credit evaluation? I. In terms of down payment, it follows that the higher the down payment, the higher will be the risk. II. The longer the term for the repayment period the more risky the transaction becomes especially if the unit is exposed to heavy depreciation like taxi or logging transportation II. In terms of the model in the sale of cars and trucks, there is a risk of product obsolescence. IV. The size of income is less important than the amount of money uncommitted to existing bills. O Ill and IV only OI, Il and III only O Il and IV only O l and II only ho O II, II and IV only
Which of the following statements (is) are TRUE about credit evaluation? I. In terms of down payment, it follows that the higher the down payment, the higher will be the risk. II. The longer the term for the repayment period the more risky the transaction becomes especially if the unit is exposed to heavy depreciation like taxi or logging transportation II. In terms of the model in the sale of cars and trucks, there is a risk of product obsolescence. IV. The size of income is less important than the amount of money uncommitted to existing bills. O Ill and IV only OI, Il and III only O Il and IV only O l and II only ho O II, II and IV only
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Which of the following statements (is) are TRUE about credit evaluation?
1. In terms of down payment, it follows that the higher the down payment, the higher will
be the risk.
II. The longer the term for the repayment period the more risky the transaction becomes
especially if the unit is exposed to heavy depreciation like taxi or logging transportation
III. In terms of the model in the sale of cars and trucks, there is a risk of product
obsolescence.
IV. The size of income is less important than the amount of money uncommitted to
existing bills.
O II and IV only
OI, Il and II only
O Il and IV only
O l and II only
O II, III and IV only
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