Financial Markets and Institutions
Financial Markets and Institutions
6th Edition
ISBN: 9780077641825
Author: SAUNDERS
Publisher: Mcgraw-Hill Course Content Delivery
Question
Book Icon
Chapter 20, Problem 3Q
Summary Introduction

To determine: The purpose of credit-scoring model and the manner in which these model help an FI manager to better administer credit.

The credit scoring system is a numerical system that ascertains the repayment ability of the borrower and lenders use this to evaluate a borrower before lending money to them. The system is based on the specific scores which are assigned based on certain factors that influence the creditworthiness of the borrower. The credit-scoring system measures the creditworthiness of borrowers.

Blurred answer
Students have asked these similar questions
No Ai!!! Diversification in investing helps to:A. Eliminate all riskB. Increase potential lossesC. Reduce unsystematic riskD. Increase taxes
I need help in this question! Diversification in investing helps to:A. Eliminate all riskB. Increase potential lossesC. Reduce unsystematic riskD. Increase taxes
I need help in this question  What is the primary goal of corporate finance?A. Minimizing taxesB. Maximizing employee satisfactionC. Maximizing shareholder valueD. Avoiding debt
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Text book image
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:9781260013962
Author:BREALEY
Publisher:RENT MCG
Text book image
Financial Management: Theory & Practice
Finance
ISBN:9781337909730
Author:Brigham
Publisher:Cengage
Text book image
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Text book image
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Text book image
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education