Loose Leaf for Personal Finance
Loose Leaf for Personal Finance
12th Edition
ISBN: 9781259720680
Author: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
Publisher: McGraw-Hill Education
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Chapter 6, Problem 6.3PQ1
Summary Introduction

To identify:

The general rules of measuring credit capacity.

Introduction:
Credit capacity refers to the maximum amount loan a person could get based on his ability to repay that loan through his incomes and savings. The credit capacity of a person is important to measure before lending him or her loan as it reduces of risk of defaults in payments.

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