1. In assessing a person's creditworthiness using the Five Cs of Credit, which of the following is applicable in the category of "capacity"?

A. the income of the person applying for credit

B. the value of the asset that will secure the loan

C. the amount of other debt the applicant already owes

D. the credit score of the person applying for credit

2 . The grace period is the period of time before

A. the balance is due in full.

B. the lender will increase the interest rate on the credit card.

C. interest begins to accrue on new transactions.

D. a penalty will be assessed for late payment.