What is the advantage of a variable-interest loan?

1. Protects the borrower from rising interest rates

2 .Reduces the total interest payments

3. Protects the borrower from falling interest rates

4. Makes it easier for the borrower to plan for future payments.

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What does underwriting include in the general lending process?

1.Creating documentation for the borrower to sign

2.Assessing the borrowers eligibility for the loan

3.Discussing loan amount and interest rate with the borrower

4. Monitoring loan account

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Which of the following tools is used to analyze the industry attractiveness in the credit application process?

1. Management analysis

2. PESTEL analysis

3. SWOT analysis

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What do the liquidity ratios tell you in the financial analysis?

1. The capital structure of a company

2. The profitability of the company

3. The efficiency of inventory

4. The companys ability to pay off debt obligations

5. Ratios analysis