Which of the following descriptions is appropriate to explain what is meant by the 5th "C" of Credit Conditions?

1.The condition of an applicants office space, warehouse, or distribution center.

2.The financial condition of an applicant based on its financial statements. ption 2

3.Those moral qualities and actions of a credit applicant which oblige the applicant to pay as debts are due.

4.The current and expected general economic situations as they might affect the applicant.