In order to give any kind of loan – be it a small business loan, credit...
In order to give any kind of loan – be it a small business loan, credit card, home equity loan, etc. – the lender has to determine the borrower’s ability to repay the loan, or creditworthiness. Throughout history, money-lenders and banks have established different criteria for determining a borrower’s creditworthiness. Can you come up with some examples of what criteria you think medieval banks would have used to establish creditworthiness.
Homework Answers
The ancient banks would have used the net value of people to ascertain their creditworthiness. This would be based upon an assessment of possessions such as gold, silver, house, land and cattle. The older banks also used the mortgage system to secure their loans. They would use factors such as age and income to judge the creditworthiness as also the persons past history and local reputation.
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In order to give any kind of loan – be it a small business loan,
credit...
it is important to understand the costs associated with loans. These include the principle amount, interest,...
it is important to understand the costs associated with loans. These include the principle amount, interest, "fees" and discounts: The principle about is the amount that you borrow (want/need) and will pay back. Interest is the periodic (daily/monthly/annual) amount charged to borrow/rent the money. The "fees" come in many varieties and include a fixed fee to borrow, transaction cost, other lender costs, other fees and penalties. Discounts are money the lender gives you for using their service. Examples: 1) When...
Assignment : Imagine that a friend who knows you are working toward your degree in business...
Assignment : Imagine that a friend who knows you are working toward your degree in business administration is complaining about interest rates. Perhaps they think the rate they are getting on savings vehicles, like money markets, is too low, or the interest they are paying on their mortgage is too high. They conclude that it seems like no matter what they lose. 1) Respond to your friend's concerns. Be sure to be specific in supporting the points you are making...
2. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or...
2. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is her credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be...
2. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or...
2. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is her credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be...
please answer all questions or don't answer (T/F__T___8) A small business owner should avoid borrowing money...
please answer all questions or don't answer (T/F__T___8) A small business owner should avoid borrowing money when he/she sees a downturn in business or to refinance existing debt. _____9) Commercial banks are lenders of last resort for small businesses. _____10) A business owner does not pay interest on a floor-planned item in inventory until it is sold. _____11) Even companies whose financial statements are too weak to produce other types of loans can get asset-based loans. _____12) Trade credit, while...
3. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or...
3. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is his credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be...
2. Hypothesis tests about a population mean, population standard deviation known Lenders tighten or loosen their...
2. Hypothesis tests about a population mean, population standard deviation known Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is her credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be extended credit...
Please fill in the blanks Drop down options for fill in blanks: 1. Checking account, debit...
Please fill in the blanks
Drop down options for fill in blanks:
1. Checking account, debit card, OR student
loan
2. between 500 and 1000 OR without any dollar
limitation
3. only for emergencies OR whenever its
convenient
4. living beyond your means OR managing your
cash wisely
5. when you decide to write a check for them OR
based on a regular disbursement schedule
6. requires OR doesn't require
7. for $25,000 or more OR with no dollar
limitation...
5. Testing the population mean when the population standard deviation is known Lenders tighten or loosen...
5. Testing the population mean when the population standard deviation is known Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is her credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be extended...
Assignment : Imagine that a friend who knows you are working toward your degree in business administration is complaining about interest rates. Perhaps they think the rate they are getting on savings vehicles, like money markets, is too low, or the interest they are paying on their mortgage is too high. They conclude that it seems like no matter what they lose. 1) Respond to your friend's concerns. Be sure to be specific in supporting the points you are making...
2. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is her credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be...
2. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is her credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be...
3. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is his credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be...
Please fill in the blanks
Drop down options for fill in blanks:
1. Checking account, debit card, OR student
loan
2. between 500 and 1000 OR without any dollar
limitation
3. only for emergencies OR whenever its
convenient
4. living beyond your means OR managing your
cash wisely
5. when you decide to write a check for them OR
based on a regular disbursement schedule
6. requires OR doesn't require
7. for $25,000 or more OR with no dollar
limitation...
5. Testing the population mean when the population standard deviation is known Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is her credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be extended...
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