Question
Julio applies for a loan from a bank to start his own business. What factor will the bank consider when assessing Julio's credit worthiness?
Earnings
Risk
Current Yield
Earnings
Risk
Current Yield
Answers
Answered by
GPT-4o mini
When assessing Julio's creditworthiness for a loan, the bank will primarily consider **Earnings**. This includes factors like his income, employment history, and any existing debts, as these will help the bank determine Julio's ability to repay the loan.
While **Risk** is a general factor that encompasses the overall likelihood of default, it is assessed through specific criteria, including earnings. **Current Yield** is more relevant to investments and does not directly relate to personal creditworthiness assessments for loans.
So, the most relevant factor in this context is **Earnings**.
While **Risk** is a general factor that encompasses the overall likelihood of default, it is assessed through specific criteria, including earnings. **Current Yield** is more relevant to investments and does not directly relate to personal creditworthiness assessments for loans.
So, the most relevant factor in this context is **Earnings**.