An institution's evaluation of whether a person is suitable to receive credit is called:

A. Credit Rating
B. Compound Interest
C. The three C's (character, collateral, and capacity)
D. Personal profile

Respuesta :

The answer is A. Credit Rating

Answer:

A. Credit Rating

Explanation:

The credit rating is a rating given by the rating agencies to the credits or debts of different companies, governments or individuals, according to their credit quality (which measures the probability that those credits are unpaid).

The credit rating is based on the credit history of a natural or legal person and, above all, the ability to return the financing. This capacity is based on the analysis of all liabilities and assets.

Also called rating, this operation consists in assessing, either for internal information or as a method of analyzing credits of committed third parties, the quality of the debt taken by a borrower, based on the ability to generate financial flows, benefits, volume of medium and long term debt and growth in the case of a country.