Question

Identify 3 R's of credit.
(A) Referral
(B) Returns
(C) Reach
(D) Repaying capacity (E) Risk bearing ability. Choose the correct answer from the options given below.

• A. (B), (D) and (E) only.
• B. (A), (B) and (E) only.
• C. (B), (C) and (D) only.
• D. (A), (B), (C) and (D) only.

Hint:

Remember the financial meaning of the 3 R's:
- Returns: Will the investment make a profit?
- Repaying Capacity: Can the borrower pay the loan back on time?
- Risk Bearing Ability: Can the borrower survive a bad year?

Answer 1

The Correct Option is A