EBK FINANCIAL MARKETS AND INSTITUTIONS
EBK FINANCIAL MARKETS AND INSTITUTIONS
7th Edition
ISBN: 9781260166101
Author: SAUNDERS
Publisher: YUZU
Question
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Chapter 20, Problem 1DYU
Summary Introduction

To discuss: The meaning of credit-scoring system.

Expert Solution & Answer
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Explanation of Solution

The credit scoring system is a numerical system that ascertains the repayment ability of the borrower and lenders use this to evaluate a borrower before lending money to them. The system is based on the specific scores which are assigned based on certain factors that influence the creditworthiness of the borrower. The credit-scoring system measures the creditworthiness of borrowers.

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