select the correct answer. which statement defines the term capacity? a. a borrowers willingness to repay a…

select the correct answer. which statement defines the term capacity? a. a borrowers willingness to repay a loan b. a borrowers ability to repay a loan c. a borrowers total assets

select the correct answer. which statement defines the term capacity? a. a borrowers willingness to repay a loan b. a borrowers ability to repay a loan c. a borrowers total assets

Answer

Answer:

B. a borrower's ability to repay a loan

Brief Explanations:

In finance, capacity refers to a borrower's ability to repay a loan, considering income and debt - to - income ratio. It's about financial capability, not willingness or total assets.