Question: James Smithern has asked for a $3,500 loan from Beard Center National Bank to repay some personal expenses. The bank uses a credit-scoring system to

James Smithern has asked for a $3,500 loan from Beard Center National Bank to repay some personal expenses. The bank uses a credit-scoring system to evaluate such requests, which contains the following discriminating factors along with their associated point weights in parentheses:
Credit Rating (excellent 3; average 2; poor or no record 0)
Time in Current Job (five years or more, 6; one to five years, 3)
Time at Current Residence (more than 2 years, 4; one to two years, 2; less than one year, 1)
Telephone in Residence (yes, 1; no, 0)
Holds Account at Bank (yes, 2; no, 0)

Step by Step Solution

★★★★★

3.36 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The bank generally grants a loan if a customer scores 9 or more points Mr ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

347-B-B-F-M (1290).docx

120 KBs Word File

Students Have Also Explored These Related Banking Questions!

The new CEO of Roile Manufacturing has asked for a variety of information about the operations of the firm from last year. The CEO is given the following information, but with some data missing:...

The new CEO of Ruiz Manufacturing has asked for a variety of information about the operations of the firm from last year. The CEO is given the following information, but with some data missing: Total...

The new CEO of Rusty Manufacturing has asked for a variety of information about the operations of the firm from last year. The CEO is given the following information, but with some data missing:...

has asked for a $3,500 loan from Beard Center National Bank to repay some personal expenses. The bank uses a credit-scoring system to evaluate such requests, which contains the following...

Mohammed Bayyoud has asked for a $3,500 loan from Beard Center National Bank to repay some personal expenses. The bank uses a credit- .31 scoring system to evaluate such requests, which contains the...

James Smith has asked for a $3,500 loan from Bear Center National Bank to repay some personal expenses. The bank uses a credit-scoring system to evaluate such requests, which contains the following...

QUESTION THREE (20 POINTS) (a) What steps should a lender go through in trying to resolve a problem loan situation? (10 points) (b) What is the CAMELS rating and how is it used? (10 points) QUESTION...

i need some one toanswering these three questions. make sure to include apa format for the information pretty straight forward. Attached below are the chapters. Chapter 7: 7.2 #2 (p. 168) Chapter 8:...

Chapter 7:7.2 #2 (p. 168) Chapter 8:8.2 #3 (p. 205) Chapter 9:9.2 #1 (p. 225) a., b., and c. (for c., only answer the adjustable rate mortgage part Chapter 7 from Personal Finance was adapted by The...

I've attached the assignment as a word file, thanks! JWCL165_c07_304-355.qxd 7/31/09 2:05 PM Page 304 7 Fraud, Internal Control, and Cash Chapter STUDY OBJECTIVES After studying this chapter, you...

What term does IFRS use for leases that result in the lessee acquiring the use and control of an asset through obtaining financing from the lessor?

Adobe Systems is well known as the maker of Acrobat, Photoshop, Flash, and other programs that are fundamental tools in the Internet Age. It is also becoming well known as one of the "greenest"...

, 8 Discuss the probable justification for each of the following aspects of the tax law: a. A tax credit is allowed for amounts spent to furnish care for minor children while the parent works. b....

With respect to ethics, what are the responsibilities of the Public Company Accounting Oversight Board? What is the source of the Boards authority?

Describe the major financial institutions engaged in getting the savings of individuals into business firms that want to make investments to maintain and grow their firms.

Compare commercial banking with investment banking. What is universal banking?

Describe the functions of banks and the banking system.

Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Ramer and Knox began a partnership by investing...

Here is my assignment, if you could, could you do it in excel and screen shot so I can learn step by step. I am really struggling but want to learn how. Note: The goal of the project is to practice...

Q5) consider the following code: int bar.){ char buff[8]; gets(buff); return 0; If the stack of bar before gets is called is: Some data (0x12345678) Return Address (Ox084055e0) Saved EBP (Oxbffffd45)...