Banks should always check financial status before lending money to a client. Assumptions : I. Checking before lending would give a true picture of the client's financial status. II. Clients some times may not present the correct picture of their ability to repay loan amount to the bank.

A) If only assumption I is Implicit

B) If only assumption II is Implicit

C) If either I or II is Implicit

D) If both I and II are Implicit

View Answer

Option – A.

Banks should always check financial status before lending money to a client. Assumptions : I. Checking before lending would give a true picture of the client’s financial status. II. Clients some times may not present the correct picture of their ability to repay loan amount to the bank.