​What are 3 Cs in Money management​

Correct option is A

The 3 Cs of money management are Capacity, Capital means, and Collateral. These refer to the factors considered by lenders when assessing a borrower’s ability to repay a loan:

• Capacity refers to the borrower's ability to repay the loan based on their income and financial stability.
• Capital means refers to the financial resources or wealth the borrower has.
• Collateral refers to assets that can be used as security for the loan.

• The 3 Cs help lenders evaluate the financial situation of a borrower and the risk involved in lending.

Information Booster:

• Capacity measures a borrower’s ability to repay based on income, employment, and financial obligations.
• Capital means involve the borrower’s own wealth or assets, which can help assure the lender of the borrower’s financial reliability.
• Collateral is something valuable that the borrower can pledge to back the loan. If the borrower defaults, the lender can seize the collateral.

Additional Knowledge (Incorrect Options):

• (b) Company, community and capacity: This is incorrect because these are not the 3 Cs in money management.
• (c) Capital interest, customer satisfaction and collateral: This is incorrect. Capital interest and customer satisfaction are not part of the 3 Cs in money management.
• (d) More than one of the above: This is incorrect, as (a) is the correct answer.
• (e) None of the above: This is incorrect because (a) Capacity, capital means, and collateral is the correct answer.