City Union Bank Credit Officer Interview Questions and Answers

Leverage is the use of borrowed funds to increase potential returns on an investment.

• Leverage involves borrowing money to invest in an asset with the hope of earning a higher return than the cost of borrowing.

• It amplifies both gains and losses, so it can increase potential profits but also increase risk.

• Examples of leverage include using a mortgage to buy a house or using margin to buy stocks.

• Leverage is commonly used ...read more

Credit refers to the ability of a borrower to receive funds from a lender with the promise of repayment with interest.

• Credit is a financial tool used by individuals and businesses to access funds they may not have immediately available.

• Credit can come in many forms, such as loans, credit cards, and lines of credit.

• Credit is typically granted based on the borrower's creditworthiness, which is determined by factors such ...read more