Chapter VI

Questions:

1. It is defined as prudence or sagacity in the conduct of affairs.

2. What are the two kinds of interest?
3. What is important aspect among the 4 C’s of Credit?
4. On what article states that “No interest shall be due unless it has been expressly situated
in writing”?
5. It is calculated as a percentage in the capital.
6. It is the maximum amount of credit that could be granted in one borrower.
7. What are the 4 C’s of Credit?
8. Who issued the Trust Receipt Law?
9. It is popular in appliance or installment credit and consumer loans.
10. This rate is changed periodically depending on the term of the loan agreement.

Answers:
1. Policy
2. Simple and Compound Interest
3. Character
4. Art.1956 of the Civil Code
5. Simple Interest
6. Credit Limit
7. Character, Capacity to Pay, Collateral, Capital
8. President Marcos
9. Add-On interest rate
10. Floating or Variable Rate