Which situation best illustrates the process of capital formation? A. A pilot tries to save
money by limiting her weekly spending.

B. A banker takes out a high-interest loan to buy a new car.

C. A restaurant server decides to use his savings to buy stock in a
business.

D. A farmer diversifies his crops by growing many different kinds.

fnfjfjjfjf nh ngngnfnfnfnnfn

credit history is used by lenders to determine whether you are a 'risky' person to give their money to.

having a short history provide very little data for the lenders. they wouldn't be able to determine your credit behavior from such a small samples. even if they are perfect.

having long credit history with few blemishes provide larger and more accurate data for the lenders to predict your credit behavior.