The correct answers are “c” and “e”. Using his family home as collateral for a loan and mortgaging his factory building.
The credit score of Mr. Jones increases as a number of assets he owns increment the value. If he has a high-value asset such as his factory or his own house, these really can help him. This is because a debt instrument makes the lender feel at ease in giving Mr. Jones the loan. The reason? Because the lender could take it away in case Mr. Jones is not paying his due on time.
