Final answer:
The statement is true; creditors can request a spouse to act as a cosigner if an applicant is not deemed creditworthy. A cosigner is legally obligated to repay the loan if the original borrower defaults, providing additional security to the lender.
Step-by-step explanation:
If the individual applicant is not creditworthy, the creditor may request the spouse of the individual to be the cosigner. The correct answer to this question is True. In the financial capital market, when a bank makes a loan, it will initially require a prospective borrower to disclose sources of income and perform a credit check. If the individual does not have a sufficient credit history or appears to be a high-risk borrower, the bank may ask for additional security for the loan. This could be in the form of a cosigner, which is another person or entity that legally pledges to repay some or all of the money if the original borrower fails to do so. Alternatively, the bank may require collateral, such as property or equipment, which it can seize and sell if the loan is not repaid.