SEBI - Investor Certification Examination
SEBI - Investor Certification Examination
Q 1. What is borrowing?
- Giving money to someone
- Saving money for future use
- Taking money and repaying it over time
- Donating money to charity
Q 2. What does EMI stand for?
- Easy Money Investment
- Equated Monthly Instalments
- Efficient Money Issuance
- Effective Money Implementation
Q 3. What is the purpose of borrowing?
- To give money to others
- To save money
- To invest in stocks
- To donate to charity
Q 4. What is collateral?
- A type of loan
- A monthly payment
- A security offered by a borrower to a lender
- A charity organization
Q 5. What happens if a borrower stops making loan repayments?
- The lender gives more money to the borrower
- The lender seizes the collateral to cover its losses
- The borrower receives additional time to repay the loan
- The lender loses money
Q 6. What is a lender's claim to a borrower's collateral called?
- Payment receipt
- Lien
- Collateralization
- Credit
Q 7. What provides the flexibility of repaying a loan in small installments over time?
- Borrowing
- Savings account
- Donating money
Q 8. What does a borrower offer security to a lender in exchange for a loan?
- Collateral
- Savings account
- Credit card
- Insurance policy
Q 9. What is the purpose of a lien?
- To give money to the borrower
- To seize the borrower's assets
- To increase the loan amount
- To extend the loan term
Q 10. What does a borrower resort to if savings are inadequate for meeting financial goals?
- Investing in stocks
- Donating money
- Borrowing
- Withdrawing from retirement funds
Q 11. What is a Personal Loan?
- A loan for purchasing vehicles
- A loan for higher education
- A loan for agricultural purposes
- A loan for purchasing consumer durables
Q 12. What is required as collateral for a Personal Loan?
- Gold
- Vehicle
- House
- No collateral is required
Q 13. What is the purpose of a Vehicle Loan?
- Higher education expenses
- Agricultural operations
- Purchasing vehicles
- Renovating a house
Q 14. What conditions must students meet before applying for an Education Loan?
- Providing gold as security
- Having a housing property
- Obtaining an admission offer from an institution
- No specific condition
Q 15. What is required as security for a Gold Loan?
- Vehicle
- House
- Education admission offer
- No security required