SEBI - Investor Certification Examination
SEBI - Investor Certification Examination
Q 31. What is the role of a credit score in the loan application process?
It guarantees loan approval
It influences the lender's decision
It determines the loan amount
It replaces the need for collateral
Q 32. How does a low credit score affect a loan application?
Guarantees rejection of the application
Increases the loan amount
Decreases the loan interest rate
Eliminates the need for collateral
Q 33. Who ultimately decides whether to approve a loan application?
Credit information agencies
Reserve Bank of India
Borrower's employer
Credit bureau
Q 34. How can debt be managed effectively according to Tip 01?
By buying everything one desires
By maintaining discipline and spending within means
By borrowing as much as possible
By constantly upgrading to more expensive items
Q 35. How can one reduce the risk of accumulating debt according to Tip 05?
Increasing spending habits
By ignoring savings
By prioritizing desires over financial stability
By avoiding any changes in lifestyle
Q 36. What is the advantage of using a debit card instead of a credit card as per Tip 06?
It encourages overspending
It allows borrowing beyond the means
It offers better rewards
It provides higher credit limits
Q 37. According to Tip 07, how should one approach spending?
By exceeding one's financial capacity
By ignoring affordability
By buying everything desired
By accumulating as much debt as possible