SEBI - Investor Certification Examination

SEBI - Investor Certification Examination

 7

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Q 16. What are Housing Loans used for?

- Purchasing vehicles

- Financing agricultural operations

- Purchasing consumer durables

- Education Expenses
 
Q 17. Who are Agriculture Loans provided to?

- Students

- Business owners

- Farmers

- No specific group
 
Q 18. What can Consumer Durable Loans be used for?

- Purchasing vehicles

- Financing agricultural operations

- Purchasing consumer durables like televisions, refrigerators, etc.

- Renovating a house
 
Q 19. What is considered in the 5 Cs of credit analysis?

Comfort, Confidence, Credibility, Conditions, Capital

Capacity, Character, Capital, Collateral, Conditions

Currency, Credit, Collateral, Conditions, Capital

Creativity, Carefulness, Credit, Collateral, Capacity
 
Q 20. Which C represents the prospective borrower's ability to repay the loan?

Character

Capital

Capacity

Conditions
 
Q 21. What does Character signify in the 5 Cs of credit?

Trustworthiness of the borrower

Amount of money invested in the business

Purpose of availing of the loan

Current economic conditions
 
Q 22. What does Capital indicate in credit analysis?

Borrower's capacity to repay

Trustworthiness of the borrower

Money personally invested in the business

Purpose of availing of the loan
 
Q 23. What role do credit information agencies play in loan application processing?

Evaluating loan purposes

Assessing borrower's capacity

Checking credit scores and s

Determining loan interest rates
 
Q 24. What is the significance of a high credit score in loan approval?

It guarantees loan approval

It increases the chances of loan review and approval

It reduces the loan amount

It eliminates the need for collateral
 
Q 25. Which organization is commonly known as a credit bureau in India?

Credit Information Bureau of India Ltd (CIBIL)

Reserve Bank of India (RBI)

Securities and Exchange Board of India (SEBI)

Insurance Regulatory and Development Authority of India (IRDAI)
 
Q 26. What information does CIBIL collect and maintain?

Personal information of borrowers

Loan and credit card payment records

Investment details of borrowers

Transaction history of banks
 
Q 27. How often do banks and lenders submit information to CIBIL?

Quarterly

Annually

Monthly

Irregularly
 
Q 28. What does a Credit Information  (CIR) include?

Personal opinions of borrowers

Financial forecasts of borrowers

Credit scores of borrowers

Social media activity of borrowers
 
Q 29. Which Act governs the functioning of credit bureaus in India?

Banking Regulation Act

Securities and Exchange Board of India Act

Credit Information Companies (Regulation) Act

Consumer Protection Act
 
Q 30. How often are consumers entitled to free full credit from credit bureaus?

Once every six months

Once every year

Once every three years

Only upon request
 

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