SBI PO Prelims Full Mock Test 15

1. Read the following passage carefully and answer the questions given after it. When India's first credit bureau began operations, few borrowers knew it existed. Today, a credit score shapes whether a young professional gets a home loan, how much interest a shopkeeper pays on a working-capital limit and even whether a landlord agrees to rent out a flat. A three-digit number has quietly become one of the most powerful facts about a person's financial life. The logic is simple. Lenders cannot know every borrower personally, so they rely on the borrower's history: whether past loans were repaid on time, how much of the available credit is being used and how often new credit has been sought. A good record lowers the lender's risk and, in principle, the borrower's cost. Problems arise when the record is wrong. A loan closed years ago may still appear as unpaid, or a stranger's default may be wrongly attached to someone with a similar name. Correcting such errors can take months, during which the borrower may be refused credit. Regulators have therefore required lenders and bureaus to fix disputes within fixed timelines and to compensate customers when they fail. There is also a quieter exclusion. Millions of people who have never borrowed formally have no score at all, and lenders often treat no history as bad history. Alternative data, such as the regular payment of utility bills or rent, could help these first-time borrowers prove that they are reliable.

   Q1.What does the first paragraph suggest about credit scores?

   • A.They are decided by the borrower
   • B.Few lenders use them today
   • C.They are used only by landlords
   • D.They matter only for business loans
   • E.They now influence many important financial decisions in a person's life

2. Q2.Which of the following is NOT mentioned as part of a borrower's history used by lenders?

   • A.Timely repayment of past loans
   • B.Use of available credit
   • C.Frequency of seeking new credit
   • D.The borrower's educational qualifications
   • E.None of these; all are mentioned

3. Q3.According to the passage, what have regulators done about errors in credit records?

   • A.Banned credit bureaus
   • B.Asked borrowers to pay for corrections
   • C.Made credit scores optional
   • D.Required disputes to be fixed within fixed timelines with compensation for delays
   • E.Allowed lenders to ignore disputes

Start the test to answer these. Correct answers and explanations are shown after you submit.