Question

before giving a loan to a customer, a lender examines the customers credit report. which explains why the lender examines the customers credit report?
○ to determine if the customer is a likeable person
○ to determine the customers income
○ to determine the customers job title
○ to determine if the customer is likely to pay back the loan

Explanation:

A credit report provides information about a customer's credit history, including past borrowing and repayment behavior. Lenders use this to assess the risk of lending money. A likeable person (first option) is irrelevant for loan decisions. A credit report doesn't directly show income (second option) or job title (third option). The main purpose is to see if the customer has a history of repaying debts, so the lender can determine if the customer is likely to pay back the loan.

Answer:

D. to determine if the customer is likely to pay back the loan (assuming the options are labeled A to D in order, with the last option being D)