Final answer:
True. Loan/deposit-based questions are commonly used in Know Your Customer (KYC) practices in the banking and financial industry to assess creditworthiness and risk.
Step-by-step explanation:
True. Loan/deposit-based questions are commonly used in Know Your Customer (KYC) practices in the banking and financial industry to assess the creditworthiness and risk of potential customers. These questions help banks and financial institutions gather information about a customer's financial history, sources of income, and borrowing patterns.
For example, a typical loan/deposit-based question in KYC may ask for details about previous loans taken, outstanding loan amounts, monthly deposits into the account, and the purpose of these deposits. By analyzing the responses and financial data, banks can better understand a customer's financial profile and make informed decisions regarding loans and financial services.