Answer:
True
Explanation:
This statement is true.
Let us consider this case from the perspective of a lending institution. If we are to give someone a loan, we will make sure that the receiver is a person who is stable in his income and will be able to pay back the loan.
If we have two people asking for loan (assume their name as A and B). Suppose A is working a stable job with 5 years in a bakery. He has no defaultery record in his finances and has no credit due on his account. Furthermore he is taking loan to open up his own bakery. Similarly, assume B has switched 5 jobs in the last 3 years with periods of unemployment in between. He has credits due on his house rent and car payment and is taking loan to invest on an investment scheme his friend told him about.
It is easy to pick the right candidate from above information. Subject A is more stable than B and hence lenders will most likely be giving A the loan and B's application would be rejected.
