Ontario Mortgage Agent Practice Exam

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Study for the Ontario Mortgage Agent Exam. Prepare with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for your test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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How is the relationship between a credit score and the delinquency rates of Canadians characterized?

Higher credit score leads to higher delinquency rates
Lower credit score leads to higher delinquency rates
Higher credit score leads to lower delinquency rates
There is no relationship between credit score and delinquency rates

The correct answer is: Lower credit score leads to higher delinquency rates

A higher credit score is typically associated with a lower risk of delinquency, as it indicates that the individual has a good history of repaying debt on time. Conversely, a lower credit score may suggest a pattern of late or missed payments, leading to a higher risk of delinquency. Therefore, option B is the correct answer. Options A and C are incorrect as they suggest a positive correlation between credit score and delinquency rates, which is not supported by data. Option D is also incorrect as it disregards the well-documented relationship between credit score and delinquency rates.