hen you apply for a loan, you are required to answer lots of questions because multiple choice $1$ answering the questions ensures that you have thought through the decision to obtain a loan. bank regulators may need the information as they monitor banking activities. it is required by the federal government. the lender needs information on how likely you are to repay the loan. The set of questions your are asked is standardized multiple choice $2$ to reduce the amount of paperwork. because it is required by the federal government. to increase the likelihood that the loan will be repaid.