This is because, the method called is the equal() method in the String class. This results in equality of obj1 and obj2 as both contain the same string "SCJP".
equals() method always checks for "meaningfully equivalent" objects since obj1 and obj2 both contain the same string "SCJP" these objects are meaningfully equivalent.
Hence the answer is true. If at all you do obj1 == obj2 then you will get the answer as false. This is because == operator checks the object references.