Answer Key

Credits and mortgages – Practice 1

Choose the correct answer:
  1. Due to my poor credit standing, my bank  [turned down] my mortgage application.
  2. He offered his home as security or  [collateral] when he borrowed from the bank.
  3. The bulk of third world debt has been transferred to official  [creditors] such as the IMF or the World Bank
  4. The  [interest] rate on the loan was 15 per cent.
  5. The two  [counterparties] agreed their own terms for the deal.
  6. The property we are selling is a  [leasehold] and it will allow you or your successors to live in it for a fixed number of years (up to 125 years).
  7. Historically, banks only lent money  [against] gold, otherwise, loosely printed money would soon become worthless.
  8. Borrowers and lenders can sometimes arrange limits beyond which rates cannot move. The upper limit is called a: [ceiling]
  9. These days many loans are made with  [floating] or variable interest rates that change according to the supply and demand for money
  10. All other borrowers pay more, depending on the lender's estimation of their present and future solvency, also known as their creditworthiness or....  [credit standing]