Answer Key
Credits and mortgages – Practice 1
Choose the correct answer:
- Due to my poor credit standing, my bank [turned down] my mortgage application.
- He offered his home as security or [collateral] when he borrowed from the bank.
- The bulk of third world debt has been transferred to official [creditors] such as the IMF or the World Bank
- The [interest] rate on the loan was 15 per cent.
- The two [counterparties] agreed their own terms for the deal.
- 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).
- Historically, banks only lent money [against] gold, otherwise, loosely printed money would soon become worthless.
- Borrowers and lenders can sometimes arrange limits beyond which rates cannot move. The upper limit is called a: [ceiling]
- These days many loans are made with [floating] or variable interest rates that change according to the supply and demand for money
- 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]