Answer Key

Credits – Practice 2

Fill in the gaps with the appropriate word or phrase in the correct form.
  1. When writing a check, you must have enough in the account to pay the check or you've got [insufficient] funds.
  2.  [Forfaiting] is the same as factoring, whereby a company sells its accounts receivable (invoices) to a factor who collects the amount due, retains a percentage of that amount, and remits the balance to the originator of the invoice. The difference is that trade documents are usually far more complex than the average invoice.
  3. A  [bridging] loan can help you make the down payment on your new home while you sell your current home.
  4. A payment  [holiday] basically gives you a break from loan repayments.
  5. If a lender  [charges] above the lawful interest rate, a court will not allow the lender to sue to recover the debt because the interest rate was illegal anyway.
  6. If you are worried about your bad  [credit] history, you can also compare loans that you are likely to be accepted for by completing a few questions about your credit history, this is not a credit check and will not affect your credit rating.
  7. There are basically two kinds of credit: installment loans and  [rvolving] credit.
  8. Often, consumers are seeking the services of professional debt  [settlement] companies to help regain control of their finances.
  9. Your lender and its designated guarantee agency/servicer will continue  [processing] your loan application once they have received the electronic application from the school.
  10. In order to provide the permitted  [overdraft] on your account, the bank reserves the right to review the 6-month history of your account with the Credit Union Group.