Vocabulary

Study the following vocabulary.

Banking 3 – bank verbs

loan / lend – to provide money temporarily, usually at interest

borrow – to take money temporarily, usually at interest

owe – to have to repay a debt, to be in debt to

default – to fail to repay a debt when it is due

penalize – to require or charge an amount of money as punishment for failure to perform an action as required, for example, for not repaying a debt at the agreed upon time

accrue – to increase or accumulate over time (used with interest)

exchange – to give one currency for another at a specified rate, usually for a commission

mortgage – to arrange for a bank to provide the funds to purchase a property or house, with the full amount repaid, at interest, over a period of years, often ten, twenty or thirty

service – to make payments on a debt (often used to refer to extremely large debts, especially those held by countries)

debit – to record an item of debt into an account