Choose the best response to complete each of the sentences below.
1. The interest _________________ will be lowered if you make 12 consecutive payments on time.
Correct answer: rate.
2. We can transfer the money _________________ into your bank account.
Correct answer: directly.
3. This is not a one-time fee; it is a ____________________ fee.
Correct answer: recurring.
4. He couldn't pay his loan. = He _________________ on his loan.
Correct answer: defaulted.
5. Some lenders ____________________ an application fee when a loan request is submitted.
Correct answer: charge.
6. How much is your __________________? = How much money did you borrow?
Correct answer: principal.
7. The bank hasn't __________________ our loan yet.
Correct answer: processed.
8. ____________________ interest is interest that has accumulated but has not yet been paid.
Correct answer: Accrued.
9. ____________________ of the loan amount means no matter how large or small the loan is.
Correct answer: Regardless.
10. He could not make the required payments; he is ____________________ on his loan.
Correct answer: delinquent.
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📚 Important Words to Know balance of payments — a record of all economic transactions between a country and the rest of the world over a period venture capital — financing provided to startups and early-stage companies with high growth potential in exchange for equity private equity — investment capital used to acquire or invest in companies that are not publicly listed on a stock exchange hedge — an investment or strategy used to reduce the risk of adverse price movements in an asset derivatives — financial contracts whose value is derived from the performance of an underlying asset or index capital gains — profit made from selling an asset at a higher price than it was purchased for dividend — a portion of a company's profits paid regularly to shareholders as a return on their investment IPO (Initial Public Offering) — the first sale of a company's shares to the public on a stock exchange leverage — the use of borrowed capital to increase the potential return of an investment portfolio — a collection of financial investments such as stocks, bonds, and cash equivalents held by an investor