Choose the best response to complete each of the sentences below.
1. If you default on a loan, your _________________ can take a number of actions to recover the money.
Correct answer: lender.
2. I have to make _________________ to repay my loan.
Correct answer: arrangements.
3. They might _________________ (meaning: retain, keep) part of your salary.
Correct answer: withhold.
4. There is a way to _________________ the repayment period. (meaning: to prolong this period)
Correct answer: extend.
5. _________________ involves paying off several loans together.
Correct answer: Consolidation.
6. To __________________ payment = To pay later, to postpone payment
Correct answer: defer.
7. These payments have to be made on a monthly __________________. (meaning: every month)
Correct answer: basis.
8. Getting a business loan isn't as __________________ (meaning: uncomplicated) as it seems.
Correct answer: straightforward.
9. We will also require an official document __________________ by your employer stating how much you earn per year.
Correct answer: issued.
10. A co-signer is legally _________________ (meaning: responsible) for the repayment of the loan.
Correct answer: liable.
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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