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Read the text and complete the sentences with words from the text.

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  5. Answer the questions after reading the text.
  6. Answer the questions to the text.
  7. Ask eight questions about the previous text.


Credit - transactions between two parties in which one (the creditor or lender) supplies money, goods, services, or securities in return for a promised future payment by the other (the debtor or borrower). Creditor is someone who money is owed to. Debtor is someone who owes money. Credit given is an indication of trust in that person to pay for the goods given or money lent. Credit transactions normally include the payment of interest to the lender. Credit may be extended by public or private institutions to finance business activities, agri­cultural operations, consumer expenditures, or government pro­jects. Most modern credit is extended through specialized fi­nancial institutions, of which commercial banks are the oldest and most important. The lender must judge each loan he makes on the basis of the character of the borrower (his intention to repay), his capacity to repay (based on his potential for earning income), and his collateral (property or other goods that you promise to give someone if you cannot pay back the money they lent you). Loan is an amount of money that you borrow from a bank. Customers and lenders may publicly regulate the terms of credit transactions to prevent abuses.



1. If the bank lends you money, you have a bank ….

2. Banks have higher … rates for borrows than for savers.

3. The bank refused further … to the company.

4. A bill of sale is a … security, as it is given as a guarantee for the repayment of a loan.

5. A borrower is a person that has applied, met specific requirements, and received a monetary loan from a ….

6. The government plans to increase … on health.

7. I think it was a profitable ….

8. The … is legally responsible for repayment of the loan.

9. Nowadays a bank’s main function is to be an intermediary between … and borrowers.

10. In England students can take out a … from the bank.



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