​On Credit: Multiple Choice Vocabulary Test

The trouble with credit is that some people (0)       A       borrow more money than they can pay back. This becomes a problem when the interest (1)________ go up and they find they can’t afford the repayments. Usually, (2)_______ people bought with the borrowed money is (3)________ and they find them selves in debt. The worst case (4)________ is when they end up (5)________ more money than they borrowed in the first (6)________ When this is (7)________ to a mortgage on a house and the house is worth less than they paid for it, this is (8)________ negative equity. Some people are nervous about (9)________ into this trap and so refuse to use credit at all and always pay in cash. This is definitely wiser but there are some advantages to credit, especially in the short (10)_______, such as interest-free credit, and so these people miss out on making the most of their money. Also, when people stop borrowing altogether, the economy is severely (11)________ and, as in the current economic climate, many countries (12)________ a credit crisis.

A B C D
0 borrow lend give ask
1 charges rates costs fees
2 however whichever whatever whenever
3 regained recalled repossessed restored
4 scenario situation scene setting
5 loaning borrowing repaying owing
6 position point place location
7 connected related attached associated
8 stated described called named
9 falling moving dropping slipping
10 run time term period
11 forced damaged disturbed affected
12 meet face confront tackle



1.B; 2.C; 3.A; 4.A; 5.D; 6.C; 7.B; 8.C; 9.A; 10.C; 11.D; 12.B

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