Exploring Banking Vocabulary for ESL Learners

What does it mean to borrow money from a bank?

• The bank stores your money.

• The bank lends you money.

• You lend money to the bank.

• The bank invests your money.

What is a high credit rating indicative of?

• Consistently repaying loans on time.

• Never having borrowed money.

• Owing a lot of money.

• Defaulting on loans frequently.

What can serve as collateral for a loan?

• A high credit score.

• A valuable possession.

• A verbal agreement.

• A promise to pay.

What is the main purpose of a mortgage?

• To buy a car.

• To buy stocks.

• To start a business.

• To purchase a house.

What characterizes a fixed interest rate?

• It remains the same throughout the loan term.

• It varies based on market conditions.

• It increases over time.

• It decreases over time.

What is the risk of a variable interest rate loan?

• There is no risk involved.

• The interest rate may increase, raising the cost.

• The interest rate remains constant.

• The interest rate may decrease.

Why is it important to pay off credit card debt quickly?

• To avoid high interest rates.

• To increase the credit limit.

• To avoid earning interest.

• To earn rewards points.

What happens if a loan payment is overdue?

• Fines or penalties may apply.

• The interest rate decreases.

• The loan is forgiven.

• The loan amount decreases.

What does defaulting on a loan imply?

• Completing all payments on time.

• Failing to make the loan payments.

• Increasing your credit score.

• Receiving a bonus from the bank.

What is the consequence of having a poor credit rating?

• Easier access to loans in the future.

• Lower interest rates on future loans.

• Difficulty in borrowing money in the future.

• Receiving a financial award from the bank.