VII. Choose the correct alternative to complete each sentence:

If you possess something, you can say that you ………. it.

a) owe b) own c) owner

If you have to reimburse or repay someone, you ………. money.

a) owe b) own c) yield

To let someone else have the use of money for a certain period of time, after which it must be paid back, is to ………. .

a) borrow b) lend c) credit

To take money that has to be repaid is, on the contrary, to ………. .

a) borrow b) lend c) steal

An amount of money lent is a ………. .

a) debit b) debt c) loan

A person who has borrowed money is a ………. .

a) creditor b) debtor c) owner

Another word for a lender is a/an ………. .

a) creditor b) debtor c) owner

The income received by someone who lends money is called ………. .

a) dividends b) interest c) interests

The borrower has to pay back the loan itself, also known as the ……… .

a) principal b) principle c) premium

The amount of money a lender receives for a loan or an investment, expressed as a percentage, is known as its return or ………. .

a) credit b) income c) yield

VIII. Complete the following sentences using words and word-combinations given below:

1. If you borrow money you have to pay ... .

2. When the loan matures you have to pay back ... .

3. Many developing countries are now heavily ... .

4. To service a debt is to ... .

5. To default on a debt is to ... .

6. To bail someone out is to ... .

7. To rollover a debt is to ... .

8. To reschedule a debt is to ... .

9. To write off a debt is to ... .

pay the interest; postpone the repayment; rescue them (financially); principal; abandon it as a bad debt that will never be paid; interest; fail to pay the interest or repay the principal; indebted; renew it (to borrow again for a further period)

IX. Translate the following words and word-combinations into English and insert them in the sentences given below.

Позичати; переглянути умови борга, продовжити термін погашення боргу; обслуговувати; надавати (позичку); списати (борг); бути винним, заборгувати; відновити позичку (продовження терміна кредиту шляхом його відновлення); відшкодувати; брати на поруки; позичка

1. Of course I don’t have that kind of money. I had to ... it.

2. I showed the bank my business plan, and they offered to ... everything I asked for.

3. We nearly went bust, but at the last minute the bank agreed to ... us out.

4. Since they clearly couldn’t afford to pay back the loans then, the banks had to agree to ... the debt.

5. Many third world countries are unable to ... their debts, let alone repay the principal.

6. The borrower was unable to repay the principal and asked the bank to ... the loan.

7. When it becomes obvious that it has a bad debt, the bank has to ... it ... .

8. They agreed to grant me a ... for six months.

9. I can’t borrow any more; I already ... the bank over £10000.

10. When I pointed out to the bank that it was their mistake, they agreed to ... me all extra charges I’d paid.

X. The following famous quotations are about credit and borrowing and lending. Can you complete them:

1. In business, one way to obtain ……… is to create the impression one already has it.

2. Neither a ………. nor a ………. be.

3. An acquaintance is someone we know well enough to ………. from, but not well enough to ………. to.

4. A ……….. card is an anaesthetic which simply delays the pain.