Question

Select the correct answer from each parenthesis option.

Choose the best words to complete each sentence and form a true statement.

William had taken a student loan to pursue a degree in electrical engineering. However, after completing his degree, William missed several payments. Due to this problem, he went into (default/forgiveness/discharge). Although William’s loan servicer is helping him manage the situation, William’s failure to (repay/calculate/grant) the loan will hurt his (debit/credit/food) rating.

Answer 1

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Answer:

1)

Default

The problem of missing payments on several occasions is called defualt on payments. Other options forgiveness and discharge are generic and not termed with any finance definitions

2)

Repay

Because if he is not be able to repay his debt obligation it will affect him. It is not termed as calculate as just calculations wont help and granting loans is not in the context of the question

3)

Credit rating

Failure to pay loans and service the interest payments is termed as the loss to credit ratings which banks see when giving out loans further. Other options are incorrect as debit rating is not in the context of servicing loans