In 2006 Bangladeshi banker Mohammad Yunus won the Nobel Peace Prize for his work in this area and in many countries, such as India, this idea was considered to be a solution to their poverty problem. However, it has ended up creating problems of its own. On top of the money the person borrows, the bank also interest, sometimes as high as 30 percent. This makes the much larger than it was at first. If something affects the person's monthly income or if they cannot their spending well, they may not be able to pay back the monthly loan repayments. Although microloans have been very positive for thousands of people, some may feel that the stress the loan brings is not worth the benefits it provides.
Result:
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Correct answer: lend
Explanation: The verb 'lend' is appropriate here as it refers to the action of providing money to someone with the expectation of it being paid back. This fits grammatically as it follows 'prefer not to,' indicating a choice not to engage in this action.
Meaning: 'Lend' means to give something, usually money, to someone with the expectation that it will be returned.
Wrong options:
- budget: 'Budget' is a noun or verb related to planning finances, which does not fit the context of providing money.
- charges: 'Charges' refers to fees or costs, which does not fit as it implies taking money rather than giving it.
- debt: 'Debt' is a noun that refers to money owed, which does not fit as it does not describe an action of giving money.
- embark: 'Embark' is a verb meaning to begin a journey or project, which is unrelated to the context of lending money.
- retrieve: 'Retrieve' means to get something back, which does not fit the context of providing money to someone.
- hold: 'Hold' is a verb that means to keep or maintain something, which does not relate to the action of lending money.
Correct answer: profit
Explanation: The noun 'profit' fits well here as it refers to the financial gain that banks expect to make from lending money. It aligns with the context of discussing the financial considerations of banks.
Meaning: 'Profit' refers to the financial gain made after all expenses are subtracted from revenue.
Wrong options:
- budget: 'Budget' refers to a plan for managing finances, which does not fit the context of expected financial gain.
- charges: 'Charges' refers to fees imposed, which does not relate to the overall financial gain expected by banks.
- debt: 'Debt' is the amount of money owed, which is the opposite of profit and does not fit in this context.
- embark: 'Embark' is unrelated as it means to start something, not related to financial gain.
- retrieve: 'Retrieve' means to get something back, which does not fit the financial context of profit.
- hold: 'Hold' refers to maintaining possession, which does not relate to the concept of profit.
Correct answer: charges
Explanation: The verb 'charges' is appropriate as it indicates the action of imposing fees or interest on the borrowed amount. This fits grammatically and contextually as it describes what banks do in addition to lending money.
Meaning: 'Charges' refers to the fees or costs that are applied, particularly in the context of interest on loans.
Wrong options:
- budget: 'Budget' does not fit as it refers to financial planning rather than imposing fees.
- debt: 'Debt' is a noun that refers to money owed, which does not fit as it does not describe an action.
- lend: 'Lend' is the action of providing money, which does not fit in the context of what banks do after lending.
- embark: 'Embark' is unrelated as it means to start something, not related to financial charges.
- retrieve: 'Retrieve' means to get something back, which does not fit the context of imposing fees.
- hold: 'Hold' refers to maintaining possession, which does not relate to the action of charging fees.
Correct answer: debt
Explanation: The noun 'debt' fits well here as it refers to the total amount of money that is owed, which is relevant in the context of discussing loans and interest. It maintains grammatical coherence and aligns with the overall topic of financial obligations.
Meaning: 'Debt' refers to the amount of money that is owed to someone, typically as a result of borrowing.
Wrong options:
- budget: 'Budget' refers to a financial plan, which does not fit the context of amounts owed.
- charges: 'Charges' refers to fees imposed, which does not fit as it does not describe the total amount owed.
- lend: 'Lend' is an action and does not fit as it does not describe an amount owed.
- embark: 'Embark' is unrelated as it means to start something, not related to financial obligations.
- retrieve: 'Retrieve' means to get something back, which does not fit the context of amounts owed.
- hold: 'Hold' refers to maintaining possession, which does not relate to the concept of debt.
Correct answer: budget
Explanation: The verb 'budget' is appropriate here as it refers to the action of planning and managing one's finances. This fits grammatically and contextually as it describes what a person needs to do to manage their spending effectively.
Meaning: 'Budget' means to plan how to spend money, ensuring that expenses do not exceed income.
Wrong options:
- charges: 'Charges' refers to fees imposed, which does not fit as it does not describe managing finances.
- debt: 'Debt' is a noun that refers to money owed, which does not fit as it does not describe an action.
- lend: 'Lend' is the action of providing money, which does not fit in the context of managing spending.
- embark: 'Embark' is unrelated as it means to start something, not related to financial management.
- retrieve: 'Retrieve' means to get something back, which does not fit the context of managing finances.
- hold: 'Hold' refers to maintaining possession, which does not relate to the action of budgeting.
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