Across
- 4. unsecured debt does not have specific collateral backing it. Lenders rely on the borrower's creditworthiness and typically charge higher interest rates. Credit card debt and personal loans are examples of unsecured debt.
- 8. associated with borrowing money to purchase a property, such as a home or real estate. It is secured by the property itself, and failure to repay the debt may result in foreclosure.
- 9. also known as sovereign debt, is the debt incurred by national governments. It can be in the form of treasury bonds, bills, or notes issued to finance government spending and budget deficits.
- 10. incurred by individuals for personal expenses and consumption.
Down
- 1. has an interest rate that can change over time, usually based on a benchmark rate such as the prime rate or the London Interbank Offered Rate (LIBOR).
- 2. this refers to debt incurred by businesses and corporations. It can include bank loans, corporate bonds, and lines of credit obtained to finance operations, expansion, or investment activities.
- 3. this type of debt allows borrowers to repeatedly borrow up to a certain limit and repay the borrowed amount. Credit cards and lines of credit are common forms of revolving debt.
- 5. these are loans taken out by students to finance their education expenses, including tuition fees, books, and living costs. Student loans can be provided by the government or private lenders.
- 6. has an interest rate that remains unchanged throughout the term of the loan. It provides stability as the borrower knows the exact amount of interest to be paid each month.
- 7. backed by collateral, which serves as a guarantee for the lender. Examples include mortgage loans (secured by property) and auto loans (secured by the vehicle).