IXL | Financial institution vocabulary

Complete the sentences.

the bank

Julia

Julia is opening an art studio. She takes out a loan from a bank to help start her business. In this case,

is the borrower and

is the lender.

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Learn with an example

question

Complete the sentences.

the bank

Mitch

Mitch is saving money to buy a foam pit for his rock climbing gym. He keeps his money in a savings account at Trove Bank. In this case,

pays interest to

key idea

A person or business that lends money to someone else is called a

lender.

A person or business that borrows money from someone else is called a

borrower.

The borrower pays the lender additional money, called

interest,

in exchange for being able to use the lender's money.

solution

When Mitch keeps his money in a savings account, he is lending money to the bank. When Mitch is ready to withdraw his money, the bank has to give his money back.

In this case, Mitch is the lender and the bank is the borrower. So, the bank pays interest to Mitch.

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