Higher borrowing costs make homes, cars and education harder for many households to afford

Study the questions and tasks

Work through the material below, or start the interactive practice above to complete an attempt. Try the exercises before opening any answer or transcript sections, then use them to review your work.

Practice level

B2. Try this level if you can follow the instructions and understand most of the language; choose an earlier level if you need more support.

Question formats

Single choice

How to approach this practice

Read the passage for its main idea, then return to the relevant sentence or paragraph for each question. Base answers on the passage.

1. Question 1 · Single choice

   Choose one answer.

   What is the article's main idea?

   Return to the passage, recording or visual
   1. Higher borrowing costs are making important purchases harder for households.
   2. Rocky River is becoming the most popular suburb near Lake Erie.
   3. The Federal Reserve plans to eliminate all consumer loans.
   4. Walking access is more important than housing prices for every family.
   Check answers and explanations

   Answer

   Higher borrowing costs are making important purchases harder for households.

   The article explains how expensive borrowing limits household choices.

   For households, the result is a difficult combination: essential goods remain costly, while the money needed to buy them becomes more expensive.

2. Question 2 · Single choice

   Choose one answer.

   Why did Goldstein consider moving after visiting Milwaukee?

   Return to the passage, recording or visual
   1. She wanted to live closer to her workplace.
   2. She became attracted to walkable neighborhood features.
   3. She needed to move nearer to the Federal Reserve.
   4. She wanted to find cheaper education loans.
   Check answers and explanations

   Answer

   She became attracted to walkable neighborhood features.

   The visit introduced her to a more walkable type of neighborhood.

   After visiting a relative in Milwaukee, she became interested in living in a neighborhood with older homes, nearby shops, and better opportunities to walk.

3. Question 3 · Single choice

   Choose one answer.

   What does “the area” refer to in the third paragraph?

   Return to the passage, recording or visual
   1. Milwaukee
   2. Rocky River
   3. Goldstein's Cleveland suburb
   4. The Lake Erie shoreline
   Check answers and explanations

   Answer

   Goldstein's Cleveland suburb

   The phrase refers to Goldstein's existing Cleveland suburb.

   Goldstein already lives in a Cleveland suburb with many sidewalks, but she says the area does not make it easy to reach useful destinations on foot.

4. Question 4 · Single choice

   Choose one answer.

   Why does the article mention cars and higher education?

   Return to the passage, recording or visual
   1. To show that all consumers prefer cars and college loans
   2. To explain why housing prices have recently fallen
   3. To demonstrate that borrowing costs affect several major expenses
   4. To compare education systems in Milwaukee and Cleveland
   Check answers and explanations

   Answer

   To demonstrate that borrowing costs affect several major expenses

   These examples show that expensive borrowing affects more than housing.

   As a result, consumers are paying more for loans used to buy homes and cars or to pay for higher education.

5. Question 5 · Single choice

   Choose one answer.

   What relationship does the article establish between bond yields and loans?

   Return to the passage, recording or visual
   1. Bond yields determine whether neighborhoods have sidewalks.
   2. Higher bond yields can contribute to more expensive consumer loans.
   3. Consumer loans directly reduce bond yields.
   4. Bond markets mainly affect the price of groceries.
   Check answers and explanations

   Answer

   Higher bond yields can contribute to more expensive consumer loans.

   Higher bond yields contribute to higher borrowing costs across the economy.

   Bond markets influence borrowing costs throughout the economy, and bond yields have risen to levels not seen in decades.

6. Question 6 · Single choice

   Choose one answer.

   What is the purpose of the paragraph about the Federal Reserve?

   Return to the passage, recording or visual
   1. To describe how interest-rate decisions can reduce spending
   2. To explain why Goldstein selected Rocky River
   3. To show that bond yields have fallen recently
   4. To argue that housing prices are no longer important
   Check answers and explanations

   Answer

   To describe how interest-rate decisions can reduce spending

   It connects central-bank decisions with household spending behavior.

   These decisions are intended to slow consumer and business spending by making loans more expensive.

7. Question 7 · Single choice

   Choose one answer.

   Which sequence best reflects the article's organization?

   Return to the passage, recording or visual
   1. A personal example, broader economic explanation, and household consequences
   2. A history of Milwaukee, a travel guide, and a policy proposal
   3. Education costs, car design, and suburban transportation
   4. Federal Reserve history, lake geography, and home construction
   Check answers and explanations

   Answer

   A personal example, broader economic explanation, and household consequences

   The article moves from household experience to broader economic causes and results.

   In practice, they can also cause people to delay major purchases.

What to review next

Find the words that support each answer. For a mistake, compare the question with the evidence and identify the detail or inference you missed.

A focused practice result shows how you did on these tasks. Use several activities across skills to decide what to study next; one practice score does not certify an overall CEFR level.

Before you practise: a worked example

Look for evidence in the text. Separate what the writer says from what you already know about the topic.

The library normally closes at six, but on Fridays it stays open until eight. When does it close on Friday?

The answer is eight. But introduces an exception to the normal closing time, so the first time mentioned is not the answer.

This teaching example is separate from the scored questions. After your test, compare any mistakes with the explanation and revisit the topic before trying again.