A mortgage loan

A mortgage loan is an agreement between you and a lender that gives the lender the right to take your property if you do not repay the money you borrowed, plus interest. It is a secured loan, as your property serves as collateral for the debt. Lenders approve a mortgage by checking your financial background, including credit score, income, and debt-to-income ratio. The loan is paid off over a set term, often 15 or 30 years, through regular payments that cover principal and interest. Types of mortgage loans Common types of mortgage loans include: Conventional loans: Offered by banks and other lenders, these are not backed by a government agency and typically have stricter financial requirements. Government-backed loans: These loans are insured by a federal agency, making them an option for borrowers with a lower credit score or smaller down payment. Examples include: FHA loans: Insured by the Federal Housing Administration.

Foreign exchange market

The foreign exchange market assists international trade and investments by enabling currency conversion. For example, it permits a business in the US to import goods from European Union member states, and pay Euros, even though its income is in United States dollars. It also supports direct speculation and evaluation relative to the value of currencies and the carry trade speculation, based on the differential interest rate between two currencies.[2] The modern foreign exchange market began forming during the 1970s. This followed three decades of government restrictions on foreign exchange transactions under the Bretton Woods system of monetary management, which set out the rules for commercial and financial relations among major industrial states after World War II. Countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed per the Bretton Woods system. The foreign exchange market is unique because of the following characteristics: