Question

32. He _____________________ in Oxford for two years and when his mother died he moved to London. (live)

Answer 1

"He Lived in Oxford for two years and when his mother died he moved to London.

Notice the sentence being entirely placed in the past tense. So the verb should be in the past tense.

The past tense for live is lived. According to the rules the correct answer is lived.

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Answer 2

He lived in Oxford for two years and when his mother died he moved to London.

Simple past tense is used to depict an action that existed or happened before now. It is the basic form, action duration is not important as it can be in the distant past or recent past.

Certain time expressions are associated with a simple past tense that is:

Frequency - I sometimes ate those chips

A definite point in time- we went to the mall last week

An indefinite point in time- when I was a child, I loved playing hide and seek.