Hey Mushy,
I see that your activity is not very good, you only have a few days of activity this week, but im sure by the meeting it will improve.
I don't know about your recents but if you don't have any then that shows you can follow the rules.
Explain how you would deal with someone using an exploit on the server: I would get him caught off-guard. Punish him with a ban/kick/warning depending on his amount of abusing of the exploit. Then I would inform the owner/developer/higher ranked staff member about the exploit and how it could be abused.
The part in your application which has been put in bold should be changed, this is because moderators can't ban.
Overall, get your activity up and don't get recents and you will have a good chance at the moderator role.
Thanks for applying and Good luck!