DAY 3

TASK 1: NEW WORD DEFINITION

1. a plan you make about what to buy and how much to spend*
Budget
reputable
income
deal maker

2. money you pay for things like food, petrol, household bills, etc. *
balance
standing order
expenses
direct debit

3. things people put their money in to make more money *

debit cards
investments
costs
authorities

4. a valuable item that can be sold for cash*

assets
pension
ticket
capital

5. money you pay to your creditor for using their money temporarily*
PLC
merger
mortgage
interest
6. things a company owes, such as debts and taxes *
reshape
revolution
liabilities
commission

7. a bank account for investment; the bank pays interest*

mortgage account
current account
savings account
checking account

8. a system by which you can get money if someone steals or

damages your property *
Insurance
Salary
Withdrawal
Exchange rate

9. another word for a bank fee*

Commission
balance
Foreign exchange
Current account

10. the rate at which a company will buy back any currency from you*
Exchange rate
Interest rate
Credt rate
Buy-back rate
11. spending for regular payments like electricity bills *
Stock market
Pension account
Household expenses
Online banking

12. another word for paper money *

Banknotes
Bonds
Currencies
Cardholders

13. Sign and accept liability under (an insurance policy), thus
guaranteeing payment in case loss or damage occurs*
Industrialize
Reverse
Underwrite
Overdraw

14. An estimate of the ability of a person or organization to fulfil their

financial commitments, based on previous dealings*
Credit rating
Conglomerate
Account statement
Building society

15. redesigning your bank structure or system *

repealing
reversing
reshaping
abolishing

16. when a company gains control of another one by buying its

stocks *
takeover
merger
cheque
headquarter

17. the amount of money in a bank account at a particular time *

Balance
future growth
fund
lucrative

18. an arrangement allowing people to borrow money by withdrawing

more than they have deposited in their account*
standing order
transfer
overdraft
direct debit

19. an instruction to a bank to pay varying sums of money to another

account on particular dates*
standing order
direct debit
transfer
overdraft

20. profitable *
bound
reputable
foreign
lucrative

TASK 5: LISTENING
One way to make an (1) _____ is buying bonds. A bond is a fixed income
instrument which is a (2) _____ made by an investor to a corporate or the
government. In fact, a government can generate (3) _____ by increasing
taxes or issuing bonds, and a company can raise money by equity finance
and (4) _____ finance. The people who buy bonds are called (5) _____,
and the money that bonds pay is called coupon. When the bonds become
mature, (6) _____ can get the original money which is called principal and
the (7) _____. The second way of investment is buying shares. Investors
then can become a (8) _____. When the company makes a (9) _____, the
shareholders can receive (10) _____. The price of shares can go (11)
_____, so investors cannot always make a profit when they sell shares.
However, (12) _____ can increase a lot, so investors can make a lot of
money.
1. *investment

2. *loan
3. *cash
4. *debt
5. *bondholders
6. *investors
7. *interest
8. *shareholder
9. *profit
10. *dividend
11. *up or down
12. *share prices

TASK 6: CLOZE TEXT 2A

Most businesses rely on giving credit ____1_____ their customers. This

is especially true in a free market where there are many suppliers
____2_____ to supply one product or service. These businesses have to
fight ____3_____ to get sales. If their competitors are ____4_____ credit,
they have to provide it as well. They may not want to give credit but,
when faced ____5_____ the choice between making a sale with credit
and not making a sale, they will prefer to give credit. Competition
forces suppliers to provide credit ____6_____ their customers.
This situation gives rise to the problem of ____7_____. A customer may
pay a trade debt at the end of the credit period, or delay payment for
as long as ____8_____. Such a situation is harmful to the suppliers.

providing, competing, possible, for, provision, interest rate, competition, with, debt
collection, to, competitor, financing

1. *to
2. *competing
3. *competition
4. *providing
5. *with
6. *for
7. *debt collection
8. *possible

TASK 7: CLOZE TEST 2B

The foremost ____1_____ in a market economy is the central bank.

These are usually government – owned institutions, the responsibility
of the central bank is to the national ____2_____.

Most central banks in the present-day world perform one or all of the
following functions: they serve as the government’s banker, they act
as the banker of the banking system, they ____3_____ the monetary
system for both domestic and international policy goals, and they
____4_____ the nation’s currency.
As banker to the government, the central bank collects and ____5_____
government income and receipts, manages the issue and redemption
of government, debts, ____6_____ the government on all matters
pertaining to financial activities, and ____7_____ loans to the
government. As banker to the nation’s banks, the central bank holds
and transfers ____8_____, supervises their operations, acts as a lender
of last resort, and provides technical and advisory services.

1. *
commission charge
financial authority
monetary intemediary
monetary institution

2. *
interest
deposit
future growth
resort

3. *
implement
reverse
deregulate
regulate

4. *
issue
withdraw
pass
step up

5. *
disburses
repeals
abolishes
prohibits

6. *
arranges
advises
overdraws
abolishes

7. *
makes
does
takes
gives

8. *
bank's balance
bank's charges
bank’s deposits
bank statements