UNIT 4. FINANCE.

LESSON 1
Choose the correct answer:

1. Because of the dramatic drop in _________ last year, the government has been
considering increasing certain taxes.
A. revenue B. surplus C. liabilities

2. What are the bank's liabilities?

A. creditors B. depositors C. competitors

3. Prices of Greek companies went dramatically down due to the political instability and
an overall negative __________
A. market performance B. creditworthiness C. market sentiment

4. A current account usually pays little or no interest, but allows the holder to _________
his or her cash with no restrictions.
A. withdraw B. bail out C. overdraw

5. What is a liquidity crisis?

A. too many withdrawals of funds
B. low interest rates C. too much credit in the system

6. Standing orders and _________ are ways of paying regular bills at regular intervals.
A. overdrafts B. direct debits C. deposits

7. The examples of fee-driven services are: __________

A. an atm access, a revenue, a surplus B. an overdraft, an atm access, a surplus
C. an overdraft, an atm access, selling stocks and shares

8. It is usually the role of the __________ bank to fix the minimum interest rate.
A. central B. commercial C. merchant

9. A fall in interest rates has __________ the bank's interest rate margin.
A. bailed out B. driven down C. facilitated

NSF - cash - deposit - checkbook – bounce - assets - portfolio – liabilities - universal

– consolidate – spread - overdraft – debit – bail – creditworthiness - bank card –
traveler’s checks - current account – savings account

10. When I got my first job, I chose to open a current account since I wanted to to use it
for for my day-to-day banking needs.
11. A savings account wouldn't allow people to withdraw money whenever they need it.
12. Banks give customers a checkbook which allows them to write checks to pay for goods
and services

13. A bank card allows customers to withdraw cash from an ATM.

14. Leila wants to cash her check because she needs the money right away.

15. I am going to buy traveler's checks because I don't want to carry cash when I go to
Paris.

16. Alan bounced two checks this month. Now, he must pay two NSF charges because of
it.

17. Jane's salary is deposited directly into her bank account.

18. In some European countries there are __universal__ banks which combine deposit and
loan banking with share and bond dealing, investment advice, etc..

19. Since I sometimes spend more than I have in my current account, I have arranged an
__overdraft__.

20. As you always forget to pay your bills on time, maybe you should consider arranging
a direct _debit_ with your bank?

21. Internet and mobile banking are just two products in our rich _portfolio_.

22. The company owed large sums of money to its contractors and had other _liabilities_,
such as open credits and loans, which altogether made it a rather poor investment.

23. There has been some rumor about the two biggest Czech banks planning to
__consolidate__ next year and take over the East-European markets as one.

24. Banks make profits from the __spread__ or differential between the interest rates they
pay on deposits and those they charge on loans.

25. Since he was unemployed and failed to pay off his previous loans with another bank,
his low creditworthiness made it impossible for him to get a mortgage.

26. Margo was not able to pay off her student loan and so her parents decided to _bail_ her
out and paid to the bank all the money she owed.

27. Banks‘ __assets__ range between short-term credit, such as overdrafts or credit lines,
and long-term loans, for example to buy a house or capital equipment.