Professional Documents
Culture Documents
Tiếng Anh Chuyên Ngành TCNH
Tiếng Anh Chuyên Ngành TCNH
Tiếng Anh Chuyên Ngành TCNH
HCM
KHOA NGO~I NGO'
T,4i LIEU
•
130 T~O'• M()~ tioe
•
04.2021
Tai lieu Slr dung ne)i be)
BANKING UNIVERSITY - HOCHIMINH CITY
FACULTY OF FOREIGN LANGUAGES
Supplementary book:
April, 2021
For internal use
This book is designed to provide a supplementary practice material for undergraduate
students at Banking University Ho Chi Minh City majoring in Banking and Finance at the
intermediate level of English proficiency.
The book consists of three sections:
Section 1 includes topic-based practices covering four particular modules of financial
issues: Banking, Bonds, Stocks and Shares, and Financial statements. Each module
provides abundant exercises such as multiple choices of word definitions, vocabulary
matching, passage completion, reading comprehension, translation practice, and sentence
building.
Section 2 covers further exercises so that the students could use the terminology
appropriately in the contexts as well as apply the language skills developed throughout the
course to complete the tasks on vocabulary, passages, translation, and writing. These tasks
are selectively chosen from a wide range of materials to help course-takers consolidate the
language work covered in the textbook and successfully apply the knowledge in the exam.
Section 3 provides Suggested answers, References, Acknowledgements and Glossary.
SECTION 1: TOPIC- BASED PRACTICE EXERCISES
Module I 2
Module 2 9
Module 3 17
Module 4 26
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PART 1: VOCABUlARY PRAcneE
1.1 Choose the best deftnltlon for each tenn.
1. Hedge fund
A. a fund involving a group of people who take high risks with their investments to
make a lot of money.
B. a fund to whom money is owed.
C. a fund operated by investment companies to put people's money in various assets.
D. a fund with invested money that will be paid to people after they retire from work.
2. Bankrupt
A. the money placed in a bank.
B. the status of not having enough money to continue the business.
C. all the profits in a business.
D. the income generated by an institutional investor.
3. Porfolio
A. a small plastic card you can use to buy something.
B. all the investments owned by an individual or organization.
C. an action to save someone from a dangerous or difficult situation.
D. an economic condition in which it suddenly becomes difficult and expensive to
borrow money.
4. Capital
A. a financial investment that is traded on the stock market.
B. the situation of withdrawing more money than depositing.
C. the action oflending money to somebody who might have difficulty paying it back.
D. a large amount of money that is invested in a business.
5. Conglomerate
A. a person or company that makes goods for sale.
B. a person or company that buys and sells investments for other people.
3
4 Overdraft 5 Transaction
B. the extra money that you pay when you borrow money or that you receive when
you invest money. Interest
C. a person or an organization that buys and sells shares for other people. Stockbrokers
D. An automatic loan for a current account holder when they need to spend over their
account balance. Overdraft
When people want to set up or start a company, they need money, called (1)
capital
__ . Companies can borrow this money, called a (2) loan from banks. The loan
back with interest: the amount paid to borrow the (4) money . Capital
must be paid (3) __
certificates
can also come from issuing shares or equities - (5) representing units of
shareholders
ownership ofa company. The people who invest money in shares is known as (6) __
4
institutions
Individuals and financial (7) called investors can also lend money to companies
by buying bonds - loans that pay (8) interest and are paid at a fixed future date.
2.2 Passage 2. Complete the passage wtth the words In the box.
bank borrower investor repayments corporate customer
A financial institution, such as a (1) bank , buys a loan from a (2) lender (such
as another bank), who has already lent an amount of money to a (3) borrower(another
person or institution). This means that the financial institution now has the right to
repayment
collect the (4) on the original borrowerD s loan. It then uses the expectation of
receiving these as security for a (5) bond which it issues to an individual or corporate
(6) investor in return for a specific amount of money, which the financial institution
promises to repay the investor at a later date. The financial institution also uses the
original borrower Ds repayments to make") interestpayments to the bond holder until the
date when the bond is repaid. Both the financial institution who bought the loan and (8)
securitised
__ it in the form of a bond, and the bank who originally sold the loan to the financial
institution, use the capital they have received from their sales to improve their financial
situation or increase their activities.
(Adapted/rom Market Leader Accounting and Finance)
RAISING CAPITAL
Ruth Henly works in an investment bank in New York.
Unlike commercial banks, investment banks like ours don't lend money. Instead,
we act as intermediaries between companies and investors. We help companies and
governments raise capital by issuing securities such as stocks and bonds - that is, we
offer them for sale. We often underwrite securities issues: in other words, we guarantee
to buy the securities ourselves if we can't find other purchasers.
As well as initial public offerings (IPOs), when companies offer stock for sale
for the first time, there are other occasions when they raise funds. For example, they
might want to expand their operations, or to acquire another company, or to reduce their
amount of debt, or to finance a specific project. They don't only raise capital from the
public: they can sell stocks or shares to institutional investors like insurance companies,
investment funds - companies that invest the money of lots of small investors, and
pension funds - companies that invest money that will later be paid to retired workers.
We also have a stockbroking and dealing department. This executes orders - buys
and sells stocks for clients - which is broking, and trades with our own money, which is
dealing. The stockbroking department also offers advice to investors.
Questions:
2. What is IPO?
They raise capital by issuing securities such as stocks and bonds
3. Besides raising capital from the public, how can they raise funds?
They can sell stocks or shares to institutional investors
3.2 Reading passage 2. Read the passage carefully and then briefty answer the
following questions.
CASH DISPENSERS
A bank opening an account for a customer undertakes to repay on demand.
Certain legal limitations have been placed on the repayment. It must be sought at the
branch where the account is, and during business hours.
The banks are closed at what the business community regards as an early hour.
Sometimes they have fixed their closing time at 3 p.m. and sometimes at 3.30 p.m. To
overcome part of the problem, most banks open some major branches on a Saturday
morning for limited personal services only. This extended service was pioneered by
Barclays Bank.
Another way to assist customers to obtain funds has been the introduction of cash
dispensers. There are different designs of this machine, but one of the earliest consisted
of a safe let into the outer wall of the bank and containing packets of £ lOin £ 1 notes.
The customer was issued with a cash card having punched holes, which was fed into the
machine for electronic checking. If this was satisfactory the customer was then given
access to a keyboard of ten numbered buttons on which he tapped out his personal code
number. The machine then delivered the £10 packet. It retained the cash card, which
initiated a debit to the customer's account and was then returned to him for further use.
Questions:
1. What are some limitations of bank payments?
Bank payment must be sought at the branch where the account is, and during business hours.
PART 4: tRANSlATION
2. The rise in interest rate was only in some small-sized banks and did not reflect the
common trend of the entire banking system.
Vic tng lãi sut ch xy ra ti các ngân hàng có quy mô nh và không phn ánh c xu hng chung ca toàn h
thng ngân hàng.
4. With banks, consumers no longer need to keep large amounts of currency on hand;
transactions can be handled with cheques, debit cards or credit cards.
Doi voi cac ngan hang, khach hang khong con can giu mot khoang Ian tien m~t trong
tay; nhirng giao dich thay vao d6 c6 th~ thirc hien b&ngsec, the ghi no hoac the tin dung,
1. Ngan hang d~u tu lam viec voi cac cong ty Ion, tu van tai chinh, va huy d9ng v6n
b&ng each phat hanh c6 phieu va trai phieu,
8
Investment banks work with big companies, giving financial advice, raising capital
by issuing stocks and bonds.
2. M9t s6 ngan hang ban le la cac t~p dean quoc t~ voi nhieu ngan hang chi nhanh tren
toan th~ gioi.
Some retail banks are international corporations with numerous
branch banks all over the world
3. Nho cong nghe, cluing ta co th~ mua sam t11Jctuyen, giao tiep t11Jctuyen, va tham
chi co th~ thirc hien ngan hang t11Jctuyen,
Thanks to technology, we can shop online, communicate
online, we can even do our banking online.
4. Sau khi tich liiy kinh nghiem lam viec trong ngan hang, nhieu ngiroi tham gia cac
khoa h9C v~ cac quy trinh trong ngan hang, cho yay, hoac d~u tu.
After gaining work experience in a bank, many people take staff
development courses in banking procedures, lending, or investing.
5. M9t tai khoan chung/lien danh duoc coi la rui ro han hai tai khoan rieng biet, nhirng
nhieu ngiroi nhan th~y r&ngviec g9P thu nhap vao mot tai khoan chung giup thanh
toan hoa dan d~ dang han.
A joint account is considered to be riskier than two separate accounts, but many
people find that pooling income into a common account makes bill paying easier.
PART 5: WRITING
Make meaningful sentences by adding between 8 and 15 words to the given
phrases.
1. Subprime borrowers are those with poor credit ratings and consequently a high risk
. of default
2. Securitization means pooling financial assets like morgages and converting into. securities.
3. When many subprime borrowers stopped paying, the value of subprime related
. securities fell
dramatically.
4. The credit crunch happens when there is a massive reduction in the credit available. for
banks to lend to other banks, and businesses.
5. Non- bank financial intermediaries also offer products like personal loans,
. credit cards
and insurance.
9
5. Maturity
A. a situation in which prices or interest rates go up and down suddenly.
B. the length of time for which a bond is issued until it is repaid.
C. the process of a company expanding or varying its range of products.
D. the date on which a security was issued.
A. a person who buys and sell goods, property, currency or shares in a company in
the hope of making a quick profit
B. a document showing how much money you owe to someone
C. the rate of income an investor receives from a security
D. unable to pay debts
E. a business that buys and sells securities
multiples of$l,OOO and/or $5,000. Companies use the funds they (3) raise from selling
11
2.2 Passage 2. Complete the passage with the words In the box.
payments reserves liquidation dividend revives operation
There are also risks and disadvantages associated with debt finance. In the event
bankruptcy
of a corporate (1) , a companyD s assets are at risk of being taken over by its largest
bondholders payments
(2) if it misses any scheduled interest or principal (3) . For instance, if a
company does not comply with the terms of the loan that was issued as a part of debt
liquidation
finance, bondholders can trigger a (4) of the companyDs assets in order to be paid.
A company that is active in debt finance should exhibit discipline with its cash (5) reserves
__
profits over the period of the loans. There is less
and also must outline anticipated (6) __
cash flow
flexibility with future (7) for a company active in debt finance versus equity
dividend
financing because of the payment (8) obligations.
There are an almost endless variety of bond types. In the U.S., investment-grade
bonds can be broadly classified into four types - corporate, government, agency and
municipal bonds - depending on the entity that issues them. These four bond types also
feature differing tax treatments, which is a key consideration for bond investors.
Corporate bonds
Corporate bonds are issued by public and private companies to fund day-to-day
operations, expand production, fund research or to finance acquisitions. Corporate
bonds are subject to federal and state income taxes.
Government bonds
U.S. government bonds are issued by the federal government. They are
commonly known as treasuries, because they are issued by the U.S. Treasury
Department. Money raised from the sale of treasuries funds every aspect of government
activity. They are subject to federal tax but exempt from state and local taxes.
Agency bonds
Government Sponsored Enterprise (GSE) like Fannie Mae and Freddie
Mac issue agency bonds to provide funding for the federal mortgage, education and
agricultural lending programs. These bonds are subject to federal tax, but some are
exempt from state and local taxes.
Municipal bonds
States, cities and countries issue municipal bonds to fund local projects. Interest
earned on municipal bonds is tax-free at the federal level and often at the state level as
well, making them an attractive investment for high-net-worth investors and those
seeking tax-free income during retirement.
Questions
1. What are two differences of bond types mentioned in the passage?
4 types.
13
3.2 Reading passage 2. Read the passage carefully and then brlefty answer the
following questions.
Questions
14
2. What is the principal characteristic that distinguishes hedge funds from other types of
mutual fund?
Hedge funds are less regulated and can engage in a broader range of trading activities
3. Why does the minimum investment for a hedge fund tend to be high?
The number of investors is restricted.
PART 4: TRANSlATION
4.1 EnlPlsh - Vietnamese translation: Translate the following sentences Into
Vietnamese.
1. If they need to raise more money to expand their operations, they can either issue
new shares - or borrow money, usually by issuing bonds.
Neu ho can huy dong nhieu tien hon de mo rong hoat dong cua minh, ho co the phat
hanh co phieu moi hoac bang cach muon tien, thong thuong bang viec phat hanh trai
phieu,
2. For investors, bonds are generally safer than stocks or shares, because ifan insolvent
or bankrupt company sells its assets, bondholders are among the creditors who might
get some of their money back.
Doi voi cac nha dau tu, trai phieu noi chung thuong an toan hon co phieu, boi vì neu
mot cong ty vo no hay pha san phai ban tai san cua no, trai chu la 1 trong nhung chu
no co the lay li mot phan tien cua ho
3. If tax revenue is insufficient, governments also issue bonds to raise money, and these
are considered to be a risk-free investment.
Neu khoan thu tu thue thu nhap khong du, chinh phu cung phat hanh trai phieu de
huy dong von, va dieu nay duoc xem la su dau tu khong rui ro
15
4. Only brave hearts would look at getting back into the stock market at the moment,
as it is still unclear whether we are headed for a worldwide recession or depression.
Chi nhung trai tim dung cam moi nhin nhan viec quay tro lai thi truong chung khoan vao
luc nay, boi vi van khong ro rang rang lieu chung ta co the doi dau voi mot cuoc khung
hoang hay suy thoai toan cau nua hay khong
5. This fund aims to achieve a high and steady income and above average yield, while
taking into account the security of capital.
Quy nay huong toi viec dat duoc thu nhap cao va on dinh va o tren muc hoa loi trung
binh, trong khi van quan tam den viec an toan cua nguon von dau tu.
2. M9t s6 trai phieu chinh phil gioi han s6 hrong d6ng do la c6 th~ duoc mua trong m6i
mot nam dirong lich.
Certain government bonds restrict the dollar amount that may be purchased per
calendar year
3. Trai phieu doanh nghiep cho phep cong ty vay tien t11Jctiep til cac nha d~u tu ca
nhan va t6 chirc d~u tu.
Corporate bonds allow the company to borrow money directly from individual and
institutional investors.
16
4. Til quan diem cua cac nha phat hanh trai phieu, trai phieu thinh thoang t6t hon c6
phieu boi vi Eii su~t tra cho trai chu duoc kh~u tnr thue,
From the issuers' point of view, bonds are sometimes better than shares as the
interests paid to the bondholders are tax deductible.
5. Trai phieu c6 Eii su~t cao d~ thu hut cac nha d~u tu. Tuy nhien cac nha d~u tu than
trong c6 th~ t:;10ra mot nguon thu kha kha til 10:;1itrai phieu nay.
The high-yield bonds offer attractive rates to lure investors. However, the investors
who choose carefully can earn quite decent money from these
PART 5: WRITING
Make meaningful sentences by adding between 8 and 15 words to the given
words. their original investment on a fixed maturity date and receive
1. Bond holders can get back interest payments at regular intervals.
.
2. A company that wants to raise cash can .
3. The Primary Market is securities exchange where
. new securities are issued to the shareholders.
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PART 1: VOCABUlARY PRAcneE
1.1 Choose the best deftnltlon for each tenn.
1. Index
A. a sign or number that shows how something is changing or performing.
B. a share of the value of a company which can be bought, sold, or traded as an
investment.
C. a list of the financial institutions.
D. a certificate representing part ownership of the company.
2. Recession
A. a market in which share prices are rising.
B. a period of time in which there is a decrease in economic activities and many
people do not have jobs.
C. a period during which prices in a financial market are going down and a lot of
people are selling shares.
D. a situation in which a company offers shares for sale on a stock market for the
first time.
3. Underwrite
A. falling suddenly straight down especially from a very high place.
B. using money to earn more money.
C. making someone strong, healthy, or active again.
D. giving money to support something, such as a new business, and agree to be
responsible for any losses if it fails.
4. Bailout
A. the returns that an asset achieves over a certain period of time.
B. the possibility that something bad or unpleasant will happen.
C. the act of rescuing something (such as a business) from financial problems.
D. the aggregation of buyers and sellers of stocks.
18
5. Bear market
A. the quality in a situation of being likely to change suddenly.
B. a period of time in which there is a decrease in economic activity and many
people do not have jobs.
C. a period when the economy of a country is not successful and conditions for
business are bad.
D. a condition in which securities prices fall.
2.1 Passage 1. Complete the passage with the words in the box.
19
company company
market
Successful companies can issue (1) __ (B.E.) or (2) (A.E.), which are
(3) representing part ownership of a company, to raise capital to expand their
operations. If these shares are offered for sale to financial institutions and the general
public, this operation is called going public, and the business will change from a private
company to a public company (called a (4) __ or PLC in Britain and a (5) in
the US).
Offering shares to outside investors is generally called a (6) __ in Britain, and
an IPO or initial public offering in the US. Companies usually get advice from an
investment bank about how many shares to offer and at what price. The (7) bank
helps to find buyers, and will probably (8) __ the share issue, meaning that it
guarantees to buy the shares if there are not enough other buyers/purchasers.
2•2 Passage
'-e' 2 • Complete the passage with the words In the box•
due diligence equity debt shareholders common ordinary
situation from an auditing firm, and then issue a (2) __ explaining its financial
position, and giving details about the senior managers and the financial results from
previous years.
20
Shares are also known as equity or equities. (3) __ is not the same as (4)
__ (borrowing money) as money raised from equities never needs to be paid back;
instead, the holder owns part of the business.
The most common forms of equities are called (5) in Britain and (6) in the
US. (In Britain, stock means securities such as government (7) ) The people who
buy equities are called (8) --
2. What will be affected when the institutional investors made a loss in their
investments?
Returns paid on pensions, savings accounts, interest charged on mortgages
3.2 Reading passage 2: Read the passage carefully and brlefty answer the
following questions.
22
4. What are the obligations of companies whose shares are traded on the stock
exchanges? They have to fulfill a large number of requirements, including sending their
shareholders an independently audit report every year, containing the year's trading
results and a statement of their financial position.
PART 4. TRANSlATION
4.1 EnlPlsh • VletnaJlle8e translation: Translate the following sentences Into
VletnaJlle8e.
1. Companies use an investment bank to find buyers and to underwrite the stock issue.
cac cong ty su dung ngan hang dau tu de tim kiem nguoi mua va de bao lanh su phat hanh co phieu
4. After the strong gains of last week, Asian shares slipped on fears of a looming
recession.
sau khi tang manh vao tuan truoc, chung khoan chau A da xuong doc do su so hai ve
mot cuoc suy thoai kinh hoang
5. Most shares were a little stronger in Madrid this morning when the exchange
reopened after yesterday's public holiday.
hau het cac co phieu da tang kha mnh tai Madrid vao sang nay, sau khi san chung
khoan mo cua lai sau ngay nghi le truyen thong hom qua
1. Cac cong ty dai cluing duoc giao dich cong khai tren thi tnrong mo voi c6 phieu
duoc mua boi nhieu nha d~u tu.
Public companies are publicly traded within the open market with shares being
purchased by a variety of investors.
2. H~u h~t cac cong ty dai cluing ban d~u la nhirng cong ty tu nhan dil dap irng duoc
h~u h~t t~t ca cac quy dinh v~ phap ly.
Most public companies were originally private companies that met all of the
regulatory requirements.
3. Cong ty dai cluing c6 nhirng loi th~ c6 hiru nh~t dinh so voi cong ty tu nhan, bao
g6m kha nang ban c6 phan trong tirong lai va tang kha nang tiep can thi tnrong no.
Public companies have certain inherent advantages over private companies, including
the ability to sell future equity stakes and increased access to the debt markets.
4. C6 dong la chu cua cong ty, boi vay ho mong muon cong ty hoat dong mot each hieu
qua.
Shareholders are the owners of the company so they expect the company to perform
effectively
5. Cac cong ty khoi nghiep se kh6 duoc niem y~t tren b~t ky san giao dich clnrng khoan
nao vi ho yeu c~u cong ty phai c6 lili moi duoc niem y~t c6 phieu,
Start-ups will find it difficult to be listed on any securities exchanges because they
require the companies to be profitable to go public.
PART 5: WRmNG
Make meaningful sentences by adding between 8 and 15 words to the given
phrases.
1. After shares have been issued, they can be traded on the secondary
. market
2. The rise and fall of stocks prices depend on supply and demand
. or the market forces
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4 Retain 5 Defer
2.1 Passage 1. Complete the passage with the words In the box.
guarantee operations transactions warranty procedures liabi lities
A bank auditor monitors the (1) of her bank to ensure its compliance with
industry guidelines and adherence to measures that deter (2) . Her job generally
requires she establish and follow a schedule to regularly check the appropriateness of
all business activities. She may work in a large or small financial (3) __
In an industry frequently considered highly competitive, a bank auditor reviews
the general and specific aspects of daily practices to (4) her bank remains
competitive and maintains the integrity expected by its customers. She scrutinizes every
practice from teller (5) through the security of the bank's (6) and courier
services. As an industry professional, she is generally aware of competitors' (7) __
She is typically expected to objectively rate her bank's (8) __ against others and take
measures to improve upon areas that fall short of excellence.
2.2 Passage 2. Complete the passage wtth the words In the box.
customer depreciation receivable retained defer ledgers
The accounting process starts with inputs, and these are things such as sales
documents ((1) ---) , purchasing documents ((2) ), payroll records, bank
records travel and entertainment records. The data in these inputs is then processed by
specialized software. Entries are recorded chronologically into "(3) ".
Information from the journals is posted (= "transfered") into "(4) ", where
it accumulates in specific categories (cash account, sales account, or account for one
particular (5) )
A trial balance is prepared at the end of each accounting period. This is a
summary of the ledger information to check whether the (6) are accurate. It is
used directly to prepare the main financial statements (income statement, balance sheet
and cash flow statement).
29
Examples of this principle are depreciation and amortization, which are ways of
matching the cost of a long-lasting asset over the period during which it earns revenue.
Conservatism or prudence means that you do not recognize any income unless you are
almost certain to receive it, and you record costs as soon as they are incurred. This means
that, if anything, companies should understate rather than overstate profits.
Consolidation means bringing together the accounts of all a company's subsidiaries
into a single set. This allows stockholders to find out if an apparently profitable company
has a non-profitable subsidiary with huge liabilities.
Questions
1. How many accounting principles are mentioned in the passage?
There are seven accounting principles mentioned in the passage.
3.2 Reading passage 2: Read the passage carefully and brlefty answer the
following questions.
Companies are required by law to grve the shareholders certain financial
information. Most companies include three financial statements in the annual reports.
31
The profit and loss account shows revenue and expenditure. It gives features for
total sales or turnover (the amount of business done by the company during the year),
and for costs and overheads. The first figure should be greater than the second: there
should generally be a profit - an excess of income over expenditure. Part of the profit is
paid to the government in taxation, part is usually distributed to shareholders as a
dividend, and part is retained by the company to finance further growth, to repay debts,
to allow for future losses, and so on.
The balance sheet shows the financial situation of the company on a particular
date, generally the last day of its financial year. It lists the company's assets, its liabilities
and shareholders' funds. A business's assets consist of its cash investments and property
(buildings, machines, and so on) and debtors - amounts of money owed by customers
for goods or services purchased on credit. Companies also have intangible assets, whose
value is difficult to quantify or turn into cash such as goodwill, patents, copyrights and
trademarks. Liabilities consist of all the money that a company will have to pay to
someone else such as taxes, debts, interest and mortgage payments as well as money
owed to suppliers for purchases made on credit, which are grouped together on the
balances as creditors. Negative items on financial statements such as creditors, taxation,
and dividends paid are either enclosed in brackets or a minus sign.
A third financial statement has several names: the source and application of funds
statement, the sources and uses of funds statement, the fund flow statement, the cash
flow statement, the movements of funds statement, or in the USA the statement of
changes in financial position. As all these alternative names suggest, this statement
shows the flow of cash in and out of the business between balance sheet dates. Sources
of funds include trading profits, depreciation provisions, borrowing, the sale of assets
and issuing shares. Applications of funds include the purchase of fixed financial assets,
the payment of dividends and repayment of loans, and, in a bad year, trading losses.
(Adapted/rom Business/or English Studies, 2nd ed., page 79)
Questions:
1. What do companies do with their profit?
Part of the profit is paid to the government in taxation, part is usually distributed to
shareholders as a dividend, and part is retained by the company to finance further growth,
to repay debts, to allow for future losses, and so on.
32
PART 4: TRANSlAll0N
4.1 EnlPish . \'ietnaJlle8e translation: Translate the following sentences into
VletnaJlle8e.
1. In most countries, companies record the historical cost of their assets - their original
purchase price, and not their current selling price or replacement cost.
O hau het cac nuoc, cac cong ty ghi chep li nguyen gia tai san cua ho - gia mua ban
dau chu khong phai la gia ban hien ti hay gia thay the.
2. Alternatively, you could present the accounts of a company you work for or have
worked for or know well.
ngoai ra, ban co the trinh bay cac tai khoan cua mot cong ty ban lam viec hoac da
tung lam viec hoac biet ro
3. All the money that a business spends on goods or services during a given period is
expenditure.
tat ca so tien ma DN chi cho hang hoa hoac dich vu trong mot thoi ky nhat dinh la chi tieu
4. A balance sheet is a statement showing the value of business Ds assets, its liabilities,
and its capital or shareholderD s equity.
bang can doi ke toan la mot bao cao the hien gia tri tai san cua doanh nghiep, cac khoan no phai tra
va von hoac VCSH cua co dong.
33
5. Google's financial statements use American terms, which sometimes differ from
British ones.
BCTC cua gg su dung cac thuat ngu cua My, doi khi khac voi thuat ngu cua Anh
2. T~t ca cac cong ty c~n t:;10ra doanh thu d~ duy tri hoat d9ng kinh doanh. Doanh thu
duoc sir dung d~ thanh toan chi phi, tra Eii cho cac khoan no va thu~ phai tra cho
chinh phu,
All companies need to generate revenue to stay in business. Revenues are used to pay
expenses, interest payments on debts and taxes owed to the government.
3. Sau khi chi phi kinh doanh duoc tnr ra khoi thu nhap, s6 tien can lai duoc goi la thu
nhap rang.
After the costs of doing business are paid, the amount left over is called net income.
4. Bang can d6i k~ toan la mot tai lieu chinh tlnrc sir dung thea dinh dang k~ toan chuan
th~ hien cac 10:;1itai san, no phai tra va v6n chu So' hiru cua c6 dong.
A balance sheet is a formal document that follows a standard accounting format
showing the same categories of assets, liabilities and shareholder's equity.
34
5. Bao cao dong tien cua cong ty la bao cao hrong tien duoc t:;10ra va chi tieu duoc
phan thanh ba muc: hoat dong kinh doanh, hoat dong tai tro va hoat dong d~u tu.
The corporate cash flow statement reports the cash generated and used III the
following categories: operating activities, financing activities and investing activities.
PART 5: WRITING
Make meaningful sentences by adding between 8 and 15 words to the given
phrases.
1. The balance sheet reports the company's
. specific condition on a specific date.
2. Bookkeepers and accountants are responsible for keeping records
. and providing
financial information about the business.
3. Accounting principles applied by the
. companies vary Irom country to country:
4. The assets are listed on the left side .of the balance sheet
5. Tax accounting calculates how much a company
. will have to pay to the local and
national governments.
35
i~CTI()~~
r:UI2TIi~12J)124CTIC~
36
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J)124CTIC~
37
A. an occasion when one company joins with another company to create a larger
company.
B. an occasion when a company in your country takes over a company in a foreign
country.
c. an occasion when a foreign company buys a company in your country.
D. an entity that advises companies on how they can grow by joining with, or buying
other companies.
E. somebody who has set up and runs their own company.
A. when investors invest in a range of companies, they are said to have it.
B. a company which develops a new product or service potential.
C. investors need to study and have confidence in it before they take the risk of
investing in a start-up company.
38
A. when there are not enough shares available on the market to supply the demand
for them.
B. the use of various mathematical tools to maxnnize profits from financial
investments.
C. when (for example) shares that are bought on a financial market are paid for with
real money.
D. when the major part of an investment is funded by borrowed money.
E. assets which are promised by a borrower to a lender if the borrower cannot repay
a loan (also known as security).
1. The Treasury
2. Corporate credit rating agency
3. ~orgagelender
39
4. Subprime morgage
5. Credit squeeze
return
1. Porsche had been making a larger profit out of __ trading than it has out of selling
cars.
2. Little by little, it had bought up a large percentage ofVW share .
3. The outcome of Porsche Ds European Commission challenge to the State of Lower
SaxonyDs of20% would decide whether they continued to do this.
4. Up to now, the demand for VW shares had been higher than supply. This had
kept their price very high.
5. However, if Porsche did not win its European court case, it would probably decide
not to take its stake to 75%, and would close its options __ on the remaining VW
shares.
42
Exercise 10: Use the words in the box to complete the sentences.
fraudulent insolvent disqualification order book
trading.
2. The directors were hiding financial problems III the company, and after an
investigation, their dealings were found to be __
3. As a result, the directors were subject to severe . They went to prison.
4. In addition to this, they suffered as company directors for several years.
5. They had also entered false items into their __ to make their business look more
viable than it actually was.
Exercise 11: Use the words in the box to complete the sentences.
collapse recession loan exposure boom
1. In 2008, the UK experienced a __ ' which meant that people found it more
difficult to get a loan from a bank.
2. In 2006, HBOS shares had hit an all-time peak. By 2008, however, the picture was
quite different. The bank was on the point of __
3. HBOS had adopted a very aggressive funding model which left it very when
the credit crunch hit.
4. The bank had relied too heavily on and not enough on retail deposits.
5. Added to that, the bankD s saleslriven culture had resulted in the bank having an
extremely high __ . It had lent far too much money to customers.
43
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44
If a customer has more money than he'd like to use in the near future, he may ask
to open a (1) . account. This type of account combines a relatively small (2) _
with a maximum degree of (3) . There are different types of accounts. Best known
is the savings account which represents a widespread method of saving money. After
opening the account, the customer may deposit as much money as he wants to. However,
if he wants to (4) __ a large amount, he must announce the bank prior 24 hours,
although in practice small amounts are paid immediately. For a savings account a (5)
__ is issued to the depositors. The rate of interest may vary with the bank (6) __
and with the customer's stay for a shorter length of time. One advantage is that even
young children are allowed to have a savings account in their name. However, it may
only be conducted by their parents or guardians.
Fixed deposits can be withdrawn only on a fixed date while term deposits after
an agreed number of days' notice. The customer decides whether to invest his (7) _
money for a certain period of time or whether he wishes to withdraw it after a certain
length of notice. The rate of interest will largely depend on the length of investment or
notice. At (8) date, banks pay the interest into the customer's current account and
invest the money again for the same period of time unless the customer orders his banker
to act otherwise.
Banks are not only places in which we can save money or conduct (1) _
business, but also institutions from which people can borrow money. Every day, many
people go to banks for loans, such as (2) --
contract that binds the lender to a
schedule of payments, so both parties should be cautious and not enter into the (3) __
without thinking. Banks will look at such factors as how much people have saved in
determining whether to make a loan.
Before lending money, a bank has to (4) the risk involved. Generally, the
greater the risk, the higher the interest rate they charge. Banks also have more
complicated risk assessment methods for (5) __ customers - business clients.
However, businesses today prefer to (6) __ their own finance rather than borrow
from banks.
Banks have different kinds of accounts. Some pay high quarterly interest. Some
accounts severely restrict the number of times that customers can access their accounts,
or the amount of cash they can withdraw. Today, electronic banking can be used to check
the balance on an account, or to see if (7) transactions have been made. This can
be done from our home or office computer. When you go to the bank, be sure to bring
(8) . Usually a bank will only accept a photo Il), and a signature is not a valid Il).
* Our (4) __ serve the bank's customers. They help customers make deposits
and withdrawals, check balances, answer questions and help customers with their
everyday banking needs
* At our foreign exchange counter, the cashiers sell foreign currency to customers
who want to go abroad
* Our mortgage advisers arrange mortgages for customers who want to buy (5)
__ . They set up insurance policies
* Our (6) __ advisers give customers information about stocks and shares, bonds
and other types of investments
Customers can use the bank's website to carry out payments and other (7) __
over the Internet. This form of banking can be done outside business hours and from
anywhere with Internet access. Features of Internet banking include payment of bills,
fund (8) , loan applications, and viewing bank statements.
I'd like to discuss about three basic investment options. First, you can buy shares.
You then become a (1) , that is part owner of a company. When the company
makes a profit, the shareholders get a share of that profit. This payment is called a (2)
--
. The price of shares can go up or down, so there is no guarantee you can make a
profit when you sell your shares. However, share prices can rise a lot, so you can make
a lot of money. (3) are another type of investment. When you buy a bond, you
are lending your money to a company, or sometimes to a government. In return, they
agree to pay you a (4) rate of interest on your money. In addition, you get your
capital back on a certain date in the future. This is called the date when the bond (5)
--
. There is little risk here, but the returns are quite low. Finally, you can invest in a
47
(6) fund. This is a collection of shares and bonds. You put your money together
with money from other investors. You pay a financial professional, a fund manager, to
handle your investment. The fund manager decides what shares and bonds to buy and
sell. There isn't a predictable rate of (7) . Your (8) change from day to day.
Nowadays, banks have moved into external and international markets with an
agency or a (1) office because it is relatively easy for them to establish these
offices. The most important factors affecting the choice of office type include the
attitude of the (2) country as reflected in its laws, regulations and policies towards
these financial institutions. Some countries prohibit foreign commercial branches;
others prohibit foreign-held (3) . And, of course, some governments do not accept
both foreign branches and subsidiaries. In other cases, entry of new firms is prohibited,
but outside firms already in existence are permitted to function under grandfather (4)
__ . Over a dozen foreign countries permit no foreign commercial banking except for
representative offices, and only a small amount of trade is conducted with these
countries. In some cases, the policy of the home country of the (5) bank may
determine or at least influence the type of office established abroad. In at least a few
instances, certain types of oversea offices are not permitted by the government of the
parent company. Generally, (6) are easier to establish than a subsidiary in a
foreign country and they afford the parent company the greatest degree of (7) .
Accordingly, as full- service types of offices, branches playa key role in external
markets. The type of office a bank establishes abroad also depends on the extent of
market (8) desired by the bank, the amount that can be invested in the facility,
and the availability of trained and talented staff.
48
One of the Bank ofEnglandOs key responsibilities as the Central Bank of the U.K
is the conduct of monetary policy. The BankO s role is to deliver price stability by setting
short-term interest rates. The objective of monetary policy is to (1) inflation - or,
to put it another way, to control the general increase in the prices of goods or services.
49
Uncertainty about inflation and future price levels is damaging the proper (2) of
the economy. With a stable general price level, individual price (3) can be read
more clearly, and more rational decisions can be made about whether to save or borrow,
how much to invest and consume, and what and when to produce. In this way, price
stability can help ensure (4) long-term economic growth.
Monetary policy operates by influencing the (5) of money. The Bank sets
an interest rate for its own assets with the market and that rate then affects the whole
pattern of rates set by commercial banks for their savers and borrowers. This will affect
other prices, e.g. shares and property, customer and business (6) , and employment
salary. If rates are set too slow, this may encourage (7) so that inflation is
persistently above target. If they are set too high, there is likely to be an unnecessary (8)
__ of output and employment, and inflation is likely to be persistently below target.
become (5) , responsible for their own teams of employees. Graduate trainees
have a (6) training course. They usually spend about two years learning how the
bank works. Then they can get management positions. Branch managers spend a lot of
time with customers and sometimes visit business customers in their office or factory.
3. Working conditions
Working hours are usually 9 am to 5 pm. Most banks have an (7) system
and give salary increases according to performance. Some also have good (8) _
schemes. Larger banks have sports facilities for activities such as golf and tennis.
Passage 10. Complete the passage wtth the words In the box.
service statement value cheques cash matter
Banks make their money on the (1) __ between what they payout in interest
on deposits and what they get in as interest from its loans. Nowadays, many banks offer
their customers credit cards. Any customer can apply for a credit card. If the bank thinks
the customer is a good risk, it will (2) him with a card and inform him of his
personal (3) . For example, the bank might allow a customer a limit of €2S0 per
month. This means that every month the customer can use his card to pay for €2S0 worth
of goods and services or to borrow €2S0 in (4) __ , travellers' (5) or foreign
currency. It does not matter if the customer's bank account is empty, when he spends or
borrows the €2S0. At the end of the month, the bank will send the customer a (6) __
If the customer clears his account every month, the facility will cost him nothing. He
will have a month's credit free. However, if the customer fails to (7) __ his account
every month, he will be charged some interest per month on the (8) __ balance.
Therefore, this alternative form of money can become very expensive.
Passage 11. Complete the passage wtth the words In the box.
target hosti Ie sale going surprised merge
successful bid for the (2) __ of Western Manufacturing (WM). The (3) put an
end to a months- long corporate battle for control of the company.
For months, WM was the (4) of another national corporation, NexiCorp.
According to a spokesperson for WM, the board of directors (5) to NexiCorp's
unethical business practices. In fact, the majority ofWM's management team announced
intentions to quit ifN exiCorp' s (6) takeover was successful. But before N exiCorp
could complete the buyout, Neilson - Williams stepped in and made its own tender (7)
__ . Many hailed Neilson - Williams as a white knight for preventing the (8) _
to NexiCorp.
Passage 12. Complete the passage wtth the words In the box.
known repaid called deliver understood supported
Passage 13. Complete the passage wtth the words In the box.
much which itself their at like
Every country has (1) __ own stock market, where people can buy and sell
shares and other securities. A stock exchange is a building (2) this trading takes
place. Some of these are very old - the London Stock Exchange started in the 17th
century. However, a lot of share trading today is conducted by computer. This is (3)
__ faster and cheaper.
Companies raise capital by selling their shares to investors on the stock market.
They use the money to run their day-to-day business and to expand. Investors buy shares
to make money. They hope to make a profit when (4) share price goes up. They
also get money (5) __ dividends.
A stock market index is a way (6) measuring a section of a stock market.
It is a list of the shares traded in the stock market. It shows the price of these shares (7)
__ the end of each trading day and the number of shares bought and sold. Investors
can look at the stock market indices in the newspaper. They can see how well or how
badly their shares are doing. Investors are usually institutions (8) banks, insurance
companies, mutual funds and pension funds who are investing money of private
individuals indirectly.
Passage 14. Complete the passage wtth the words In the box.
need writing reading offer charging collecting
Banks are places where people can keep their money. Most people use banks to
save money in their savings accounts and to pay money from their checking accounts.
Today, when a person (1) money from their job, their paycheck is often
electronically deposited into their savings account. Then, he or she can pay their bills by
54
(2) checks from their checking accounts or pay online where their bills are
electronically (3) to their bank accounts.
Banks also (4) loans to people. Banks use the money that their customers
deposit to (5) to people to buy new houses, cars, or to start businesses. The bank
makes money from lending by (6) interest. In other words, people have to pay
back more than they borrowed. This amount depends on how risky the bank thinks the
borrower is and how fast the loan is paid back among other things.
Banks (7) many different jobs, from trainee cashier right up to senior
account manager or investment analyst. Many jobs are in specialist areas such as IT or
corporate banking for business customers. Some banks have call centers where service
advisors answer telephone enquiries. In the UK today, building societies, insurance
companies and even supermarkets can offer the same services as banks. There is a lot of
competition, so banks always (8) top-quality staff with good communication
skills.
Passage 15. Complete the passage wtth the words In the box.
inflation higher risk savings fluctuation make
you may not even get back your (7) __ , the money you put in. Some banks call their
savings accounts Dinvestment accounts D, but this is wrong. The only risk of savings
accounts is that (8) will reduce the value of the money you put in them. There is
no risk of losing your capital.
Passage 16. Complete the passage with the words in the box.
Some economists think the Romans may (1) invented the cheques about
352 B.C. However, it wasnDt until the early l500s, in Holland(2) the cheques
were widely used. People who had a lot of cash began to (3) __ it with cashiers for
a fee, as a safer alternative to keeping the money at home.
The concept of writing and depositing cheques as a method of arranging
payments soon spread to England and elsewhere. But many people in the sixteenth and
seventeenth centuries still had doubts about trusting their money to strangers and little
pieces of paper. In the United States, cheques are said to have first (4) used in
1681 when businessmen in Boston mortgaged their land to a "fund," against which they
could write checks.
As cheques became (5) __ accepted bankers discovered they had a big
problem: how to collect the money from so many other banks. At first, each bank sent
messengers to the other banks to (6) cheques for collection, but that meant a lot
of traveling and a lot of money. The solution to this problem was (7) in the l700s.
A London bank messenger stopped for coffee and noticed another bank messenger. They
talked and realized that they each had cheques drawn on the otherD s bank, and decided
to exchange them and save each other the extra trip. The practice (8) into a system
of banking networks that exchange cheques with each other.
56
Passage 17. Complete the passage with the words in the box.
in if as who on when
Most people who have a problem with cash flow can phone the bank and ask (1)
an overdraft. It is quick and easy, but it is not always cheap. Lloyds bank,
for example, is currently charging 18.8% per year plus a monthly fee of £8. Instead (2)
__ an overdraft, why not arrange a personal loan? An overdraft is really a short-term
measure for one or two months, but a personal loan is often a better idea (3) the
payments are over a pre-arranged period. Lloyds Bank charges customers an annual
percentage rate of 16.7% on a £1,000 loan (4) 12 months. If you see something
you want in the shops, there is usually not enough time to ask your bank for a loan, so
you can use a credit card. Buying (5) credit is expensive, but there are some good
offers. The favorite at the moment IS the Save and Prosper card, with an APR
(annualized percentage rate) of 13.9%. Customers with incomes of more than £25,000
can benefit (6) Gold Charge cards. These are not credit cards, but payment cards
for shops and restaurants, etc. They are useful (7) you want a large sum of money
quickly, but the amount you borrow must be repaid at a pre-arranged date. The annual
cost of the Midland Gold service is £70. Store cards are generally more expensive than
other credit cards, and can only be used in the shops (8) offer them. Marks and
Spencer customers currently pay an APR of 22.4%.
Passage 18. Complete the passage with the words In the box.
__ to Cambridge, where he taught students until 1915. When World War I started,
he (2) __ the Civil Service again, where he was responsible for economic (3) __
with the other countries at war. After the war, he was very unhappy about economic (4)
__ against Germany. In protest, he left his Civil Service job and then wrote his first
famous essay 0 The Economic Consequences of the Peace 0 in 1919. In the 1920s, Keynes
thought that government were wrong to do nothing about high (5) __ . At that time,
there was no economic theory to support his ideas, but in the mid-30s, he published the
book on o The General Theory of Employment, Interest and MoneyO. The world was now
in economic (6) __ ' and governments and politicians started to listen to KeynesO
theories. During World War II and later, many Western (7) __ accepted his idea of
maintaining high employment. In 1945, at the end of his Civil Service career, Keynes
moved to the USA and (8) __ a multi-bill ion- dollar loan for Great Britain. He died
the following year.
Passage 19: Complete the passage with the words In the box.
potential legislative examine realize translates asset
environment management
factors
Asset management also enables an organization to (5) the need for, and
performance of, assets and asset systems at different levels. Additionally, it enables the
application of analytical approaches towards managing an asset over the different stages
of its life cycle.
Asset management is the art and (6) __ of making the right decisions and
optimising the delivery of value. A common objective is to minimise the whole life cost
of assets but there may be other (7) such as risk or business continuity to be
considered objectively in this decision making.
Effective control and governance of assets by organizations is essential to (8)
__ value through managing risk and opportunity, in order to achieve the desired
balance of cost, risk and performance.
Passage 20: Complete the passage with the words in the box.
risk management annual report assess default
The annual report published today provides an account of how the Bank of
England has exercised its (1) in respect of financial market infrastructure
supervision. It is the first such report since the Bank assumed new responsibilities for
central counterparties (CCPs) and securities settlement systems in April 2013 and
replaces the previous (2) on its supervision of payment systems last issued in
March 2013.
Since assuming responsibility for the (3) __ of CCPs, the Bank has devoted
a significant part of its supervisory effort to examining a number of key elements of
CCPs' financial (4) . Over the past year, UK CCPs have introduced new and
enhanced margin models as well as making a number of other improvements to their
59
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61
Questions
1. In what sector is the Bank of America Corp. planning to have the layoff?
investment banking and capital markets group
2. Why does the Bank of America Corp want to lay off their employees?
to reduce costs
4. By how much will the first round of layoffs cut expenses over the next couple of
years?
$5 billion in annual expenses
4. What happens when a bank customer spends more money than they have in their
account?
They need to see the bank manager
63
4. What should bankers do when lending money to make sure that their banks could
make a profit? Bankers have to find a balance between yield and risk and between liquidity and
different maturities
5. What are the differences between British and American investment banks?
US investment banks can only offer advisory services and do not offer loans
customer. The bank invests the money that the customer pays in and, in return, the bank
pays the customer interest.
Questions
1. What is the disadvantage of a current account?
It pays no interest.
All you need is an Internet connection to download the financial data onto your
computer. You may not be able to pay cash online. So, on-line banking does offer many
benefits.
At present banks, especially those engaged in foreign trade and foreign exchange
transactions, find it useful to become part of the international electronic message
switching network operated by "SWIFT". The acronym stands for the Society for
Worldwide Interbank Financial Telecommunications which provides the network that
enables financial institutions to send and receive information about financial
transactions in a secure, standardized and reliable environment.
Questions
1. When can we check the account online?
Any time/ 24 hours a day /Whenever it suits you.
2. How long does it take you to check the interest you have earned in the online
banking?
just a few seconds
The whistleblower was a computer expert working for HSBC in Geneva. He stole the
details of more than 100,000 clients worldwide. A French banking team looked at the
stolen data in 2013. It concluded that 99.8% of French citizens on the list were probably
evading tax.
HSBC said the bank has changed a lot since 2007. It said: "HSBC has developed
numerous methods to prevent its banking services being used to evade taxes." HSBC
told its reporters that the bank understood that it failed to follow the law properly.
However, one woman lost her job when she complained that the bank did not make these
changes. Sue Shelley was responsible for making sure HSBC followed the law. The
BBC said that when she complained that the bank was not keeping its promise to change,
the bank fired her. Panorama said HSBC is now facing criminal investigations in the
USA, France, Belgium and Argentina.
Questions
1. For what purpose did HSBC help rich people to hide their money?
in order not to pay tax
4. What happened with the woman when she complained that HSBC did not keep
the promise to change?
The bank fired her.! She was fired by the bank.
2. Where can people see the words "new customers only" advertised by banks?
in the small print at the bottom of their advertisement.
71
3. How do existing customers react when they can't get the offers?
They become angry
Reading passage 10: Read the passage and answer the questions.
The way in which a bank is organised and operates is determined by its objectives
and by the type of economy in which it conducts its business. A bank may not
necessarily be in business to make a profit. Central banks, for example, provide a
country with a number of services, while development banks exist to increase the
economic growth of a country and raise the living standard of its population. On the
other hand, the aim of commercial banks is to earn profits. They therefore provide and
develop services that can be sold at a price that will make a profit.
Many banks offer a combination of wholesale and retail banking. The wholesale
banking provides large-scale services to companies, government agencies and other
banks. The latter mainly provides smaller-scale services to the general public. Both
types of banking, however, have three essential functions, including deposits, payments,
and credits. These three functions are the basis of the services offered by banks. They
make it possible for banks to generate profits and to achieve their operating aims.
Recently banks have started to offer many new facilities to their customers such
as cheque cards, cash cards, credit cards, insurance cover, and investment services.
However, one of the most important services which banks offer is that they lend money
to their customers. The methods available for a customer to borrow and the rates of
interest vary from country to country and bank to bank.
72
Questions
1. What does a bank organization and operation depend on?
its objectives and the type of economy in which it conducts its business.
4. Why are these three functions very important for bank operation?
They make it possible for banks to generate profits and to achieve their operating
aims.
5. What are some new facilities offered by banks?
cheque cards, cash cards, credit cards, insurance cover, investment services
Reading passage 11: Read the passage and answer the questions.
Recently banks have started to offer many new facilities to their customers. There
are new types of accounts, cheque cards, cash cards, credit cards, insurance cover,
investment services. However, one of the most important services banks offer is that
they lend money to their customers. The methods available for a customer to borrow
and the rate of interest vary from country to country and bank to bank.
One way of borrowing is to overdraw on your account. This is useful if you only
wish to borrow a small amount for a short time. The interest rate on overdrafts depends
upon the bank rate. In the UK, at the moment it is 12 % over base rate. You can only
have an overdraft with your manager's permission.
Another way is to arrange a 'personal loan' . A personal loan is for a fixed period
of time usually 3-5years. Many people take out a personal loan, for example, to buy a
car. Each month the customer makes a payment on the loan to the bank. The main
advantage of a personal loan is that the interest rate is fixed. In the U. K. at the moment
it is 19 %. Of course, for both a personal loan and a long-term loan the bank requires
some kinds of security e.g., shares.
73
Questions
1. What facilities have banks started to offer their customers?
new types of accounts, cheque cards, cash cards, credit cards, Insurance
cover, investment services.
2. When is it useful to overdraw on the account?
When we wish to borrow a small amount for a short time.
4. What does the customer have to do every month when he takes out a personal
loan?
Each month the customer makes a payment on the loan to the bank.
5. According to the text, what is the requirement to take out a personal loan?
The bank requires some kind of security e. g., shares.
Reading passage 12: Read the passage and answer the questions.
What makes money valuable? You could say there is no reason. It's true that a
special kind of paper is used to make dollar bills, and they are pretty, but that's not what
makes them valuable. The real reason why money is valuable is that everyone believes
it is.
Ancient economies had no paper money or coins. Some used barter - trading
one thing for another. Others used objects as money. Animals or metals were popular,
and so were manufactured products like jewelry or weapons. Wealth in ancient Greece
was measured in tools or cattle. This kind of money had two purposes. First, it was
useful because tools and cattle can be used for farming. Second, it was a way to
symbolize and measure value. A house, for example, would be valued at a certain
number of tools or cattle. Other societies used money that was totally symbolic. For
instance, American Indians used wampum, which is made from seashells. And until
recently on the Pacific island of Yap, people used large stone discs as money.
74
In most places, these types of money no longer exist since more practical forms
of money were invented. People started using precious metals such as gold and silver
because they were easier to carry around. In the eighteenth century, paper money was
introduced. At first people were suspicious of the new currency, but they came to accept
it because the government or bank issuing it would exchange an equal amount of gold
for the paper. Nowadays, people are used to the idea that the government doesn't have
to back its money with gold. But if, for some reason, people ever lost faith in paper
money, ten dollars wouldn't be worth the paper it's printed on.
Questions
1. According to the text, why is money valuable?
Because everyone believes it is
Reading passage 13: Read the passage and answer the questions.
Corporate customers who want to borrow large amounts of money come to the
Corporate Banking Department in our bank. They have to have a good credit rating and
collateral if they want to arrange a loan. This can be land or other assets. They should
bring along all their financial documents like the income statement, balance sheet and
cash flow statement. The corporate banker will look at their current assets and non-
75
current assets to see what the company owns. Then the banker will look at the liabilities
to see how much the company owes. He or she will also look at the shareholders' equity
to see how much money has been invested in the company by selling shares. It is also
important to see the retained earnings. This is the money the company uses for their
business or to pay debts.
The banker will also want to see the income statement. This shows the bank how
much the company earned and what they spent in a period of time. If the operating
revenues were higher than their operating expenses, they made a profit. But if the
operating revenues were lower, they made a loss. He or she will also look at the net
profit or how much the company kept after paying all the expenses.
Finally, the banker will look at the cash flow statement. This is where he or she
can see if the company has generated cash in the last year. This statement shows how
money comes in and goes out of the company. It is very important for the bank as it
shows if the company can pay its bills.
Questions
1. What are two things that a company needs if it wants to arrange a loan?
good credit rating and collateral.
Reading passage 14: Read the passage and answer the questions.
Prepaid credit cards provide an alternative to all those people that need a credit
card. They work much like debit cards, that is an account set up by a monetary deposit,
76
and this deposited money can be used up through the prepaid credit card issued. The
greatest advantage of prepaid credit cards over normal credit cards is that you are entitled
to spend only as much as you have in your account - thus you will not be in debt, and
you will have no bill to pay. One disadvantage of prepaid credit cards, however, is that
most prepaid credit card companies require a set-up fee to both open and maintain the
prepaid credit card account. You will be required to pay taxes on your cash deposits,
and you may be required to pay an annual membership fee. Another major disadvantage
is that most online merchants do not accept prepaid credit cards as payment. This is
because they have no guarantees that the account can completely cover payment for an
online purchase. This can be difficult for prepaid credit card holders to pay for monthly
subscriptions to Internet service providers or to purchase items that are sold at zero
percent interest. If you are interested in purchasing and using a prepaid credit card, take
note of these advantages and disadvantages. Although you have the convenience of not
carrying cash, you may not be able to purchase as many items as you wish, or from as
many merchants as you please. Although you may have to pay additional fees for your
account, you can control your overall spending and keep yourself out of debt.
Questions
1. In what way are prepaid credit cards similar to debit cards?
It is an account is set up by a monetary deposit, and this deposited money can be used
up through the prepaid credit card issued.
2. Why are prepaid credit cards better than credit cards?
Customers can spend only as much as they have in their account - thus they will not
be in debt, and will have no bill to pay.
3. What is a set-up fee used for?
to open and maintain the prepaid credit card account.
4. Besides the set-up fee, what are some additional fees will customers have to pay
for prepaid credit cards?
taxes on cash deposits, and annual membership fee.
Reading passage 15: Read the passage and answer the questions.
Banks are financial institutions that accept deposits from citizens and pay interest
in return. However, banks are not all service institutions, most banks operate in order to
make a profit. Even if they are a non-profit organization, they have to make money in
their operation in order to pay expenses. Banks do this in a variety of ways.
First, they charge interest on loans from their depositors and from the government.
They pay interest to depositors but charge a higher rate on money they lend out. For
example, a bank may pay 3% on a savings account but charge 9.5% in interest on a loan.
In the case of money borrowed from the government, banks pay a percentage rate on
money they borrow, which is called the discount rate. Banks then lend that money and
charge a higher rate on the loan than the rate that they pay. It's called using other
people's money!
Second, banks use depositors' money to make money. They do this by giving
loans and earning interest. These loans are usually real estate loans, sometimes they are
car loans, student loans, etc. Some banks make commercial real estate loans, others do
not. Recently, there have been the mergers between banks and investment institutions.
They do this so that they could step into rather dangerous business areas of investing
and being connected to the stock market.
Third, banks charge fees. Today banks have fees for minimum deposit, per check
fees and ATM fees. When ATMs were first introduced, they were supposed to replace
bank branches, save banks operating expense and that savings would be passed on to
consumers. However, this has not happened. Instead, ATMs have become a revenue
source for banks as they charge up to $1.50 per transaction. If you use the ATM of a
bank other than your own, both your bank as well as the ATM Ds bank may charge you a
fee.
Questions
1. Why do banks have to make money?
to pay expenses.
Reading passage 18: Read the passage and answer the questions.
THE STOCK MARKET
The stock market is a financial institution where brokers trade company stocks
and other securities physically (in real life) or virtually (on the Internet).
Common Stock Market Terms
• Primary Stock Market: this market is for trading ofInitial Public Offerings (IPOs) and
other brand-new issues by sellers and buyers
• Secondary Stock Market: this market is for trading of existing stocks in the market by
buyers and sellers
• Stock price: This is the value for which stocks are bought and sold. Factor that directly
impacts on stock prices is the performance of company issuing the stocks. Another
factor is the market capitalization which is the stock price multiplied by the number of
shares. Other factors that affect stock prices include the expansion and future growth.
• Dividend yield: The dividend yield is calculated by dividing the annual dividends per
share by the price per share. This dividend yield means that the shareholder has a return
on his dividends.
• Bulls and bears: You have a bull market when the values of stocks go up. This shows
the good health in the economy. In a bull market, investors can gain a lot of profits from
stock sales. In contrast, bear market indicates an economic downtrend so that investors
79
need to sell their stocks before the prices drop much lower. During a bear market, a lot
of investors and businesses might lose a lot of money if they are not quick in buying
good stocks and selling bad shares before they plummet. The general rule to follow in
the stock market is to buy when prices are low and sell when prices are high.
Questions
1. What are the two (2) ways in which exchanges in stock market occur?
physically (in real life) or virtually (on the Internet).
The dividend yield is calculated by dividing the annual dividends per share by the
price per share.
Reading passage 17: Read the passage and answer the questions.
There are many ways to invest in shares. Before you invest, you should understand
the benefits and risks of each option and decide which method suits your needs. Some
of them are as follows:
1. Buying individual shares directly
You can buy individual shares through a full-service broker, an online trading
account or from the company itself when it offers shares through a public float. You
have control over the shares you buy and sell. However, you must be prepared to put in
80
the time and effort to track their performance and watch the market to make your own
buy or sell decisions.
2. Buying shares via a Listed Investment Company (LIC)
A listed investment company uses money from investors to invest in a range of
companies and other assets. It pays you dividends from its earnings and hopefully its
shares increase in value over time. LICs often have lower ongoing costs than managed
funds but a LIC Ds share price may not exactly reflect the alue of its investments.
3. Buying shares via an Exchange Traded Fund (ETF)
An Exchange Traded Fund (ETF) invests in a basket of shares that make up an
index, e.g. the ASX200 Index. An ETF allows you to diversify your portfolio without
having a large amount of money to invest. You can buy or sell ETFs just like any other
share. But they may be less suitable if you are investing small amounts regularly, due to
a stock broking fee on each contribution.
Questions
1. What are three (3) ways in which investors can buy individual shares directly?
through a full service broker, an online trading account or from the company.
They may be less suitable if you are investing small amounts regularly, due to a stock
broking fee on each contribution.
Reading passage 18: Read the passage and answer the questions.
Banking began in the twelfth century in Italy. Moneylenders set up benches in
the marketplace to do transactions. In the UK retail banking started in the seventeenth
81
century. People began to use banks to keep their gold and silver safe. The bank gave
them receipts, and customers used these as currency. Today many of the early banks
have expanded into financial supermarkets for customers. They offer current and deposit
accounts and make payments through EFTPOS (electronic funds transfer at point of sale)
in shops and restaurants. In addition, they issue credit cards, pre-paid cards, debit cards
and smart cards. Many banks even give financial advice and sell insurance and pension
plans.
Nowadays, the methods of banking have changed a lot. People used to use
cheques widely. Today most customers use direct debits or standing orders to pay their
bills. Many customers open online accounts. This means that they no longer have to
come into the bank. And when they do, they usually use the machines in the lobby and
they donDt speak with a banker at all. Therefore, it is much more difficult today for
bankers to get to know their customers. It is also harder to advise them or sell them other
products.
This is why banks have come up with other ways to meet their customers. World
Savings Day was started in 1924 in Milan, Italy but is now expanding to countries where
people sometimes donDt use banks at all. The banks give their customers gifts for opening
savings accounts. Sometimes they hold events and invite customers to come to them to
hear about investments or other financial topics. Today many banks have become larger
and have merged with other banks. Customers no longer know the people that they deal
with. That is one reason why banks are trying to find new ways to win customers.
Questions
1. How did banking work in the twelfth century in Italy?
Moneylenders set up benches in the marketplace to do transactions.
4. Why it is much more difficult today for bankers to get to know their customers?
Customers usually use the machines in the lobby and they don't speak with a banker.
They invite customers to come to them to hear about investments or other financial
topics/ to meet customers/ to win customers.
Reading passage 19: Read the passage and answer the questions.
For tens of millions of Americans, banks are the first choice for savmg,
borrowing, and investing. Banking has changed in many ways through the years. Banks
today offer a wider range of products and services than ever before, and deliver them
faster and more efficiently. But bankingD s central function remains as it has always been.
Banks put a communityDs surplus funds (deposits and inestments) to work by lending
to people to buy homes and cars, to start and expand businesses, to put their children
through college, and for countless other purposes. Banks are vital to the health of the
nationD s economy.
During the last 25 years, banking has undergone a revolution. Technology has
transformed the way Americans obtain financial services. Telephone banking, debit and
credit cards, and automatic teller machines are commonplace, and electronic money and
banking are evolving. The techniques of bank examination have changed, too. Today
OCC examiners (the Office of the Controller of the Currency) use computers and
technology to help ensure that the banks they supervise understand and control the risks
of the complex new world of financial services.
The OCC supervises national banks and enforces federal banking laws. It rules
on new charter and merger applications for national banks, and conducts basic research
on banking and the economy. The tools have changed, but for the OCC, the basic
mission remains the same as in the days of Lincoln: to ensure a safe, sound, and
83
competitive national banking system that supports the citizens, communities, and
economy of the United States.
Questions
1. Why do Americans need banks?
for saving, borrowing, and investing
Reading passage 20: Read the passage and answer the questions.
Point of Sale (POS) system is a system for managing the sales of retail goods.
The term is used to refer to the software and hardware associated with check-out stands,
and all of the bundled features which are included. Most retailers use a POS system at
their check-stands, and several major manufacturers offer POS systems designed for
various types of businesses, ranging from grocery stores to clothing boutiques. Using a
POS system makes a business much more efficient, lowering the costs of running the
business while improving customer service and making the business more pleasant to
work in. In the retail trade, the "point of sale" is the moment when a customer walks up
to a counter with goods and prepares to purchase them.
The most basic POS computer system is an electronic cash register. The clerk
can ring up goods in the cash register and produce a receipt for the customer. At the end
of the day, various cash register functions can be used to print out daily reports which
are used to reconcile the cash register and to prepare a deposit. More complex cash
registers are capable of extremely detailed reports, and they have memory functions
84
which allow users to look up reports from the past, or generate monthly and yearly
reports.
A more complex POS system, however, includes numerous bundled features.
Many POS systems have inventory management capabilities, where each piece of
merchandise is entered into the system so that it can be tracked. Some systems also allow
store buyers to generate purchase orders from within the system, using data about sales
and product popularity. Time clocks and other accounting features such as credit card
verification may be integrated into a POS system as well.
The hardware of a POS system is also distinctive and important. A typical system
includes a display screen for the clerk, a customer display, a cash drawer, a credit card
swiping system, a printer, and a bar code scanner, along with the computer loaded with
the POS software.
Questions
1. What does the acronym POS stand for?
It stands for Point of Sale.
A display screen for the clerk, a customer display, a cash drawer, a credit card swiping
system, a printer, and a bar code scanner, along with the computer loaded with the POS
software.
85
86
4. We think that this company looks particularly promising because it claims a very
high internal rate of return.
5. After an unsuccessful year, we expect to see their sales hit the fast-growth curve
very soon.
6. Porsche had been making a larger profit out of option trading than it has out of
selling cars.
7. In 2008, the UK experienced a credit crunch when people found it more difficult
to get a loan from a bank.
87
8. This company had adopted a very aggressive funding model which left it very
vulnerable when the credit crunch hit.
9. This bank had relied too heavily on wholesale funding and not enough on retail
deposits.
10. What was first believed to be a short credit crunch had turned into a more serious
recession.
2. China has tried to control its manufacturing costs through outbound acquisition.
4. Entrepreneurs can attract investors by demonstrating that they understand the risk
factors, and presenting a persuasive business plan.
88
6. Every company in a portfolio needs to give a potentially high return, because the
winners will eventually have to cover the losers.
7. The Central bank suffered from criticism for its failure to foresee the
consequences of the US subprime mortgage lending crisis.
10. These credit-rating agencies were criticised because they earned a fee from the
issuers whose securities they rated.
89
2. The market watchdogs started questioning the roles of the rating agencies in the
subprime mortgage crisis.
3. The credit rating agencies said that their job was to provide an opinion on the
probability of a company defaulting on its debt repayments.
4. The rating agencies said that their ratings should never be used as the sole reason
for an investment decision.
5. In Britain, shares of public limited company are freely traded with a minimum
share capital of £50,000.
6. This accountant has recently warned me that his business is unlikely to be able
to survive much longer.
8. The directors need to act carefully to avoid the business trading insolvency,
because the penalties for doing this can be severe.
IO.In case of insolvency, the interests of the company's creditors must become a
priority.
2. The directors have to know the latest transactions and management accounts
based on the company's latest order book.
4. We need to ensure that the assets of the company are always protected and not
sold for less than their real value.
5. I want them to make sure that they do not take on lines of credit that the company
cannot repay.
6. He must show at all times that he is acting in the best interests of all of the
company's existing creditors.
7. The CEOs should hold regular meetings and keep minutes of the discussions and
the key decisions they make.
8. As soon as their business becomes insolvent, the directors need to act quickly to
seek the protection with the insolvency procedure.
9. A licensed insolvency practitioner can help the company directors follow the
most suitable procedure.
10. When economic conditions become difficult, businesses can experience a sharp
downturn in trading.
92
2. The company stopped trading, and its assets were sold to payoff its creditors.
4. Finally, the directors were subject to severe remedies and they went to prison.
5. It was discovered that some important items in their meetings had not been
written down in the minutes.
6. They had entered false items into their order book to make their business look
more successful than it actually was.
7. Retail banks receive deposits from, and make loans to, individuals and small
companies.
8. Commercial banks give financial advice, raise capital by issuing stocks or bonds,
and arrange mergers and takeovers.
93
10. Hedge funds use a variety of risky investing strategies in order to achieve high
returns.
3. Islamic banks do not pay interest to depositors, but invest in companies and share
the profits or losses with their depositors.
4. Some food retailers and department stores now offer products like personal loans,
credit cards and insurance.
94
5. The subprime borrowers are those with poor credit ratings and a high risk of
default.
6. During the housing crisis, many banks in the USA went bankrupt, and others had
to be rescued by governments.
7. A major bank has been rescued by the government after losing billions of euros
on speculative investments.
9. If a company needs to raise more money to expand their operations, they can
either issue new shares or borrow money.
10. Bondholders get back their principal on a fixed maturity date, and receive coupon
at regular intervals.
95
Vartli
WI2ITI~t3
96
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~Uf3f3~~T~1) A~~W~~~
~~r=~~~~C~~
ACI\~()WL~I)f3~,"~~T~
f3L()~~A~~
101
M()()UL~1: I3N11inllllit7
PART 1.VOCABULARY
1.1. Multiple choice
lA 2B 3B 4D 5C
1.2. Matching
lC 2B 3E 4D 5A
2.2 Passage 2
1. bank
2. lender
3. borrower
4. repayment
5. bond
102
6. investor
7. interest
8. securitised
PART 4. TRANSLATION
4.1 English - Vietnamese translation
l.Cac ngan hang ban le hoac ngan hang thirong mai nhan tien giri, va cho vay toi cac ca
nhan va cong ty nho.
103
2.Vi~c tang Eii suatchi di~n ra a nhirng ngan hang quy mo nho va khong phan anh duoc
xu huang chung cua toan b9 h~ thong ngan hang.
3. Cac ngan hang Ion da tro thanh nhirng t~p dean da quoc gia cung c~p mot h~ thong
d~y du cac dich vu tai chinh rna tnroc day da duoc tlnrc hien boi ngan hang, quy phong
h9 va cac cong ty bao hiem,
4. U6i voi cac ngan hang, khach hang khong con c~n giir mot khoang Ian tien m~t trong
tay; nhirng giao dich thay vao d6 c6 th~ thirc hien b&ng sec, the ghi no hoac the tin dung,
5. T6 chirc tai chinh la mot co sa thirc hien cac giao dich tai chinh nhu la d~u tir, cho
vay va nhan tien giri,
PART 5. WRITING
1.Subprime borrowers are those with poor credit ratings and consequendya high risk of
default
2. Securitization means pooling financial assets like morgages and converting into
securities.
104
3. When many subprime borrowers stopped paying, the value of subprime related
securities feU dramatically.
4. The credit crunch happens when there is a massive reduction in the credit available for
banks to lend to other banks, and businesses.
5. N on- bank financial intermediaries also offer products like personal loans, credit cards
and insurance.
M()I)UL~~ OO!llliI)
PART 1. VOCABULARY
1.1. Multiple choice
1D 2D 3B 4C 5B
1.2. Matching
1B 2C 3A 4E 5D
2.2 Passage 2
1. bankruptcy
2. bondholders
105
3. payments
4. liquidation
5. reserves
6. profits
7. cash flow
3. N~u khoan thu til thu~ khong du, chinh phu ciing phat hanh trai phieu d~ huy dong
v6n va di~u nay duoc xem nhu la mot SlJ d~u tu khong c6 rui roo
4. Chi nhirng trai tim dung cam moi nhin nhan vao viec quay tro lai thi tnrong clnrng
khoan vao hie nay, boi vi v~n khong ra rang rang lieu cluing ta c6 th~ d6i d~u voi mot
cuoc khung hoang hoac suy thoai toan c~u nira hay khong.
5. Quy nay lnrong toi viec dat duoc thu nhap cao va 6n dinh va 6' tren rmrc hoa loi trung
binh, trong khi v~n quan tam toi viec an toan cua nguon v6n d~u tu.
1.2 Matching
lB 2D 3E 4C 5A
PART 4. TRANSLATION
4.1 English - Vietnamese translation
1. Cac cong ty sir dung ngan hang d~u tu d~ tim kiem ngiroi mua, va d~ bao lanh SlJ phat
hanh c6 phieu,
2. Cac cong ty c6 th~ phan ph6i mot phan 19i nhuan cua ho cho cac c6 dong nhu la c6
nrc hang nam.
3. Lam sao ban c6 th~ kiem duoc ti~n til thi tnrong clnrng khoan dang di xuong?
4. Sau khi tang manh vao tu~n tnroc, clnrng khoan chan A dil xuong dec do SlJ so hili v~
mot cuoc suy thoai kinh hoang,
109
5. H~u h~t cac c6 phieu da tang kha manh a Madrid vao sang nay, sau khi san clnrng
khoan mo cira tro lai sau ngay nghi l~ truyen thong hom qua.
PART 5. WRITING
1. After shares have been issued, they can be traded on the secondary market
2. The rise and fall of stock prices depend on supply and demand or the market forces.
3. Blue chips are shares in weD-established companies with a good reputation for quality
and profitability.
4. A private company can go public by offering their stocks for sale to the finandal
institutions and the general public.
5. Hedge funds can "short" shares by borrowing them off a conventional lund and then
selling them.
110
PART 1.VOCABULARY
1.1 Multiple choice
lD 2A 3D 4C SA
1.2 Matching
lB 2E 3A 4D SC
1. operations
2. fraud
3. institution
4. guarantee
S. transactions
6. vaults
7. procedures
8. performance
2.2 Passage 2
1. invoices
2. receipts
3. journals
4. ledgers
S. customer
6. figures
111
7. auditors
8. declare
PART 4. TRANSLATION
4.1 English - Vietnamese translation
1. o h~u h~t cac mroc cac cong ty ghi chep lai nguyen gia cua tai san - gia mua ban d~u
chir khong phai gia ban hien tai hoac gia thay the,
2. Ngoai ra, ban c6 th~ trinh bay cac tai khoan cua mot cong ty ban lam viec hoac da
tung lam viec hoac biet ro.
112
3. T~t ca s6 tien rna doanh nghiep chi cho hang h6a hoac dich vu trong mot thai ky nhdt
dinh la chi tieu.
4. Bang can d6i k~ toan la mot bao cao th~ hien gia tri tai san cua doanh nghiep, cac
khoan no phai tra va v6n hoac v6n chu So' hiru cua c6 dong.
5. Bao cao tai chinh cua Google sir dung cac thuat ngir cua My, doi khi khac voi cac
thuat ngir cua Anh.
PART 5. WRITING
1. The balance sheet reports the company's Iiaencisl condition on a specific date.
2. Bookkeepers and accountants are responsible for keeping records and providing
Iinsncisl information about the business.
3. Accounting principles applied by the companies v;uy Irom counuy to couatry:
4. The assets are listed on the Jeftside of the balance sheet
5. Tax accounting calculates how much a company wiDhave to pay to the Jocal and
national governments.
113
Exercise 1
lD 2A 3C 4E SB
Exercise 2
IE 2B 3D 4C SA
Exercise 3
lB 2D 3E 4C SA
Exercise 4
lA 2B 3E 4D SC
Exercise 5
IE 2C 3B 4D SA
Exercise 6
lB 2C 3A 4E SD
Exercise 7
1. global brands
2. corporate financiers
3. risk management
4. foreign investment
S. broke
Exercise 8
114
1. start-up
2. internal rate of return
3. magnitude
4. fast-growth curve
5. high return
Exercise 9
1. derivatives
2. options
3. blocking minority
4. short squeeze
5. position
Exercise 10
1. sharp downturn
2. fraudulent
3. remedies
4. disqualification
5. order book
Exercise 11
1. credit crunch
2. collapse
3. vulnerable
4. wholesale funding
5. loan exposure
115
V~T~.£LVZ~V~4~~
Passage 1
1. deposit
2. return
3. liquidity
4. withdraw
5. passbook
6. rate
7. surplus
8. maturity
Passage 2
1. financial
2. mortgage
3. arrangement
4. assess
5. corporate
6. raise
7. automatic
8. identification
Passage 3
1. insurances
2. head
3. trainees
4. cashiers
5. property
6. financial
116
7. transactions
8. transfers
Passage 4
1. shareholder
2. dividend
3. bonds
4. fixed
5. matures
6. mutual
7. return
8. earnings
Passage 5
1. representative
2. host
3. subsidiaries
4. provisions
5. parent
6. branches
7. control
8. participation
Passage 6
1. mortgage
2. ownership
3. collateral
4. supply
117
5. repayments
6. foreclose
7. fluctuation
8. standardized
Passage 7
1. restrain
2. functioning
3. signals
4. sustainable
5. cost
6. demand
7. pressures
8. loss
Passage 8
1. trainee
2. analyst
3. call centers
4. administrative
5. supervisors
6. fast-track
7. appraisal
8. pension
Passage 9
1. refund
2. denominations
3. currencies
118
4. obtain
5. debited
6. commissions
7. insurance
8. serial
Passage 10
1. difference
2. issue
3. credit limit
4. cash
5. cheques
6. statement
7. clear
8. outstanding
Passage 11
1. surprised
2. buyout
3. deal
4. target
5. objected
6. hostile
7. offer
8. sale
Passage 12
1. get
2. financed
119
3. called
4. paid
5. repaid
6. known
7. combined
8. provided
Passage 13
1. its
2. where
3. much
4. the
5. from
6.of
7. at
8. like
Passage 14
1. earns
2. writing
3. connected
4. give
5. lend
6. charging
7. offer
8. need
Passage 15
1. aim
120
2. owners
3. dividend
4. savings
5. terms
6. risk
7. capital
8. inflation
Passage 16
1. have
2. that
3. deposit
4. been
5. widely
6. present
7. found
8. evolved
Passage 17
1. for
2.of
3. because
4. over
5.on
6. from
7. if
8. which
121
Passage 18
1. returned
2. served
3. relations
4. sanctions
5. unemployment
6. crisis
7. democracies
8. negotiated
Passage 19
1. asset management
2. potential
3. physical
4. performance
5. examine
6. science
7. critical factors
8. realize
Passage 20
1. responsibility
2. annual report
3. supervision
4. risk management
5. default
6. retail
122
7. developed
8. expected
21 to reduce costs
31 "Project New BAC"
41 $5 billion in annual expenses
51 in May
Reading passage 2
1/ to save money, borrow money and to pay for things with ease and security
21 All central tasks are performed here.
31 They work behind the bank counter and help the customers.
41 They need to see the bank manager
51 Customers just need to carry a small plastic card to be able to pay for anything.
Reading passage 3
1/ Any 3 items out of the followings: receive and hold deposits, pay money according
to customers' instructions, lend money, offer investment advice, exchange foreign
currency, ...
21 They make a profit from the difference between the interest rates they pay to lenders
or depositors and those they charge to borrowers
31 The money they lend in bank account can be lent again to another debtor.
41 Bankers have to find a balance between yield and risk and between liquidity and
different maturities
51 US investment banks can only offer advisory services and do not offer loans
123
Reading passage 4
1/ It pays no interest.
2/ Customers do not have to carry a lot of cash.
3/ The branch manager has to decide whether the applicant is likely to keep the account
in credit.
4/ The manager wants to get the necessary background information.
5/ It is easier to open and earns interest for the customer.
Reading passage 5
1/ Any time/ 24 hours a day /Whenever it suits you.
2/ just a few seconds
3/ details of all your accounts and the business you have done over the years.
4/ the Society for Worldwide Interbank Financial Telecommunications
5/ It enables financial institutions to send and receive information about financial
transactions in a secure, standardized and reliable environment.
Reading passage 6
1/ in order not to pay tax.
2/ He stole the details of more than 100,000 clients worldwide.
3/99.8% of French citizens on the list were probably evading tax.
4/ The bank fired her.! She was fired by the bank.
5/ Sue Shelley was responsible for making sure HSBC followed the law.
Reading passage 7
1/ the contact details and extra costs.
2/ At the bottom of the secure site, there is a small's' - which stands for' secure' - along
with a picture of a padlock.
124
31 We should keep copies of the order form and the acknowledgment notice that we
receive.
41 We should check the bank statement and read all the terms.
51 They advise us if we find that we have been cheated while shopping online
Reading passage 8
1/ It is run entirely through the telephone and the Internet.
21 They only recruit people who already exhibit good communication skills.
31 Customers find scripts impersonal and unnatural.
41 They have to recognize people's needs, pick up on the caller's mood and react
accordingly.
51 They offer a service in which customers receive a text when funds are received or
when their account falls below a certain level.
Reading passage 9
1/ to get new customers.
21 in the small print at the bottom of their advertisement.
31 They become angry.
41 He goes to the Nationwide Building Society to get the special offers for all customers.
51 It is to attract new customers and keep existing customers we already have.
Reading passage 10
1/ its objectives and the type of economy in which it conducts its business.
21 to increase the economic growth of a country and raise the living standard of its
population.
31 They both have three essential functions, including deposits, payments, and credits.
41 They make it possible for banks to generate profits and to achieve their operating
aims.
51 cheque cards, cash cards, credit cards, insurance cover, investment services.
125
Reading passage 11
1/ new types of accounts, cheque cards, cash cards, credit cards, Insurance cover,
investment services.
21 When we wish to borrow a small amount for a short time.
31 You can only have an overdraft with your manager's permission.
41 Each month the customer makes a payment on the loan to the bank.
51 The bank requires some kind of security e. g., shares.
Reading passage 12
1/ Because everyone believes it is.
21 tools and cattle.
31 on the Pacific island of Yap.
41 They were easier to carry around.
51 Because the government or bank issuing it would exchange an equal amount of gold
for the paper.
Reading passage 13
1/ good credit rating and collateral.
21 It shows how much money has been invested in the company by selling shares.
31 This is the money the company uses for their business or to pay debts.
41 This shows the bank how much the company earned and what they spent in a period
of time.
51 It shows if the company can pay its bills.
Reading passage 14
1/ It is an account is set up by a monetary deposit, and this deposited money can be used
up through the prepaid credit card issued.
126
2/ Customers can spend only as much as they have in their account - thus they will not
be in debt, and will have no bill to pay.
3/ to open and maintain the prepaid credit card account.
4/ taxes on cash deposits, and annual membership fee.
5/ They have no guarantees that the account can completely cover payment for an online
purchase.
Reading passage 15
11to pay expenses.
2/ They pay interest to depositors but charge a higher rate on money they lend out.
3/ They do this by giving loans and earning interest.
4/ to step into rather dangerous business areas of investing and being connected to the
stock market.
5/ They were supposed to replace bank branches, save banks operating expense and that
savings would be passed on to consumers
Reading passage 16
11physically (in real life) or virtually (on the Internet).
2/ Secondary Stock Market.
3/ It is the stock price multiplied by the number of shares.
4/ The dividend yield is calculated by dividing the annual dividends per share by the
price per share.
5/ Investors can gain a lot of profits from stock sales.
Reading passage 17
1Ithrough a full service broker, an online trading account or from the company.
2/ You have control over the shares you buy and sell.
3/ You must be prepared to put in the time and effort to track their performance and
watch the market to make your own buy or sell decisions
127
51 They may be less suitable if you are investing small amounts regularly, due to a stock
broking fee on each contribution
Reading passage 18
1/ Moneylenders set up benches in the marketplace to do transactions.
21 to keep their gold and silver safe.
31 direct debits or standing orders.
41 Customers usually use the machines in the lobby and they donDt speak with a banker.
51 They invite customers to come to them to hear about investments or other financial
topics.! to meet customersl to win customers.
Reading passage 19
1/ for saving, borrowing, and investing.
21 by lending to people.
31 to help ensure that the banks they supervise understand and control the risks of the
complex new world of financial services
41 The GCC rules on new charter and merger applications for national banks, and
Reading passage 20
1/ It stands for Point of Sale.
21 They are the software and hardware associated with check-out stands, and all of the
bundled features which are included.
31 They become more efficient: lowering the costs of running the business, improving
customer service, and making the business more pleasant to work in.
128
41 At the end of the day, the cash register can print out daily reports. With complex cash
registers, users can look up reports from the past, or generate monthly and yearly reports.
51 A display screen for the clerk, a customer display, a cash drawer, a credit card swiping
system, a printer, and a bar code scanner, along with the computer loaded with the POS
software.
Exercise 1
1. OlC cong ty tai chinh cho r&ng Trung Quoc la mot trong nhirng co hoi d~u tu Ian.
2. OlC nha d~u tu tiem nang d~ dang ra quyet dinh d~u tu han vao mot doanh nghiep khi
doanh nghiep nay dang hoat dong.
3. OlC nha d~u tu vao cong ty khoi nghiep se khong d~u tu v6n m:;1Ohiem cho du cong
ty c6 ti~m nang sinh loi th~ nao di chang nira,
4. Chung toi cho r&ng cong ty nay c6 kha nang d~y lura hen boi vi cong ty tv cho la se
t:;10ra ty su~t d~u tu cao.
5. Sau mot nam hoat d9ng khong thanh cong, cluing toi ky vong chang bao lau se dat
doanh s6 ban theo duong trim tang tnrong cao.
6. Cong ty xe hoi Porche da t:;10ra 19i nhuan Ian han til viec mua ban quyen chir khong
phai til viec ban san pham cua minh la xe hoi.
7. Vao nam 200S, mroc Anh da phai ap dung th~t chat tin dung khi ngiroi dan nhan ra
r&ngd~ yay mot khoan yay til ngan hang la r~t kh6 khan.
S. Cong ty nay da ap dung mo hinh nguon v6n khac nghiet d~ cong ty khong bi va no
khi th~t chat tin dung duoc ap dung,
9. Ngan hang nay da phu thuoc qua nhieu vao mang ban si va vi vay da khong c6 du
tien giri huy dong cho mang ban le.
1O. f)i~u rna moi ngiroi v6n cho la th~t chat tin dung trong ngan han da tro thanh viec
suy thoai nghiem trong han.
129
Exercise 2
1. f)~u tu co nghia la dung tien mua mot tai san nham muc dich t:;10loi nhuan khi ban
tai san do 6 mot rmrc gia cao han.
2. Trung quoc da c6 g~ng kiem soat chi phi san xuat qua viec thau tom ngoai mroc.
3. Cac ngan hang d~u tu mroc ngoai dang tim kiem nguon d~u tu thau tom cac chirng
khoan cua cac cong ty trong mroc nham muc dich giao dich mua ban clnrng khoan
trong mroc.
4. Cac cong ty khoi nghiep co th~ thu hut nha d~u tu mroc ngoai b&ng each clnrng minh
r&ng cac cong ty nay nam b~t duoc cac y~u t6 rui ro va dira ra duoc k~ hoach kinh
doanh thuyet phuc duoc nha d~u tu.
5. Su thanh cong cua cong ty khoi nghiep phu thuoc vao viec duoc nha d~u tu tiem nang
mroc ngoai quan tam d~n k~ hoach kinh doanh cua ho hay khong,
6. M9i cong ty trong danh muc d~u tu d~u phai co loi nhuan tiem nang cao boi vi cu6i
cung cong ty thanh cong se phai chi tra cho cac cong ty th~t bai,
7. Ngan hang trung irong bi chi trich vi da khong du dean tnroc duoc h~u qua cua khung
hoang trong cho vay diroi chuan 6 Hoa kyo
8. Cac t6 clnrc dinh gia rmrc tin nhiem cua cong ty se danh gia rmrc d9 tin c~y cua trai
phieu va cong ty phat hanh trai phieu,
9. Cac nha d~u tu sir dung thong tin cua t6 clnrc danh gia rmrc tin nhiem cong ty d~ danh
gia loi nhuan d~u tu tiem nang.
10. Cac t6 clnrc danh gia rmrc tin nhiem nay bi chi trich boi vi ho nhan tien phi cua
cac cong ty phat hanh chirng khoan rna ho danh gia.
Exercise 3
1. Vao nam 2007, chinh phu Hoa ky dira vao danh sach ten cua bay t6 clnrc danh gia
rmrc tin nhiem duoc cong nhan la t6 clnrc v~ s6 lieu thong ke rmrc tin nhiem cua
,
quoc gia.
130
2. Cac t6 chirc giam sat thi tnrong b~t d~u d~t cau hoi v~ vai tro cua cac t6 clnrc danh
gia rmrc tin nhiem khi c6 khung hoang cac khoan cho yay duoi chuan.
3. T6 clnrc danh gia rmrc tin nhiem cho r&ng cong viec cua minh la dira ra y kien v~
tinh kha di r&ngmot cong ty c6 th~ sai hen hoan tra no hay khong.
4. Cac cong ty danh gia mire tin nhiem nay cho r&ng y kien danh gia cua ho khong nen
duoc sir dung nhu la mot kenh duy nhdt trong viec quyet dinh d~u tu.
5. o mroc Anh, c6 phieu cua cong ty trach nhiem hiru han dai cluing la hoan toan duoc
giao dich tv do voi rmrc v6n c6 phan t6i thieu la 50,000 bang Anh.
6. Nhan vien k~ toan nay dil canh bao toi r&ng cong ty rna ho lam viec khong th~ t6n
tai lau han nira,
7. Toi 10 lang v~ trach nhiem phap ly va trach nhiem no tai chinh cua minh khi cong ty
bi m~t kha nang chi tra.
8. Cac vi giam d6c nay c~n hanh dong than trong d~ tranh bi m~t kha nang thanh khoan
boi vi tien phat do m~t kha nang thanh khoan r~t nang,
9. Hinh tlnrc phat do m~t kha nang thanh khoan c6 th~ bao g6m viec nroc b&ng c~p cua
giam d6c cong ty hoac tham chi bi phat tu.
10. Trang tnrong hop bi m~t kha nang thanh toan, tien lili phai tra cho cac chu no phai
la Uti tien.
Exercise 4
1. Cac vi giam doc cong ty phai nam ra tinh hinh tai chinh hien tai cua cong ty va danh
gia urong lai cua hoat dong nao la kha thi.
2. Cac vi giam d6c phai biet duoc cac giao dich g~n nhdt va cac tai khoan quan tri dira
tren s6 sach k~ toan d~t hang nao.
3. H9 c~n phai lang nghe y kien tu van chuyen mon cua cac ben tu van d9C l~p hoac
cua t6 chirc ngan chan viec m~t tinh thanh khoan dil duoc c~p phep hoat dong.
4. Chung ta c~n dam bao r&ngtai san cua cong ty phai luon duoc bao v~ va khong duoc
ban th~p han gia tri thirc cua tai san do.
131
5. Toi muon ho dam bao r&ngho se khong c~p them han rmrc tin dung neu cong ty nay
khong th~ hoan tra.
6. Anh ta phai luon cho th~y anh ta dang hanh dong t6t nhdt cho t~t ca cac chu no hien
tai cua cong ty.
7. Cac giam doc di~u hanh cao c~p phai t6 chirc h9P dinh ky va hru giir bien ban thao
luan cling nhir cac quyet sach then chot,
8. Ngay khi doanh nghiep cua minh bi m~t kha nang thanh khoan, cac giam d6c c~n
hanh dong nhanh ch6ng tim each bao v~ qua cac thu tuc v~ pha san.
9. M9t t6 chirc chuyen v~ phong ngira pha san c6 th~ giup cac giam d6c cong ty tuan
thu quy trinh thich hop nhat.
10. Khi di~u kien kinh t~ tro nen kh6 khan han thi cac doanh nghiep se bi sut giam manh
doanh s6 giao dich.
Exercise 5
1. Khi mot cong ty khong th~ tra no yay cho chu no thi cong ty se bi x~p vao loai m~t
kha nang thanh khoan.
2. Cong ty d6 da dung giao dich va tai san cua cong ty se duoc ban thao d~ tra cac khoan
no.
3. Sau khi di~u tra, cac tlnrong vu cua ho d~u bi phat hien la c6 gian Ian.
4. Cu6i cung thi cac giam doc d~u c6 lien quan den cac khoan tien b6i nrong va da bi
dira vao tu.
5. M9t s6 diem quan trong thao luan trong cuoc h9P da duoc phat hien khong ghi vao
bien ban.
6. Cong ty da nhap s6 lieu sai vao s6 d~t hang d~ s6 sach th~ hien cong ty lam an c6 hieu
qua han so voi thirc t~.
7. Cac ngan hang ban le nhan tien giri cua khach hang ca nhan va sau d6 cho yay d6i
voi ca nhan va cac cong ty nho.
8. Cac ngan hang tlnrong mai cung c~p dich vu tu van tai chinh, tang v6n thong qua viec
phat hanh c6 phieu hoac trai phieu, xay dung k~ hoach sap nhap va thau t6m.
132
9. Cac ngan hang thuong mai tlnrong c6 cac dich vu quan ly danh muc d~u tu danh cho
d6i tuong khach hang cong ty va khach hang ca nhan Uti tien.
10. Quy phong v~ sir dung cac chien hroc d~u tu mao hiem nham muc dich dat tien
loi cao.
Exercise 6
1. o cac mroc nhu Hoa ky, Anh, Nhat, c6 nhirng quy dinh khong cho phep cac ngan
hang tlnrong mai tham gia vao mang d~u tu.
2. Ngay nay, cac ngan hang Ian tro thanh cac cong ty da nganh khong 16voi hang loat
dich vu tai chinh.
3. Cac ngan hang H6i giao khong tra Eii cho cac nha d~u tu, rna lai d~u tu vao cac cong
ty va chia phan loi nhuan hoac 16Ei cho khach hang gtri tien.
4. M9t s6 nha ban le va cac cira hang bach h6a c6 dira ra mot s6 san pham dich vu nhu
khoan yay ca nhan, the tin dung va bao hiem,
5. Cac d6i tuong yay diroi chuan c6 x~p hang tin nhiem th~p va rui ro khong tra no yay
cao.
6. Trang giai doan khung hoang nha d~t, a Hoa ky nhieu ngan hang dil bi pha san, va
mot s6 ngan hang khac chinh phil phai giai ciru.
7. M9t ngan hang Ian dil duoc chinh phil giai ciru sau khi thua 16hang ty euro do d~u
co.
8. Cong ty chi cho cac hoat dong cua minh b&ng nguon tien do cong ty tao ra.
9. N~u cong ty c~n tang tai chinh d~ mo rong hoat dong, cong ty c6 th~ hoac phat hanh
c6 phieu hoac yay tien.
10. Trai chu se nhan lai tien cho yay vao ngay dao han c6 dinh, va nhan tien lili trai phieu
thea dinh ky,
Exercise 1
133
6. It is predicted that in the next year the economy wiDbecome better as the institutions
are having more Dexible policy.
7. Recently, many foreign investment banks have increased their market share by
offering more services to the public.
8. Vietnamese consumers now aim at supporting the domestic producers by buying
more Vietnamese products.
9. Many banks try to attract more customers by diversifying their range of products to
the public.
10. Vietcombank is trying to satisfy their customers by providing new services which
offer.lIee service ch;uges in case the minimum balance is maintained.
Exercise 2
1. One benefit of overseas investment is that we can increase the outbound market share
so quickly.
2. Many foreign companies like to invest in Vietnam because of the young market and
Dexible policies and regulations.
3. One disadvantage of overseas investment is the unstable policies of those countries
which can be diBicuJt to foresee.
134
4. Entrepreneurs can raise capital by pooling money Irom the relative members or the
angels.
5. Most entrepreneurs have difficulty in persuading the angels by proving the success of
their business plan.
6. A start-up company needs to build their.image in the public with their proper business
actions.
7. The success of a start-up company depends on the management decision of the board
led by the CEo
8. When investors invest in a company, they want to.make sure that the money can work
for them eBiciendy.
9. This start-up company did not success because their goals and target were not specific,
measurable, achievable, realistic, and time-bound
10. Last year, many start-up companies were setup as there wss more money iavested
in this kind of business.
Exercise 3
1. We think this start-up company is promising because there are several policy and
regu/;ltions to support the entrepreneurs.
2. That company had a Vel)'promising profitability with a realistic and feasible business
plan.
3. He refused to invest in that start-up because he concluded that it would be vezy risky
to purchase their shares.
4. If the company succeeds, they can .make a great contribution to the economy.
5. Our company could make a large profit this year in comparison with the last two
consecutive years.
6. During recession, many Vietnamese companies had.financialproblem so they needed
to set different policy to survive.
135
7. If you want to borrow money, you have to prove that you can repay the loan as
scheduled.
8. If the borrower cannot repay a loan the bank can take possession of the collateral to
cover the debt
9. If you want to work for an international company, you should improve your
communication skiDs and shsrp your professional knowledge.
10. The difference between central banks and commercial banks are the former are
responsible for the policies while the latter serve the public clients.
Exercise 4
1. If you want to work as a broker, you can earn handsome fees when the securities
market become more positive.
2. The share price of this company went down because of the previous yesr's
uasuccessiul operating results which caused the cash Dow problems.
3. This building society can be one of the competitions of the commercial banking system.
4. If you have financial problems, we can help you to solve this by offering you with the
consumer credit
5. Many economists believe that the economic situation has been improved afier a year
of recession.
6. Our investors are confident that our profitability is becoming more realistic when we
apply the new plan.
7. Currently, our bank focuses on institutional clients as more new companies have been
setup.
8. The credit rating of our company is good so it provides positive opportunities for us
to issue more shares.
9. The Central bank plays a vitalrole in the stability of the national finandaJ system.
10. Their company went bankrupt last year when they made a wrong business decision
to invest in real estates.
136
Exercise 5
1. Because of the recession, my company has been in a diBicult problem since the
beginning of the year.
2. If your company is having financial problems, they can look for angels who can
provide them with the investments.
3. As a CEO, you should .make sure that the strategic plan is realistic and measurable.
4. I am responsible for preparing the Iinsncisl reports and presents them to the
management board periodically.
5. When economic conditions become difficult, the government wiDhave solutions to
kick start to revive the economy.
6. That company stopped trading, and invested in the Iinsncisl industry as a mutual lund
pooling investors' money.
7. Although the director tried his best to protect the company, he 5naUyhad to admit the
serious insolvency.
8. This company did not succeed because they did not have a proper strategic plan with
vaguegoals.
9. This bank refused to lend him the money because he is considered a bad risk which
can default on the repayment
10. Our company needs to iavestmore money in the branches to attra.ctthe customers.
Exercise 6
1. If this company needs money, it can raise capital with equity finance (issuing more
shares) or debt Iinsnce (issuingbonds).
2. If you want to pay for regular bills, you can use direct debits which are vezy good for
current account holder.
3. Online banking is becoming popular because of the development of high technology
and widespread of internet connection.
137
4. Last year, this commercial bank was bailed out by the government because of their
liquidity problem.
S. The employees in this bank are happy to hear that this yesr's profit afier tax has been
doubled.
6. Because today is his first day as a banker, he left the house early in the morning to be
on time at WOlX.
7. Banks are making some changes to adapt to the changing roles and business
environment
8. Companies are prepared to relocate to a new place in the heart of the new city.
9. Peter would like to borrow some money to buy a house as he has changed hisjob and
moved to this city recendy.
10. I think bonds are good because they ca.ny fixed interest rates and guaranteed by
the issuing institutions.
Exercise 7
1. That company intends to issue more shares as they need more capital to develop their
operation outbound
2. Our bank has become more popular recently because the PR department has been
working so eBiciendy in attra.ctingnew customers.
3. If you have money to invest, you should investin stocks and shares due to the prospect
of the securities exchange.
4. If you have money to invest in bonds, you should buy the gilt-edged stocks which have
promising value increase.
S. The stock price of our company is rising, so the market capitalization can exceed the
real value of our company.
6. The stock market in Vietnam has been recovering recendy when there are more
investors looking at this investing channel.
138
7. After I had invested all his money into the stock market, we lost approximately a
.million doDarsso we went bankrupt afierwa.rds.
8. I decided to open my account in this bank because ithasgoodreputationin taking care
of customers.
9. I do not like that bank very much because its nearest branch are about 10 kilometers
away Irom my house.
10. I like to use credit cards because it is vezy convenient especially when I have
international business trips.
Exercise 8
1. When we do online shopping, we can use either our credit card or debit card
conveniendyand quickly.
2. All banking services nowadays aim. at helping customers to enjoy the benefits of non-
cash instruments of payment
3. He was happy to hear that the stock price of his company was recovering aJiera steep
downturn last week.
4. If you invest in the stock market, remember to check the annual corporate financial
reports publicized by the potential company carefUlly.
5. The banks can help us to apply for a mortgage with the terms up to tens of years.
6. That ATM is vel)' convenient because you can get cash without dealing the teDers.
7. In order to open an account in our bank, you need to present necessary documents like
your ID,job agreement, and proof of yearly income.
8. I work in the bank and I help customers to open an account, or to change currencies,
or to transfer money.
9. As a bank teller, you should have good communication skiDs because you deal with a
variety of clients.
10. The services at this bank are vezy good as the bank always invest money in the
innovative schemes.
139
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16. Sample GMAT test, Cracow School of Business CUE.
17. https:/ /www.businessenglishsite.comlreadingcomprehensionlbusiness-
english -reading-comprehensionS .html
18. https:/ /www.excellentesI4u.comlesl-banking-reading-comprehension.htmI
140
19. https:/lbreakingnewsenglish.coml15021l502l2-hsbc-l.html
20. https:/ /www.examenglish.comlBEC/BECVantagereadingpart2.htm
21. https://msn.khnu.km.ua/pluginfile.php/224677 /mod resource/content/l/Ban
king.htm
22. https:/ /www.chegg.comlhomework -help/questions-and-answers/passage-l-
makes-money-valuable-piece-paper-marked-l O-worth-one-marked-l-could-
say-reason-s-q5l6l8856
23.https://ezinearticles.coml?Prepaid-Credit-Cards-Advantages-And-
Disadvantages&id=434996
24. https:// corporatefinanceinstitute.comlresources/know ledge/trading-
investing/stock -market/
25. https://moneysmart. gOY.au/shares/how -to-buy -and -sell-shares
141
For more reference, the following terminology definitions are taken from the
Cambridge Dictionary.
Account - an arrangement in which a bank looks after your money. You
can deposit or withdraw money when you need to
- a detailed record that a business keeps of the money it receives
and spends in a particular period of time
Annual percentage the interest rate on a loan calculated over a period of twelve
rate months
Balance sheet a financial statement that shows a companyDs assets and debts at
a particular time
Bank statement a record of the money put into and taken out of a bank account
Bankrupt unable to pay what you owe, and having control of your
financial matters given, by a court oflaw, to a person who sells
your property to pay your debts
Bear market a situation in the stock market in which the prices of shares are
falling
Blue chip a large and successful company whose shares are considered to
be a good investment
Bull market a situation in the stock market in which the prices of shares are
nsmg
144
Cash flow the movement of money into and out of a companyD s accounts,
used as a measure of how much money the company spend and
receive and how much profit it makes over a particular period of
time
Check-out stand the place in a shop, especially a large food shop, where you pay
for your goods
Civil Service a country's government departments and the people who work
in them
Collateral property that someone borrowing money will give to the loan
company, ifhe or she cannot pay the debt
145
Common stock a share or shares of a company providing the owner with a right
to vote at shareholder meetings and to receive a part of the
company profits as a dividend
Consistency principle a basic principle of accounting stating that the same methods for
doing accounts should be used from one financial year to the
next so that profits, losses, etc. can be compared
Corporate bond a bond that is produced and sold by a company, or the official
document relating to this
Credit rating agency a company that calculates credit ratings and provides them to
financial organizations and other companies
Deduct - to take away an amount or part from a total; to take away the
cost of particular things from the amount of money that you
have earned, before you pay tax on it
Default the fact of not paying interest or other money that is owed on
time
Due diligence report a detailed examination of a company and its financial records,
done before becoming involved in a business arrangement with
it, such as buying it or selling its shares to investors
Equity - the capital that a company gets from selling its shares rather
than borrowing money
149
- the value of a property for the owner after it has been sold and
any loan paid back
Federal tax in the US, a tax that you pay to the national government, rather
than to a state government
Going concern the theory assumes that during and beyond the next fiscal period
principle a company will complete its current plans, use its existing assets
and continue to meet its financial obligations
Highly leveraged - used to describe a company that has a large amount of debt
compared to its share capital, (= money in shares) or the
structure of such a companyD s capital
- used to describe a person who has borrowed a large amount of
money compared to their income or the amount of capital they
already have
Historical cost the theory that most assets are to be recorded on the balance
principle sheet at their historical cost even if they have significantly
increased in value over time
Insolvency - the condition of not having enough money to pay debts, buy
goods, etc., or an occasion when this happens
- a situation in which a person or company does not have
enough money to pay debts, buy goods
Investment bank a bank that helps companies and organizations to buy and sell
shares, bonds, etc. and helps companies to buy or merge (= join)
with other companies
Invoice a document that lists things provided or work done, gives their
cost, and asks for payment
152
Large-scale service business activity that involves a lot of people, things, or activity,
or happening over a large area
Limited company a company, especially one in the UK, whose owners only have
to pay part of the money they owe if the company fails
financially
Liquidation - a situation in which a company stops operating and sells all its
assets in order to pay its debts
- a situation in which an asset is sold in order to get cash
Management buyout the situation in which a companyDs senior managers buy the
company that they work for, or enough shares in it to get control
of it
Margin - the difference between the total cost of making and selling
something and the price it is sold for
- the difference between the amount of a loan and the value of
the collateral (= property to be given to the lender if the money
is not paid back)
- money, shares, etc. that a client gives to a broker to hold, that
protect the broker from loss on a contract
Market fluctuation frequent changes in the amount, value, or level of the business
or activity of buying and selling a particular product or service
Market maker someone whose job is to buy and sell stocks and shares for
other people on the stock market
Matching principle the theory that an expense must be recorded in the same
accounting period in which it was used to produce revenue
Maturity the time when the interest and profits on money that has been
invested must be paid
Moneylender a person or business that lends money but is not connected with
a bank
Nominal value the value of a share, bond, etc. when it is made available for
sale for the first time
155
Ordinary share a share of a company providing the owner with a right to vote at
shareholder meetings and to receive a part of the company
profits as a dividend
Par value the value of a share, bond, etc. when it is made available for
sale for the first time
Paycheck - a cheque that you are given by your employer as your pay
- the amount of money that a person earns, usually each month
Point of Sale a device for cashier to accept credit cards or debit cards
Primary Market the place for the sale of shares, bonds, etc. at the time they are
first made available, rather than when they are traded later
Reserve to arrange for something to be kept for you, for example, a seat
on an aircraft or a table at a restaurant
Securitize to borrow money in the form of bonds which can then be traded
on financial markets
Security (UK) = property or goods that you promise to give to someone if you
Collateral (US) cannot pay what you owe them
Smart card a small plastic card that is used to make payments or to hold
personal information electronically so that it can be read by a
computer system
Speculative - done in order to make a profit even though there is risk that
you may lose money
- a speculative investor is willing to accept a high level of risk
in the hope of making a profit
Speculator a person who buys goods, property, money, etc. in the hope of
selling them at a profit
Standardize to make things of the same type have the same basic features
160
Stock exchange a place where shares are bought and sold, and the people and
organizations involved in this
Surplus funds the money remaining after all liabilities, including taxes,
insurance, and operating expenses, are paid; which indicates
that a company has made a profit or perhaps that it has
completed a project under budget
Tangible asset a physical asset whose value can be easily measured, such as
cash, property, goods, or machinery
Terms and conditions the rules that apply to fulfilling a particular contract and that
form an integral part of that contract
The Treasury (in the UK, US, and some other countries) the government
department responsible for government spending, borrowing,
tax, and so on