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3tODULE 2x D&NKING

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 of lending 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.
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C. a large company formed by joining different smaller firms together.

D. the government department that controls public money.

1.2 Match these farms with their corresponding meanings.

1 Stockbroker 2 Interest 3 Credit crunch
4 Overdraft S Transaction
A. a piece of business that is done between people, especially an act of buying
or selling.
B. the extra money that you pay when you borrow money or that you receive
when you invest money.
C. a person or an organization that buys and sells shares for other people.
D. An automatic loan for a current account holder when they need to spend over
their account balance.
E. an economic condition in which it suddenly becomes difficult and expensive to
borrow money.

PABT 2: CLOZE PA88AGEB

2.1 Paaaage 1. Complete the yaaeage um the words In the box.
money loan shareholders in†eres† liabilities funds
capital cer†ifica†es ins†i†u†ions back suppliers deb†

When people want to set up or start a company, they need money, called (1)
. Companies can borrow this money, called a (2) from banks. The loan
must be paid (3) with interest: the amount paid to borrow the (4) . Capital
can also come from issuing shares or equities - (5) representing units of
ownership of a company. The people who invest money in shares is known as (6)
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Individuals and financial (7) called investors can also lend money to companies
by buying bonds - loans that pay (8) and are paid at a fixed future date.

2.2Paaaage 2. Complete the passage with› the words in the box.

bank borrower investor repayments corporate customer
bond in†eres† lender securi†ised dividend credi†

A financial institution, such as a (1) , buys a loan from a (2) (such

as another bank), who has already lent an amount of money to a (3) (another
person or institution). This means that the financial institution now has the right to
collect the (4) on the original borrowero s loan. It then uses the expectation of
receiving these as security for a (5) which it issues to an individual or corporate
(6) 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 O s repayments to make7) payments to the bond holder until the
date when the bond is repaid. Both the financial institution who bought the loan and (8)
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.
tAdapted from Market Leader Accounting and Finance)

PART 3: READING COMPREHEN8ION

3.1Reaalng passage 1. Read the passage careful and then brieñy answer
the fellewing questions.
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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:

1. What services are offered by an investment bank to the institutions?

2. What is IPO?

3. Besides raising capital from the public, how can they raise funds?

4. What does the stockbroking and dealing department do?

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3.2 Reaalng paaaage 2. Read the paaaage careful/ and then bzie0y ans rer 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 £10
in £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?

2. What did the Barclays Bank lead the way in?

3. What did one of the earliest cash dispensers consist of?

4. When could the customer gain access to the system?

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PART 4: TRAN8LATION

1. Retail banks or commercial banks receive deposits from, and make loans to
individual and small companies.

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.

3. Large banks became international conglomerates offering a complete range of

financial services that were previously provided by banks, hedge funds and insurance
companies.

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.

5. A financial institution is an establishment that conducts financial transactions such

as investments, loans and deposits.

. Vietnamese• EzsgJtsh tz'ansIation: Translate the following sentences tnto

l. Ngân hàng dau tu làm viec vói các công ty lón, tu van tài chính, và huy dong von
bang cách phát hành cô phieu và trái phieu.
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2. Mi ll e a hàng bán le là các t}ap doàn quoc te vói nhieu ngân hàng chi nhánh trên

3. Nhõ công nghe, chúng ta có thê mua sam toc tuyen, giao tiep toc tuyen, và th}am
chí có thê thuc hien ngân hàng toc tuyen.

4. Sau khi tích lfiy kinh nghiem làm viec trong ngân hàng, nhieu nguõi tham gia các
khóa hpc ve các quy trinh trong ngân hàng, cho vay, homac dau tu.

5. Mot tài khoãn chung/liên danh duoc coi là rüi ro han hai tài khoãn riêng biet,
nhung nhieu nguõi nh}an thay rang viec gop thu nh}ap vào mot tài khoãn chung giúp
thanh toán hóa don de dàng han.

aer s: weniNa
Make meantngful sentences by addtng bet«een 8 and 15 words to the gtven

1. Subprime borrowers are .................................................................

2. Securitization means ...................................................................
3. When many subprime borrowers stopped paying, ... .............................
4. The credit crunch happens when there is a ................................................
5. Non- bank financial intermediaries .........................................