Answer Key Flash On English For BankingFinance

Flash on English for BANKING & FINANCE Answer Key © ELI 2018
Flash on English for Banking & Finance

Answer Key and Transcripts
Unit 1 – pp. 4-5
1
Personal answers, for example: HSBC (UK), Citibank (USA), Santander (Spain), Bank of Shanghai
(China), etc.
2
1T 2T 3 F 4 DS 5T 6 F 7 DS 8T
3 Personal answers
Unit 2 – pp. 6-9
1 Personal answers
2
1 Microcredit is the concept of lending small amounts of money to people who would not have
access to such funds through mainstream routes.
2 Poor people in the developing world, especially women.
3 Grameen Bank is a bank founded by Nobel Peace Prize winner Muhammad Yunus to
provide credit to the poor people of Bangladesh.
4 To help struggling businesses and boost the local economy.
5 Some experts say that microfinance system is just another form of money-lending.
6 Microcredit ought to be combined with other interventions to improve financial literacy and
understanding.
7 They risk not being able to pay off their loan, because they may not know how to save and plan
for repayment, in other words they may have no financial understanding.
8 Because it may be difficult to care for those in need and make a profit at the same time.
3
1d 2e 3b 4a 5f 6c
4
1 Edgar Cahn developed the idea in the late 1980s.
2 Time is the currency used.
3 You can deposit and withdraw time like you would with money in a normal bank.
4 The value and importance of everyone and all kinds of work. Reciprocity and social networks,
respect.
5-6 Personal answers
7
1 … ethical banks / people using ethical banks.
2 … traditional banks and ethical banks.
3 … they have underlying moral and ethical principles and transparency of actions.
4 … microloans to help small businesses, investments in environmentally-friendly businesses and
fair trade organisations, financial help to projects in developing countries.
1
5 … sharia law, … apply interest.

6 … in areas such as gambling and alcohol.
8 Listening - Track 1
Intv. Yet again, the press is full of more news about dubious banking practices in the UK.
This time about staff who have been laundering billions of dollars for drug cartels and
terrorists. So if you are getting fed up with all this bad news, I’m talking to Joan
Wallace from Ethical Consumer magazine to find out if it is really possible to put your
money with an ethical alternative or if such a concept is just pie in the sky.
Ms W. Well, it’s certainly not easy but from our research here at Ethical Consumer magazine,
we can say that there are a couple of ethical options for those wanting to change current
accounts. One is the Co-operative Bank and another is the Islamic Bank of Britain.
We’ve given the Co-op and its online bank – Smile – a best-buy rating but a fairly poor
ethical rating.
Intv. Why did they get a poor ethical rating?
Ms W. The bank is part of the Co-operative Group which, as a supermarket, has been involved
in animal farming. We consider this as an unethical practice and therefore lowered its
rating.
Intv. If I want to avoid a bank altogether, what alternatives are there?
Ms W. The options are building societies and credit unions. Unlike banks, building societies
are mutually owned so they are not answerable to shareholders. For this reason they
often offer better customer service. We gave three building societies – Coventry,
Cumberland and Leeds – the biggest ethical score for their current accounts. A credit
union again is a different organisation to a bank as it’s a financial co-operative run for
the benefit of its members. There are around 300 in England, Scotland and Wales, some
of which offer current accounts.
Intv. What about other financial products like savings and mortgages?
Ms W. In this area there are certainly more alternatives. The Charity Bank, Triodos and the
Ecology Building Society are three companies which claim to offer a socially
responsible home for your money. Money invested with the Charity Bank finances
social enterprises and community organisations, while Triodos Bank lends only to
businesses ‘that make the world a better place’. The Ecology Building Society has an
environmental mission. Deposits from savers are used to fund mortgages that promote
environmentally-sustainable development.
1A 2C 3A 4B 5B
9
Personal answers, for example: I think we can trust ethical banks because they abide by the
principle of transparency so that we can check how they invest our money. No, I wouldn’t single
out an ethical or an Islamic bank because I think all banks make a profit in the end. However, I
believe the whole banking system should be reformed.
2
Unit 3 – pp. 10-13
1 Personal answers, for example: Italy has a central bank called Banca d’Italia.
2
1 It is to be in charge of a country’s financial affairs and monetary system.
2 It can maintain price stability by controlling inflation.
3 It can provide funds to the country’s economy.
4 No, it should remain independent and free from political influence in order to carry out its
functions.
3
1T
2 F (It wants to keep inflation at 2%.)
3 F (The Bank of England decides bank interest rates independently.)
4T
5 F (It issues only the banknotes. The coins are produced by the Royal Mint.)
6T
4
1 The common nickname is the Fed.
2 It was founded in 1913 by Congress.
3 A part – the Board of Governors – is located in Washington DC and then there are twelve
Regional Federal Reserve Banks located in major American cities, and other branches.
4 It is involved in the regulation of the US banking system.
5
1e 2a 3d 4c 5b
The European Central Bank is an EU institution whose decisions and actions affect the millions of
people and business within the euro area. For this reason it must be accountable and it has to
explain its actions and decisions to the European Parliament. The fact that the ECB works to protect
the interest of all the Euro area and its citizens is reflected in its structure. The Governing Council,
which is the top decision making body of the bank, is made up of the governors of all the national
central banks in the Eurosystem, together with six members of the ECB’s executive board. There
are also other committees with experts from the ECB board and national central banks to discuss
the various issues and policies. The national central banks are also the shareholders of the ECB,
with the shares divided according to the population and GDP of each country. The role of the ECB
includes a wide range of activities to ensure that the entire economic system works efficiently. But
before we look at these, let me just mention something about the value of money. As you probably
know, the gold standard, used by most major economies during various periods of the 20th century,
meant that the banknotes in circulation represented a share in the country’s gold reserves so that, in
theory, at any time anyone could ask for their paper money to be converted into gold at a fixed rate.
This meant that central banks had to keep enough gold reserves to back the amount of currency in
circulation. Today the banknotes and coins that we use have no intrinsic value: they are just made
of paper and metals. The value is derived from the value of the goods that can be purchased with it
– its purchasing power. So a central bank, including the European Central Bank, must make sure
that the amount of money in an economy is balanced against the value of the goods that it can
purchase in order to protect the value of the currency. Now let’s move on to the specific tasks of the
ECB. It is responsible for defining monetary policy within the Euro area; it issues banknotes; it
3
conducts operations in the foreign exchange market, it manages reserves of foreign currency; it
ensures that credit institutions are solid and trustworthy and promotes swift and smooth payment
systems between banks. Looking more closely at the definition of monetary policy and price
stability, we can say that…
1 Governors of the national central banks of the euro area and the six members of the ECB
executive board form the Governing Council of the ECB.
2 National central banks own ECB shares, which are attributed according to the population and
GDP of each country.
3 The gold standard is the country’s gold reserve which represents the money in circulation. It was
used early last century.
4 Central banks had to keep sufficient gold reserves to back the currency in circulation.
5 Today the value of money derives from its purchasing power, that is the value of the goods it can
purchase.
6 Keeping inflation under 2% is not mentioned.
7
1c 2d 3f 4e 5a 6b
8 Sample answer:
Foundation: The Bank of England is the central bank of the United Kingdom established in 1694
to act as the English Government’s banker. The Bank was privately owned until it was nationalised
in 1946. The Bank’s headquarters has been located in London’s main financial district, the City of
London, on Threadneedle Street, since 1734. It is sometimes known as The Old Lady of
Threadneedle Street or simply The Old Lady, a name taken from the legend of Sarah Whitehead,
whose ghost is said to haunt the bank’s garden.
Organisational structure: The Governor is appointed by the Crown for periods of five years.
There are two Deputy Governors (for Monetary Policy and for Financial Stability). The governing
body of the Bank of England is known as the Court: it consists of nine non-executive Directors
appointed for three years, also by the Crown. One of them is designated by the Chancellor of the
Exchequer to chair Court.
The Court of Directors is responsible for managing the affairs of the Bank, other than the
formulation of monetary policy. Court delegates the day-to-day management of the Bank to the
Governor and through him to other members of the executive.
Court’s responsibilities under the Bank of England Act 1998 (‘the 1998 Act’) include determining
the Bank’s objectives and strategy, and ensuring the effective discharge of the Bank’s functions and
the most efficient use of its resources. Since the 2009 Banking Act (‘the 2009 Act’), the Bank has
had a statutory objective to ‘contribute to protecting and enhancing the stability of the financial
systems of the United Kingdom’ and the Court, consulting HM Treasury and on advice from the
Financial Stability Committee, determines the Bank’s strategy in relation to that objective.
Main roles and responsibilities: The Bank of England performs all the functions of a central bank.
The most important of these is maintaining price stability and supporting the economic policies of
the British Government, thus promoting economic growth. The two main areas tackled by the Bank
to ensure it carries out these functions efficiently are monetary stability and financial stability.
Under the terms of the Bank of England Act 1998, the bank’s Monetary Policy Committee was
given sole responsibility for setting interest rates to meet the Government’s stated Retail Prices
Index (RPI) inflation target of 2.5%. The target has now changed to 2% since the Consumer Price
Index (CPI) replaced the Retail Prices Index as the treasury’s inflation index. If inflation overshoots
or undershoots the target by more than 1%, the Governor has to write a letter to the Chancellor of
the Exchequer explaining why, and how he will remedy the situation.
4
9 Personal answer
Unit 4 – pp. 14-17
1 Personal answers, for example: I think the banking needs of individuals are different from those
of businesses because businesses need to invest in people and equipment, therefore they often have
to borrow money.
2
1 A current account is used for the day-to-day financial transactions of making and receiving
payments, whilst a deposit account is used to deposit surplus funds that are not needed for day-to-
day operations.
2 Cash and cheques have mainly been replaced by more efficient and quicker automatic payments
or credit and debit cards.
3 The advantage is that they are more efficient and quicker ways of paying.
4 Bank transfers are used when payments are made directly to another current account, for example,
to pay a supplier, or are received directly from a debtor into one’s own account.
3
1 Overdrafts cover temporary lack of funds but they are short-term solutions because they are
subject to high interest and heavy bank charges.
2 They offer loans, commercial mortgages and leasing.
3 To expand business, to cover a period of difficulties, to buy property or another business, to
purchase equipment, machinery and other assets.
4 A leasing agreement allows the use of the equipment for a fixed period of time, the payment is
often tax-deductible and the agreement can include the free maintenance or replacement with
updated models.
5 They are for equipment, machinery and other assets.
4 Personal answer, for example:

1 to withdraw – to take money out of your account, often using an ATM
2 cash – notes and coins of a currency
3 branch – an office a banking organisation where customers can go to deal with banking
transactions
4 cheque – a printed form used instead of cash to make payments
5 direct debit – an agreement with your bank to make regular payments to a company or
organisation, for example to pay utility bills
6 standing order – an agreement with your bank to pay a fixed amount at regular intervals to a
company
7 bank transfer – electronic transfer of money from one bank account to another
8 bank statement – a list with the dates and details of all the transactions carried out on a bank
account
9 foreign currency account – an account which is not in the currency of the country
10 overdraft – an agreement to go below ‘zero’ in your account
11 interest rate – the amount charged by a bank or other lender on a loan
12 bank charges – the payment of an amount to the bank for its services
5 Personal answers, for example:

checking your account statements, transferring money between accounts, paying bills.
5
6
1d 2f 3e 4c 5b 6a
7
1 brick and mortar bank, traditional bank
2 24/7
3 encryption
4 identity theft
5 mobile banking, mobile wallet
6 unbanked
8 - Listening – Track 3
In the past, a long queue in the High Street branch of your bank was the annoying thing when you
had to pay in a cheque or do any other bank transaction. Nowadays it is a poor internet connection.
This is because so many people now rely on internet and mobile banking for all their bank
transactions. And this change in how customers use their bank has dramatically affected the
physical branches of banks in villages, towns and cities across the UK.
The extraordinary rise in internet and mobile banking has led to a decline in visitors to bank
branches: between 2001 and 2016 there was a 32% drop in the number of customers visiting bank
branches and the number has dropped further over the last two years. The consequence of this is
that just under 3,000 branches closed down in the UK between 2015 and 2018. This has obviously
affected the employment figures in the banking sector as many cashiers have found themselves out
of a job. What’s more, these closures have left many smaller towns and remote areas without any
bank at all. One UK consumer association has said that banks should have more of a responsibility
towards their customers, especially the vulnerable and elderly. Not everyone trusts, wants or is able
to use Internet and mobile banking. Some customers still want to deal in cash and interact with real
people and banks should respect this.
Many of the bank branches that are left are changing and are becoming tech heavy. Walking into
one, you will be greeted by a wall of self-service counters and a member of staff directing you to
the next available machine rather than to one of the few remaining cashiers. These self-service
machines can be used to take out money, pay in cheques and cash, pay bills, organise bank transfers
and payments and view your balance and statement. Useful, but the human interaction wanted by
many has been lost.
1C 2A 3B 4B

Advantages: you can access your bank account wherever you want and don’t have to go to your
branch where they might be a queue. You are also not restricted to bank opening times.
Disadvantages: you need a good Internet connection and you have to be extra vigilant with
passwords and security, for example when using a public wi-fi connection.
Unit 5 – pp. 18-21
1 Personal answers
2
1 all cards
2 debit (Note also that with the pre-paid card you’ve already paid.)
3 credit
6
4 pre-paid
5 cash, debit, credit
6 credit, pre-paid card
7 debit
8 pre-paid and credit
9 cash point and debit
10 credit
3
Personal answers, for example:
 a 17-year-old student, living at home, who does not have a bank account: a pre-paid card;
 a university student, living away from home, who has a student loan: a pre-paid card, a debit
card;
 a business woman who travels internationally for work: a credit card;
 a retired factory worker who lives on a state pension, and only has minimal savings: cash point
card.
4
1 T 2 T 3 DS 4 T 5 DS 6F
5
1 fraud: the crime of getting money by deceiving people
2 to cheat: to trick somebody or make them believe something which is not true
3 to forge: to make an illegal copy
4 scams: a clever and dishonest plan for making money
5 phishing: the activity of tricking people by getting them to give their identity, bank account
numbers etc. over the Internet or by email, and then using these to steal money from them
6 to steal: to take something from a person, shop/store etc. without permission and without
intending to return it or pay for it
7 cloning: the activity of copying the data of a credit card to then use it illegally
8 con: to trick somebody, especially in order to get money from them or persuade them to do
something for you
6 - Listening - Track 4
One: Avoiding credit card fraud
This information is fundamental for anyone using a credit card on the Internet: Never give out your
credit card number online unless the site is secure and reputable. And don’t just believe a site is
secure because it says so in capital letters all over the homepage. The padlock icon goes some way
to assuring you it’s a secure site, but you can also check out the encryption software. Also never
give a credit card number over the phone unless you have made the call and are sure of who you are
speaking to. You should also keep a close eye on your monthly statements to see if there is any
fraudulent activity. Finally never throw away printed statements without shredding them first.
Two: Avoiding internet scams
Internet allows anyone, and that includes fraudsters, to reach tens of thousands of people by
building a website, posting messages on forums or sending mass emails. The first thing is to be
skeptical of any offer that you may receive online. It’s probably best never to respond to an offer if
it comes in the form of an unsolicited email. Don’t judge a company positively just because it has a
good-looking website. That’s easy for anyone to create. You need to do your homework and
investigate any company thoroughly and check it is legitimate. It is also best to be extra cautious
when dealing with individuals or companies from another country.
Three: Avoiding business fraud
7
One of the most common things that happens is the non-delivery of merchandise. You order goods
from an e-commerce or auction site, pay and then the goods are never delivered. To avoid this, you
should only purchase merchandise from reputable sites, that you have checked out or know that
others have used without problems. For auction sites, you need to find out as much as you can about
the seller, checking his feedback for example, and checking where payment is to be sent. Fraudulent
companies often operate with just a post office box and cell phone number, so try to get a physical
address. If a company doesn’t want to provide this information, then steer clear.
1 secure
2 encryption
3 statements
4 skeptical
5 unsolicited
6 legitimate
7 reputable
8 feedback
9 address
7 Personal answer
Unit 6 – pp. 22-26
1
Personal answers, for example: by using bank transfers.
2
1F 2T 3T 4F 5T 6F
3
1 International payments…
2 … is transferred …
3 … the buyer’s bank, … the seller’s bank
4 … the seller can trace/find the payment easily
5 … bank charges
6 … (alphanumeric)(international)(banking) codes
4
1 5,500
2 GBP British pound
3 Lloyds TSB Bank, United Kingdom
4 invoice No. 569 of 17th November 20..
5
1B 2A 3C 4A 5D 6B
6
Good morning, Susan Pymm speaking.
Hello, this is Greg Mason from H Store. I need to make a bank transfer.
A bank transfer? OK. Who is the beneficiary?
It’s Dabson Ltd.
8
Have you done business with them before?

No it’s the first time.
Have you got the IBAN?
No, but I’ve got the account number and SWIFT.
Ok. That will be fine. And what is the amount?
It’s £1,254. I’d like it to be credited to their account tomorrow. Is that possible?
Yes. I’ll take the details now, but you’ll need to send an email or fax to confirm everything.

1 Because it is a secure and fast way of paying.
2 Yes, they are, because it is the fastest and most secure way of transferring money.
3 Yes, when you want to send money to a person (friend or family) living abroad.
8
1 minimum
2 when
3 sight
4 has to
5 negotiable
9
1 Ramsey Furniture Ltd.
2 John Walsh, Peterborough Limited is the drawee.
3 £1,540
4 60 days
5 15th March 20..
Unit 7 – pp. 27-30
1
1T 2 F 3 DS 4T 5T 6F
2 Sample answers:
1 In both cases goods are released after payment has been made or promised (D/A) but with
documentary collection documents are presented before shipping, whilst with cash on delivery the
documents are released, once the goods have arrived at destination.
2 Both D/A and open account are forms of credit extended by the sellers to the buyer. D/A offers
more guarantees to the exporter.
3 A bill of exchange is a written unconditional order by one party to another to pay a certain sum at
a future date. Documentary collection requires payment or promise of payment of the bill of
exchange. Therefore documentary collection is more secure, because the goods are received only
after release of documentation.
3
1 A letter of credit is advisable in new or recently established business relationships or when it is
difficult to obtain details of the creditworthiness of an exporter.
9
2 A letter of credit contains the importer’s bank guarantee that payment will be made to the exporter
provided that the requested documents have been presented and are in order. The documents are:
commercial invoice, clean bill of lading, insurance policy, packing list and Certificate of Origin.
3 The documents requested are usually: commercial invoice, clean bill of lading, insurance policy,
packing list and Certificate of Origin.
4 The parties involved are the importer or applicant, the exporter or beneficiary, the importer’s bank
or issuing bank and the exporter’s bank or advising bank.
4
ADVANTAGES: secure for the importer, secure for the exporter,
guaranteed by a bank (or two)
DISADVANTAGES: expensive, not suitable for small sums,
discrepancies can cause delays or non payment
5
1 the applicant
2 the issuing bank
3 the advising bank
4 the beneficiary
5 the beneficiary
6 the advising bank and the issuing bank
7 the issuing bank
8 the applicant
6
1 Yes, it is.
2 No, it isn’t.
3 The total amount is USD 35,000.
4 Payment is at term.
5 The requested documents are:
• full set of clean ‘on board’ marine bill of lading;
• signed commercial invoice, 2 originals + 2 copies;
• packing list, 2 originals + 2 copies;
• certificate of origin ‘form a’, original + 1 copy;
• insurance policy covering all risks for 110 pct of invoice value, original + 1 copy.
6 The beneficiary will pay them.
7
1h 2c 3f 4b 5g 6a 7d 8e
8 Personal answer
10
Unit 8 – pp. 31-32
1 Personal answer
2
1 To tell Mr Cowell he is over the authorised overdraft limit.
2 The authorised amount is £150.
3 £1 for each day he is over the limit and £35 for direct debits and standing orders which make the
account even more overdrawn.
4 They ask him to pay off the debt immediately and not to go over the authorised limit again.
5 The bank suggests using their text alert system to know when he is about to go overdrawn or
discussing a new account.
3
A: Making a recommendation
B: Giving an explanation
C: Making a comparison
D: Negotiating
4 Personal answers
Unit 9 – pp. 33-38

It is necessary when the company is dealing with a new customer. However, it is not necessary with
payment in advance, with B/E at sight and with D/P.
2
1 To check the creditworthiness of their potential client Reynolds and Stewart Inc.
2 It is a company which has done business with Reynolds and Stewart Inc.
3 Reynolds and Stewart Inc.
4 He wants to find out how long Reynolds and Stewart Inc. have had an account with Soprano
Music Supplies and whether or not they have any outstanding debts.
3
6, 3, 1, 5, 2, 4
4
1 Yes, there have been two incidents.
2 The bills were 60 days late and this happened two and a half years ago.
3 All the bills are paid promptly.
4 They are providing positive credit information.
5 Sample answer:
Dear Mr Purdey,
A purchase order from Fashionista, Brighton for £4,500 worth of merchandise listed you as a credit
reference.
We would appreciate any information you can provide on the credit history of Fashionista, with
your company. We would be grateful if you could inform us how long they have had an account
11
with you and whether or not they have any outstanding debts. We will keep any information you
send us confidential.
Please reply to this email address at your earliest convenience.
Yours sincerely,
Simone Marlow
General Manager
6 Sample answer:
Dear Ms Marlow,
We are responding to your letter requesting credit information on Fashionista, Brighton.
Over the past two years, Fashionista has ordered €6,000 worth of merchandise from us.
Since we have been working together, there has only been one case when they have asked for an
extension of credit. However, that was at the very beginning. All their bills are now current.
Therefore, based on our experience with them, we believe Fashionista to be a good credit risk.
Yours sincerely,
John Purdey
General Manager
Supermoda
7
1 This statement of account covers three months.
2 The invoices refer to a monthly IT maintenance fee and the purchase of the new equipment.
3 The client should settle the account within 10 days.
4 The last time Miles & Grey settled their account was on 10th April.
5 Payment is to be made by bank transfer to Barclays Bank, Central Newcastle Branch.
8 Sample answer:
30th October 20..
Subject: Statement of account – third quarter 20..
Attachment: 698quarter3.pdf
Dear Ms Sulima,
Please find attached the statement of your account for the third quarter of this year. It includes your
monthly instalments for the purchase of the new equipment.
Please check the entries and we look forward to receiving your payment by 15th November as
usual.
Thank you for your co-operation.
Best regards,
Sue Bailey
Accounts Dept.
9
1 To request new payments conditions.
2 He foresees an increase in orders and points out lots of past orders placed and the fact they have
always paid on time.
3 He assures them that they will continue to settle all payments by bank transfer on the due date.
10
1 We are pleased to inform you
2 we are willing to offer you
3 We would prefer
12
4 settlement by bank transfer

5 If this is acceptable to you
6 statement of account
11 Sample answer:
From Jane Wade <janewade@office.co.uk>
To Elizabeth Bennet <ebennet@pen&paper.co.uk>
Date 1 June 20.. 9.22 a.m.
Subject Open account terms
Dear Ms Bennet,
We are writing to enquire whether it would be possible to change our payment terms with your
company.
As you know, we have placed many orders with you over the last five years and we have always
settled your invoices on time. Since we are now expanding and we foresee an increase in orders, we
would be glad if you could grant us open account terms. We can assure you that we will continue to
settle all payments by bank transfer on the due date.
We look forward to hearing from you.
Yours sincerely,
Jane Wade
12
1 Because he is unable to settle the invoice on time.
2 They have had a fire damaging part of the production line and an urgent update of their machinery
due to incoming new legislation.
3 It is due on 22nd January.
4 He requests a further 60 days.
5 He says that by that time they will have resolved the issue with their insurance company.
13
1 shortly
2 unfortunately
3 setbacks
4 update
5 expenses
6 currently
7 grant
8 inconvenience
14
1 financial difficulties
2 in a position
3 the entire amount
4 an alternative
5 half of the outstanding amount
6 balance
7 credit
8 in due course
15 Sample answer:
Dear Mr Grant,
13
I am writing with reference to your invoice No. 455 of 17th August 20.. for €18,784.00 which is
due for payment shortly. Unfortunately we have recently suffered a setback in two of our shops,
which were seriously damaged by the flooding that has hit our region. The expense of refurbishing
the shops that we have incurred mean that, much to our regret, we are currently unable to settle the
invoice in question at 60 days, as per our agreement.
We kindly ask you to grant us an extension of credit for a further 30 days period by which time we
will have resolved the issue with our insurance company and be able to settle our account.
I sincerely apologise for any inconvenience this may cause you and hope that, on the basis of our
past business relationship, you will accept this request.
Yours sincerely,
Matthew Fraser
Managing Director
16 Sample answer:
14th July 20..
Dear Ms Clark,
With reference to your request dated 10th July, we are pleased to inform you that we have reviewed
your order and payment history and are willing to offer you an extension of credit.
However, we would like your settlement by bank transfer within 60 days.
Please send us receipt of the bank transfer in due course, as confirmation.
If we don’t receive your payment in full on time, future orders will be payment on delivery.
Yours sincerely,
Jude Levinson
Account Manager
Unit 10 – pp. 39-45
1 Personal answers, for example: send two or three reminders, then resort to legal action.
2
1 Because he hasn’t received payment in settlement for invoice No. WB01.
2 The agreed payment conditions are for the 70% balance to be paid on receipt of the copies of the
shipping documents.
3 It is two weeks overdue.
4 It is the first reminder.
5 It is polite.
3
1d 2e 3b 4f 5c 6a
4
2, 1, 5, 3, 6, 4
5
1 extremely concerned
2 regarding payment
3 without success
4 due
5 final notice
6 within
14
7 legal action
8 sincerely hope
6
First email: we have not yet received payment of… / there must have been some oversight
Second email: This is the second reminder… / we do require payment immediately or we shall be
forced
to apply… / with the utmost urgency / your prompt attention to this matter.
Third email: We are extremely concerned / without success / in serious breach / this is our final
notice / we shall take legal action
7
1 T 2 F or S 3 F or S 4 F 5 S 6 T
8 Sample answer:
Dear Ms Bergmann,
We are writing to inform you that we have not yet received payment of £15,825 as settlement for
our invoice No. 897. See copy attached.
The payment terms indicated in our sales contract were at 60 days date of invoice. The payment is
now 20 days overdue.
As your credit history with us is very good, we are sure that there must have been some oversight.
However we would appreciate it if you could give this matter your immediate attention and remit
your payment within 10 days from receipt of this.
If payment has already been sent in the meantime, please disregard this letter.
We look forward to receiving your remittance.
9 Sample answer:
Dear Ms Bergmann,
This is the second reminder to inform you our invoice No. 897 for £15,825 was due for payment on
July 19th.
We value your past business and hope to keep you as a customer for the future.
However, we do require payment immediately or we shall be forced to apply late payment charges
and interest at current rates.
We kindly ask you to see to this matter with the utmost urgency and send your remittance within 5
working days. Alternatively, please contact me personally by phone or email.
We thank you for your prompt attention to this matter.
10 Sample answer:
Dear Ms Bergmann,
We are extremely concerned that you have not replied to our previous two reminders regarding
payment of our invoice No. 897 for £15,825. We have also tried to contact you by phone without
success.
Payment was due for this order on the 19th July and you are therefore in serious breach of our
contractual conditions. We must inform you that this is our final notice and unless we receive your
payment of £15,825 within 5 days, we shall take legal action to recover the amount due.
We sincerely hope that such action will not be necessary.
11
Personal answers, for example: oversight, accidents, cash flow problems.
12
15
1 F (Mr Wilde received the reminder yesterday.)

2T
3T
4 F (The money will be transferred today.)
5T
13
1A 2B 3D 4C 5C 6B 7A 8D
14
1 c, stating action
2 b, reassuring
3 d, giving reasons
4 a, apologising
15 Sample answer:
Dear Sir/Madam,
We are sorry to hear of this. There must have been a misunderstanding because we’ve never
received any reminders.
Could you please specify when they were sent and how.
I have checked our records and I can’t find any reference to the outstanding amount you quote.
Would you kindly fax me a copy of the invoice so that I can identify the problem and put the matter
right.
It won’t be necessary for you to take legal action, as we will rectify the situation as soon as we have
all the data in our possession.
Thank you for your attention.
Speaker One
Client 1 Accounts Department.
JM Hello, this is June Miller from Carpet Warehouse. May I speak to Mr Harrak, please?
Client 1 Speaking.
JM I’m calling about the overdue payment on our invoice. I sent a reminder last week by
email.
Client 1 Ah yes, Ms Miller. I was just about to get back to you about that. Invoice No. AB
143, right?
JM Yes.
Client 1 Well, it seems that we never received the original invoice.
JM That’s strange.
Client 1 I know. I can’t see how it happened.
JM Do you need me to send a copy?
Client 1 That won’t be necessary. We’ve got the copy you sent with the reminder.
JM When do you think we can expect payment on this? It is already overdue by quite a
few weeks.
Client 1 Don’t worry. I’ll make sure it’s paid by the end of the week.
JM I see. That would be perfect. Thank you.
Client 1 You’re welcome and I’m very sorry about what happened.
Speaker Two
Client 2 George Monroe speaking.
16
JM Good afternoon. It’s June Miller from Carpet Warehouse. I’m calling about an
overdue invoice. Can you help me?
Client 2 I’ll do my best. What’s the invoice number?
JM AB 156, dated 4th April. It’s for £12,850. It was due for payment over five weeks
ago.
Client 2 Just a moment.
JM I sent you a written reminder on 1st of June but never heard back from you.
Client 2 You see, we’ve been having a few cash flow problems here recently. We’ve had a
few clients default on their payments which has left us in a difficult situation. Do you
think you could possibly give us a few more weeks?
JM It would have been better if you had called and told us about the situation. We could
have worked out a solution together. As it is, I’m willing to wait a further week for
you to settle this amount.
Client 2 Do you think you could accept two weeks?
JM Yes, we can accept that, but I’ll call you after that time if we haven’t received your
payment.
Speaker Three
Client 3 Accounts. Jane speaking.
JM Hello. This is June Miller. I’m calling from Carpet Warehouse about an overdue
invoice.
Client 3 What seems to be the problem?
JM The problem is that our invoice is now 4 weeks overdue and we’re quite concerned.
Is there a valid reason for this?
Client 3 You need to speak to Mr Romney about that.
JM OK. Could you put me through to him, please?
Client 3 Err, sorry, he’s not in the office right now.
JM Is there someone else that can help me?
Client 3 Let me see if I can find the file. What’s the invoice number?
JM AB 176, dated 11th April.
Client 3 I can’t seem to find it on our system. The 11th of April, you said? I seem to be
having some problems with the system at the moment. What was the company name
again?
JM Look, I think it’d be best if I sent an email. Could you give me your name again?
Client 3 Jane. Jane Robyn. That’s R-o-b-y-n. Not ‘i’ as in the bird…
1 email
2 AB 143
3 original invoice
4 week
5 AB 156
6 £12,850
7 1st June
8 two weeks
9 AB 176
10 11th April
11 email
12 Robyn
17
Mr B. Brannagh speaking.
Mr J. Good afternoon, Mr Brannagh. It’s Brian Jones from Spencer & Jersey.
Mr B. Hello Mr Jones. How can I help you?
Mr J. t’s these payment reminders you’ve been sending me. What’s it all about?
Mr B. Well, our system automatically sends out payment reminders when an account has been
overdue for more than two weeks. We really can’t afford to extend credit to our
customers beyond the agreed terms. But I’m sure in your case, that if necessary…
Mr J. … but we’ve already paid the invoice! On time I have to add. And it wasn’t at all
pleasant to get a second letter in such a harsh tone.
Mr B. I’m sorry but I’m sure we can sort this out. Could you tell me the invoice number and
I’ll try to see what’s happened.
Mr J. Number 754, for $11,525…
Mr B. Just a moment, I’ll check the computer. Mmm… I cannot see any record of your
payment here. Did you wire the money?
Mr J. Yes, a wire transfer as usual to Chase Manhattan Bank. We issued instructions to our
bank on November 28th and I’ve got the receipt here stating it was credited to your
account on November 30th.
Mr B. That’s very strange. We don’t have any record of this transaction at all. Do you think
you could send me a copy of the bank receipt so I can track down what has happened
with my bank?
Mr J Sure, I’ll fax it to you straightaway.
Mr B. Thanks. I’m really so sorry about this – there must have been a misunderstanding
somewhere. I’ll look into it and get back to you as soon as possible.
Mr J. Thanks for your help.
Mr B. You’re welcome. Goodbye.
Mr J. Goodbye.
1 wire transfer
2 28th
3 30th
4 bank receipt
18
1 reminders
2 concerned
3 settle
4 extension
5 instalments
6 further
7 guarantee
8 willing
19 Sample answer:
Debtor Good afternoon. Terry Smith speaking, from Malley accounts division.
Creditor Hello, this is Leslie White from Cocina y Mesa.
Debtor Hello, how can I help you?
Creditor Our accounts department has just sent you a second reminder regarding your
outstanding payment of €1,350.00. It was due two months ago.
Debtor Yes, we have just received it.
Creditor We’re very concerned about this situation. Is there a valid reason?
18
Debtor We are having problems with our sales at the moment. The financial situation in our
region is not favourable. Do you think you could possibly give us a few more weeks?
Creditor We are aware that you have never been very prompt with your payments. And we do
not think that you can expect an improvement in the region economy in a few weeks.
Debtor What about 50% payment now and the rest in a short while?
Creditor I’m sorry, we absolutely cannot extend credit any further. If we don’t receive a wire
transfer by the end of tomorrow, we’ll have to consider taking legal action.
Debtor I’ll speak to the division manager and get back to you.
20
1 When they want to do business with a new company. They check references by contacting an
existing supplier of the new customer or applying to a credit reference agency, which is an
independent organisation that has credit information both about consumers or businesses.
2 A statement of account is a summary of the transactions and the amounts paid by the buyer or still
owing. It is sent to a customer on a periodic basis, often monthly or quarterly to verify that
payments are kept up-to-date.
3 A company can request to change to open account terms, if they foresee an increase in orders.
4 The reason why the company is unable to pay, the reassurance that payment will be settled at the
end of the requested extension, the wish to continue the business relationship.
5 Creditors often send three reminders. The first reminder is very polite and presumes a
misunderstanding with the debtor. The second reminder is firm in its request for payment. The third
reminder is very sharp and threatens legal action.
6 The debtor can explain the difficult circumstances that led to the delay, can ask for a further delay
or offer partial payment immediately and the settlement at a given future date.
Unit 11 – pp. 46-48

In Italy there is the Borsa Italiana di Milano which became part of the London Stock Exchange in
2007 forming the London Stock Exchange Group Plc. There are twenty major stock exchanges in
the world, e.g. in New York, London, Tokyo, Hong Kong, Shanghai, Canada, Germany, Australia,
India, etc.
2
1 F 2 DS 3T 4T 5T 6 DS 7F 8T
5
1 An index has the purpose to indicate trends on the stock exchange and therefore provide a quick
picture of what is happening.
2 The Dow Jones refers to New York Stock Exchange, the FTSE 100 refers to the London Stock
Exchange and Nasdaq 100 refers to the Nasdaq Stock Market in New York.
3 Spread is the difference between two prices or interest rates. In the stock market, it refers to the
gap between the current bid and ask price of a share or other security. Bond spread is used when
talking about the difference between yields of comparable bonds.
4 A broker buys and sells shares on a stock exchange on behalf of a customer.
5 The FCA in the UK and the SEC in the USA have the role of regulating brokers activities.
6 Because they carry out a client’s instructions to buy or sell shares, but do not give any advice.
19
7 Advisory brokers provide advice and execute the client’s order to buy and sell. Discretionary
brokers provide the same service but they are also authorised to make investment decisions without
having prior approval from the client.
6 Personal answers
Unit 12 – pp. 49-51
1
1 … people meeting in Jonathan’s Coffee House in London.
2 … female members.
3 … deregulate the market/change the Stock Exchange’s structure and operation.
4 … a merger with Borsa Italiana.
2
1 Amazon
2 Nokia
3 Apple
4 Microsoft
5 McDonald’s
6 Google
3
1 … face-to-face/open outcry system and electronic trading.
2 … membership only organisation.
3 … became public.
4 … merged to form NYSE Euronext.
4
1 Insider trading is when a person with information that can positively or negatively affect the price
of a company’ shares makes a trade based on that knowledge. It is illegal because the individual is
using knowledge which is not available to everyone, creating an unfair advantage.
2 Short and distort is the practice of damaging a company’s reputation by spreading rumours and
smearing its image to make the share price drop. Pump and dump is the practice of exaggerating a
company’s performance, in order to make the share price rise.
3 Because they can make quick and substantial profits from buying and selling shares or other
securities.
4 An economic bubble is when the prices of shares or other securities continue to rise extremely
sharply until there is a sudden collapse. The risks which investors face are huge losses when the
bubble bursts.
You might be asking yourself what tulips – you know the flowers that you associate with Holland –
and dot-coms have got in common. And how they are connected to the topic of stock market
crashes and economic bubbles. Well, many economists believe that Tulip Mania was in fact one of
the first examples of an economic bubble. When the tulip flower was introduced into Europe,
around 1634, it immediately became very popular, especially in Holland where high society used it
as a status symbol to show importance and wealth.
20
Due to all this interest, the prices of tulip bulbs started to rise dramatically and speculators began to
buy bulbs in bulk in order to sell them on later at a higher price. They became very wealthy in the
process. The problem was that this speculation was so extreme and prices reached such extreme
levels, that they eventually peaked and then imploded, bankrupting many people.
Does this sound familiar? Broadly speaking, it’s a similar scenario to those that have been seen with
stock market crashes, such as the 1929 stock market crash in the USA, and the dot-com bubble of
the late 1990s and 2000, 2001. In this period, many new internet based companies were founded
and there was a lot of market confidence in their future. Many of these dot-coms quickly went
public with incredibly high business valuations in spite of negative earnings.
Investments in their shares rose dramatically. It seemed that as long as a company had dot-com after
their name, its share price would go through the roof. There were also a lot of investments from
individuals as well as venture capital from companies, without paying much attention to the normal
parameters for judging an investment.
At their peak, it is estimated that dot-com shares were worth about 8% of the total of the US stock
market. However, the bubble burst spectacularly in March 2000 and over the next year many of the
dot-com companies failed completely, never having made a profit, and causing private and
institutional investors to lose hundreds of thousands of dollars.
1B 2C 3C 4A 5B 6B
6 Sample answer:
A Stock Exchange is a regulated financial market where securities, such as shares and bonds, are
bought and sold. A Commodities Exchange, or Futures Market, or Futures Exchange, is where
various commodities and derivatives, oil and metals are traded.
The role of a broker is to buy and sell shares on a stock exchange on behalf of a customer.
Indices are important because they indicate trends on the stock exchange and provide a quick
picture of what is happening.
Fraud is when a person with information that can positively or negatively affect the price of a
company’s shares makes a trade based on that knowledge: this is called insider trading.
Speculation is when a trader has a high-risk investment strategy aimed at making quick and
substantial profits from buying and selling shares or other securities: this is a very risky strategy and
make investors suffer serious losses.
7 Sample answer:
One of the most famous cases of insider trading is that of Martha Stewart. In December 2001,
Stewart sold nearly 4,000 shares of ImClone stock just before it had a 16% drop after a bad FDA
ruling. Stewart’s broker, Peter Bacanovic, told Stewart to sell after hearing that the CEO of
ImClone, Sam Waskall, was selling all his shares ahead of the FDA ruling. Although Stewart was
never convicted of insider trading, she was convicted of obstruction of justice and making false
statements to federal investigators and she served time in jail. Waskall and Bacanovic were
convicted of insider trading and were sentenced to prison terms along with fines. Stewart saved
herself $45,000 in the trade and paid a fine of $30,000.
Unit 13 – pp. 52-55
1
Financial information which is presented in graph form can include share/bond/commodity prices,
company financial reports, sales/profit forecasts and results. The information in graph form is easier
to read and to make comparisons.
21
2
↑ →
rise, go up, increase, level off, stabilise, plummet, go down, decrease,
grow, improve, peak, steady, remain constant, fall, decline, drop, dip, plunge,
jump, pick up, climb, become stable crash
soar, recover, rally,
boom, rocket
3
1 fell dramatically
2 lowest ever rate
3 has changed
4 have been lowered
5 decrease
6 rose
4
1 Last year, sales peaked dramatically in the second quarter.
2 The forecast is that both online and phone orders will decline in October.
3 After an initial period of fluctuation, share prices levelled off.
4 Over the four year period in question, sales increased steadily.
5 Performance dropped twice during the period in question.
6 After a stable beginning to the year, profits plummeted in May.
5 Possible answers:
1 Then they fell rapidly between the second and third quarter, before improving slightly at the end
of the year.
2 However, both are predicted to increase considerably in November and December due to the
festive period.
3 Towards the end of the period they began to grow steadily.
4 Prices also showed a similar, positive trend, although in 2017 they fell slightly.
5 In fact, in week 8 it dropped sharply, before gradually rising again at the end of the 10 week
period.
6 By December they had slowly improved but were still far below January’s figures.
6
During the year profits varied. After the first three months which showed an increase, profits
plummeted dramatically in April and they reached their lowest point in June. They remained stable
for three months, before starting to gradually increase in September and October. Profits peaked at
$45,000 in November and then dropped in December. The first four months of the year saw
overheads steadily decline and then even out between April and May. There was a sudden drop in
July, before overheads started to gradually increase again. There was a slight drop in overheads in
November, but then they rose again in December, reaching approximately the same level as the start
of the year.
7
1C 2B 3C 4A 5A 6C 7B 8C
8 Possible answers:
1 stable/steady/level
2 trading/selling
22
3 increase/rise/growth
4 nearly/almost/around
5 climbed/went/rose/increased/went up
6 increase/gain
7 fell/dropped/decreased
8 climbing/increasing
9 Sample answer:
Introduction
This report looks at the status of the investment portfolio of client Mr Samuel Taylor for the period
of four weeks, starting from 8th September.
Analysis
Black Tuesday on the 14th September caused the biggest drop in performance. The crash started on
the New York Stock Exchange, where most of the client’s investments are, before hitting the
European and Asian markets. The effects of Black Tuesday caused fluctuations for most of the
period, with a short peak on the 17th September. The strong dollar at the end of September led to a
gradual growth. At the beginning of October we diversified the portfolio and invested in US mining
shares, which saw the overall investment rocket to record levels.
Forecast and recommendations
The growth in US mining shares is not predicted to continue at the same rate for the rest of the
month due to worries over environmental lobbies in the Senate. However we do not recommend
making any changes at this stage given the predicted strong performance of the rest of the portfolio.
Unit 14 – pp. 56-60
1
Personal answers
2
1 To present yourself and your qualifications, work history, skills and experience in order to be
selected for an interview.
2 It should be no more than 2 or 3 sides of paper, so that the reader can see the applicant’s career at
a glance without wasting time or getting bored.
3 No, the CV should slightly vary according to the job one is applying for. The applicant must
highlight the specific skills requested for the job.
4 So that the reader can have a general idea of the type of applicant. 5 Starting from the most recent,
so as to give an idea of the present level of competence of the applicant.
6 It depends on the job you apply for, but usually hobbies, sport, social and cultural interests.
Giving useless information could be negative.
7 To confirm the applicants’ statement about themselves and their skills.
8 Personal answers
3
Personal answers
4
1 Director of security.
2 School diploma or equivalent.
3 The candidate has the right qualifications and some of the required experience.
4 Personal answers
23
5 Sample answer:
A Europass CV differs from a standard CV because of its style of presentation and its contents.
Presentation: A Europass CV has standardised format, the same for all the citizens of the EU with
headings on the left and information on the right.
A standard CV usually has similar heading but it is presented on a normally typed A4 sheet with
headings running across the page.
Contents: These fall under the headings: ‘Personal information’ (your data); ‘Desired employment’
/ ‘Occupational field’; ‘Work experience’; ‘Education and training’; ‘Languages’; ‘Personal skills
and competences’; ‘Additional information and annexes’. A standard CV may omit some of this
information, for example ‘Languages’ or ‘Personal skills’, depending on the job applied for, and
may add other information for example ‘Activities, Hobbies/Interests’.
6 Personal answers
7
1 A covering letter has to make a good impression and stand out from the others as it is the first
contact with a potential employer, together with a CV.
2 It should be short, clear, well laid out with no mistakes.
3 It starts with a reference to how you heard about the job (after the opening salutation which is the
same as a business letter).
4 No, it shouldn’t, because it would be boring and repetitive. (You need to make the reader
interested in you without giving all the information.)
5 Because it will not sound personally addressed to the reader. It needs to refer to the specific
details of the job and why you would be perfect for it.
8
Sample answer:
Sabina Cerratani
Via Monte Bianco, 428
20131 Milan – Italy
mobile: 330 90001234
email: sabi_cerra@gmail.com
Little Bear Publishing House PLC
7 West Lane,
London W1
25th October 20..

Dear Mr Clune,
Ref. SEA 25
I am writing in response to your advertisement in The Telegraph and wish to apply for the post of
Senior Editorial Assistant in your publishing house as I am greatly interested in children’s fiction.
Since obtaining my Italian High School Certificate in 2010, I have been working as an editorial
assistant at GFR s.p.a. where I have gained an excellent understanding of editorial tasks and a good
knowledge of Microsoft Office and InDesign.
I am quite accustomed to travelling, especially to South America as my mother is from Argentina. I
am a proficient user of English, and I have also gained fluency in the Spanish language.
24
I am currently looking for an editorial role with more challenges and responsibilities, possibly in the
UK or in South America.
As I am coming to London in two weeks’ time, I will be available for an interview.
Please find enclosed my Curriculum Vitae and I would welcome the opportunity to provide further
information during an interview.
I look forward to hearing from you.

Yours sincerely,
Sabina Cerratani
Enc. CV
9 Personal answers
10
1 T 2 T 3 T 4 F (Talking about salary expectations and career goals it’s a very important step
of the interview.) 5 T 6 T
11 Personal answers
25

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Flash on English for BANKING & FINANCE Answer Key © ELI 2018

Flash on English for Banking & Finance

Unit 1 – pp. 4-5

Unit 2 – pp. 6-9

5-6 Personal answers

5 … sharia law, … apply interest.

Unit 3 – pp. 10-13

Unit 4 – pp. 14-17

4 Personal answer, for example:

5 Personal answers, for example:

9 Personal answers, for example:

Unit 5 – pp. 18-21

Unit 6 – pp. 22-26

Have you done business with them before?

7 Personal answers, for example:

10-11 Personal answers

Unit 7 – pp. 27-30

Unit 8 – pp. 31-32

Unit 9 – pp. 33-38

1 Personal answers, for example:

4 settlement by bank transfer

Unit 10 – pp. 39-45

1 F (Mr Wilde received the reminder yesterday.)

Unit 11 – pp. 46-48

1 Personal answers, for example:

3-4 Personal answers

Unit 12 – pp. 49-51

Unit 13 – pp. 52-55

Unit 14 – pp. 56-60

25th October 20..

I look forward to hearing from you.

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