TRUONG f)~I HOC NGAN HANG TP HCM KHOA NGO~I NGO'''' Tai li~u tham khao T,4i LIEU 130T~O'''' M()~ tioe • • • TIE~f7 ~ti T,4i etii~ti ~f7~~f7 Chu bien Nguyen Ngoc Phuong Dung Thanh vien Nguyen Quang Nhat Nguy[.]
TRUONG f)~I HOC NGAN HANG TP.HCM KHOA NGO~I NGO' Tai li~u tham khao: T,4i LIEU 130 T~O'• M()~ tioe • • TIE~f7 ~ti T,4i etii~ti ~f7~~f7 Chu bien: Nguyen Ngoc Phuong Dung Thanh vien: Nguyen Quang Nhat Nguyen Van Nguyen PhanAnh 04.2021 Tai lieu Slr dung ne)i be) BANKING UNIVERSITY - HOCHIMINH CITY FACULTY OF FOREIGN LANGUAGES Supplementary book: V[2ACTIC~ 1j()()I\: ~~f7LI§1l -=()[2 IjA~I\I~f7 & -=I~A~C~ Nguyen Ngoc Phuong Dung Nguyen Quang Nhat Nguyen Van Nguyen PhanAnh 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 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 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 provides Suggested answers, References, Acknowledgements and Glossary SECTION 1: TOPIC- BASED PRACTICE EXERCISES Module I Module Module 17 Module 26 SECTION 2: FURTHER PRACTICE Vocabulary practice 36 Cloze passages 43 Reading comprehension 60 Translation 85 Writing 95 SECTION 3: ANSWERS- REFERENCES- ACKNOWLEDGEMENTS- GLOSSARY Suggested answers 101 References 139 Acknow ledgements 141 Glossary 142 i~CTI()~ T()J)IC-134i~() J)124CTIC~~~I2Cli~i M()()UL~1: 13~1\1~t7 PART 1: VOCABUlARY PRAcneE 1.1 Choose the best deftnltlon for each tenn 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 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 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 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 Conglomerate A a person or company that makes goods for sale B a person or company that buys and sells investments for other people C a large company formed by joining different smaller firms together D the government department that controls public money 1.2 Match these tenns wtth their corresponding meanings Stockbroker Interest Overdraft Credit crunch 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 PART 2: CLOZE PASSAGES 2.1 Passage Complete the passage wtth the words In the box money loan shareholders interest liabilities funds capital certificates institutions back suppliers debt When people want to set up or start a company, they need money, called (1) Companies can borrow this money, called a (2) must be paid (3) from banks The loan with interest: the amount paid to borrow the (4) can also come from issuing shares or equities - (5) Capital representing units of ownership ofa company The people who invest money in shares is known as (6) 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 2.2 Passage Complete the passage wtth the words In the box bank borrower investor repayments corporate customer bond interest lender securitised dividend credit A financial institution, such as a (1) , buys a loan from a (2) as another bank), who has already lent an amount of money to a (3) (such (another person or institution) This means that the financial institution now has the right to collect the (4) on the original borrowerD s loan It then uses the expectation of receiving these as security for a (5) (6) which it issues to an individual or corporate 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") 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 (Adapted/rom Market Leader Accounting and Finance) PART 3: READING COMPREHENSION 3.1 Reading passage Read the passage carefully and then brlefty answer the following questions 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: What services are offered by an investment bank to the institutions? What is IPO? Besides raising capital from the public, how can they raise funds? What does the stockbroking and dealing department do? 3.2 Reading passage 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 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 £ 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: What are some limitations of bank payments? What did the Barclays Bank lead the way in? What did one of the earliest cash dispensers consist of? When could the customer gain access to the system? 148 Derivative a financial product such as an option (= the right to buy or sell something in the future) that has a value based on the value of another asset, such as shares, or bonds Dividend part of the profit of a company that is paid to shareholders Document a paper or set of papers that contains official information or instructions Downturn a reduction in the amount or success of something, such as a countryD s economic activity 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 Earnings a companyDs or industryDs profits in a particular period Economist someone whose work is to study the way in which economies work, or who studies developments within a particular economy Electronic cash a system designed to enable products to be sold at a retail outlet, register helping large retail outlets track sales, minimize register errors, and collect inventory data Entrepreneur someone who makes money by starting their own business, especially when this involves seeing a new opportunity and taking risks 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 Evade to intentionally avoid doing or dealing with something that is your duty or responsibility Expenditure - the total amount of money that an organization or person spends - the act of using or spending energy, time, or money Exposure - the risk of losing money, for example through a loan or investment, or the amount of money that might be lost - the act of investing in something Federal tax in the US, a tax that you pay to the national government, rather than to a state government Flotation (UK) an occasion when a companyD s shares are sold to the public for the first time Fraudulent intended to deceive someone, for example, to get money 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 Go public to become a company in which anyone can invest Government bond an amount of money borrowed by a government, or the official document relating to this Hedge fund an investment fund that trades large amounts of shares, currencies, etc to take advantage of both rising and falling 150 prices, for example by shorting (= borrowing shares, etc., selling them, and buying them back at a lower price) High-net-worth (high net worth individual) used by financial organizations to talk about a client or possible client who is very rich 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 Hostile bid a situation in which one company offers to buy another company whose owners not want to sell it Immune not influenced or affected by something / not affected by something such as a law, because of a special arrangement Inbound acquisition a transaction in which a foreign company merges with or acquires a domestic company Index a system that measures the present value of something when compared to its previous value or a fixed standard Inflation an increase in prices over time, causing a reduction in the value of money 151 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 Insolvent (especially of a company) not having enough money to pay debts, buy goods Institution - a large and important organization, such as a bank - a custom or tradition that has existed for a long time and is accepted as an important part of a particular society Insurance cover protection that is given by an insurance company when it agrees to pay money if a particular thing happens, for example if someone is injured, or property is lost or damaged Interest - money that is charged by a bank or other financial organization for lending money - money that you earn from keeping your money in an account in a bank or other financial organization Intermediary a person or organization that makes business or financial arrangements between companies or organizations that not deal with each other directly 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 IPO initial public offering: an occasion when shares in a company are first sold to the public Issue - the offer for sale by a company or organization of financial products such as shares or bonds - all of a particular type of shares, bonds, etc that are offered for sale together Issuer - a legal entity that develops, registers and sells securities to finance its operations - a person or company that supplies or distributes something Journal one of the books in which records of a companyD s financial activities are recorded, for example, what they buy and sell Large-scale service business activity that involves a lot of people, things, or activity, or happening over a large area Launch - the introduction of a new product or service for sale to the public - the beginning of something new, such as a plan, business, or job Layoff - the act of ending a workerD s job, sometimes temporarily, usually because there is not enough work to - a period when someone is not working because their job ended or they were forced to leave it Ledger a book or a computer document in which a companyD s accounts are recorded, especially the money it has spent and received Legislative relating to laws and the process of making laws 153 Liability the amount of money that a person or organization owes 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 List a record of short pieces of information, such as people Ds names, usually written or printed with a single thing on each line and often ordered in a way that makes a particular thing easy to find 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 capitalization a way of measuring the value of a company calculated by multiplying the number of the company's shares by their price on the stock market 154 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 Merger the process of combining two companies or organizations to form a bigger one Minutes the written record of what was said at a meeting (plural) Moneylender a person or business that lends money but is not connected with a bank Mortgage a legal agreement to borrow money from a bank or other financial organization, especially to buy a house or other property, or the amount of money borrowed Municipal bond a bond that is sold by a town or city government in the US Mutual - used to describe something that is done or felt by all or both people in a group - used for describing a financial organization that is owned by its members, rather than by shareholders Nominal value the value of a share, bond, etc when it is made available for sale for the first time 155 Object - a thing that you can see and hold - something you are planning to or the result you hope to achieve Offer to make shares, etc available for sale Ongoing cost = operating costs: expenses required for the day-to-day administration and maintenance of a business entity Option the right to buy something in the future 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 Outbound acquisition a transaction in which a domestic company purchases or merges with one in another country Outstanding - of a debt which has not yet been paid - used to talk about the total number of shares held by a companyD shareholders at a particular time - an outstanding problem or subject has not been solved or discussed Overdraft an amount of money that a customer with a bank account is temporarily allowed to owe to the bank, or the agreement which allows this Ownership - the state or fact of owning something - the fact of taking responsibility for an idea or problem 156 Par value the value of a share, bond, etc when it is made available for sale for the first time Partner one of the owners of a company Partnership - an agreement between organizations, people, etc to work together - a company which is owned by two or more people Passbook a small book that is used to record how much money is in a customerD s bank account Paycheck - a cheque that you are given by your employer as your pay - the amount of money that a person earns, usually each month Pension a regular income paid by a government or a financial organization to someone who no longer works, usually because of their age or health Performance how successful an investment, company, etc is and how much profit it makes PIN = personal identification number: a secret number used with a bank card to get money from a cash machine or pay for goods in a store plummet to go down in amount or value very quickly and suddenly Point of Sale a device for cashier to accept credit cards or debit cards portfolio - a collection of different investments that are owned by a particular person or organization 157 - the range of products or services that a company offers, or the businesses that someone owns prepaid if a product or service is prepaid, it has already been paid for 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 Principal - an amount of money lent or borrowed, rather than the interest paid on it - relating to an amount of money lent or borrowed, rather than to the interest paid on it Private company a company that is owned by one person or a small group of people, for example a family, and whose shares are not traded on a stock market Profit money that is earned in trade or business, especially after paying the costs of producing and selling goods and services Property (UK) Real estate (US) Prospectus - a legal document offering a companyD s shares for sale, and giving details about the company and its activities - a small book giving details of a school or college, or of a new business or project Provision in a companyDs accounts (= financial records), an amount of money that is kept in case of a possible future loss Public company a company whose shares are traded on a stock exchange Purchase price the amount of money that is paid for something 158 Quote - to give the current price of a companyD s shares or of a currency - to record a companyD s name on a stock exchange so that its shares can be traded there Raise to manage to get money to invest in a business, project, property Rate of return the amount of profit that an investment earns calculated as a percentage of the money that was originally invested Real estate - land or buildings that someone owns - the activity of buying and selling land and buildings Receivable still to be received by the person or company to whom money is owed Receivership a situation in which a bankrupt company is under the control of a recerver Recession a period, usually at least six months, of low economic activity, when investments lose value, businesses fail, and unemployment rises Remedy - a method of legally solving a problem or disagreement - a way of dealing with a difficult situation or solving a problem Repay to pay back money that you have borrowed Reserve to arrange for something to be kept for you, for example, a seat on an aircraft or a table at a restaurant Retail the activity of selling goods to the public in stores, on the internet, etc., rather than selling to stores, other businesses 159 Retain to keep or continue to have something, especially a position or money, or control of something Revenue money that a company receives, especially from selling goods or services 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 Settle to pay for something Shareholder a person or organization that owns shares in a company Shortage a situation in which there is less of something than people want or need 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 Start-up a business that has just been started Stock exchange a place where shares are bought and sold, and the people and organizations involved in this Stockbroker a person or financial organization that buys and sells shares, bonds, etc for other people and organizations Subprime used to describe the practice of lending money, especially to buy a house, to people who may not be able to pay it back Subsidiary a company that is controlled by another Supervision the activity of managing a department, project, etc and of making sure that things are done correctly and according to the rules 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 Sustainable able to continue at the same level for a period of time Takeover the act of taking control of a company by buying enough of its shares to this Tangible asset a physical asset whose value can be easily measured, such as cash, property, goods, or machinery Tax revenue money that a government receives from taxes 161 Taxable taxable earnings, goods, assets, etc require a particular amount of their value to be paid to the government Taxation - the system of collecting taxes - money that is collected as tax 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 the government department responsible for a country's financial matters Transaction - an occasion when someone buys or sells something - the process of doing business Trial balance a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal Underwrite - to invest money to help someone to start a new project - to protect someone from loss with an insurance policy - to protect a company from loss by agreeing to buy any remaining shares that are not bought by the public when the shares first become available for sale Underwrite to give an activity financial support and take responsibility for paying any costs if it fails 162 Vulnerable easily damaged by something negative or harmful Warranty a minor term in a contract (The breach of a warranty does not end a contract, in contrast to a condition) Whistle-blower someone who reports dishonest or illegal activities within an organization to someone in authority Wholesale relating to the business of selling large quantities of goods, especially to people who are going to sell them in a shop Withdraw to take money from a bank account withdraw cash/money/ savings Withdrawal the process of taking an amount of money out of your bank account, or the amount of money taken out Yield a profit on money that have been invested