Tiếng anh chuyên ngành kế toán bài 7
Trang 1UNIT OBJECTIVES - MỤC TIÊU
DURATION (6 periods) - THỜI LƯỢNG HỌC (6 TIẾT)
• Provide students with the language and knowledge related to various banking activities, maintypes of banks and the functions of a central banks
Cung cấp cho sinh viên vốn ngôn ngữ và kiến thức liên quan đến các hoạt động chính của ngân hàng, các loại hình ngân hàng chủ yếu và các chức năng cơ bản của ngân hàng trung ương.
• Provide students with the way to write a basuness plan
Cung cấp cho sinh viên phương pháp viết một bản kế hoạch kinh doanh.
• At the end of this unit, students will be able to talk and write about the activities and functions
of central banks and other types of banks as well as to make a persuasive business plan
Kết thúc bài học này, học sinh có thể nói và viết về các hoạt động và chức năng của ngân hàng trung ương và các loại ngân hàng khác cũng như phương thức viết một bản kế hoạch kinh doanh thuyết phục để được nhận vốn vay từ ngân hàng.
In this unit, we are going to learn the language and knowledgerelated to variousbanking activities, main types of banks and thefunctions of a central bank
Trong bài học này, chúng ta sẽ học về ngôn ngữ và kiến thức liên quan tới các hoạt động của ngân hàng, các loại hình ngân hàng cơ bản và chức năng của ngân hàng trung ương
THE CENTRAL BANKS AND OTHER TYPES OF BANKS
Trang 2Match the terms or expressions in column A with their definition in column B The suggested time to do this exercise is 10 minutes
1 The person to whom a cheque is written A Bank charges
2 Money provided by a bank to a customer, for an agreed
4 A type of bank with a strong local or regional identity, mainly
used by small, private investors, who get interest on their
deposits
D Clearance
5 An instruction from one bank to another bank asking it to
make a payment to a supplier
E Commercialbank
6 An agreement that an account can remain in debit up to a
certain amount for an agreed time period
F Loan
7 The time taken from when a cheque is presented to a bank to
when the receiving account is credited
G Overdraft
8 Fees charged by a bank for services provided H Payee
9 An instruction from a customer to a bank to make a regular
payment to a creditor Instructions to alter the dates or the
payments must come from the customer
I Savings bank
10 A computer printout sent by a bank to a customer, showing
recent activity on his/her account
J Standing order
11 The lowest level of interest that a bank charges for lending
money
K Statement
Trang 3Text A: Read text A below and do exercises 2.1 and 2.2 below The suggested time for reading the text and completing the exercises is 30 minutes
TYPES OF BANKS
Abank is a financial institution whose primary activity is to
act as a payment agent for customers and to borrow and
lend money However, the definition of a bank varies from
country to country
Banks act as payment agents by conducting checking or
current accounts for customers, paying cheques drawn by
customers on the bank, and collecting cheques deposited to
customers' current accounts Banks also enable customer
payments via other payment methods such as telegraphic
transfer, EFTPOS, and ATM
Banks borrow money by accepting funds deposited on current account, accepting term deposits and by issuing debt securities such as banknotes and bonds Banks lend money
by making advances to customers on current account, by making installment loans, and byinvesting in marketable debt securities and other forms of lending
Banks provide almost all payment services, and a bank account is considered indispensable
by most businesses, individuals and governments
Many other financial activities were added over time For example banks are important players in financialmarkets and offer financial services such as investmentfunds In some countries such as Germany, banks are theprimary owners of industrial corporations while in othercountries such as the United States banks are prohibitedfrom owning non-financial companies In France "Bancas-surance" is highly present, as most banks offer insuranceservices (and now real estate services) to their clients.Banks' activities can be divided into retail banking, dealing directly with individuals andsmall businesses; business banking, providing services to mid-market business; corporatebanking, directed at large business entities; private banking, providing wealth managementservices to High Net Worth Individuals and families; and investment banking, relating
to activities on the financial markets Most banks are profit-making, private enterprises However, some are owned by government, or are non-profits
The most common type of retail banks is a commercial bank “Commercial bank” is the termused for a normal bank to distinguish it from an investment bank After the Great Depression
in the US in the 1930s, the U.S Congress required that commercial banks only engage inbanking activities, whereas investment banks were limited to capital market activities Sincethe two no longer have to be under separate ownership, some use the term "commercial bank"
to refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses
Trang 4In Europe, savings banks take their roots in the 19th or
sometimes even 18th century Their original objective was
to provide easily accessible savings products to all strata ofthe population In some countries, savings banks were created on public initiative, while in others socially committed individuals created foundations to put in placethe necessary infrastructure Nowadays, European savingsbanks have kept their focus on retail banking: payments,savings products, credits and insurances for individuals
or small and medium-sized enterprises Apart from this retail focus, they also differ fromcommercial banks by their broadly decentralised distribution network, providing local and regional outreach and by their socially responsible approach to business and society
Jnvestment banks "underwrite" (guarantee the sale of) stock and bond issues, trade for their
own accounts, make markets, and advise corporations on capital markets activities such asmergers and acquisitions Merchant banks were traditionally banks which engaged in tradefinancing The modern definition, however, refers to banks which provide capital to firms in theform of shares rather than loans
Universal banks, more commonly known as a financial
services company, engage in several of these activities
In Europe and Asia, big banks are very diversified
groups that, among other services, also distribute
insurance, hence the term bancassurance is the term used
to describe the sale of insurance products in a bank
The word is a combination of "banque or bank" and
"assurance" signifying that both banking and insurance are
provided by the same corporate entity
Central banks are normally government owned banks, often charged with quasi-regulatory responsibilities, e.g supervising commercial banks, or controlling the cash interest rate Theygenerally provide liquidity to the banking system and act as lender of last resort in event of
a crisis
Source: http://en.wikipedia.org/wiki/Bank, retrieved on 15 December, 2009.
Answer the following questions
1 What is the definition of a bank?
2 How do banks act as ‘payment agents’?
3 How do banks borrow?
4 In Germany, banks are the primary owners of what?
5 What are the main types of activities of banks?
6 When did the Great Depression happen?
7 What is the original purpose of a savings bank?
8 What is the meaning of ‘underwriting stock and bond issues’?
9 What is the term ‘bancassurance’?
10 In the event of a crisis, what do central banks do?
2.1
Trang 5According to text A, which of the following sentences are true (T) or false (F) Correct the false information
Text B: Read text B and do exercise 2.3, 2.4 below The suggested time for reading the text and completing the exercises is 30 minutes
THE CENTRAL BANK
The central bank
The central bank has been described as "the lender of
last resort", which means that it is responsible for
providing its economy with funds when commercial
banks cannot cover a supply shortage However, the
primary goal of central banks is to provide their countries'
currencies with price stability by controlling inflation A
central bank also acts as the regulatory authority of a
country's monetary policy and is the sole provider and
printer of notes and coins in circulation Time has proven
that the central bank can best function in these capacities by remaining independent fromgovernment fiscal policy and therefore uninfluenced by the political concerns of any regime Today the central bank is government owned but separate from the country's ministry of finance Although the central bank is frequently termed the "government's bank" because
it handles the buying and selling of government bonds and other instruments, political
1 The definition of a bank is the same in every country
2 Many people and businesses think that a bank account is not necessary
3 In the US, and some other countries, banks are prohibited from owning
non-financial companies
4 Banks provide corporate banking services to every company
5 Investment banking relates to banks’ activities on the financial market
6 A commercial bank and an investment bank always have to be under
separate owners
7 The modern European savings banks only focus on providing savings
products to individuals and enterprises
8 The modern merchant banks provide capital to firms
9 In Europe and Asia, big universal banks are very diversified, they engage in
many types of activities
10 Central banks act as lender of last resort when a crisis occurs
2.2
Trang 6decisions should not influence central bank operations Of course, the nature of the relationship between the central bank and the ruling regime varies from country to countryand continues to evolve with time To ensure the stability of a country's currency, the centralbank should be the regulator and authority in the banking and monetary systems
How the Bank Influences an Economy
Acentral bank can be said to have two main kinds of functions: (1) macroeconomic when
regulating inflation and price stability and (2) microeconomic when functioning as alender of last resort
Macroeconomic Influences
As it is responsible for price stability, the central bank must
regulate the level of inflation by controlling money
supplies by means of monetary policy The central bank
performs open market transactions that either inject the
market with liquidity or absorb extra funds, directly affecting
the level of inflation To increase the amount of money in
circulation and decrease the interest rate (cost) for borrowing,
the central bank can buy government bonds, bills, or other
government-issued notes This buying can, however, also lead
to higher inflation When it needs to absorb money to reduce
inflation, the central bank will sell government bonds on the open market, which increasesthe interest rate and discourages borrowing Open market operations are the key means bywhich a central bank controls inflation, money supply, and price stability
Microeconomic Influences
The establishment of central banks as lender of last resort has pushed the need for their
freedom from commercial banking A commercial bank offers funds to clients on a firstcome, first serve basis If the commercial bank does not have enough liquidity to meet itsclients' demands (commercial banks typically do not hold reserves equal to the needs of theentire market), the commercial bank can turn to the central bank to borrow additional funds.This provides the system with stability in an objective way; central banks cannot favor anyparticular commercial bank As such, many central banks will hold commercial-bank reservesthat are based on a ratio of each commercial bank's deposits Thus, a central bank may requireall commercial banks to keep, for example, a 1:10 reserve/deposit ratio Enforcing a policy
of commercial bank reserves functions as another means to control money supply in the market Not all central banks, however, require commercial banks to deposit reserves TheUnited Kingdom, for example, does not have this policy while the United States does The rate at which commercial banks and other lending facilities can borrow short-term fundsfrom the central bank is called the discount rate (which is set by the central bank and provides
a base rate for interest rates) It has been argued that, for open market transactions to becomemore efficient, the discount rate should keep the banks from perpetual borrowing, whichwould disrupt the market's money supply and the central bank's monetary policy By borrowing too much, the commercial bank will be circulating more money in the system.Use of the discount rate can be restricted by making it unattractive when used repeatedly
Source: www.investopedia.com/printable.asp?a=/articles/03/050703.asp
Trang 72.4
act fix implementissue control functioninfluence supervise
assets cash interestliquid maturity reserve
Read text B and complete these sentences about Central Banks using the words
in the box
Central Banks, such as the Bank of England, the Federal Reserve Board in the US, and theBundesbank in Germany:
1 as banks for the government and for other banks
2 monetary policy – either the government’s, as in Britain, or their own, if theyare independent, as in Germany and the USA
3 the money supply, measured by different aggregates such as M0, M1, M2, M3, etc
4 the minimum interest rate
5 as lender of last resort to commercial banks with liquidity problems
6 coins and bank notes
7 (floating) exchange rates by intervening in foreign exchange markets
8 the banking system
Complete the paragraph using the words in the box
Because a commercial bank can lend most of the money deposited with it to other borrowers,who in turn may lend it to another borrower, each sum of money deposited in a bank is multiplied several times To ensure the safety of the banking system, central banks impose(1) requirements, obliging commercial banks to deposit a certain amount of moneywith the central bank at zero (2) Central banks in different countries also imposedifferent ‘prudential ratios’ on commercial banks These are ratios between deposits and liquid (3) that are considered sufficient to meet demands for (4) (A bank’s assets are its loans, which should, in theory, all be paid back one day, and its liabilities are the customers’ deposits, which can all be withdrawn one day.) For example,
a bank’s capital ratio is between its capital and reserves on the one hand, and its total assets
on the other The reserve asset ratio is between deposits with a (5) of under twoyears, called ‘eligible liabilities,’ and reserve assets, which include cash and assets that are (6) – i.e quickly convertible into cash – such as reserve deposits held by thecentral bank, and securities such as treasury bills
Trang 8Mary Ann is an economics research student, specializing in monetary policy You will hear her outlining the functions of a central bank, and discussing whether it should be independ- ent from the government, and run by bankers, or under the control of the government
Listening 1
A Listen to Part One of the interview TWICE, about the functions of a central bank, and fill in each gap with one phrase or expression You have 10 minutes to complete your answer
The first one is actually to implement monetary policy There are
roughly three ways to do it First, (1) , which
means limiting, upwards or downwards, the fluctuations of the
interest rate The second way to implement monetary policy is
simply (2) – coins, banknotes The third one which
is a bit more modern, is those (3) , which
are simply buying and selling government bonds to and from
B Read the six sentences below, which also summarize central banking functions, but slightly differently, and match them up with the six expression you have written in 3.1.1 You have 5 minutes to complete your answers
A controlling the amount of banknotes in circulation
B establishing maximum and minimum lending rates, thereby controlling the credit system
C ensuring that banks have a sufficient liquidity ratio to allow customers to withdraw theirdeposits when they want
D intervening on foreign exchange markets, buying or selling large amounts of the nationalcurrency, to prevent major fluctuations
E lending money to a commercial bank in danger of going bankrupt
F selling government bonds to commercial banks or buying them back, in order to alter theamount of credit the banks can offer (and thereby alter the money supply)
3.1
Trang 9B Now look at the following statements Listen to the extract again, and decide whether the statements are TRUE or FALSE Correct them if they are false The suggested time to complete your answers is 10 minutes
1 Mary Ann says that governments tend to increase the money supply in the months before
an election, which helps reduce unemployment
2 Mary says that the central bank should be the branch of the government that implementsmonetary policy
3 Mary says that the central bank should be the branch of the government that implementsbudgetary policy
4 Mary suggests that governments always have a budget deficit
5 Mary says that there should be a limit to the central bank’s independence
Fill in each blank in the text with a correct word or phrase Choose from the following list Use each item once only The suggested time to do this exercise is 15 minutes
Banks offer many services to businesses and their customers Here are some of the most common: Many people now have a card which enables them to (1) ……… money form a (2)
…… … You need your card into the machine and key in your PIN (personal identificationnumber) and the amount of money you want If you have enough in your account, the moneyrequested will be (3) ……… to you up to a daily limit Your account is automatically(4) ……… for the amount you have drawn out
Provided you have a sound (5) ………… ou can get a credit card from a bank and other(6) ……… To obtain goods or services, you present your card and sign a specialvoucher When it receives the voucher, the credit card company pays the trader (less a
4.1
3.2
commission issued statement
(or bank draft) financial institutions credit rating credit transfer
standing order
Trang 10(7) ……….) and then sends you a monthly (8) ……… Depending on the type
of card you have, you will either have to pay (9) ……… or be able to pay part of what
is owed and pay (10) ……… on the balance left (11) ………
If you need to make fixed payments at regular intervals, e.g for insurance premiums, you canarrange a (12) ……… (sometimes known as a banker’s order) so that the bank will dothis for you
If you have several bills to pay, you can do this by (13) ……… You write one cherubfor the total sum involved, fill in a (14) ……… for each bill and hand every thing tothe bank cashier
The transfer system is also used by employers to pay (15) directly into employee’s bank accounts
If you are dealing with a supplier for the first time, a (16) ……… may be used as payment This is a cherub guarantee by a bank and therefore it is not likely to ‘bounce’
Study the information in the following bank statement
Now complete the passage with the words in the box The suggested time to do this exercise is 15 minutes.
credit balance debit card payment debit
transactions cheque cash account deposit
4.2
MEDWAY BANK
STATEMENT OF ACCOUNT CLAPHAM HIGH STREET
LONDON SW4 CURRENT ACCOUNT
MS JANE SADLER
75 EBURY MEWS
LONDON SW5
ACCOUNT NUMBER STATEMENT NUMBER STATEMENT DATE
02–26–56 54863472 01
OXFORD ST CSH WATERSTONE AND CO DD BENNET AND SONS TR
53.25
60.00 33.50
300.00
802.20
300.00 246.75
186.75 153.25 955.45 ABBREVIATIONS: CHQ – CHEQUE, CSH – CASH, DD – DIRECT DEBIT, TR – TRANSFER
Trang 11Jane Sadler opened her (1) with the Medway Bank on 28th January 1993,with a cash (2) of £300 On 15th February she wrote a (3) for £53.25 and this appeared as a (4) on the bank statement on 20th February On 22nd February she took out £60 in (5) from a cashpoint machine On the following day the bank debited her account by £33.50 for a (6) she had made using her (7) Her monthly salary was paid directly into heraccount and this appeared as a (8) for £802.20 on 26th February There were
no further (9) on her account and she finished the month with a(10) of £955.45
Role play
Negotiating a bank loan
Work in pairs (Student A and Student B) Student A and student B should look at the formation for each of them carefully to understand their role before starting the role play.
in-Student A
You are an experienced journalist and you want to create a new magazine entitled “The Security Gazette” The magazine will be aimed at professionals from the security industry Itwill cover all subjects related to the protection of people and property and will be distributednationally The target audience consists of the employees of private companies in this sector, which is growing at 10% annually It is also designed to appeal to public sector organizations such as the police, and also to the general public
* Use the information below to help you to prepare your negotiation, remember that youshould convince the banking representative that you have:
• The right character
• A serious commitment to the business
• Enough collateral or security to use as a guarantee