English for finance and banking (workbook)

HANOI FINANCE AND BANKING UNIVERSITY Foreign languages department ***** ENGLISH FOR FINANCE AND BANKING Workbook Hanoi, 2022 By Hoang Thi Xuan Hong INTRODUCTION English for Finance and Banking workbook is primarily intended for advanced English major who wish to increase their knowledge of finance and banking It aims to: Introduce students of English some basic concepts of Finance and Banking Review different language points in finance and banking context Enrich students’ finance and banking terms Develop students’ ability to read about finance and banking Stimulate students’ interest in finance and banking and therefore encourage them to learn more about the subject English for finance and banking workbook is designed as supplementary material consisting of about 40 useful exercises for practice The exercise link mostly to each unit in the course book English for Finance and Banking by Rosemary Richey Each exercise serves as an introduction to one particular topic of language point and mostly takes the form of a short reading text English for Finance and Banking is suitable for short courses It is convenient to use It should, therefore, be of interest and value to both teachers and students of English CONTENTS Page UNIT 1: PERSONAL FINANCE ……………………………… 03 UNIT 2: JOBS IN BANKING ………………………………… 08 UNIT 3: BANKING PRODUCTS AND SERVICE … ……… 14 UNIT 4: BANKING TRANSACTIONS …………… ………… 19 UNIT 5: INVESTMENT …………………………… ………… 23 UNIT 6: A CAREER IN ACCOUNTANCY …………………… 30 UNIT 7: AN ACCOUNTANT’S LIFE ………………………… 35 UNIT 8: THE ECONOMY ………………………….………… 39 Unit – PERSONAL FINANCE INCREASE BANKING AND FINANCE TERM Money – the basics In the USA, “quarters” (25 cents) and “dimes) (10 cents) are types of…………… In the United Kingdom, “a tenner” means a ten pound……………… The US dollar, the Yen and the Euro are types of…………… Hundred dollar bills and twenty pound notes are………… 2,000,000 Swiss francs is a large ……………….of money I need to…………… some Euros into Australian dollars My friend…………… a hundred pound from me I …………… a hundred pounds to my friend When she can, she’ll pay me……… I buy a lottery ticket every week, but I never…………… anything 10 Most dentists………………at least £30,000 a year 11 …………are paid to employees weekly …………are paid to employees monthly 12 In business, you have to ………………money to make money 13 A: Do you have a bank…………………? B: Yes I bank with the Bank of Scotland 14 In my opinion, eating in expensive restaurants is a ……………….of money B Match the words on the left with the words on the right a small a a profit an income b amount of money donate c cash high d cost of living make e credit card pay by f losers pay in g money to charity winners and g of £25,000 a year C Choose the correct answer Spain now uses the euro Pesetas are no longer ……………… a good money b legal money c legal tender I bought a TV which doesn’t work I’ll take it back to the shop to get…………… a my money returned b a refund c a repayment In a shop, to get a refund, you usually have to show the …………… a receipt b recipe c payment ticket I’m paying for my new car in 36 monthly …………… a instalments b pieces c parts I earn a lot of money, but I have a lot of ………… a payouts b expenses c paying Famous paintings are usually sold by …………… a bid b highest price c auction In an auction, the item is sold to the person who makes the highest …………… a bid b price c offer In Japan, the US dollar is…………… a foreign money b strange money c a foreign currency In Britain, it’s not usual to discuss your personal ………… a money b finances c money arrangements 10 You can………… a house and ……………a car a hire/ rent b hire/ hire c rent/ rent or hire 11 Here’s the fifty dollars I……………… a owe you b pay you back c must return 12 The best things in life are………… a free b not for sale c not bought and sold Enrich your VOCABULARY Write one word or phrase that best keeps the meaning of the word or phrase in italics Your answer It is illegal to buy guns here Operation is due to begin by 2001 The course will not start until June Could you give me more information about the job? Their plan to sign the agreement was unsuccessful The bank was in a position to buy only $100m An extra charge will be made for overweight luggage The director refused to answer the reporter’s questions The artist lent his collection of paintings to the art gallery 10 They’ve planned to increase production by 20% next year 11 Her job is not well-paid, in addition, it is too far from her house 12 The government tried hard to close down the dollar black market 13 The export turnover is expected to amount to VND318b in 1998 14 The accountant explained all the ins and outs of the situation to the boss 15 Self-employed people pay their taxes at the end of the fiscal year 16 What will happen when Vietnam obtains most-favored-nation (MFN) status? 17 Growing foreign investment has led to an increasing demand for skilled labour 18 After much decay, the plan to open the capital market has been brought into effect 19 The establishment of the joint venture is due to take place by first quarter of this year 20 One joint-venture project was cancelled after the foreign partner requested to stop the project TEST your WORD CHOICE Choose correct answer A, B, C or D I bought a TV which doesn’t work I’ll take it back to the shop to get …… a my money returned b a refund c a repayment In a shop, to get a refund, you usually have to show the……… a receipt b recipe c payment ticket I’m paying for my new car in 36 monthly ………… a instalments b pieces c parts I earn a lot of money, but I have a lot of………… a payouts b expenses c paying Our financial advisers give customers information about stocks and shares, bonds and other types of………… a payments b products c investments Banks …………many different jobs, from trainee cashier right up to senior account manager or investment analyst a give b bring c offer Peter lost his job three years ago when he became ill Now he’s living on a profits b benefits c pensions Accountants produce financial ………….quarterly or annually to show the financial position of a company a statements b accounts c documents New investors can join at any time because it is an………….fund a extra-end b date-end c open-end 10 They buy food at the supermarket …………their debit cards a by b with c in UNDERSTANDING A TEXT Read the passage and choose the best answer A, B, or C Bank of America Corp (BAC.N) is planning to cut about 300 jobs in its investment banking and capital markets group, as it struggles to rein in costs to make up for weak revenue growth, sources familiar with the situation said on Tuesday The layoffs are not nearly as eye-popping as the bank's job cuts in areas like retail banking Wall Street companies have broadly been looking at cutting jobs recently The bank, the second-largest in the United States by assets, is also assigning junior bankers to work with broader groups of companies, the sources said That move could also lead to more layoffs, the sources said The changes for junior bankers are part of the cost-cutting program known as "Project New BAC," which the bank launched last year, the sources said The program, named for the bank's ticker symbol, is meant to improve profits as a sluggish economy weighs on revenue growth, and new regulations boost compliance costs The bank is also trying to streamline a company that has grown increasingly bloated after decades of acquisitions The first phase of the program is expected to cut about 30,000 jobs and $5 billion in annual expenses in consumer and technology areas over the next several years Plans for the second phase, which covers investment banking, sales and trading, commercial banking and wealth management, are expected to be finalized in May How does this article describe Bank of America's revenue growth? A Moderate B High C Weak How these cuts compare to Bank of America's cuts in retail banking? A They’re more severe B They are not as severe C They’re about the same Why is Bank of America "bloated"? A Because they’re losing money B Because of the junior bankers C Because of all the acquisitions they have made By how much will the first round of layoffs cut expenses over the next couple of years? A $5 billion B $30,000 C $10 billion Is Bank of America the largest bank in the United States? A Yes, it is B No, it is C Yes, but it’s tied for first place with another bank Unit – Jobs in banking INCREASE BANKING AND FINANCE TERM Definitions Which words from the box are being defined in the following sentences? There are more words than needed Science Trade Business Marketing Banking Finance Economics Commerce Statistics Accountancy Management Microeconomics ……………….is the exchange of goods or services for money or other goods ……………….is the activity of making, buying, selling or supplying things for money ……………….is the trade, esp between countries ……………….is the control and making of decisions in a business or similar organization ……………….is the management of money esp public money ……………….is the business activity of banks ……………….is the theory and practice of presenting, advertising and selling things ……………….is the principles of the production and distribution of goods and services and the development of wealth ……………….is a branch of science of collecting, classifying and analyzing information shown in numbers 10 ……………….is the study of the structure and behavior of the physical and natural world and society through observation and experiment Understanding a text Giving definitions Read the following passage about economics and write the correct form of the words in the box There are three extra verbs, which you not need to use tend adopt include study concentration x give invest relate involve conclude think x define distribute Definitions of this social science have ……………… (1) to vary according to the political orientation or economic school of ………………(2) of the economist ………………(3) the definition Traditionally, microeconomic definitions were more popular; these …………… (4) a ‘worm’s eye; view of society’s economic relations, …………… (5) on decisions or situations ……………(6) single units, whether individuals, firms or industries L Robbin’s definition, ‘Economic is the science that …………….(7) human behavior as a relationship between ends and scarce means which have uses’, is representative of this kind of…………… (8) Macroeconomic definitions adopt a more ‘bird’s eye’ view, ………………(9) on economies as a whole and ………………(10) study of power relations within society – such as the distribution of wealth – and of comparative analyses of modes of economic organization – such as capitalist and non-capitalist forms TEST your WORD CHOICE 31 C Choose the word to complete the sentences 32 Enrich your VOCABULARY Match the numbers on the left with the letters on the right to make sensible, grammatically correct sentences People say that he is by no means poor A due to the rising level of unemployment 2.The number of crimes is on the rise B as well as concentrating on joint ventures between state owned 3.Approximately 500 workers are facing companies and those from other unemployment economic sectors 4.The market for cars has reached saturation C so as to improve infrastructure point; D while others are extremely poor 5.The government aims to introduce policies E regardless of the far-reaching to encourage people to invest in production consequences The government has been calling for economy mobilization of the people’s strength F since foreigners are not allowed any 7.Vietnam needs to spend several billion land-use rights at all dollars a year G despite the fact that he is living on 8.Vietnam has to revise and update its own an unemployment benefit investment environment and regulations H as a result of the closure of an 9.Some countries are rich uneconomic factory 10 I thought those figures were correct; I in other words, there can be no more 11 What they are interested in is a quick increases in sales profit J 12 Foreign banks cannot secure loans infrastructure against land – the most common form of K which still now have not been collateral in normal banking generous and open for foreign investors with a for view the to country’s improving L however, I have recently heard they were not 33 INCREASE BANKING AND FINANCE TERM Choose the correct word given to complete the following text dangerous rewarded income payment contrary consumer capital real prosperity amount INCOME Money paid, usually weekly and often in cash, to a worker for work done is called a wage (or wages) A salary is a regular (1)………………made to an employee, usually by a bank transfer or cheque at the end of the month A (2)…………… wage is an actual wage deflated (divided) by the (3)………………price index; this gives the purchasing power of an hour’s work Skilled work is usually (4)…………….by higher pay than unskilled work Skill, knowledge and expertise acquired in education or special training are also known as human (5)…………… , and are usually remunerated On the(6)…………., compensating differentials are often paid to persuade unskilled people to take (7)………… , dirty, inconvenient or tedious jobs Subsistence wages are the minimum (8)……………needed to support a person’s life Fortunately, most people in industrial and post-industrial countries earn rather more than this If higher wages tempt people to work longer hours, this is known as the substitution effect But after a certain point, higher wages mean that workers can afford to work fewer hours; this is the (9)……………effect The standard of living is defined as the level of (10)…………… in terms of material or social benefits which are related to income and wealth The cost of living is the amount of money that must be paid for food, housing, clothing and so on 34 Unit – An accountant’s life Enrich your VOCABULARY Write one word/ phrase that best keeps the meaning of the word/ phrase in bold Your answer The regional financial crisis has had an effect on almost every business The new secretary’s typing is full of mistakes The shop keeper asked the reporter not to disclose the name of the shoplifter We reached the deal with them because we have a common voice The management of a business needs either education or experience in sales and accounting This plant will make good use of high-sulphur coal exploited from nearly mountains My sister got a new washing machine on the installment plan As far as I am concerned, all these expensive new refinements are a waste of money We had no choice but to buy their technologies 10 My brother made a lot of money by selling office equipment 11 When Janet’s uncle died she came into fortune 12 You are not expected to ask about people’s income 13 Her ex-husband’s business is growing rapidly 14 When the oil price doubled, many businesses stopped production 15 They own three big shops in the city centre, not to mention a small one in a suburb 35 Understanding a text Read the following text and choose the most suitable for each empty space The economic crisis in Asia (1)……………….much more than just the world’s financial market: millions of migrants are at (2)………… of losing their jobs, which could lead to a wave of displaced workers (3)………… to look for job far beyond Asia The (4)………….nations of Southeast Asia in the past decade attracted millions of workers from lies fortunate countries nearby, like Bangladesh, Burma and the Philippines Many of these migrants are working (5)………… As might be expected, there have already calls to expel these foreign workers, even though they are often (6)………… to the economies of their host countries Many toil in low-paying jobs and are unlikely to be replaced by citizens, even unemployed people, who scorn such menial work The effect of this economic (7)………….on migrant labor could have a significant impact on labor markets in the (8)………….and beyond The International Organization for Migration, which I head, is embarked in the region and beyond Asian countries themselves need to (9)………… the issue as a part of their overall approach to solve their problem Otherwise, a growing number of desperate people will consider the long, risky and often illegal (10)…………to find better opportunities in Australia, Japan, Europe and North America A effects B effecting C affects D affecting A danger B serious C rest D risk A forcing B forced C pressure D press A developing B booming C bursting D growing 5.A illegally B illegal C legal D legally A important B necessary C mandatory D vital A downtown B downturn C turndown D towndown A region B area C border D edge A commend B think C consider D believe 10 A trip B travel C journey D excursion 36 INCREASE BANKING AND FINANCE TERM Find words or phrases that mean the same as these expressions Your answer An official document that shows you can drive He is responsible for customers’ account It is a management position Who is he? The money is deducted from your bank account almost immediately You can put all your valuable and beautiful jewellery in this service A plan you make about what to buy and how much to spend The number of things sold to customers in a specific period of time Your current count and mortgage accounts are combined to reduce the interest Someone who pays great attention to detail is…… A……………is in charge of the employees and customers at one branch of the bank 10 A……………… is sometimes called a deposit account 11 Things a company owns, such as machines and buildings What are they? 12 This person develops and manages a company’s financial plans They set a budget and keep control of the company’s expenses Who is he/ she? 13 Similar to a credit card but usually operated by chains of shops or other retailer 14 Someone who gets things done quickly and correctly is… 15 The rate at which a company will buy or sell currency 37 Understanding a text Reading the following text and choose correct answer A, B, C or D Spain's borrowing costs shot up at a bond auction on Thursday, after economic data confirmed the country is back in recession and reports of an outflow of deposits from nationalized Bankia hammered its share price The Spanish Treasury had to pay around 5% to attract buyers of three- and four-year bonds The longer-dated paper sold with a yield of 5.106 percent, way above the 3.374% the last time it was auctioned "This fits the pattern of recent sales, with the Spanish treasury successfully getting its supply away but at ever-higher yields," said Richard McGuire, rate strategist at Rabobank in London "This unfavorable trend looks set to remain firmly in place Ultimately, this ratcheting up of yields will likely require some form of outside intervention," McGuire said Spanish Prime Minister Mariano Rajoy said on Wednesday his government, struggling to reduce its budget deficit, could soon find it difficult to fund itself affordably on the bond market unless the pressure eases His finance minister, Cristobal Montoro, meets heads of finance of all 17 regions later to review their budget plans which are a crucial plank of the drive to lower public debt The European Commission warned last week that stubbornly high debts in the regions and the welfare system would prevent Spain meeting its deficit goal of 5.3% of GDP this year.Spain's 10-year yields have spiked back above percent, which investors view as a pivot point that could accelerate a climb to 7%, a cost of borrowing widely seen as unsustainable even though Madrid has sold well over half its debt needs for the year How much higher was this past bond yield compared to the previous one? A over 1.5% higher B 0.5% higher lower What happened to Bankia shares on the market? C It wasn’t higher It was A They plunged B They rose by about 1.5% C They remained steady According to the article, how high can Spain's 10 year yields go? A 7% B 6% C 5% Is the Spanish government unable to sell bonds? A No, it's the high yields that are the problem B Yes, they can't even sell half of the bonds C No, the biggest problem is corruption According to the article, what's the biggest hurdle to Spain meeting its deficit goal this year? A Debts in the regions and the welfare system B The drop in value of Bankia shares C The inability of the government to successfully sell bonds 38 Unit – The economy TEST your WORD CHOICE A Match the term with the definitions 1.trade surplus a Money owed by a country to foreign creditors trade deficit b The accounts setting out a country’s transactions balance of trade with the rest of the world balance of payments c The value of a country’s imports exceeds its external debt exports debt servicing d The accounts setting out a country’s total devaluation imports and exports growth e The value of a country’s exports exceed its recession imports 10 gross domestic product (GDP) f Expansion of the economy 11 gross national product (GNP) g The value of all the goods and services produced 12 national per capital income by an economy ower a period (e.g one year) h Contraction of the economy i GDP plus other forms of income such as interest, profits and dividents received from abroad j The national income divided by the population k The payment of interest on debts i Reduction in the value of a currency 39 B Write the words into the spaces in the sentences boom and bust globalisation budget surplus trade barrier deregulation social security free trade market forces public sector quota private sector infrustructure budget deficit trading partners subsidies European farmers receive large sums of EU money in the form of ……………… If government expenditure is higher than government income, the results is a ……… If government income is higher than government expenditure, the result is a ……… In a ………… economy periods of growth are followed by periods of recession People who work for state-owned organisation such as public hospitals and state schools work in the…………… People who work for privately-owned organisations work in the ………… Payments by the government to people with little or no other income is called……… Buildings, roads, railway lines, telephone networks and power supplies are all part of a country’s ………… A limit on the amount of particular type of import is a ………… 10 Import tariffs and quotas are types of………… 11 The absence of trade barriers is known as…………… 12 Britain’s most important …………….are France, Germany and the USA 13 “The world is one big market” This is one way of describing…………… 14 The world price of coffee is not fixed It is largely controlled by…………… 15 When a government makes something easier and less bureaucratic, this is called…… 40 Understanding a text Read the following text and fill ONE word in each empty space ECONOMIC RESOURCES What is meant by the term Economic resources? In general, these are all the natural, manmade and human resources that go into the (1)………………… of goods and seervices This obviously covers a lot of ground: factories and farms, tools and machines, transportation and communication facilities, all types of natural resources and labor Economic resources can be broken down (2) ……………… two general categories: property resources – land and capital – and human resources – labor and entrepreneurial skills What economists mean by (3)……………….? Much more than the non-economist Land (4)…………… to all natural resources that are usable in the production (5)……………….: arable land, forests, mineral and oil deposits and so on What about capital? Capital goods are all the man-made (6)………… to producing, storing, transporting and distributing goods and services Capital goods (7)………………from consumer goods in which the latter satisfy wants directly, while the (8)………………do so indirectly by facilitating the production of (9)……………………goods It should be noted that capital as defined here does not refer to money Money, as such, produces (10)……………… The (11)……………….labor refers to the physical and mental talents of humans used to (12)………………goods or services (with the (13)……………….of a certain set of human talents, entrepreneurial skills, which will be (14)………………….separately because of their special significance) Thus the services of a factory worker or an office worker, a ballet dancer or an astronaunt all fall (15)…………………the general heading of labor 41 TEST your WORD CHOICE Choose the correct word for each sentence Market economy is a system of producing wealth beased on the free operation of business and trade…………….government controls A within B without C of D under Command economy is an economic system in which production …………are controlled by a certain authority A Levels B standards C controls D sizes Mixed economy is the operation of a country’s money supply, industry and trade by a mixture of capitalist and socialist………… A Theories B principals C regulations D principles Closed economy is the economy of a country that does not participate in international trade A Are of B have C has D does not have Budget deficit occurs in a government budget when government revenue is less than government …………… A Turn over B expenditure C expenses D income Surplus is a(n)…………….additional to what is needed or used A Quality B quantity C number D amount Demand price is the price that buyers are willing to ………….a certain quantity of a good or service A Pay out B pay off C pay for D pay Divident is a share of profits…………….people who own parts of a company A Which paid to B paid to C are paid for D paid Utility is the satisfaction of a consumer which ………… from a particular bundle of goods A Derives B deprives C arrives D devises 10 We are trying to restore ………… after the storm A itilities B utility C utilise D utilisation 11 Monopoly is the control of all of the market for a ………….or service A Produce B product C production D productivity 12 Many companies are now expanding to………….from economies of scale A Prosper B transfer C benefit D profit 13 A tariff is a tax……………by a government on general types of goods entering or leaving the country A Given B set C sent D paid 14 They’re threatened to …………an economic blockade on the country A Propose B expose C raise D impose 15 They have fallen into arrears………….the rent A For B on C with D of 42 Enrich your VOCABULARY Choose the best answer from each pair of alternatives THE MONEY SUPPLY Following the monetarist argument that the average (1) standard/ level of prices and wages is determined by the (2) amount/ quantity of money in circulation, and its velocity of circulation, many central banks now (3) set/ put money supply targets By (4) increasing/ rising or decreasing the money (5) supply/ supplying, the central bank indirectly (6) influences/ affect interest rates, demand, output, growth, unemployment and prices The central bank can (7) reduce/ be reduced the reserves available to commercial banks by changing the reserve requirements (8) This/ It reduces the amount of money that banks can create and makes money (9) tight/ tightly or scarce (10) Alternately/ Alternatively, the central bank can engage in what are called open market operation, which involve selling short-term government bonds (such as three-month Treasury Bills) to (11) at/ to the commercial banks, or buying (12) them back/ them BANKRUPTCY If a person or business has more debts than money to (1)pay/ pay for them, it means they have (2) more/ fewer liabilities than assets, and they are insolvent If a creditor takes the matter to (3) court/ the court, the person or company is declared (4) bankrupt/ bankruptcy A bankrupt company goes (5)into/ for liquidation or receivership or is wound up The court appoints a liquidator (or receive, or administrator) who realises (i.e sells) the company (6) assets/ liabilities in order to (7) pay/ repay credition A falling business can choose voluntary winding up, in which case it appoints its own liquidator In America a corporation (8) with/ in difficulty can “life for Chapter Eleven” and (9) propose/ propose for a recovery plan; it is then temporarily protected from its creditors, and given some time to (10) solve/ solving its problems A falling business that knows it has no reasonable chance of avoiding bankruptcy should stop (11) to trade/ trading Continuing to business, and building up debts with creditors that will never be paid, is called (12) wrongful/ wrong trading and is illegal There limits to limited liability 43 REFERENCES Dictionanry of Banking and Finance, Peter Colin, A&C Black Publisher Ltd The Future of Finance, Moorad Choudhry and Gino Landuyt, John Wiley & Sons, Inc Check your English Vocabulry for Banking & Finance, Jon Marks, Bloomsbury Pulishing The Economics of Money, Banking and Financial Markets, F.S Mishkin and A Serletis, Pearson Canada www.pearsonELT.com/vocationalenglish 44 45 ... concepts of Finance and Banking Review different language points in finance and banking context Enrich students’ finance and banking terms Develop students’ ability to read about finance and banking. ..INTRODUCTION English for Finance and Banking workbook is primarily intended for advanced English major who wish to increase their knowledge of finance and banking It aims to: Introduce students of English. .. and banking Stimulate students’ interest in finance and banking and therefore encourage them to learn more about the subject English for finance and banking workbook is designed as supplementary