Câu hỏi và tóm tắt bài đọc Tiếng Anh Chuyên Ngành 1 vấn đáp cho sinh viên Học Viện Tài Chính FULL Câu mở đầu cho bất kì câu trả lời summary nào: “ Today I want toam going to tell you about the summary of Unit X. In unit X, we learnt about Tên unit đó”
ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 UNIT 1: ECONOMICS Summary: I Câu mở đầu cho câu trả lời summary nào: “ Today I want to/am going to tell you about the summary of Unit X In unit X, we learnt about -Tên unit đó” Fisrtly, it talks about the definition of economics Economics is the study of how people choose to use resources to maximize their benefits and well-being Secondly, it talks about two main types of economics: macroeconomics and microeconomics - Microeconomics focuses on the actions of individuals and industries, like the dynamics between buyers and sellers, borrowers and lenders Macroeconomics studies the economic activity of an entire country or the international marketplace Thirdly, it talks about the different between three economic theories from Adam Smith, Karl Marx and Keyne Finally, it talks about the roles of economics and the benefit of studying economics Questions : II How is economics defined? Economics is the study of how people choose to use resources to maximize their benefits and well-being What resources include? Rerouces include time, money, talent people have available, the land, buildings, equipment, technology and the knowledge of how to combine them to create useful products and services Why people have to make choices when using resources? ( what purpose people use their resources for?) ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 Because the resources are limited and the people’s wants are unlimited, they have to make choices when using resources to maximize their benefits and well-being What choices people make? People have to choose to use: How much time to devote to work, to school and to leisure How many dollars to spend or save How to combine resources to produce goods and services How to vote and shape the level of taxes and the role of government What well-being mean? Well-being includes the satisfaction people gain from products and services they choose to consume, from their time in leisure and with family and community as well as in jobs, and the security and services provided by effective governments What are two types of economics? There are two main types of economics: macroeconomics and microeconomics What does microeconomics study/focus on? Microeconomics studies about (focuses on) the actions of individuals and industries, like the dynamics between sellers and buyers, borrowers and lenders What does macroeconomics study/focus on? Macroeconomics studies about (focuses on) the economy activity of an entire country or the international marketplace What are economists? Economists are people who study economics 10 What are different between three theories? - Adam Smith: believed that people who acted in their own self-interest produced ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 goods and wealth benfited all the society And the governments shouldn’t restrict or interfere in markets - Karl Marx: believed that exploitation leads to social unrest and class conflict Laborers should own and control all means of production - Keynes: describes how governments can act within capitalism economics to promote economic stability 11 How helpful is economics? (how can people benefit from studying economics?) Economics shapes the world Through it, people and countries become wealthy Studying economics can help one understand human thought and behavior 12 Why you choose to learn economics? How helpful is economics to you? (depends on everyone’s opinion) C1: Because economics is fascinating and interesting The knowdlege of economics is very necessary for our career When we have knowdlege, we can predict economic development in the future We can give advice when the economy enters recession or overheating Moreover, the study of economics can hepl us know how the world works, so we have valuable knowledge for making decisions in everyday life C2: Because the knowdlege of economics is very necessary When we have knowdlege, we can predict economic development in the future We can give advice when the economy enters recession or overheating Moreover economics helps a high income job ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 UNIT 3: MICROECONOMICS Summary: I Firstly, it talks about the definition of Microeconomics Microeconomics deals with the how consumers, workers and firms behave while making decisions on the allocation of scare resources Scare resources such as: limit incomes, limit budgets, financial resources, human resources Secondly, it talks about the decision on allocation of scare resources: In a planned economy, it is done by government In a modern market economy, consumers, workers and firms could that Finally, it talks about three important themes of microeconomics II The ideas of making optimal trade-off The roles of prices The roles of market Questions: What is the definition of microeconomics? Microeconomics deals with the how consumers, workers and firms behave while making decisions on the allocation of scare resources Why people have to allocate resources? Because the resources are limited and the people’s wants are unlimited Who allocates scare resources? It depends on the market economy ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 In a planned economy, government can allocate resources In modern market economies, consumers, workers and firms can that What are the main themes of Microeconomics? themes They are: The ideas of making optimal trade-off • The role of price • The role of market What does the term “trade-off” mean? • Trade-off means an exchage that occurs as a compromise Why consumers trade-off? Because consumers face limited income What consumers trade-off? They trade-off between buying some more goods with buying less of others, spending with saving income for the future, current consumption with future consumption What does cunsumer theory describe? Consumer theory describes how consumers, based on their references, maximize their well-being by trading-off the purchase of more of some goods with the purchase less of others Why workers trade-off? Because workers face limited time 10 What workers trade-off? Workers trade-off between leisure with work, working for small company with large company, immediate working with further studying 11 Why firms trade-off? Because firms face limited fianancial resources ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 12 What firms trade-off? Firms trade-off between producing this set of products with others, hiring more workers with buying new machine 13 What does firm theory describe? The theory of firm describes how these trade-off can be best made They tradeoff between producing this set of products with others, hiring more workers with buying new machine 14 - How are prices determined? In a planned economy, prices are determined by government In a market economy, prices are determined by the interactiong of consumers, firms, and workers ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 UNIT 4: MACROECONOMICS Summary: I Firstly, it talks about the goal of macroeconomics The goal of macroeconomics is to look at overall economics trend such as: employment levels, economic growth, balance of payments, inflation, Secondly, it talks about policies of macroeconomics: fiscal policy and monetary policy Moneytary policy controls a national money supply, it is supervised by Central Bank Fiscal policy controls Government’s spending and revenue, it is supervised by Ministry of Finance Thirdly, it talks the differences between macroeconomics and microeconomics Finally, it talks about the relationship between micro and macro They are interdependent and complement one another II Questions: What is the goal of macroeconomics? The goal of macroeconomics is to look at overall economic trends What are the factors of macroeconomics? They are employment levels, economic growth, balance of payments, inflation and so on What are major macroeconomics policies? There are two major macroeconomics policies They are moneytary policy and fiscal policy ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 - Moneytary policy controls a nation’s money supply It is supervised by the Central Bank The main tools are discount rate, reserve requirement and open market operation - Fiscal policy controls s government’s spending and revenue It is supervised by Ministry of Finance The main tools are s government’s spending, government’s revenue like taxation and government’s borrowing What are economic policies aimed at? (= What are the main objectives of economic policies?) They are aimed at promoting economic growth and keeping inflation under control What are the macroeconomics? differences between microeconomics and The differences are: - Micro focuses on the actions of individuals and industries Macro focuses on activities of an entire country or international marketplace Micro ensures effective allocation of scare resourses, balance between demand and supply, stability prices and markets Macro looks at overall economic trends: employment levels, inflation,… Micro uses price policy, competition policy, Macro uses: fiscal policy and monetary policy Micro takes a bottoms-up approach analyzing the economy Macroeconomics takes top-down approach Why is it said that microeconomics and macroeconomics are interdependent and complement one another? Because there are many overslapping issues between two fields ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 For example: high inflation would cause high prices of raw materials, this leads to high prices of final products – this is a microeconomics issue UNIT 5: DEMAND AND SUPPLY Summary: I Firstly, it talks about the demand - Demand describes how price influences buyer’s behavior If the price of good increases, the quantity demanded will decrease and vice versa, while holding other factors are constant A change of price causes a movement a long a given demand curve A shift of the entire demand curve to the left or to the right is caused by change in one of shift factors of demand, including society;s income, prices of other goods (substitute goods and complement goods), expectations, and tastes Secondly, it talks about the supply - Supply describes how price influences seller behavior If the price of good increases, the quantity supplied will increase A change of price causes a movement a long a given supply curve A shift of the entire supply curve to the left or to the right is caused by change in one of shift factors of supply, including technology, taxes, and suppliers’ expectations Thirdly, it talks about the relationship between demand curve and supply curve Equilibrium is the point where the quantity demanded equals to the quantity supplied Equilibrium occurs when demand curve and supply curve intersect There is no tendency for price to change Finally, excess demand occurs when quantity demanded is bigger than quantity supplied, so price of goods tend to increase Supply excesses occurs when quantity supplied is bigger than quantity demanded, so price of goods tend to decrease Questions: II ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 What is difference between supplied/quantity demanded? supply/demand and quantity Supply/demand is the quantity of goods and services, the sellers/buyers are willing to sell/buy at every price levels The quantity supplied/quantity demanded is the quantity of goods and services the sellers/buyers are willing to sell/buy at specific price Relation between prices and quantity demanded/quantity supplied? If the prices of goods increase, the quantity demanded will decrease If the price of good increase, the quantity supplied will increase What are the shift factors of demand? There are: society’s income, prices of other goods, expectation of buyer tastes What are the shift factors of supply? There are: the prices of input, technology, taxes, supplies expectation Intersection of demand curve and supply curve? When demand curve and supply curve intersect, we have equilibrium Equilibrium occurs when quantity demanded is equal to quantity supplied So price unchanged - - What are advantages and disadvantages of the excess demanded and excess supply? If quantity demanded is more than quantity supplied, this is a shortage So price of good will increase + advantages: the companies make more profits, promote productions + disadvantages: it restrict consumption, it may result inflation If quantity supplied is more than quantity demanded, this is surplus So price of good will decrease + advantages: they have to pay less money for goods, so encourages the consumptions + disadvantages: profits of companies will decrease, shouldn’t promote production 10 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 What is an insurance pool? An insurance pool is a fund which combines all insurance premiums What is the compensation? The compensation is the amount of money that the insurer pays for insured in the event of a loss What does the insurance arrangement involve? An insurance arrangement involves the transfer of many different exposures to loss to one insurance pool In what way, losses can be predicted before they occur? Losses can be predicted in advance through the operation of insurance system What does the insured receive when a loss occur? The insured could receive a compensation paid by the insurer when a loss occur Why are people willing to pay insurance premium? Because, if the loss occurs, they will be compensated by insurer Even if no loss occurs they will be relieved of anxiety about unexpected losses 10 What is an isurance contract? Contract of insurance form a special class of contract in that the law requires parties to them, the insured and insurer, to exercise the utmost good faith towards each other 11 What is different between gambling an insurance contract? Gambling will not enforce but insurance contract will enforce Contract of insurance form a special class of contract in that the law requires parties to them, the insured and insurer, to exercise the utmost good faith towards each other 12 Why don’t many people buy life insurance in Vietnam? 20 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 Because: - Limited financial ability - Do not have knowledge about life insurance - Do not have the faith to it - Saving money in the bank … UNIT 11: MONEY AND ITS FUNCTIONS 21 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 Summary: I Firstly, it talks about the definition of money Money is a commodity accepted by general consent as a medium of economic exchange Secondly it talks about four functions of money + medium of exchang + a measure of value + a store of value + a standard of deferred payment Finally it talks about types of money: commodity money and token money II Questions: Which function of money is the most important? This is medium of exchange Because it helps all transactions would be easy and save time If without this function other functions couln not be performed What is medium of exchange? A medium of exchange is anything that is widely accepted in payment for goods and services and in settlement of debts What is measure of value? Money measure value in its unit of accounts The unit of account is the unit in which prices are quoted and account are kept What is store of value? It means if you don’t buy goods now you can save it to buy in the future What is standard of deferred payment? If you buy something but you don’t pay immediately, you can pay it in the future Why is installment buying more and more popular? 22 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 Because: Firstly it helps consumers can have needed goods and services even though they havent got enough money Secondly suppliers can sell more products promote their business Moreover it helps reduce inflation rate when there is less money in circulation How many kinds of money? There are 2: - - Commodity money is a useful good that serves as a medium of exchange As a result, the value of commodity money is about equal to the value of the material contained in it Example: gold, silver, copper,… Token money is a means of payment whose value or purchasing power as money greatly exceeds its cost of production or value in uses other than as money Example: cash, bank note, credit card,… 23 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 * Different between commodity money and token money: Commodity money Token money Definition Is a useful good that services as a Is a means of payment medium of exchange whose value or purchasing power as money greatly exceeds its cost of production or value in uses other than as money Expresstion The value of commodity money is Value or purchasing about equal to the value of the power as money greatly material contained in it exceeds its cost of production or value in uses other than as money Principal mateial Gold, silver, copper, iron, bronze Inflation isnt influenced by inflation Paper, polime… Sells, furs,skins… is influenced inflation by What determine the value of commodity money? The value of material contained in it How does inflation influence to kinds of money? Token money is influenced by inflation And commodity isnt influenced by inflation 10 Which national currency is the most strongest currency? 24 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 This is USD Because it is used widely in international transaction and it is one of the major reserve currencies in the world 11 Is gold money? Yes, it is Because it fully performed functions of money UNIT 12: MONETARY POLICY Summary: I Firstly, it talks about the quantitative tools of monetary policy There are: reserve requirement, discount rate and open market operations These tools are used for controlling money supply Finally it talks about the Central Bank’s control over the money supply To control money policy, Central Bank uses Quantitative tools or using expansionary monetary policy and restrictive monetary policy II Questions: What is the monetary policy? Monetary policy is a government policy related to a national money supply It is controlled by Central Bank and the main tools are reserve requirement, discount rate and open market operations What is called reserve requirement? Reserve requirement is the percentage the Central Bank sets as the minimum amount of reserves a bank must have 25 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 What determines the amount of reserve a bank must have? Central Bank’s requirement and the bank’s safety determine the amount of reserve a bank must have What is the role of reserve requirement? It determines how much money a bank has to lend out How does Central Bank effect the money supply? By changing the reserve requirements, Central Bank can increase and decrease the money supply If Central Bank increase the reserve requirement it contracts money supply, banks have less money to lend out How does Federal control the percentage of deposits bank keep in reserve? The fed controls the percentage of deposits bank keep in reserve by controlling the reserve requirement of all US banks What is the discount rate? The discount rate is the rate of interest Central Bank charges for the loans to the other banks How does discount rate effect the money supply? By changing the discount rate, Central Bank can expand or contract the money supply An increase in the discount rate makes it more expensive for bank to borrow from Central Bank A decrease in the discount rate makes it less expensive for bank to borrow from Central Bank What is open market operation? It is Central Bank’s buying and selling government securities 10 How does open market operation effect the money supply? To expand the money supply the fed buys bonds 26 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 To contract the money supply the fed sells bonds 11 What is primary tools of monetary policy? This is open market operation Because it is used for day to day Central Bank’s operations, and the others are used for major changes So the fed uses open market operation 12 How can the banks encourage people to borrow and spend more money? The bank can encourage people to borrow and spend more money by offering lower interest rate or easier approvals 13 When does the aggregate demand curve shift to the right? When an increase in the money supply 14 When will prices begin rising? Prices will start rising when market participants bid against each other for increasing scare goods 15 What the central bank can reduce the money supply? There are: raise reserve requirement, increase the discount rate, sell bond in the open market 16 What are the differences between expansionary and restrictive monetary policy? moneytary policies Expansionary What? When? 27 Means the central bank decrease reserve requirement, discount rate or buying more bonds It can increase bank lending capacity When the economy slows down Restrictive Means the central bank increase reserve requirement, discount rate, or selling more bonds It can reduce bank lending capacity When the economy is overheating ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 What for? It is used to stimulate aggregate demand and finally promote economic growth It is used to restrict aggregate demand and to cool an overheating economy Effect ? It causes the demand curve shift It causes the demand curve shift to the right to the left - Expansionary: when the economy slows down It means the central bank decrease reserve requirement, discount rate or buying more bonds It can increase bank lending capacity It causes the demand curve shift to the right It is used to stimulate aggregate demand and finally promote economic growth Restrictive: when the economy is overheating It means the central bank increase reserve requirement, discount rate, or selling more bonds It can reduce bank lending capacity It causes the demand curve shift to the left - It is used to restrict aggregate demand and to cool an overheating economy 17 What is relationship between monetary policy and fiscal policy? • • - They are interdependent and complement one another because there are many overlapping issues between two policies 28 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 UNIT 14: FOREIGN EXCHANGE MARKET Summary: I Firstly, it talks about the definition of the foreign exchange market The foreign exchange market is the market where national currencies are exchanged Secondly, it talks about the main features of the foreign exchange market - It is an over the counter market It is not an organized market with fixed hours and a physical meeting place It operates 24 hours a day because of difference time zones Thirdly, it talks about the world largest foreign exchange center This is London Fourthly it talks about kinds of transactions: spot transaction and forward transaction And finally it talks about types of participants in the foreign exchange market There are customers, market makers and brockers II Questions: What is foreign exchange market? Foreign exchange market is a market where national currencies are exchanged What are the main features of foreign exchange market? - It is not an organised market with fixed hour and a physical meeting place - Primary instrument are telephone and computer 29 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 - It operates 24 hours a day because of different time zones Why is foreign exchange market to be an OTC market? Because it is not an organized market with fixed hours and physical meeting place Why has foreign exchange market developed quickly? Because it is in response to increase volumn of world trade and expansion of international capital flows Why is London the world’s largest foreign exchange market? Because it benefits from geographical location What differences between spot transaction and forward transactions? Spot transactions are an actual exchanged of foreign currencies two business day later Forward transaction involves a delivery day further into the future, possibly a year or more What is the function of forward transaction? By buying or selling currencies in the forward market to protect the value of currencies from exchange rate volatility Who are customers? What they in the market? They are multination corporation, import and export firms, traveler around the country, speculator Customers are in the market to meet demand for across border trade or investment Who are market makers? They are most banks with their dealers They are in the market to earn profit on difference between buying and selling rates 30 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 10 Who are the brokers? How brokers participate in the foreign exchange market? The broker are specialist companies They acts as intermediaries between the banks with the telephone lines to find out the best dealing rate for their clients And they charges a commission for their services 11 What the terms “bit rate” and “offer rate”? Bit rate is buying rate and offer rate is selling rate UNIT 15: FINANCIAL MARKET Summary: I Firstly, it talks about primary function of financial market It is to channel funds from those who have saved surplus funds to those who have a shortage of funds to invest or spend Secondly, it talks about four main categories of financial market II Debt and equity market Primary and secondary market Exchanges and OTC market Money and capital market Questions: What is financial market? Financial market is a market in which financial instruments are traded: debt, bonds, shares, What finacial instruments include? 31 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 They include securities (stocks, bonds,…), debts, mortages, money, What is primary function of financial market? It is to channel funds from those who have saved surplus funds to those who have a shortage of funds to invest or spend What is difference between debt market, equity market? Debt market Equity market Definition is a financial market in Is a financial market in which which debt instruments are equity instruments are traded traded Debt/Equi - Debt instrument is a - Equity instrument include ty contractual agreement common stocks and preferred instrument between the borrower and stocks the lender to pay both interest and principal at maturity date - It include bonds, mortages Types Debt instrument has types: Equity instruments are consider as short term, long term, and long term ones Because they don’t intermediate term have maturity date Debt/Equi - Debt holders (DH) are - Equity holders (EH) are owners ty holders considered creditors - EH receive dividends - DH receive predetermined -EH share vote on the important fixed interest rate at a decisions maturity date - DH don’t have any right in the company, they can not interfered in the running of the company What is short term, long term and intermediate term? - Short term has maturity date less than a year - Long term has maturity date ten or more than ten years - Intermediate – term has maturity date from to 10 years What is debt instrument? The debt instrument is a contractual agreement between the borrower and the lender to pay both interest and principal at maturity date 32 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 What difference between primary market and secondary market? Definition Function Primary market Is a market in which new issued shares are sold to initial buyers It is not well known to the public Because the selling of securities take place behind closed doors Function of primary market is to raise fund for companies Secondary market Is a market in which issued shares are resold to buyers It is well known to the public + make it easier and quicker to sell financial instruments to raise cash + help determine the prices of new issues stocks set on primary market What are differened between exchange and OTC market? - Exchange market is the financial market in which securities are traded at popular places with fixed hours - OTC market is the financial market in which securities are not traded at popular places with fixed hours - 10 - What are differences between money market and capital market? Money market is a financial market in which only short term debt instruments are traded And the money market is safer and more liquid than capital market Capital market is a financial market in which longer term debt instruments and equity instruments are traded Why is money market safer and more liquid than the capital market? Safer: because short term securities have smaller fluctuation in prices than long term securities More liquid: because money market securities are usually more widely traded than longer term securities 33 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 34 ... policies 28 ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 UNIT 14: FOREIGN EXCHANGE MARKET Summary: I Firstly, it talks about the definition of the foreign exchange market The foreign exchange... another? Because there are many overslapping issues between two fields ENGLISH FOR FINANCE | nguyen thao dan | CQ52/21.24 For example: high inflation would cause high prices of raw materials,... they have to pay less money for goods, so encourages the consumptions + disadvantages: profits of companies will decrease, shouldn’t promote production 10 ENGLISH FOR FINANCE | nguyen thao dan