Câu hỏi tiếng anh chuyên ngành 1

QUESTIONS FOR UNIT Where does the government’s revenue come from? / What are sources of the government’s revenue? What are trust funds? What becomes trust funds?/ What is the source of trust funds? What are federal funds? What are sources of federal funds? What are trust funds used for/ spent on? Give examples for social security programs? What are federal funds used for/ spent on? What can the government when it needs to spend more money than it can get from taxation? 10 How can the federal government sell its bonds or other securities? 11 What are two types of federal debts (public debts)? 12 What are debts held by federal accounts? 13 What are debts held by the public? 14 Who can be the domestic/ internal investors who lend money to the government? 15 Who are international investors? 16 What is individual income tax? 17 What is corporate income tax? 18 What is payroll tax? 19 What is customs duty? 20 What is excise tax? - Matching exercises - Complete the sentences using words or phrases in the box - Make up complete sentences using given prompts + Excise tax/ the tax/ impose/ some/ specific/ good/ service/ such as/ alcohol, beer/ hotel/, restaurants, and so on Where does the government’s revenue come from? / What are sources of the government’s revenue? - The government’s revenue comes from tax revenue and borrowings - Tax revenues come from the collection of different types of taxes What are trust funds? Trust funds come from/ are generated from payroll taxes What becomes trust funds? – Payroll taxes become trust funds / What is the source of trust funds? Trust funds come from/ are generated from payroll taxes What are federal funds? Federal funds come from/ are generated from income taxes, corporate taxes, customs duty, excise tax, and others What are sources of federal funds? They are individual income taxes, corporate taxes, customs duty, excise tax, and others What are trust funds used for/ spent on? - specific programs such as social security and medicare Give examples for social security? Social security programs can be paying pensions to retired people, subsidizing social families or victims and so on What are federal funds used for/ spent on? For building infrastructure, paying salaries for state employees and running the government body What can the government when it needs to spend more money than it can get from taxation? The government can issue bonds/ print more money 10 How can the federal government sell its bonds or other securities? It can sell bonds directly through the website, or indirectly via banks or brokers 11 What are two types of federal debts (public debts) They are debts held by federal accounts and debts held by the public 12 What are debts held by federal accounts? They are the amount of money that the government borrows from itself, exactly from the surplus of trust funds 13 What are debts held by the public? They are the amount of money that the government owes to all of its creditors in the general public 14 Who can be the domestic/ internal investors who lend money to the government? Domestic investors include domestic private investors, Federal Reserve (the Central bank), state and local governments, others 15 Who are international investors? They include governments of other countries, foreign private investors, international financial institutions (IMF – International Monetary Fund; WBWorld Bank) 16 What is individual income tax? Individual income tax is the tax imposed/ levied on individual incomes - to impose/ levy + taxes + on sth = to tax sth 17 What is corporate income tax? Corporate income tax is the tax imposed on business incomes 18 What is payroll tax? Payroll tax is the tax calculated/ computed based on payroll that is paid jointly by workers or employers, including social insurance and may be health insurance) 19 What is customs duty? Customs duty is the tax imposed on imports 20 What is excise tax? Excise tax is the tax imposed on some specific goods and services such as alcohol, beer, hotels, restaurants, and so on - Matching exercises - Complete the sentences using words or phrases in the box - Make up complete sentences using given prompts + Excise tax/ the tax/ impose/ some/ specific/ good/ service/ such as/ alcohol, beer/ hotel/, restaurant, and so on UNIT FISCAL POLICY Questions for discussion What is deficit spending? Is deficit spending helpful or harmful to the economy? When is deficit spending helpful? And why? What are objectives of deficit spending? When is deficit spending harmful? And why? What are tools of fiscal policy? What are stances of a fiscal policy? What is an expansionary F.P.? When should the F.P be expansionary? 10 Why or what are objectives of an expansionary fiscal policy? 11 What is a contractionary F.P.? 12 When should the F.P be contractionary? 13 Why or what are objectives of a contractionary fiscal policy? 14 What factors should be considered when making decisions on fiscal policy? Deficit spending 1.1 What is deficit spending? - Deficit spending means spending funds obtained by borrowing or printing instead of taxation 1.2 Is deficit spending helpful or harmful to the economy? - Deficit spending can be either helpful or harmful 1.3 When/ Under what circumstances/ in which situation is deficit spending helpful? And why? - When the economic growth is low (the government feels that its economy isn’t growing fast enough); or the unemployment is high: - Deficit spending is helpful For example, the government borrows money to build a new highway, the construction creates more jobs, so the unemployment will reduce (decrease) - And the construction also brings more incomes to individuals and firms With more incomes, they tend to spend or invest more, leading to increased aggregate demand, then an increase in supply As results, the economy tends to grow 1.4 What are objectives of deficit spending/ an expansionary fiscal policy? The objectives of deficit spending are to promote economic growth and to reduce unemployment 1.5 When is deficit spending harmful? And why? - When unemployment is low, deficit spending leads to more competition for limited/ scarce workers and resources, this inflates wages and prices - And when inflation is high, deficit spending increases aggregate demand, then prices will increase So it is difficult to control inflation Then economic recession or even crisis are likely to happen Tools of fiscal policy - Government spending (G) - Taxation (T) At a point in time, the fiscal policy can be in one of three stances: + G > T (when the government spends more money than it can receive/ get/ collect from taxation), the fiscal policy is in deficit + G < T (when the government spends less money than it can receive from taxation), the fiscal policy is in surplus + G = T (when the government spends the same amount of money as it receives from taxation/ when the government spending is equal to tax revenue), the fiscal policy is balanced/ neutral Fiscal policy can be expansionary or contractionary 3.1 What is an expansionary F.P.? Fiscal policy is expansionary when government spending is increased; or taxation is reduced; or both 3.2 When should the F.P be expansionary? Why? When the economic growth is low (the government feels that its economy isn’t growing fast enough); or the unemployment is high For example, when the government reduces tax rates on individual incomes or corporate incomes, both individuals and firms have more money to spend So that aggregate demand will increase, leading to an increase in supply (or an increase in production of goods and services) As results/ As a result, the economy tends to grow More production creates more jobs so the unemployment reduces 3.3 What is a contractionary F.P.? Fiscal policy is contractionary when taxation is increased; or government spending is reduced, or both 3.4 When should the F.P be contractionary? Why? The fiscal policy should be contractionary when inflation is high For example, when the government increases tax rates (on incomes), individuals and firms have less money to spend, leading to a decrease in aggregate demand, and then a decrease on pressure on prices, in other words, inflation is likely to reduce 3.5 What are objectives of an expansionary F.P or a contractionary F.P.? - Objectives of an expansionary fiscal policy are to promote economic growth and to reduce unemployment - Objectives of a contractionary F.P are to reduce inflation (keep inflation under control) Factors should be considered when making decisions on fiscal policy? - Inside (internal) factors: + economic growth + (un)employment + inflation + political considerations - Outside (external factors) + fiscal policies of other countries + requirements of international financial institutions (such as IMF or WB) IMF = International Monetary Fund WB = World Bank Make judgments about sth = make regarding sth = consider sth To be (more) likely to sth - It is likely to rain/ to be rainy today - Vietnam is likely to fight against Covid19 Multinational companies/ corporations, international companies (parents company + subsidiaries These companies have their subsidiaries in some different countries Generous tax programs Tempt sbd to sth 4.2 Why should the government consider fiscal policies of other countries when making decisions on its fiscal policy? If other countries offer generous tax programs or other government-controlled benefits, multinational companies may relocate their subsidiaries 4.3 Why should the government consider requirements of international financial institutions (such as IMF, WB) when making decisions on fiscal policy? Because they often grant aid packages subject to conditions relating to fiscal policy UNIT 12 MONETARY POLICY VOCABULARY Tra từ điển để biết phát âm (pronunciation) nghĩa từ đây: Money Monetary Money supply Reserve Requirement Reserve requirement Discount rate Open market operations QUESTIONS FOR DISCUSSION What are tools of monetary policy? What is reserve requirement? What is the role of reserve requirement? What is discount rate? What are open market operations? What is an expansionary monetary policy? When should the monetary be expansionary? Why? What is the objective (goal) of an expansionary monetary policy What is restrictive monetary policy? 10.When should the monetary policy be restrictive? Why? 11 What is the objective (goal) of a restrictive monetary policy? What are tools of monetary policy? What is reserve requirement? Reserve requirement refers to a percentage of deposits that the Central bank requires all other banks to keep in reserve What is the role of reserve requirement? Reserve requirements play a central role in how much money (that) banks have / to lend out = Reserve requirements determine the lending capacity of banks, thus reserve requirements affect/ have impact on/ have influence on/ make changes in the money supply Play + (an important/ a central) role in + sth/ doing sth What is discount rate? Discount rate is the interest rate that the Central bank charges on loans to other banks Charge + interest rates/ fees/ prices + on sth What are open market operations? Open market operations refer to the Central bank’s buying and selling government securities What is an expansionary monetary policy? A monetary policy is expansionary when the Central bank decreases/ lowers/ reduces reserve requirement or discount rate or buying government securities When (Under what circumstance) should the monetary policy be expansionary? Why? The monetary policy should be expansionary when economic growth rate is low/ the economy isn’t growing fast enough/ is slowing down; and/or unemployment rate is high Coo - When the Central Bank lowers discount rates/ reserve requirements, for example, banks can have more money to lend out/ the money supply will increase/ there will be an increase in the money supply - For example, when the Central bank buys government bonds, the money supply will increase/ there will be an increase in the money supply Thus, aggregate demand will increase/ shift to the right, leading to an increase in supply (or more production of goods and services), creating more jobs and more incomes for both individuals and firms As results/ as a result, the unemployment rate is likely to reduce and the economy tends to grow What is the objective (goal) of an expansionary monetary policy? The objective of an E M P is to promote economic growth and to reduce unemployment What is restrictive monetary policy? A monetary policy is restrictive when the Central bank increases reserve requirements or discount rates or selling government securities 10.When should the monetary policy be restrictive? Why? Khi thực sách tài nới lỏng thường kéo theo điều xảy ra? Hệ sách tài nới lỏng lạm phát tăng When the government runs/ employs (thực thi) the expansionary fiscal policy, inflation is likely to increase In this situation/ In times of high inflation, a restrictive monetary policy is likely to be employed For example, when the Central Bank sells government bonds, the money supply will decrease, and aggregate demand will decrease as well, leading to a decrease in pressure on prices, in other words, inflation tends to reduce 11 What is the objective (goal) of a restrictive monetary policy? The objective of a restrictive monetary policy is to reduce inflation/ to keep inflation under control Homework: BÀI TẬP THỰC HÀNH I Make up complete sentences using given prompts Fiscal/ monetary/ policy/ be/ frequently/ used/ together/ restore/ economy/ to/ full employment output ………………………………………………………………………………… ………………………………………………………………………………… When/ economy/ be/ experience/ a severe recession/,/ one possible solution/ would/ be/ engage/ expansionary fiscal policy/ increase aggregate demand ………………………………………………………………………………… ………………………………………………………………………………… Expansionary fiscal policy/ be/ either/ increase/ government spending/ decrease in taxes/ increase real GDP ………………………………………………………………………………… ………………………………………………………………………………… Types of insurance products: loại bảo hiểm - Life insurance is for people against the death + extra insurance for health of the insured Non-life insurance has various products such as: + car (auto) insurance + property insurance Beneficiary (n) a person entitled to receive funds or other property under a trust, will, or insurance policy: người thụ hưởng A beneficiary of a life insurance policy is the person who receives the proceeds, often the widow or widower of the insured - The policy provides either a stated sum or a periodic income to your designated beneficiaries upon your death If death occurs within 10 years after the annuity payments begin, payments are continued to a named beneficiary for the remainder of the 10 years Entitle (v) If you are entitled to something, you have the right to have it or it - If the warranty is limited, the terms may entitle you to a replacement or refund They are entitled to first class travel There are 23 Clubs throughout the U.S., and your membership entitles you to enjoy all of them Destruction is the act of destroying something, or the state of being destroyed .an international agreement aimed at halting the destruction of the ozone layer .weapons of mass destruction COVID 19 = China originated virus in December 2019 Injure (v) They were dealing with people badly injured in road accidents, which was good training for the battlefield Injury (n) An injury is damage done to a person's or an animal's body - Four police officers sustained serious injuries in the explosion The two other passengers escaped serious injury Damage (v + n) Lose – lost – lost Losses (n) Steal – stole – stolen Theft (n) In a particular period = in a certain period Particular type of work = specific/ specified type of work Fraud is the crime of gaining money or financial benefits by a trick or by lying - He was jailed for two years for fraud and deception Tax frauds are dealt with by HMRC A fraudulent act or insurance claim is deliberately deceitful, dishonest, or untrue - - A computerized register of information shared by insurance companies and the police helps to reduce fraudulent claims, which in turn, should help to keep everyone's premiums down The policy covers loss of property due to dishonest or fraudulent acts of one or more employees of the insured, resulting in improper financial gain Something that is legitimate is acceptable according to the law - The French government has condemned the coup in Haiti and has demanded the restoration of the legitimate government Analyze (v): to separate (a thing, idea, etc.) into its parts so as to find out their nature, proportion, function, interrelationship, etc Analysis is the process of considering something carefully or using statistical methods in order to understand it or explain it Genuine is used to describe people and things that are exactly what they appear to be, and are not false or an imitation - The government will not seek to disrupt the legitimate business activities of the defendant Topic questions: What is the important role of insurance? Topic: The operation of an insurance system has a great significance It brings benefits for the insured, insurers as well as for the economy as a whole Firstly, the insured can get benefits in the form of compensations paid by insurers in case of a loss, and reduced anxiety about losses in case of no loss Secondly, insurers can raise big amounts of capital by collecting regular premium payments from many participants They lend/ invest the collected money for profits Moreover, they often have to pay small compensations to fewer people who suffer losses compared with large premium collected from many participants Lastly, the insurance system partly helps promote economic growth by transferring money from the insured to borrowers to expand their business, or to increase their production, and so on (lastly, insurers act as financial intermediaries (trung gian tài chính) in transferring Buying insurance/ Taking out insurance policies, what benefits can the insured get? Topic sentence: Taking out insurance policies, the insured can have some benefits - If the loss actually occurs/ happens, /If the insured suffer losses, /In the event of a loss/ In case of a loss, the insured will be compensated by the insurer/ the insured can get/ can have a claim of compensations from the insurer - And even if no loss occurs, the insured still receive value in the form of reduced anxiety about losses - Buying insurance, the insured have to pay relatively small expenses (premium), but they can get large compensations in case of a loss How does an insurance system operate? An insurance system accomplishes the redistribution of the costs of losses by … percentage of those insured suffer losses (Giáo trình) To be relieved of sth: khỏi/ giải phóng khỏi Losses: tổn thất An eliminated unpleasant mental state = reduced anxiety about loss Insurance premium (a relatively small certain outlay/ expense) > < a relatively large uncertain loss Exposure (n) is the risk that a loss might occur - Financial advice for small businesses can identify and maximize growth opportunities and minimize exposure to foreign currency fluctuations - Hedge funds employ innovative investment strategies to attain relatively high returns while simultaneously reducing exposure to market risk (Insurance: Underwriting) A company's exposure is the amount of a particular risk that it has - Risk management involves analyzing all exposures to the possibility of loss to which a company might be subject, and determining how to handle these - It may be better to pass some risk to a reinsurance company as this will reduce the insurer's exposure to risk Exposure is the risk that a loss might occur Insurance pool: Pool bảo hiểm nhóm cơng ty bảo hiểm thành lập nhằm đáp ứng mục đích kinh doanh Thơng thường rủi ro tài cao so với lực cơng ty bảo hiểm, cơng ty san sẻ rủi ro tài lớn cách tham gia vào pool bảo hiểm UNIT 11 MONEY AND ITS FUNCTIONS VOCABULARY - Money - Currency: The money used in a particular country is referred to as its currency - (local currency, foreign currencies) - Strong/ weak currencies - Means of payment/ medium of exchange - Measure of value/ unit of account - Store of value - Standard of deferred payment - Exchange (v) + (n) - Settle (v) - Commodity money - Token money Tra từ điển Anh – Anh để có định nghĩa tiếng Anh, học phát âm, tìm câu ví dụ phù hợp Foreign currency: the currency used in other countries (and not in your own) - Britain earns billions in foreign currency from its insurance market Money is the coins or bank notes that you use to buy things, or the sum that you have in a bank account - A lot of the money that you pay at the cinema goes back to the film distributors - Players should be allowed to earn money from advertising - She probably had more money but she didn't spend it Legal tender is money, especially a particular coin or banknote, which is officially part of a country's currency at a particular time The denomination of a banknote or coin is its official value - … a pile of bank notes, mostly in small denominations Medium of exchange: anything used as a measure of value in exchange for goods and services; currency, checks, etc TOPIC QUESTIONS - What are functions of money? Medium of exchange (Means of payment) Measure of value (Unit of account) Store of value Standard of deferred payment Sub – questions: What is a means of payment? / As a medium of exchange, how is money used? (for what purpose?) 1.1 Medium of exchange Definition (SGK) As a medium of exchange, money is used to make payments for goods and services, as well as make settlements for debts Settle debts = make settlements of debts 1.2 Measure of value Measure of value (unit of account) - the function of money that enables the user to keep accounts, value transactions, etc As a unit of account, money is used to quote prices and to keep accounts It is more convenient to use money as a means of payment as well as a unit of account, because there is no need to exchange one currency for another 1.3 Store of value - As a store of value, money is used to make purchase in the future / money is saved for future use - Money is neither the unique nor the best store of value, because money can reduce its value over time due to inflation 1.4 Standard of deferred payment Or unit of account over time - As a standard of deferred payment, money is used to make payments for debts in the future - This functions becomes more important when installment buying (hinh thuc mua tra gop) is developing To buy sth on credit: Repay (v) – repayments (n) Types of money Revolution of money - Common goods which function as money, for example, in primitive society such as sheep, sea shells, animal’s teeth, … - Gold coins, Silver coins - Banknotes and metal coins - Checks (cheques) - Plastic cards - E-money (electronic) What are two main types of money? What are differences between them? Commodity money Token money - Gold coins/ silver coins - Banknotes and metal coins/ - The monetary value (the Checks (cheques)/ Plastic cards purchasing power) of a - The monetary value or commodity money is the same as its material value - It is more difficult and dangerous to bring commodity along in large quantities purchasing power of a banknote greatly exceeds its material value (a high quality piece of paper) - It is much easier and safer to bring a token money, such as a visa card READ AND TRANSLATE INTO VIETNAMESE In Economics, “standard of deferred payment” is a function of money that indicates a widely accepted way to value a debt such that a person can acquire goods at present and pay for them in the future Standard of deferred payment is considered to be a direct result of two other functions of money namely “store of value” and “unit of account” However, for money to function as a deferred payment standard, it must retain value, it must also store value Definition Of Standard Of Deferred Payment Standard of deferred payment is one of the four functions of money Here, money is used as a standard benchmark or a contract for specifying future payments for current purchases In other words, standard of deferred payment is an accepted way to settle debt in a given market Standard of deferred payment conveys contrast from the elements of cash which is a quick mechanism of trade or store of significant worth; while Standard of deferred payment goes about as a medium by which future installments will be made Functions Of Money There are four basic functions of money: Unit of account: As mentioned above, money serves as a unit of account, providing a common measure of the value of goods and services being exchanged Everybody around the world thinks about cash profitable It's a painful way for sellers to esteem stock and endeavors and buyers to choose if the estimation of the incredible benefits exchanging for money If you esteem someone or something, you respect or admire them An endeavor is an attempt to something, especially something new or original A medium of exchange: Apart from serving as a unit of account, money readily acts as a medium of exchange to facilitate transactions It fills in as a medium trade that is acknowledged in all exchanges, by all gatherings, paying little respect to whether they want every others' products and enterprises In contrast to the trade framework, where the trading of products relied on a twofold fortuitous event of needs, cash is free from any such reliance and enables a client to fulfill his/her arrangement of necessities Standard of deferred payment: As mentioned earlier, the standard of deferred payment is also one of the functions of money Money facilitates the acts of borrowing and lending Since money enables current transactions to be discharged in future, it has become a standard of deferred payments A store of value: Money also serves as a store of value or a store of purchasing power It tends to be held over some undefined time frame and used to back future installments Moreover, when individuals set aside some cash, they get the confirmation that the cash spared will have esteem when they wish to spend it later on How Does The Standard Of Deferred Payment Work? Deferred payments are the payments which are postponed for the future In the case of these payments, money enables current transactions to be discharged in future You’ll be able to understand this concept better with the help of an example Let’s take the example of a business and consumers where the money would be used as a standard of deferred payment Suppose, a business, say, an electronic store starts running promotional sales and offers That’s when it would use deferred payments to entice new customers Wondering how? Well, the store would probably offer a deferred payment plan for the first five months when a consumer buys a new appliance Due to this, the customer would be required to make only interest payments for the first five months Once these five months end, the customer is required to make regular payments for the duration of the consumer agreement Relation Of Debt With Standard Of Deferred Payment Debt is a form of deferred payment Since the value of money fluctuates over time via inflation and deflation, the value of deferred payments (the real level of debt) also fluctuates A device is termed "legal tender" if it serves as a medium to pay off debts The US dollar is one of the best examples of “legal tender” as it is not backed by gold or any other commodity but can be used to pay off debts So, these were the basics of “Standard of deferred payment” Sound quite easy, don’t they? Well, that’s not what a student pursuing a higher degree in Finance would think That’s because such students find it quite hard to juggle with the lengthy syllabus, exam pressure and an additional burden of assignments on topics like “Standard of Deferred payment” There may be a lack of clarity of concepts even after attending long lectures That’s when there’s a need to rush to the library to search for the best books like: UNIT 14 THE FOREIGN EXCHANGE MARKET VOCABULARY Exchange (n): is used in the names of some places where people used to trade and business with each other If two or more people exchange (v) things of a particular kind, they give them to each other at the same time - We exchanged addresses and Christmas cards - The two men exchanged glances - He exchanged a quick smile with her then entered the lift Exchange rate (n): the rate at which the currency of one country or region can be exchanged for that of another country or region - The cost booked at the date of purchase uses the exchange rate at that date - The official exchange rate was twenty-seven cordobas to the dollar A transaction is a piece of business, for example an act of buying or selling something - The data management system tracks the complete record of every transaction with a customer from the point that their name is entered in its order books - Of wider importance are the questions raised about the security of online banking and financial transactions - They are probably as important as money in making business transactions happen - The bosses would have paid capital gains tax on the transactions Trade (n) is the activity of buying, selling, or exchanging goods or services between people, firms, or countries - The ministry had direct control over every aspect of foreign trade - negotiations on a new international trade agreement - Texas has a long history of trade with Mexico When people, firms, or countries trade (v), they buy, sell, or exchange goods or services between themselves To trade with sbd/ to trade in sth - Australia and New Zealand trade extensively with each other - He has been trading in antique furniture for 25 years Foreign trade = world trade = international business If you acquire (v) something, you buy or obtain it for yourself, or someone gives it to you - He yesterday revealed he had acquired a 2.98 per cent stake in the company - I recently acquired some wood from a holly tree Acquisition (n) A situation that is volatile (adj) is likely to change suddenly and unexpectedly - There have been riots before and the situation is volatile - The international oil markets have been highly volatile since the early 1970s Exchange rate volatility (n) biến động tỷ giá To protect sth from sth/ doing sth: bảo vệ tránh khỏi gì/ việc làm If you anticipate an event, you realize in advance that it may happen and you are prepared for it - At the time we couldn't have anticipated the result of our campaigning - It is anticipated that the equivalent of 192 full-time jobs will be lost - I hadn't anticipated that Rob's team would advance that far Detailed Questions What is foreign exchange market? F.E.M is the market in which national currencies are exchanged What is an OTC market? An OTC market is the market in which transactions are made throughout the day and via communication instruments such as telephone or computer An OTC market is the market which hasn’t got fixed hours or a physical meeting place What is an organized market? An organized market is the market with fixed hours (trading sessions), and a physical place (trading floors) What is exchange rate? Exchange rate is the rate at which the currency of one country or region can be exchanged for that of another country or region What are spot transactions? Spot transactions are undertaken for an actual exchange of currencies business days later What are forward transactions? Forward transactions involve a delivery date further into the future What is the significance of forward transactions? Forward transactions help to protect the value of anticipated flows of foreign currencies from exchange rate volatility The bid price is the rate at which the bank quoting the price, the market marker will buy the base currency from a customer, the market user The offer price is the rate at which the market maker will sell the base currency to a customer/market user Example A multinational wants to buy USD million in exchange for Singapore dollars A bank quotes 1.3607-1.3615 for the USD/SGD rate The market maker is selling the base currency, dollars and so the rate to apply to the transaction is 1.3615, and the multinational will pay SGD 6.8075 million for the dollars (5 million x 1.3615) Topic questions: 10.What are two types of foreign exchange trading? How are currencies exchanged with each of these two types? Foreign exchange trading is divided into two types: spot transactions and forward transactions Spot transactions are undertaken for an actual exchange of currencies business days later While forward transactions involve a delivery date further into the future Forward transactions help to protect the value of anticipated flows of foreign currencies from exchange rate volatility 11.Why is London the world’s largest foreign exchange center? London is the world’s largest foreign exchange center because of reasons Firstly, the large volume of international financial business is generated in London such as insurance, Eurobonds, banking and so on Secondly, London benefits from its geographical location which enables it to trade with many cities in the whole world, not only in Europe, but also in Asia, America and so on 12.What are different types of participants in the foreign exchange market? For what purposes does each type of participants take part in the market?/ There are four types of participants - The market maker is the central bank of each country They establish the market and supervise the market operations by quoting the frame of exchange rates at any time - The dealers are banks / Banks act as dealers in the market They buy or sell foreign currencies to make profits based on the differences between buying rates (bid rates) and selling rates (offer rates) - Customers can be multinational corporations, importers and exporters, or individuals + multinational corporations have demand of / need foreign currencies for the acquisition of financial and real assets between parents companies and their subsidiaries + importers and exporters have demand of foreign currencies for making or receiving payments for imports/ exports + individuals need foreign currencies for their trips abroad, or for the purpose of saving - The brokers are specialist companies who act as consultants for both banks and customers They don’t deal on their own accounts, but they charge commission for their consultancy The give advice/ consultancy on exchange rates for their customers Big Ben GMT stands for Greenwich Mean Time Business day = working day Delivery day/ settlement day The value date when the buyer order a sum of foreign currency UNIT 15 FINANCIAL MARKETS - Foreign exchange market (Forex) - Securities markets - Financial instruments Classification of securities markets Based on different categories to classify securities markets - Equity markets + debt markets (definitions) (What are financial instruments traded in these markets?) - Primary markets + Secondary markets (definitions) What are differences between them? - operations - Secondary markets can be divided into: Exchanges + OTC markets (definitions) What are differences between them? - operations - Money markets + Capital markets (based on the maturity of financial instruments: short-term or long-term securities) Definition Difference between short-term or long-term securities Note: • Vietcombank’s Exchange rates • Exchange rates are updated on 10/03/2020 17:30 for reference only Currency Buying Rates Currency Code Cash Transfer Selling Rates AUSTRALIAN DOLLAR AUD 14,842.15 14,992.07 15,462.01 CANADIAN DOLLAR CAD 16,634.57 16,802.60 17,156.85 SWISS FRANC CHF 24,425.88 24,672.61 25,192.78 Currency Name YUAN RENMINBI CNY 3,271.05 3,304.09 3,373.74 DANISH KRONE DKK - 3,476.71 3,607.28 EURO EUR 25,894.97 26,156.54 27,078.20 POUND STERLING GBP 29,819.05 30,120.25 30,449.22 HONGKONG DOLLAR HKD 2,931.76 2,961.37 3,005.71 INDIAN RUPEE INR - 311.45 323.67 YEN JPY 216.55 218.74 227.60 KOREAN WON KRW 16.73 18.59 20.37 KUWAITI DINAR KWD - 75,890.23 78,868.03 MALAYSIAN RINGGIT MYR - 5,427.16 5,541.58 NORWEGIAN KRONER NOK - 2,377.91 2,477.10 RUSSIAN RUBLE RUB - 312.17 347.84 SAUDI RIAL SAR - 6,160.09 6,401.80 SWEDISH KRONA SEK - 2,407.35 2,497.76 SINGAPORE DOLLAR SGD 16,459.60 16,625.86 16,841.10 THAILAND BAHT THB 649.40 721.55 754.67 US DOLLAR USD 23,080.00 23,110.00 23,250.00 Refresh ... STERLING GBP 29, 819 .05 30 ,12 0.25 30,449.22 HONGKONG DOLLAR HKD 2,9 31. 76 2,9 61. 37 3,005. 71 INDIAN RUPEE INR - 311 .45 323.67 YEN JPY 216 .55 218 .74 227.60 KOREAN WON KRW 16 .73 18 .59 20.37 KUWAITI... updated on 10 /03/2020 17 :30 for reference only Currency Buying Rates Currency Code Cash Transfer Selling Rates AUSTRALIAN DOLLAR AUD 14 ,842 .15 14 ,992.07 15 ,462. 01 CANADIAN DOLLAR CAD 16 ,634.57 16 ,802.60... 5,427 .16 5,5 41. 58 NORWEGIAN KRONER NOK - 2,377. 91 2,477 .10 RUSSIAN RUBLE RUB - 312 .17 347.84 SAUDI RIAL SAR - 6 ,16 0.09 6,4 01. 80 SWEDISH KRONA SEK - 2,407.35 2,497.76 SINGAPORE DOLLAR SGD 16 ,459.60