Econo

ELECTRIC POWER UNIVERSITY MID TERM TEST- ENGLISH IN FINANCE
FACULTY OF MANAGEMENT TIME: 90 MINUTES
NAME: STUDENT ID:
I. MAKE SENTENCE WITH EACH OF THESE WORDS BELOW:

1. current account
2. insurance company
3. monetary policy
4. interest rate
5. central bank
6. securities
7. shareholder
8. dividend
9. commission
10. common stock
II. READ AND ANSWER QUESTIONS UNDER THE TEXT:
DEPOSITS
1 Deposits are a key element in defining what a bank firm does and what critical roles it really plays in the
economy. The ability of management and staff to attract transaction (checkable) and saving deposits from
businesses and consumers is an important measure of a depository institution's acceptance by the public.
Moreover, deposits provide much of the raw material for making loans and, thus, may represent the 2
ultimate source of profits and growth for a depository institution. Important indicators of management's
effectiveness are whether or not funds deposited by the public have been raised at the lowest possible cost
and whether sufficient deposits are available to fund all those loans and projects management of a bank or
thrift wishes to pursue.
This last point highlights two key issues that every depository institution must deal with managing the
public's deposit: (1) Where can funds be raised at lowest possible cost? and (2) How can management
4
ensure that the institution always has enough deposits to support lending and other services the public
demands? Neither question is easy to answer, especially in today's competitive marketplace. Both the cost
and amount of deposit that depository institutions sell to the public are heavily influenced by the pricing 3
schedules and competitive maneuverings of other financial institutions offering similar services, such as
share accounts in money market mutual funds and credit unions, cash management accounts offered by
brokerage firms and insurance companies, and interest-bearing investment accounts offered by many
securities firms.
The number and range of deposit services offered by depository institutions are impressive indeed and
often confusing customers. Deposit plans are designed to attract customer funds today come in different
features to closely match business and household needs for saving money and making payment for goods 5
and services. These types of deposits include transaction (payments or demand) deposits, non-transaction
(savings or thrift) deposits and retirement savings deposits. Each of the different type of deposits carries a 6
different interest rate. In general, the longer maturity of a deposit, the greater the yield that must be
offered to depositors because of the time value of money and the frequent upward slope of the yield
7
curve. In addition, other factors playing an important role in shaping deposit interest rate are the size and
perceived risk exposure, the marketing philosophy and goals of the offering institutions.
Source: Bank Management and Financial Services, Peter S. Rose and Sylvia C. Hudgins (2010),
McGraw-Hill Irwin Press, Eighth Edition.
Questions:
1. What is the main function of deposits?

2. How effectiveness of management is measured in terms of deposits?
3. What are factors affecting the cost and amount of deposits?
4. What are objectives of deposit management?
5. What are objectives of deposit plan designing?
6. What are types of deposits?
7. How are interest rates of deposits decided?
III. CHOOSE THE BEST WORD:

1. In Japan, the US dollar is ……………..
a. foreign money b. strange money c. foreign currency
2. In an auction, the item is sold to the person who makes the highest …………
a. bid b. price c. offer
3. Many company executives receive a performance-related…….
a. bonus b. gift c. extra
4. Steve works for BurgerPlanet. He only earns about £6……..
a. for an hour b. an hour c. the hour
5. I earn a lot of money, but I have a lot of ……………..
a. payouts b. expenses c. paying
6. Anna is ………….
a. Self-employed b. Self-working c. Self-paid
7. Spain now uses the euro. Pesetas are no longer ……………
a. good money b. legal money c. legal tender
8. I bought a TV which does’nt work. I’ll take it back to the shop to get ……………
a. my money returned b. a refund c. a repayment
9. I’m paying for my new car in 36 monthly ………….
a. Instalments b. pieces c. parts
10. In Britain, it’s not usual to discuss your personal ………….
a. money b. finances c. money arrangements
11. Tony doesn’t pay tax. He gets paid……..
a. Cash in pocket b. Cash in hand c. Cash in fingers
12. Working in a fast-food restaurant is usually a ……….. occupation.
a. bad-pay b. short-pay c. low-pay
13. Factory workers who get paid for each item they make are……….
a. in pieces b. on piecework c. on pieces
14. A document which shows all your withdrawals and deposits (usually for one month) is called a
“bank……………..”
a. card b. statement c.bill
15. A person’s credit……………… is a formal evaluation of his/her loan- repayment history or
potential.
a. Rating b. level c.fund
16. It was a terrible day for us. Our stock ………………. by 20%.
a. went through the roof b. rallied c. plummeted
17. A bank …………… is a bank employee who deals directly with most customers.
a. Guard b.inspector c.teller/cashier
18. "Profit before tax" can also be called __________.
a. pre-tax profit b. without-tax profit c. non-tax profit
19. When a stock market …………, many investors lose a lot of money.
a. Clashes b. smashes c. crashes
20. This account offers easy access, no minimum balance and no monthly ………… .
a. server fee b. service fee c. money
IV. MATCH THESE WORDS IN THE BOX BELOW TO PHRASES 1-8:

Current account deposit employees head office
Investments mortgage savings account withdrawal
1. the main office of a company ………………..
2. the people who work at a company …………............
3. money put into a bank account ………………….
4. money taken out of a bank account …………………….
5. money that banks lend people to buy property ……………………
6. a bank account that pays no interest or low interest …………………..
7. a bank account for investment; the bank pays interest …………………
8. Things people put their money in to make more money ………………….
V. WRITING:
1. Imagine that you have an amount of cash worth VND 100,000,000. Write a short
report (about 100 words) explaining how you would spend that money. (For
example: spending, saving, investing, ...)
2. Write an email to a customer. Answer the customer’s questions in the box. The
answers are in brackets. Use the template below to write your letter.
1 ‘Can I get higher interest on a long-term deposit account?’ (yes)

2 ‘How long does my money stay in the long-term deposit account?’ (five years)
3 ‘Can I rent a safety deposit box for three months?’ (no, shortest term is six months)
4 ‘How can I change a standing order?’ (in the bank; talk to a customer adviser)
5 ‘When is direct debit better than a standing order?’ (different amounts every month)
6 ‘Who can I talk to about buying shares?’ (our Brokerage Department)
7 ‘What do I need for online banking?’ (an account with us, a computer, a password)
8 ‘Is an overdraft cheaper than a loan?’ (no)
Dear Mrs Brown,

Thank you for your email. I will try to answer all your questions.
Your first question was about interest rates. (1) You can get __________________________
__________________________________________________________________________
(2) The money stays _________________________________________________________
__________________________________________________________________________
You also asked about safety deposit boxes. (3) You cannot rent a safety deposit box for three
months; the shortest __________________________________________________________
You had a question about standing orders and direct debits. (4) You can change a standing order
______________________________________________________________________
(5) Direct debit is better when __________________________________________________
You were also interested in investments, online banking and overdrafts. (6) You can talk to
__________________________________________________________________________
(7) You need _______________________________________________________________
(8) The overdraft is __________________________________________________________
I hope this is helpful and look forward to hearing from you.
Yours sincerely,
Robert Jones

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ELECTRIC POWER UNIVERSITY MID TERM TEST- ENGLISH IN FINANCE

FACULTY OF MANAGEMENT TIME: 90 MINUTES

NAME: STUDENT ID:

I. MAKE SENTENCE WITH EACH OF THESE WORDS BELOW:

10. common stock

II. READ AND ANSWER QUESTIONS UNDER THE TEXT:

1. What is the main function of deposits?

III. CHOOSE THE BEST WORD:

IV. MATCH THESE WORDS IN THE BOX BELOW TO PHRASES 1-8:

1 ‘Can I get higher interest on a long-term deposit account?’ (yes)

Dear Mrs Brown,

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