DAY 6

TASK 3: WORD DEFINITIONS

1. redesigning*
reshaping
takeover
headquarters
merger

2. an order written by an exporter instructing an importer to pay a

specified amount of money at a specified time *
ledger
balance sheet
bill of exchange
income statement

3. things that have value because many people are interested in

owning them*
bookkeeper
collectibles
allowance
expenses

4. decision on types and number of employees*

capital
balance
auditor
staffing

5. maximum amount you can pay by your credit card*

financial statements
credit limits
financial records
overhead costs

6. the difference between the loan interest rate and deposit interest
rate*
portfolio
margin
cashflow
revenue

7. the institution between two other businesses*

equity finance
coupon
intermediary
securities

8. cancel or end (a law)*

settle
repeal
reposses
repurchase

9. profitable *
principal
lucrative
conglomerate
prohibit

10. the document acknowledging that the goods have been received
for shipment *
drawer
inflation
bill of lading
deregulate

TASK 4: CLOZE TEST

Text 1:

One of the Bank of England's key responsibilities as the (1) ____ Bank of
the U.K is the conduct of monetary policy. The Bank's (2) _____ is to
deliver price stability by setting short-term interest (3) _____. The
objective of monetary policy is to restrain inflation - or, to put it another
way, to control the general increase in the prices of (4) _____ or services.
Uncertainty about inflation and future price levels is damaging the proper
functioning of the economy. With a stable general price level, individual
price signals can be read more clearly, and more rational decisions can be
made about whether to save or borrow, how much to invest and (5) _____,
and what and when to produce. In this way, price stability can help ensure
sustainable long-term economic (6) ____.

Monetary policy operates by influencing the cost of money. The Bank sets
an interest rate for its own assets with the market and that rate then affects
the whole pattern of rates set by commercial banks for their savers and
borrowers. This will affect other prices, e.g. shares and property, customer
and business demand, and employment (7) _____. If rates are set too slow,
this may encourage pressures so that inflation is persistently above (8)
_____. If they are set too high, there is likely to be an unnecessary loss of
output and employment, and inflation is likely to be persistently below
target.

1. Central
2. role
3. rates
4. goods
5. withdraw
6. growth
7. salary
8. target

Text 2:

TRAVELLERS' CHEQUES

When travelling (1) _____, it is always wise to carry your money in

travellers' cheques because cheques are protected against loss or theft. If
your cheques are lost or stolen, the issuing authority will refund your
money. Not only are they safe, they are also convenient. They are
available in different denominations and different (2) _____ and they can
be (3) _____ at most banks throughout the world. Most shops, hotels and
restaurants also accept them.

To obtain travellers' cheques, you usually go to your bank. They can be

paid (4) _____ in cash or debited to your account. Large amounts,
however, must be ordered in advance. For the safety and convenience of
travellers' cheques, you are charged two (5) _____. An insurance
commission (usually 1%) when you buy them and an encashment
commission (this varies) when you cash them.

They are very easy to use. When you collect them, you (6) _____ each
cheque once. The cashier may (7) _____ the amount in your passport.
When you cash them, you sign each cheque again. The cashier will usually
ask to see your passport again too.

It is advisable to make a note of the (8) _____ numbers and denominations

of your cheques in case they are lost or stolen. Remember to keep this
separate from the cheques.

Travellers' cheque: chi phiếu du lịch

1. abroad
2. currencies
 3. cashed
4. deposit
5. commissions
6. sign
7. submit
8. serial

TASK 5: DEAPARTMENTS' ROLES

They are important to the success of an organization and responsible
for the long-term goals and the business strategies of the company.
Who are they?*
The Board of Management
Public Relations
Human Resources
Administration

Peter would like to work as a financial analyst of Vietcombank, so last

week he sent his CV and other documents to the .......................
Department of this bank.*
Customer Services
Logistics
IT
Human Resources

After 3 customers discovered a defect on their debit card, DongABank

quickly collected all the cards and returned them to the ....................
Department for the error checking.*
Administration
Logistics
Production
R&D

Yesterday, a customer was unhappy with the cleaning and sanitary

system of our insurance company, so an email has been sent to
the ............... Department for complaint and solutions.*
Administration
Board of Management
Customer Services
Public Relations
If you would like to install the software to analyse USDT and give
advice to our customers on mutual funds, you should contact
the ............ Department.*
IT
Sales and Marketing
R&D
Administration

The role of ............ Department includes answering questions about a

company's products or services, or handling customer complaints*
Public Relations
Customer Services
Logistics
Reception

The ............ Department of our company would like to launch a press

release to a positive image for the company, and they would also to
increase the positive feedback on the website.*
IT
Board
Customer Services
Public Relations

The CEO is really unhappy with the effectiveness of the ............

Department, because there are some mistakes in storage,
transportiation, and even delivery.*
Sales and marketing
Logistics
Public Relations
Administration

All the staff of our company are not satisfied with the ............
Department, because they are always late in salary payments.*
Sales and marketing
Finance & Accounting
Board
Administration

Linda would like to study Master in Finance at Banking University, so

she sent an application form to the ............ Department of her
company to ask for permission.*
Administration
Human Resources
Board
Finance and Accounting

TASK 6: READING
Have you ever thought of trading online? In Japan, you can buy shares instantly
at cheapshares.com which gives you all the information, advice and news you
need to make sure that your portfolio, a collection of securities, is bringing what
you want. The electronic system of giving up-to-date information, called SEAQ
(Stock Exchange Automated Quotation), has made share prices available at a
distance 24 hours a day.
Everyone today appreciates the need to save - whether this is for a holiday, for a
deposit on a house, for a wedding, or for retirement. There are many different
ways to help you save for the future. People save by investing in building
societies or bank deposit accounts. Some others, like the Japanese women, have
discovered an investment that has delivered a better long-term return than many
others: a portfolio of shares.

Before you start dealing in all kinds of securities, you must be aware of the risk
you take. There are two main types of capital markets: equity markets, for the
trading of company shares (or equities), and bond markets, for the trading of the
debt of companies and governments. Stocks (UK) are similar to loans and pay
interest. The interest is usually at a fixed rate. Bonds are long-term loans that
earn a fixed rate of interest. Shares pay dividends and enable the bearer to own a
part of the company. Dividends may or may not be paid depending on the
performance of the company.

Meanwhile, companies need money to grow, make goods and create new jobs.
That is why they go public and issue and sell shares on the primary market for
the first time (flotation) and then on the secondary' market, the marketplace for
trading in securities that are not new issues. Stock markets do not give money;
they provide a market for second-hand shares through which they can raise
money to finance themselves. Most of this investment is through large
institutions such as pension funds or insurance companies. The buying and
selling of Government stocks, gilts or gilt-edged securities is a large part of this
business. If you are lucky and have a clever broker, you can make a fortune.

You can invest indirectly and spread your risk through collective investments -
such as investment trusts and unit trusts. Investment trusts are companies quoted
or listed on the stock market whose business is managing a portfolio of shares to
try to seek the best returns for the investors. Unit trusts are funds made up of
many investors' contributions and are divided into equal units; these funds are
invested in stock markets worldwide.

You have probably seen those crowded rooms in New York, Tokyo or London
where hundreds of people are shouting and waving their arms. They are all
interested in the Dow Jones or FTSE or Nikkei indices of share prices. These
market indices are figures based on the daily ups and downs of a number of
different companies' shares all added together. They indicate the economic
situation in their countries.

Choose the correct options:

1. The Stock Exchange provides ……………

A. a market for raising company finance B. money which is given to companies

C. secure investment

2. With the use of computing and telecommunications ……………

A. all Stock Exchanges must be open 24 hours a day

B. dealing on the floor of the SE has stopped

C. deals can be arranged immediately ail over the world in various SE

3. Securities which bring interest are ……………

A. shares B. debentures C. gilts

4. An institutional investor is

A. a merchant bank B. an insurance company C.a pension fund

Are these statements true (T) or false (F)

1. Each share is a small stake in a company. T

2. Companies can issue shares to give money to investors. F

3. Investing in shares can provide greater returns than most other forms of
saving. T

4. If the company performs badly, the share price may go up and the value of
your investment will increase. F

5. You can buy shares in just one company. F

6. A company can only be floated once. F

TASK 7: VERB TENSES AND WORD FORM

1. If the borrower doesn’t repay the mortgage, the bank will ________
the house or flat. (POSSESS)* repossess
2. ________, banks also try to sell insurance products to their
customers. (INCREASE)*
3. increasingly
4. There is less risk for a bank with a mortgage than with ________
loans without collateral. (SECURE) unsecured
5. Banks carefully study the financial situation of a company to
assess the risk ________ in lending it money. (INVOLVE) involved
6. Banks have to find a balance between ________________ and
different maturities. (LIQUID) liquidity
7. The customers’ deposits are liabilities because the money is
________ to someone else. (OWE) owed
8. Banks have more complicated risk ________ methods for corporate
customers. (ASSESS) assessment
9. Cheque volumes reached a peak in 1990 but usage ________ since
then, mainly owing to increased use of plastic cards by personal
customers. (FALL) has fallen
10. Unlike commercial banks, investment banks ________ money
to individual customers. (LEND) don’t lend
11. Most of the fee will depend on us ________ the deal
successfully. (COMPLETE) completing
12. If one bank goes bankrupt, it can quickly affect the ________
of the whole financial system. (STABLE) stability
13. In most countries, the central bank prints and issues
currency- putting banknotes into ________. (CIRCLE) circulation
14. The interest rate is high as there is little security for the
lender: the goods could easily become ________. (DAMAGE) damaged
15. The rate that borrowers pay depends on their ________, also
known as credit standing. (CREDITWORTHY) creditworthiness