HO CHI MINH UNIVERSITY OF BANKING

FACULTY OF FOREIGN LANGUAGES



EXERCISES ON ENGLISH
FOR BANKING AND FINANCE
(TIẾNG ANH CHUYÊN NGÀNH
TCNH - CLC)
FOR INTERNAL USE ONLY

HO CHI MINH CITY, 09/2023

 CHAPTER 1: THE ORGANIZING OF THE FINANCIAL
INDUSTRY
1. current account (n): 24. bond (n):
2. savings account (n): 25. securities (n):
3. term deposit account (n): 26. to arrange merger(s) and acquisitions:
4. to deposit: 27. to acquire (v) => acquisition (n):
5. depositor (n): người gửi tiền 28. takeover (n):
6. retail deposit (n): 29. capital (n):
7. (receive) deposit (n, v): 30. make loans (n):
8. withdraw (v) => make withdrawals (n): 31. exchange rate (n):
9. financial institution (n): 32. offer/extend a service:
10. commercial bank = retail bank (n): 33. life insurance (n):
11. hedge fund (n): 34. conglomerate (n):
12. investment bank (n): 35. deregulate (v):
13. private bank (n): 36. fine (n):
14. non-bank financial intermediary (n): 37. to prohibit (v):
15. central bank (n): 38. to repeal (v):
16. universal bank (n): 39. to underwrite (v):
17. confirming bank (n): 40. to pass a law/ an act:
18. pension fund (n): 41. corporation (n):
19. stockbroker (n): 42. globalization (n):
20. building society (n): 43. to industrialize (v):
21. mortgage (n, v): 44. to charge (fee, interest rate):
22. share (n): 45. auction (n):
23. stock (n):

I. MATCHING
budget employees small print
credit card dividend
1. people who work at a company
2. a plastic card which can be used to borrow money for payment
3. a plan you make about what to buy and how much to spend
4. a share in the profits of a company, which is paid to the shareholders
5. text in tiny letters often at the bottom of an advertisement
realistic savings account commercial bank
pin driving licence
6. a bank account for investment; the bank pays interest
7. a secret code you need to use your card at any ATMs
8. a bank providing financial services to individual customers
9. something that is possible to achieve
10. an official document that shows you can drive

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 salary withdrawal insurance
national income income
11. the money earned by a country’s people in a particular period
12. the money you get from your employer
13. money a company receives from the sale of goods or services
14. a system by which you can get money if someone steals or damages your property
15. money taken out of a bank account
currency bonds bank balance
regulation mortgage
16. the money used in a particular country
17. control of something by rules or laws
18. interest- paying securities issued by companies wishing to borrow money
19. a loan to buy property
20. how much you have in your account at a specific point of time
credit card income withdrawal

central bank depositors

21. people who place money in bank accounts
22. a regulatory body supervising the commercial banks
23. a plastic card which can be used to borrow money for payment
24. all the money that you get from your work and other sources
25. money taken out of a bank account
II. GRAMMAR – VERB TENSES
1. Cheque volumes reached a peak in 1990 but usage ________ since then, mainly owing to
increased use of plastic cards by personal customers. (FALL)
2. Unlike commercial banks, investment banks ________ money to individual customers.
(LEND)
3. If interest rates ________ set too low, the demand for goods and services grows faster than
the market’s ability to supply them. (BE)
4. Islamic banks ________ interest to depositors or charge interest to borrowers. (PAY)
5. What is the currency in Thailand ________? (CALL)
6. That bank teller ________ another customer at the counter at the moment. (SERVE)
7. I predict this decline in interest rates ________ and the rates will fall to around 4.75%,
possibly as early as next month. (CONTINUE)
8. Over the coming year, I think the price of oil ________ quite a lot. (FLUCTUATE)
9. The Bank of England ________ to set the official interest rate in 1997. (START)

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 10. On the date when a bond ________, the company or government pays back your capital.
(MATURE)
11. The company is doing well, so shareholders ________ a good profit this year. (GET)
12. Has Linda _______ her new branch manager before? (MEET)
13. Since the early 1970s, there _____ a system of floating exchange rates in most Western
countries. (BE)
14. What _____ to the value of your currency in the past few years? (HAPPEN)
15. If the customers _____ over the limit for a period of time, there might be penalties. (GO)
16. Last month, some customers _____ about looking for another bank when they found out
about our new section. (THINK)
17. When Islamic law _____, banks had to give some of their profit to charity. (BEGIN)
18. Direct debits _____ in the UK many years ago. (INTRODUCE)
19. As a famous speaker, he _______ in many events to share his experience to young
entrepreneurs. (APPEAR)
20. After I _______ my project, I went out for a while to relax. (FINISH)
21. During the last 20 years, the banking and finance sector _______ a lot of improvements.
(MAKE)
22. When I entered the room, the credit officer _______ the lending agreement already.
(PREPARE)
23. You can start online banking as soon as you _______ your user ID and password. (ENTER)
24. Laila _______ her job at the bank and went to work in an accountancy company. (LEAVE)
25. He can’t make any online transactions until he _______ on the system. (REGISTER)
III. CLOZE TEXTS
Text 1
accomplish make current term deposit accounts

across serve solvent current account

certificates solvency so that savings banks
Banking has changed a lot in recent years. Computers now do much of the work that the
tellers used to do. As computers improve, they are able to ____1_____ more difficult tasks and
they help us ____2_____ our customers better.
Another important change in banking, especially for ____3_____, are the many different
____4_____ that are now available to our customers. Since these ____5_____ of deposit offer
very high interest rates they help attract depositors to our bank. I ____6_____ sure that my staff
always has the latest information about these accounts ____7_____ they can advise our
depositors correctly.

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 My bank is not a very large bank. The total of our ____8_____ assets and fixed assets
comes to 15,550,000 dollars. I’m proud of our balance sheet. Although some banks across the
country are having difficulties, my bank has more assets than liabilities. We are solvent and
growing. The number of customers we serve has increased this year and I expect that it will
continue to grow in the future.
Text 2
establish parent branches by
customers markets on staff
institutions influence office management
Nowadays, banks have moved into external and international (1) _____ with an agency or
a representative office because it is relatively easy for them to establish these offices. The most
important factors affecting the choice of office type include the attitude of the host country as
reflected in its laws, regulations and policies towards these financial (2) _____. Some countries
prohibit foreign commercial branches; others prohibit foreign-held subsidiaries. And, of course,
some governments do not accept both foreign (3) _____ and subsidiaries. In other cases, entry of
new firms is prohibited, but outside firms already in existence are permitted to function under
grandfather provisions. Over a dozen foreign countries permit no foreign commercial banking
except for representative offices, and only a small amount of trade is conducted with these
countries. In some cases, the policy of the home country of the parent bank may determine or at
least (4) _____ the type of office established abroad. In at least a few instances, certain types of
oversea offices are not permitted by the government of the (5) _____ company. Generally,
branches are easier to (6) _____ than a subsidiary in a foreign country and they afford the parent
company the greatest degree of control. Accordingly, as full service types of offices, branches
play a key role in external markets. The type of office a bank establishes abroad also depends (7)
_____ the extent of market participation desired by the bank, the amount that can be invested in
the facility, and the availability of trained and talented (8) _____.
Text 3
as combined lender rate
reduce loans so withdraw
in merger repaid interest
Banks make their money on the difference between what they pay out in interest on
deposits and what they get in as interest from its (1) _____. For the majority of homeowners, the
purchase of their property is financed by a mortgage. The bank or building society which lends
the money to buy a property is called a mortgage (2) _____ or mortgagee. The person who
borrows money (3) _____ the form of a mortgage is called a mortgage borrower or mortgagor.
There are several different types of mortgage on the market. Probably the most common is a

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 repayment mortgage, in which the capital sum and the (4) _____ are paid in installments over a
long period (for example, 25 years). An alternative is an interest-only mortgage, in which the
interest is paid, and the capital sum is (5) _____ in another way, for example with an assurance
policy. This type of mortgage is known (6) _____ an endowment mortgage. With an offset
mortgage, the mortgage borrower's current account is (7) _____ with her/his mortgage. Provided
the current account is usually in credit, this can (8)_____ the interest repayments on the
mortgage.
Text 4
interest loans investment relationship
loss income deposit profit
on lose mortgage share
One of the main features of globalisation is a flow of capital. Capital always looks for
places where it will be most profitable and earn the greatest return on investment. Individuals
have an option of putting their money on (1)_____ in a bank in order to get interest. Two key
principles of the economy are supply and demand. Some people have goods or services to sell
and other people want to buy those goods or services. The (2) _____ between these two elements
is very important. The world of finance is a necessary part of the economy. People need money
to do business. Banks first collect money from customers. Then they lend money to people or
institutions. Customers who borrow money pay (3) _____ to the bank until they pay the money
back. There are different types of (4) _____. For example, people who want to buy a house or
flat usually choose a(n) (5) _____.
(6) _____ in shares of stock is another part of the financial world. People buy shares
and then own a part of a company. They hope to make a(n) (7)____ when the company does
well. When the company does not do well, the investor makes a(n) (8)____ . These are some of
the ways that financial institutions help the economy.
IV. READING COMREHENSION
Text 1
Commercial banks are banking institutions. A commercial bank accepts deposits to
personal and corporate accounts, and then uses the deposits to finance loans for individuals and
businesses.
The commercial bank will extend a number of different types of loans to customers. For
individuals, a commercial bank may loan funds for the purchase of personal property, such as
vehicles or homes. A commercial bank may also extend a personal loan to an individual for
home improvements or to consolidate a number of personal debt instruments. Loans of this type
are usually extended with interest included, allowing the bank to cover the costs associated with
extending the loan.
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 Business clients may also obtain loans from a commercial bank. The type of business
loans that would be offered by a commercial institution would include funds to finance a payroll
or to purchase operating supplies. However, if the funds were needed to influence a corporate
realignment or restructuring, investment banks would more likely finance that type of business
loan.
A commercial bank will also offer a wide range of savings programs for customers.
Along with standard savings accounts, the commercial bank may also offer interest bearing
checking accounts, certificates of deposit, and other savings strategies that are considered to
provide a small but consistent return in exchange for doing business with the bank.
The distinction between the functions of a commercial bank and those of an investment
bank are not always clear. While the banking industry within the United States tends to operate
with a clear division between the two types of banks, this is not always the case across the globe.
Often, large international banking institutions will provide both commercial and investment
banking services to their clients.
1/ What does a commercial bank do with their customers’ deposits?
………………………………………………………………………………………………………
2/ What types of loans are for individual customers?
………………………………………………………………………………………………………
3/ What do corporate customers borrow money from the commercial banks for?
………………………………………………………………………………………………………
4/ Are commercial banking and investment banking similar in the USA?
………………………………………………………………………………………………………
Text 2
Islamic banks do not pay interest to the depositors or charge interest to borrowers.
Instead, they invest in companies and share the profits with their depositors. Investment
financing and trade financing are done on a profit and loss sharing (PLS) basis. Consequently,
the banks, their depositors and their borrowers also share the risks of the business. This form of
financing is similar to that of venture capitalists or risk capitalists who buy the shares of new
companies.
Current accounts in Islamic banks give no return- pay no interest- to depositors. They are
a safekeeping arrangement between the depositors and the bank, which allows the depositors to
withdraw their money at any time, and permits the bank to use this money. Islamic banks do not
usually grant overdrafts on current accounts. Savings accounts can pay a return to depositors,
depending on the bank’s profitability: that is, its liability to earn a profit. Therefore, the amount
of return depends on how much profit the bank makes in a given period. However, these
payments are not guaranteed. There is no fixed rate of return: amount of money the investment

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pays, expressed as a percentage of the amount invested, is not fixed. Banks are careful to invest
money from savings accounts in relatively risk-free, short-term projects. Investment accounts are
fixed term deposits which cannot be withdrawn before maturity. They receive a share of the
bank’s profits. In theory, the rate of return could be negative, if the bank makes a loss. In other
words, the capital is not guaranteed.
1/ What makes an Islamic bank different from a commercial bank?
………………………………………………………………………………………………………
2/ What will happen if the investments are not successful?
………………………………………………………………………………………………………
3/ Can current account holders withdraw more money than they have in their account? Why or
why not?
………………………………………………………………………………………………………
4/ How is the return on the savings account calculated?
………………………………………………………………………………………………………
Text 3
FIRST NATIONAL BANK
First National Bank is run entirely through the telephone and the Internet. Its success
shows that customer service is not just about face-to-face contact with clients. The primary
concern of the bank is recruiting the right people. They believe that some skills such as
computer skills and professional skills can be taught, but a member of staff can’t be taught to be
a nice person. So they only recruit people who already exhibit good communication skills.
Unlike other services that operate primarily over the telephone, the staff at First
National do not use scripts. The managers recognize that customers find them impersonal and
unnatural. What this bank asks for is that staff be themselves and establish a good relationship
with their customers. Part of this is recognizing people’s needs. The member of staff has to pick
up on the caller’s mood and react accordingly.
The website designers at First National Bank spend a great deal of time
understanding their customers and offering services which meet their needs. For example, they
already offer a service in which customers receive a text when funds are received or when their
account falls below a certain level. Although people do not expect much from the Internet these
days, this will change in the future, and online systems may fulfill customers’ needs in even
more sophisticated ways.
1. What is special about the operation of First National bank?
………………………………………………………………………………………………………
2. What quality do they look for when recruiting a new employee?
………………………………………………………………………………………………………

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3. Why does First National Bank refuse to use scripts?
………………………………………………………………………………………………………
4. How can the staff establish good relationship with customers?
………………………………………………………………………………………………………
Text 4
Banking began in the twelfth century in Italy. Moneylenders set up benches in the
marketplace to do transactions. In the UK retail banking started in the seventeenth century.
People began to use banks to keep their gold and silver safe. The bank gave them receipts, and
customers used these as currency. Today many of the early banks have expanded into financial
supermarkets for customers. They offer current and deposit accounts and make payments
through EFTPOS (electronic funds transfer at point of sale) in shops and restaurants. In addition,
they issue credit cards, pre-paid cards, debit cards and smart cards. Many banks even give
financial advice and sell insurance and pension plans.
Nowadays, the methods of banking have changed a lot. People used to use cheques
widely. Today most customers use direct debits or standing orders to pay their bills. Many
customers open online accounts. This means that they no longer have to come into the bank. And
when they do, they usually use the machines in the lobby and they don't speak with a banker at
all. Therefore, it is much more difficult today for bankers to get to know their customers. It is
also harder to advise them or sell them other products.
This is why banks have come up with other ways to meet their customers. World Savings
Day was started in 1924 in Milan, Italy but is now expanding to countries where people
sometimes don't use banks at all. The banks give their customers gifts for opening savings
accounts. Sometimes they hold events and invite customers to come to them to hear about
investments or other financial topics. Today many banks have become larger and have merged
with other banks. Customers no longer know the people that they deal with. That is one reason
why banks are trying to find new ways to win customers.
1. How did banking work in the twelfth century in Italy?
………………………………………………………………………………………………………
2. Why did people in the UK begin to use banks?
………………………………………………………………………………………………………
3. What do people generally use to pay their bills instead of cheques?
………………………………………………………………………………………………………
4. Why it is much more difficult today for bankers to get to know their customers?
………………………………………………………………………………………………………

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 Text 5
U.S. BANKING
For tens of millions of Americans, banks are the first choice for saving, borrowing, and
investing. Banking has changed in many ways through the years. Banks today offer a wider
range of products and services than ever before, and deliver them faster and more efficiently. But
banking's central function remains as it has always been. Banks put a community's surplus funds
(deposits and investments) to work by lending to people to buy homes and cars, to start and
expand businesses, to put their children through college, and for countless other purposes. Banks
are vital to the health of the nation's economy.
During the last 25 years, banking has undergone a revolution. Technology has
transformed the way Americans obtain financial services. Telephone banking, debit and credit
cards, and automatic teller machines are commonplace, and electronic money and banking are
evolving. The techniques of bank examination have changed, too. Today OCC examiners (the
Office of the Controller of the Currency) use computers and technology to help ensure that the
banks they supervise understand and control the risks of the complex new world of financial
services.
The OCC supervises national banks and enforces federal banking laws. It rules on new
charter and merger applications for national banks, and conducts basic research on banking and
the economy. The tools have changed, but for the OCC, the basic mission remains the same as in
the days of Lincoln: to ensure a safe, sound, and competitive national banking system that
supports the citizens, communities, and economy of the United States.
QUESTIONS
1. Why do Americans need banks?
………………………………………………………………………………………………………
2. How do banks use community's surplus funds to make a profit?
………………………………………………………………………………………………………
3. For what purpose do OCC examiners use technology in banking?
………………………………………………………………………………………………………
4. How does OCC supervise national banks and enforce federal banking laws?
………………………………………………………………………………………………………
V. ENGLISH-VIETNAMESE TRANSLATION
a. The exchange rate can vary from day to day and bank to bank.
………………………………………………………………………………………………………
b. In Britain, we had institutions that lent to people who wanted to borrow to buy houses.
………………………………………………………………………………………………………

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 c. There are various methods for transferring funds internationally, which one you choose will
depend on how much you want to send and how urgently it is needed.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
d. We gave the companies financial advice, maybe arranging mergers, issuing shares or bonds
for their corporate customers.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
e. When interest rates rise, individuals will tend to save more and consume less.
………………………………………………………………………………………………………
f. They are buying euros at one point four four three five, and selling them at one point four
nine three five.
………………………………………………………………………………………………………
g. We are meeting to discuss all the financial aspects of moving our call centres to India.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
h. We have another range of institutions like insurance companies to provide life insurance or
pensions.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
i. People are increasing moving away from currency towards things like bank deposits.
………………………………………………………………………………………………………
j. SWIFT is a cooperative society under Belgian law, owned by its member financial
institutions with offices around the world.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
k. You now have the opportunity to take advantage of up to 55 days interest free credit from the
date of your last monthly statement.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
VI. WRITING
1. A savings account is different from .………………………………… ………………………..
………………………………………………………………………………………………………
2. A current account is .………………………………… ………………………..………………
………………………………………………………………………………………………………
3. Currently, commercial banks mainly serve .………………………………… ………………..

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………………………………………………………………………………………………………
4. The commercial banks like HSBC also .………………………………… ……………………
………………………………………………………………………………………………………
5. The Islamic bank depositors can .………………………………… ………………...…………
………………………………………………………………………………………………………
6. Investment banks are distinguished .………………………………… ………………………..
………………………………………………………………………………………………………
7. Investment banks used to .………………………………… ……………….………………….
………………………………………………………………………………………………………
8. M&A .………………………………… ……………………………………………………….
………………………………………………………………………………………………………
9. It is unfair for the women when .………………………………… ……………………………
………………………………………………………………………………………………………
10. Nowadays, men are .………………………………… ………………………………………...
………………………………………………………………………………………………………

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 CHAPTER 2: RETAIL BANKING
1. bear market (n): 23. account holder (n):
2. bull market (n): 24. stock market (n):
3. bubble (n): 25. household expenses (n):
4. asset (n): 26. banknotes (n):
5. liabilities (n): 27. buy-back rate (n):
6. currency (n): 28. foreign exchange (n):
7. income (n): 29. pension fund (n):
8. lucrative (adj): 30. debit card (n):
9. affluent (adj): 31. credit card (n):
10. bank balance (n): 32. collectibles (n):
11. bank statement (n): 33. allowance (n):
12. to transfer (n, v): 34. transaction office (n):
13. direct debit (n): 35. bank branch (n):
14. standing order (n): 36. passbook (n):
15. overdraft (n) => to overdraw: 37. minimum balance (n):
16. (traveller's) cheque (n): 38. maintenance fee (n):
17. to drive future growth: 39. payment terms (n):
18. to revolutionise (v): 40. make a down payment (n):
19. commission charges (n): 41. pay in installment (n):
20. credit rating (n): 42. letter of credit (n):
21. bondholder (n): 43. portfolio (n):
22. cardholder (n): 44. to raise capital:

I. MATCHING
expenses head office online banking
collectibles allowance
1. money you pay for things like food, petrol, household bills, etc.
2. a banking service which allows the customers to use anywhere and at any time
3.money given to children or teenagers by their parents
4. the main office of a company
5. things that have value because many people are interested in owning them
income investments risk
debit card shares

6. a plastic card used for payment through your account

7. things people put their money in to make more money
8. the possibility that you will make a loss
9. a way of investing money by buying parts of a company
10. all the money that you get from your work and other sources
pension mortgage foreign exchange
asset interest

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 11. an the price of one currency in terms of another
12. money you get when you are old and don’t work
13. money that banks lend people to buy property
14. money you pay to your creditor for using their money temporarily
15. a valuable item that can be sold for cash
underwrite arrangement fee buy-back rate
unemployment rate loans
16. money borrowed from a bank to do something
17. the rate at which a company will buy back any currency from you
18. guarantee to buy a company’s newly issued stocks if no one else does
19. the number of people who don’t have jobs
20. a sum of money you usually have to pay the bank when you take out a mortgage
statement transfer (n) lucrative
prohibit overdraft
21. profitable
22. make it illegal to do something
23. a record of your current account
24. money going out of one account and into another
25. an automatic loan allowing the account holders to use more than they have in their account
expenses collectibles head office
allowance online banking
26. money you pay for things like food, petrol, household bills, etc.
27. a banking service which allows the customers to use anywhere and at any time
28.money given to children or teenagers by their parents
29. the main office of a company
30. things that have value because many people are interested in owning them
II. GRAMMAR – VERB FORMS
1. Banks carefully study the financial situation of a company to assess the risk ________ in
lending it money. (INVOLVE)
2. The customers’ deposits are liabilities because the money is ________ to someone else.
(OWE)
3. Most of the bank fees will depend on us ________ the deal successfully. (COMPLETE)
4. The central bank can influence the exchange rate by ________ on the currency markets.
(INTERVENE)
5. A commercial paper is a short-term loan ________ by major companies, also sold at a
discount. (ISSUE)

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6. To measure money, you have to know how often it is spent in a ________ period. (GIVE)
7. The amount of money spent is the money supply ________ by it velocity of circulation.
(MULTIPLE)
8. A current account is for ________ everyday bills and expenses. (PAY)
9. The customers might be ________ in buying a new car or a flat. (INTEREST)
10. It’s important ________ your password with anyone- for security reasons. (SHARE)
11. We offer a range of investment products, ________ bonds and shares. (INCLUDE)
12. The bond issuing company agrees to pay you a ________ interest on your money. (FIX)
13. That accountant is responsible for ________ records of sales and purchases. (KEEP)
14. Being a financial controller, I keep the management ________ about the state of the
company’s finances. (INFORM)
15. Banknotes were entirely handwritten until 1725 when the bank started ________ them.
(PRINT)
16. They usually spend about two years ________ how the bank works. (LEARN)
17. Sometimes it is difficult for the customers ________ what they want and understand what
you say to them. (EXPLAIN)
18. Since the introduction of a common currency in 2002, ________ exchange rates among many
European countries is no longer a problem. (FLUCTUATE)
19. Investment means using money to buy something (an asset) with the aim of ________ a
profit. (MAKE)
20. A stock market index is one way of ________ a section of a stock market. (MEASURE)
21. Corporate bonds are _____ by companies to raise capital. (ISSUE)
22. Futures were invented to enable regular buyers and sellers of commodities _____ themselves
against losses. (PROTECT)
23. If the buyout is _____ by issuing preference shares and convertibles, this is called mezzanine
financing, half way between debt and equity. (FINANCE)
24. For people who want to regularly deposit and withdraw money, we suggest _____ a current
account with us. (OPEN)
25. Banks may not do business with companies which sell _____ food products. (PROHIBIT)
26. Exchange rate changes _____ about by speculation clearly cause problems for industry.
(BRING)
27. The first rule of investing is ‘_____ all your eggs in one basket.’ (PUT)
28. One of the main purposes of plastic money is _____ people to obtain cash. (ENABLE)
29. She expects _______ next spring with a Bachelor degree in Banking and Finance.
(GRADUATE)
30. If you don’t mind _______ a few minutes, we can check the bank statement for you. (WAIT)

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III. CLOZE TEXTS
Text 1
liquid investments financial in while

make it interest rates addition therefore

available financially make cash
SAVINGS ACCOUNTS
Advantages of Savings Accounts
Because savings accounts pay interest, it is more ____1_____ advantageous to keep unneeded
funds in a savings account than a checking account. In ____2_____, savings accounts are one of
the most ____3_____ outside of demand accounts and ____4_____. While savings accounts
facilitate saving, they also ____5_____ very easy to access your funds. ____6_____ contrast, it
is typically more difficult to cash a bond, __7__ a withdrawal from a retirement account, or sell
stocks or other assets.
Disadvantages of Savings Accounts
____8_____ the liquidity of a savings account is one of its key benefits, it makes the funds too
available which could tempt you to spend them. Savings accounts almost always pay lower
interest rates than Treasury bills and Certificates of Deposit (CDs). As a result, they should not
be used for long-term holding periods.
Text 2
mortgaged payments exchange networks
deposit losing share write
accepted solution in withdraw
Some economists think the Romans may have invented the cheques about 352 B.C. However, it
wasn't until the early 1500s, in Holland, that the cheques were widely used. People who had a lot
of cash began to (1)____ it with cashiers for a fee, as a safer alternative to keeping the money at
home.
The concept of writing and depositing cheques as a method of arranging (2)____ soon
spread to England and elsewhere. But many people in the sixteenth and seventeenth centuries
still had doubts about trusting their money to strangers and little pieces of paper. In the United
States, cheques are said to have first been used in 1681 when businessmen in Boston (3) _____
their land to a “fund,” against which they could (4) _____ checks.
As cheques became widely (5) _____ bankers discovered they had a big problem: how to
collect the money from so many other banks. At first, each bank sent messengers to the other
banks to present cheques for collection, but that meant a lot of traveling and a lot of money. The
(6) _____ to this problem was found in the 1700s. A London bank messenger stopped for coffee
and noticed another bank messenger. They talked and realized that they each had cheques drawn
16
on the other's bank, and decided to (7) _____ them and save each other the extra trip. The
practice evolved into a system of banking (8) _____ that exchange cheques with each other.
Text 3
policies provide counter access
transactions with for deposit
withdrawals apply carry applications
UBCS international is a leading international bank. We (1) _____ an excellent range of
products and services, including current accounts, savings accounts, mortgages, insurances,
loans, foreign exchange services and investment advice. We have 2000 employees in our head
office in Frankfurt and 3,800 in our 320 branches in Europe, the Middle East and Asia. We give
our trainees experience in all our departments:
* Our cashiers serve the bank’s customers. They help customers make deposits and (2)
_____, check balances, answer questions and help customers (3) _____ their everyday banking
needs.
* At our foreign exchange (4) _____, the cashiers sell foreign currency to customers who
want to go abroad.
* Our mortgage advisers arrange mortgages for customers who want to buy property. They
set up insurance (5) _____.
* Our financial advisers give customers information about stocks and shares, bonds and
other types of investments.
Customers can use the bank’s website to (6) _____ out payments and other transitions
over the Internet. This form of banking can be done outside business hours and from anywhere
with Internet (7) _____. Features of Internet banking include payment of bills, fund transfers,
loan (8) _____, and viewing bank statements.
Text 4
worth require cost limit

statement balance apply charged

create offer charging out

Banks make their money on the difference between what they pay out in interest on
deposits and what they get in as interest from its loans. Nowadays, many banks (1) _____ their
customers credit cards. Any customer can (2) _____ for a credit card. If the bank thinks the
customer is a good risk, it will issue him with a card and inform him of his personal credit (3)
_____. For example, the bank might allow a customer a limit of €250 per month. This means that
every month the customer can use his card to pay for €250 (4) _____ of goods and services or to
borrow €250 in cash, travellers’ cheques or foreign currency. It does not matter if the customer’s
bank account is empty, when he spends or borrows the €250.
17
 At the end of the month, the bank will send the customer a (5) _____. If the customer
clears his account every month, the facility will (6) _____ him nothing. He will have a month’s
credit free. However, if the customer fails to clear his account every month, he will be (7) _____
some interest per month on the outstanding (8) _____. Therefore, this alternative form of money
can become very expensive.
Text 5
unemployment crisis negotiated with
published economics established accepted
in deposit for returned
Born in 1883, John Keynes John studied (1) _____ at Cambridge University. After his
schooling, he worked for the Civil Service for a few years, then (2) _____ to Cambridge, where
he taught students until 1915. When World War I started, he served the Civil Service again,
where he was responsible (3) _____ economic relations with the other countries at war. After the
war, he was very unhappy about economic sanctions against Germany. In protest, he left his
Civil Service job and then wrote his first famous essay 'The Economic Consequences of the
Peace' in 1919. In the 1920s, Keynes thought that governments were wrong to do nothing about
high (4) _____. At that time, there was no economic theory to support his ideas, but in the mid-
30s, he (5) _____ the book on 'The General Theory of Employment, Interest and Money'. The
world was now in economic (6) _____, and governments started to listen to Keynes' theories.
During World War II and later, many Western democracies (7) _____ his idea of maintaining
high employment. In 1945, at the end of his Civil Service career, Keynes moved to the USA and
(8) _____ a multi-billion-dollar loan for Great Britain. He died the following year.
IV. READING COMPREHENSION
Text 1
Savings accounts are for people who want to keep their money in a safe place and earn
interest at the same time. You don’t need a lot of money to open a savings account, and you can
withdraw your money easily.
Checking accounts offer safety and convenience. You keep your money in the account
and write a check when you want to pay a bill or transfer some of your money to someone else.
If your checkbook is lost or stolen, all you need to do is close your account and open a
new one so that nobody can use your old checks. (When cash is lost or stolen, you rarely see it
again.) Another attractive feature of a checking account is that your bank sends you a monthly
record of the checks you have written, and you can use that record if ever need to prove that
you’ve made a payment. Banks sometimes charge a fee for checking accounts, because check
processing is costly.

18
 Many banks also offer no-fee checking and checking accounts that earn interest if you
agree to keep a certain amount of money- a minimum balance- in the account. But these accounts
are limited to non-business customers. Banking laws almost always require businesses to use
regular checking accounts that do not pay interest.
1/ What are the benefits of savings accounts?
………………………………………………………………………………………………………
2/ How can a checking account holder use their money?
………………………………………………………………………………………………………
3/ What should you do if your checkbook is stolen?
………………………………………………………………………………………………………
4/ Why do banks charge a fee for checking accounts?
………………………………………………………………………………………………………
Text 2
WHERE CAN I EXCHANGE FOREIGN CURRENCY?
Where can one exchange U.S. Dollars (USD) for Thai Bhat? Or Euros for Singapore
dollars? This is called foreign exchange, the conversion of one currency into another. The
exchange of foreign currency is a lucrative business and one that most international travelers deal
with when they go outside their home country.
A traveler usually has several options when considering how to exchange foreign
currency. He can do it at home, or he can wait until he gets abroad and exchange foreign
currency there.
Large banks in big cities may be able to exchange foreign currency in the most common
denominations for walk-in customers. The main advantage of this is that a person will usually get
the best exchange rate. The disadvantage is that the process does take time, so advance planning
is necessary.
To exchange currency online, all a traveler has to do is run a search. The service is
usually rapid, however, the site will charge a delivery and/or service fee for the exchange. Using
a brand name service, like Wells Fargo will probably pay off, since their reputation is well-
known.
The other options a traveler has to exchange foreign currency is to do it in the country
where he or she is traveling. In this case, most travelers can exchange foreign currency at a kiosk
in the airport, at an ATM or at a local bank. A small service charge will usually be assessed.
Airport currency exchange kiosks may also be handy, especially in smaller airports. The
exchange rates may not be as good, but they are safe to use. Banks are also a good place to
exchange foreign currency. Most towns have a small bank and in general the exchange fees are
fair, even if they do levy a service charge.

19
 QUESTIONS:
1/ What is foreign exchange?
………………………………………………………………………………………………………
2/ How can the customers get the best exchange rate?
………………………………………………………………………………………………………
3/ What should a traveler do when he wants to exchange currency online?
………………………………………………………………………………………………………
4/ Where can travelers exchange currencies?
………………………………………………………………………………………………………
Text 3
DO YOU NEED A SAVINGS ACCOUNT?
A savings account is the most basic type of account at a bank or credit union, allowing
you to deposit money, keep the funds safe, and withdraw funds as needed. Savings accounts
typically pay interest on your deposits, which helps you grow your money, but rates are
relatively low on these low-risk accounts.
As you master your savings account, you’ll use other accounts for specific financial
needs.
It’s generally wise to have a savings account, and they’re often free - especially at online
banks and community banks and credit unions.
Without a savings account, where are you going to keep money that you don’t plan to
spend in the immediate future? It’s unsafe to hold cash, and there’s a psychological benefit to
using a savings account: It’s tempting to spend money that you’ve got in-hand (or in a checking
account), so a savings account helps you set funds aside and reach your goals.
Bank accounts make it easier to function in the modern world. You can get by without
one, but you’ll spend a lot more time and money on things that could be avoided if you open an
account.
How to Open a Savings Account
Opening a savings account should take less than an hour (sometimes just a few minutes),
and it’ll serve you for many years to come. The easiest way to open an account is to do it online
or with your mobile device. If you prefer in-person guidance, visit a bank branch.
Compare banks by reviewing interest rates, fees, minimum balance requirements, and
other services. Savings accounts don’t pay much, so any fees will most likely eat into the money
you deposited — in addition to wiping out any earnings in the account.
1/ What are the advantages of a savings account?
………………………………………………………………………………………………………
2/ Do depositors pay fee for their savings accounts?

20
………………………………………………………………………………………………………
3/ How can a customer open a savings account?
………………………………………………………………………………………………………
4/ What criteria should be considered before deciding the most suitable bank?
………………………………………………………………………………………………………
Text 4
Banks are very important for the functioning of the modern world. Banks enable people
to save money, borrow money and to pay for things with ease and security. Each country in the
world has its own well known banks that have branches in nearly every city so that they are
convenient for people to use. There are also some very big multinational banks that have
branches in most countries in the world. Each bank will also have a head office. This is where all
central tasks are performed that let the local branches function. The people that work in the
branches will be the bank manager and various tellers who work behind the bank counter and
help the customers. There will also likely be security guards to protect the money, workers and
customers.
Most customers will just need to see the tellers when they go to the bank if they are
paying money into their account. However, they might need to see the bank manager if they want
to open an account, if they want to borrow money and get a loan, or if they have spent more
money than there was in the account.
Banks also offer their customers the more convenient methods of using either a debit card
or credit card because they just need to carry a small plastic card to be able to pay for anything.
When paying with a plastic card, customers will need to either sign a receipt or enter a PIN
number to confirm the purchase and that they are authorized to use the card.
1. According to the text, what could people do with the banking services?
………………………………………………………………………………………………………
2. What is the function of the head office of a bank?
………………………………………………………………………………………………………
3. What is the role of the bank teller?
………………………………………………………………………………………………………
4. What happens when a bank customer spends more money than they have in their account?
………………………………………………………………………………………………………

21
 Text 5
ONLINE BANKING
More and more people are choosing to do their personal banking online. But what can on-
line banking offer that other types of banking can’t?
Firstly, by banking online you are not limited to a bank’s opening hours. You can check
your bank account 24 hours a day, whenever it suits you. Transferring money from a savings
account to a current account, opening an account or seeing how much interest you have earned,
will take you just a few seconds. Compare that with the time you need to come to your local
bank, queue up and carry out your transaction.
Online banking offers you numerous other services, from buying shares, to making
deposits, to ordering cheque books, to paying bills. For many people a particularly useful feature
of this kind of banking is the fact that you have access to a large database, which contains details
of all your accounts and the business you have done over the years.
All you need is an Internet connection to download the financial data onto your
computer. You may not be able to pay cash online. So, on-line banking does offer many benefits.
At present banks especially those engaged in foreign trade and foreign exchange
transactions find it useful to become part of the international electronic message switching
network operated by “SWIFT”. The acronym stands for the Society for Worldwide Interbank
Financial Telecommunications which provides the network that enables financial institutions to
send and receive information about financial transactions in a secure, standardized and reliable
environment.
1. When can we check the account online?
………………………………………………………………………………………………………
2. How long does it take you to check the interest you have earned in the online banking?
………………………………………………………………………………………………………
3. According to the reading text, what is a database?
………………………………………………………………………………………………………
4. What is the full name of SWIFT?
………………………………………………………………………………………………………
Text 6
PREPAID CREDIT CARDS
Prepaid credit cards provide an alternative to all those people that need a credit card.
They work much like debit cards, that is an account is set up by a monetary deposit, and this
deposited money can be used up through the prepaid credit card issued. The greatest advantage
of prepaid credit cards over normal credit cards is that you are entitled to spend only as much as
you have in your account – thus you will not be in debt, and you will have no bill to pay. One

22
 disadvantage of prepaid credit cards, however, is that most prepaid credit card companies require
a set-up fee to both open and maintain the prepaid credit card account. You will be required to
pay taxes on your cash deposits, and you may be required to pay an annual membership fee.
Another major disadvantage is that most online merchants do not accept prepaid credit cards as
payment. This is because they have no guarantees that the account can completely cover
payment for an online purchase. This can be difficult for prepaid credit card holders to pay for
monthly subscriptions to Internet service providers or to purchase items that are sold at zero
percent interest. If you are interested in purchasing and using a prepaid credit card, take note of
these advantages and disadvantages. Although you have the convenience of not carrying cash,
you may not be able to purchase as many items as you wish, or from as many merchants as you
please. Although you may have to pay additional fees for your account, you can control your
overall spending and keep yourself out of debt.
1. In what way are prepaid credit cards similar to debit cards?
………………………………………………………………………………………………………
2. Why are prepaid credit cards better than credit cards?
………………………………………………………………………………………………………
3. What is a set-up fee used for?
………………………………………………………………………………………………………
4. Besides the set-up fee, what are some additional fees will customers have to pay for prepaid
credit cards?
………………………………………………………………………………………………………
V. ENGLISH-VIETNAMESE TRANSLATION
1. Savings accounts are for people who want to keep their money in a safe place and earn
interest.
………………………………………………………………………………………………………
2. Regular bank statements listing recent transactions will be sent to you by post.
………………………………………………………………………………………………………
3. Features of Internet banking include payment of bills, funds transfers, loan applications, and
viewing bank statements.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
4. One of the results of this investment of the banks is that most account holders now use
different kinds of plastic cards.
………………………………………………………………………………………………………
………………………………………………………………………………………………………

23
5. Many stores, garages and restaurants display a symbol to show the credit cards can be used
instead of cheques.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
6. An automated teller machine (ATM) is an electronic computerized telecommunications
device that allows bank's customers to access their bank accounts, make cash withdrawals
and check their account balances.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
7. In the United Kingdom, a Direct debit is an instruction from a customer to their bank
authorizing them to collect varying amounts from their account.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
8. Like a credit card, a debit card is used as an alternative to cash when making purchases.
………………………………………………………………………………………………………
9. Some customers avoid online banking as they perceive it as being too vulnerable to fraud.
………………………………………………………………………………………………………
10. If our companies are unable to o raise capital, they have to find ways of increasing the
company's value to attract investors such as cutting jobs.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
11. The Turkish currency, the lira, has lost about 30% of its value against the US dollar since the
New Year.
………………………………………………………………………………………………………
12. The S&P 500 resumed its steep decline after DoubleLine Capital said that U.S. stocks were
in a bear market.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
13. Volume on U.S. exchanges was 9.44 billion shares, compared to the 8.01 billion average
over the last 20 trading days.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
14. The Federal Reserve has raised interest rates again, in spite of warnings from Donald Trump
against the move.
………………………………………………………………………………………………………

24
VI. WRITING
1. There are different .………………………………… ………………...……………………….
………………………………………………………………………………………………………
2. A variety of plastic cards is a result of .………………………………… …………………….
………………………………………………………………………………………………………
3. Currently, commercial banks mainly serve .………………………………… ………………..
………………………………………………………………………………………………………
4. An ATM card is very useful .………………………………… ……………………………….
………………………………………………………………………………………………………
5. The bank manager is responsible .………………………………… ………..………………....
………………………………………………………………………………………………………
6. It’s easy for you to use Internet .………………………………… ……………………………
………………………………………………………………………………………………………
7. A current account offers .………………………………… ……………………………………
………………………………………………………………………………………………………
8. Checking accounts or current accounts are .………………………………… ………………...
………………………………………………………………………………………………………

25
 CHAPTER 3: LOANS, CREDIT, AND INVESTMENTS
1. equity finance (n): 21. EBIT = earnings before interest and taxes:
2. debt finance (n): 22. operating cash flow (n):
3. principal (n): 23. margin (n):
4. to mature: 24. overhead costs (n):
5. maturity date (n): 25. dividend (n):
6. coupon (n): 26. boardroom (n):
7. yield = returns (n): 27. Board of Directors (n):
8. interval (n): 28. Board of Management (n):
9. tradeable instrument (n): 29. to possess => repossess (v):
10. institutional investor (n): 30. to repurchase (v):
11. intermediary (n): 31. venture capitalist (n):
12. secure (v, adj): 32. to diversify => diversification (n):
13. unsecured (adj): 33. liquid investment (n):
14. investment ratings (n): 34. loan application (n):
15. credit risk (n): 35. debt collection (n):
16. credit limit (n): 36. to underwrite:
17. creditworthy (adj): 37. creditor (n):
18. to owe to: 38. to repay the loan:
19. performance (n): 39. reserves (n):
20. collateral (n):

I. MATCHING
liabilities foreign exchange commission
pension overdraft
1. money that the government or your employer gives you when you are old and you stop
working
2. automatic loan allowing the account holders to use more than they have in their account
3. another word for a bank fee
4. money that a company will have to pay to someone else one day
5. the conversion of one currency into another
stock market household expenses current account
banknotes online banking
6.spending for regular payments like electricity bills
7 the place where securities are exchanged
8. an account which provides daily financial services
9. remote banking with technological devices like computers or smart phones
10. paper money
account statement credit rating boardroom
savings account underwrite
11. sign and accept liability under (an insurance policy), thus guaranteeing payment in case loss
or damage occurs
26
 12. An estimate of the ability of a person or organization to fulfil their financial commitments,
based on previous dealings
13. An account which pays interest to the depositors
14. A record of your current account
15. A room for the Management Board to discuss strategies
trend underwrite margin
credit rating fines

16. sums of money paid as penalties for breaking the law

17. an evaluation of a borrower’s ability to pay interest and pay back a loan in the future
18. a general development or change in a situation or in people’s behaviour
19. the difference between the loan interest rate and deposit interest rate
20. guarantee to buy a company’s newly issued stocks if there are not enough investors
equity finance coupon intermediary

loan securities
21. An amount of money borrowed from a bank for a fixed period
22. bonds and shares/ stocks
23. raising capital by issuing more shares
24. the institution between two other businesses
25. bond interest payment
credit limit overdraft overhead costs

liabilities debit card

26. an arrangement allowing people to borrow money by withdrawing more than they have
deposited in their account
27. things a company owes, such as debts and taxes
28. a plastic card which can be used through your current account
29. the expenses of operating a business that are not directly related to individual products or
services
30. maximum amount you can pay by your credit card
II. GRAMMAR – WORD FAMILY
1. If the borrower doesn’t repay the mortgage, the bank will ________ the house or flat.
(POSSESS)
2. Through the money markets, ________ can find short-term liquidity by turning assets into
cash. (BORROW)
3. ________, banks also try to sell insurance products to their customers. (INCREASE)

27
4. There is less risk for a bank with a mortgage than with ________ loans without collateral.
(SECURE)
5. Companies frequently are encouraged to take over other companies by______________
banks. (INVEST)
6. Banks have to find a balance between ________________ and different maturities.
(LIQUID)
7. Banks have more complicated risk ________ methods for corporate customers. (ASSESS)
8. The interest rate is high as there is little security for the lender: the goods could easily
become ________. (DAMAGE)
9. The rate that borrowers pay depends on their ________, also known as credit standing.
(CREDITWORTHY)
10. Investors can make short-term deposits with investment companies at ________ interest
rates. (COMPETE)
11. Another ________ is for an Islamic bank to lend money without interest but to cover its
expenses with a service charge. (POSSIBLE)
12. Investment accounts are fixed- term deposits which cannot be withdrawn before ________.
(MATURE)
13. Every month, the banks takes the same amount of money out of her account ________.
(AUTOMATIC)
14. I am a ________ at the moment, so I sit and learn from other employees. (TRAIN)
15. I’m going to get all of my ________ in September and then I will have lots of options.
(QUALIFY)
16. I can monitor the ________ of the stock market with the portfolio of shares. (PERFORM)
17. There is a lot of ________, so banks always need top-quality staff with good communication
skills. (COMPETE)
18. His parents give him an ________ of $80 a month. (ALLOW)
19. Banks always want to get new customers and so they make ________ offers. (ATTRACT)
20. Spreading risk by including many different types of investments in a portfolio is called
________. (DIVERSIFY)
21. Portfolio managers look at ________ conditions when they make decisions about what assets
to put in a portfolio. (ECONOMY)
22. The commercial banks will extend a number of _____ types of loans to customers. (DIFFER)
23. The _______ bank authenticates the letter of credit and sends the beneficiary the details.
(ADVICE)
24. When the seller is ______ with the conditions of the letter of credit, he/ she ships the goods.
(SATISFY)

28
 25. More than two-thirds of all blue chips in industrialized countries are owned by _____
investors. (INSTITUTION)
26. When an investor buys shares on the _____ market, they are either cum div or ex div.
(SECOND)
27. The portfolio’s objectives determine the returns expected or needed, and the _____ level of
risk. (ACCEPT)
28. Despite their name, hedge funds do not _____ use hedging techniques. (NEED)
29. Exporters can get _____ sooner if a bill of exchange is accepted by a bank. (PAY)
30. Central banks can use _____ policy to influence the level of economic activity. (MONEY)
31. Credit is a _____ agreement between a customer and a bank. (LEND)
32. We spend time opening accounts, arranging small loans, and setting up _____ facilities.
(OVERDRAW)
33. In _____, commercial banks issue credit cards, pre-paid cards, debit cards and smart cards to
their customers. (ADD)
34. For UK investors, opportunities are _____ on offer within high-yield bonds. (CURRENT)
35. Takeovers can lead to the _____ of large conglomerates. (FORM)
III. CLOZE TEXTS
Text 1
from achieving information statistics
organized meet comparative analysis until
set guarantee loan application boss
If you join an investment bank as a ____1_____ trainee, you can expect to work long
hours. It’s part of the culture. My day starts at about 8.00 a.m. when I check my email and
voicemail to see who wants ____2_____ immediately. It can continue ____3_____ about 1.00 in
the morning if we are working on a big merger. Fortunately, I live only twenty minutes
____4_____ the bank. I usually get my main work from my ____5_____ at the daily team
meeting at 10 o’clock, which can be a ____6_____ of companies or completing a report on a
____7_____ for a big company.
As an analyst, you need to be good at ____8_____ because you spend a lot of the day working at
the computer on tables or spreadsheets. It’s also important to be well organized and a good team
player because you depend on your colleagues to meet deadlines.
Text 2
providing competing possible for

provision interest rate competition with

debt collection to competitor financing

29
 Most businesses rely on giving credit ____1_____ their customers. This is especially true
in a free market where there are many suppliers ____2_____ to supply one product or service.
These businesses have to fight ____3_____ to get sales. If their competitors are ____4_____
credit, they have to provide it as well. They may not want to give credit but, when faced
____5_____ the choice between making a sale with credit and not making a sale, they will prefer
to give credit. Competition forces suppliers to provide credit ____6_____ their customers.
This situation gives rise to the problem of ____7_____. A customer may pay a trade debt
at the end of the credit period, or delay payment for as long as ____8_____. Such a situation is
harmful to the suppliers.
Text 3
benefit affairs competitive necessarily
raises conflict individual perceived
independence decisions performing interfere
CONFLICTS OF INTEREST
An organizational ____1_____ of interest arises where, because of other activities or
relationships, an organization is unable to render impartial services, the organization's objectivity
in performing mandated work is or might be impaired, or the organization has an unfair
____2_____ advantage. A personal conflict of interest is a situation where a person's private
interests - such as outside professional relationships or personal financial assets - ____3_____ or
may be perceived to interfere with his/her performance of official duties.
As staff, we should always strive to avoid situations where we ____4_____ personally or
allow others to benefit personally from the ____5_____ we make for the organization. We need
to be aware of how our actions, in the absence of an explanation, may appear or be interpreted by
others. Sometimes, the perception of a conflict of interest ____6_____ as much ethical concern
as does an actual conflict of interest. Conflict of interest situations do not ____7_____ imply
wrongdoing. However, if they are not identified and managed appropriately, they can
compromise our work and the organization's integrity. When each of us avoids the perception
and the reality of a conflict of interest, we can help preserve our ____8_____ and impartiality.
One of the key steps in avoiding or resolving a conflict of interest is to ensure that we place the
organization's interests above our own
Text 4
arrangements make available repayments

in full account borrow application

spending bankruptcies history property

BANK LOANS

30
 APR
The Annual Percentage Rate (APR) is the overall annual cost of your loan. It takes into
____1_____ the interest you pay, how often you make repayments and any additional charges
such as arrangement fees. It enables you to compare the cost of borrowing.
Credit rating
Your credit rating is based on your past credit ____2_____ and other information you
give about yourself in your ____3_____. This will include information from the electoral roll,
details about any County Court Judgments (CCJs) or bankruptcies in your name, and details of
your existing and previous credit ____4_____ (such as credit cards, loans and mortgages) held
in the last 6 years. This information is then used by lending companies to assess your loan
application.
Early repayment fee
This is a charge applied for paying back your loan partially or ____5_____ before the end
of a loan term. It's tempting to pay back more than the required loan repayment if your income
has increased, your ____6_____ has dropped or you’ve received a bonus. However, you should
study the loan terms and conditions before you apply so you know the policy on fees.
Secured loans
Secured loans often allow you to ____7_____ more money over a longer period of time
than unsecured loans. This is because the loan is secured on something you own, normally your
home. This would mean that your property may be at risk if you do not keep up your repayments.
Unsecured loans
Unsecured loans are ____8_____ if you don't own your home or don't want to secure a
loan on your property. As with any form of lending, ensure that your repayments are affordable.
Text 5
interest issued deposit entrepreneur

maturity on in return

withdraw depend investing create

If a customer has more money than he’d like to use in the near future, he may ask to open
a deposit account. This type of account combines a relatively small (1)____ with a maximum
degree of liquidity. There are different types of accounts. Best known is the savings account
which represents a widespread method of saving money. After opening the account, the customer
may (2) ____ as much money as he wants to. However, if he wants to (3) _____ a large amount,
he must announce the bank prior 24 hours, although in practice small amounts are paid
immediately. For a savings account a passbook is (4) _____ to the depositors. The rate of (5)
_____ may vary with the bank rate and with the customer’s stay for a shorter length of time. One

31
 advantage is that even young children are allowed to have a savings account in their name.
However, it may only be conducted by their parents or guardians.
Fixed deposits can be withdrawn only (6) _____ a fixed date while term deposits after an
agreed number of days’ notice. The customer decides whether to invest his surplus money for a
certain period of time or whether he wishes to withdraw it after a certain length of notice. The
rate of interest will largely (7) _____ on the length of investment or notice. At (8) _____ date,
banks pay the interest into the customer’s current account and invest the money again for the
same period of time unless the customer orders his banker to act otherwise.
Text 6
return fixed dividend options
portfolio capital owner collection
matures rise in invest
I’d like to discuss three basic investment (1) ____. First, you can buy shares. You then
become a shareholder, that is part (2) _____ of a company. When the company makes a profit,
the shareholders get a share of that profit. This payment is called a (3) _____. The price of shares
can go up or down, so there is no guarantee you can make a profit when you sell your shares.
However, share prices can (4) _____ a lot, so you can make a lot of money. Bonds are another
type of investment. When you buy a bond, you are lending your money to a company, or
sometimes to a government. In return, they agree to pay you a fixed rate of interest on your
money. In addition, you get your (5) _____ back on a certain date in the future. This is called the
date when the bond (6) _____. There is little risk here, but the returns are quite low. Finally, you
can invest in a mutual fund. This is a (7) _____ of shares and bonds. You put your money
together with money from other investors. You pay a financial professional, a fund manager, to
handle your investment. The fund manager decides what shares and bonds to buy and sell. There
isn’t a predictable rate of (8) _____. Your earnings change from day to day.
IV. READING COMPREHENSION
Text 1
WHO’S MORE IN DEBT: MEN OR WOMEN?
Stereotypes!
Many people still think that women are just bad at managing money. They cannot stop buying
new shoes, handbags, or clothes when they see them, and so they borrow money on store cards
that you can get from big shops. But the results of the survey show this is simply not true. Young
men, it seems, use store cards just as much as women. Sometimes, they are worse. Also, they
save less money than women from their salaries. They open fewer savings accounts than women
and take bigger risks with their finance, investing in things like shares. Young men are also less
likely to have insurance on their homes and possessions.

32
What about equality?
No, the real reason women can’t pay is that women usually have debts on basic things for the
home like rent and services simply because they are poorer and often have to support children or
older parents on low incomes. The study shows that today at the age of 24 most women earn
15% less than men and have more responsibilities with family and children. These are the real
causes of debt problems. So much for equality!
But the worst news from the survey is that, because of their poverty, women often cannot go to
big banks to borrow money. They have to use other service companies that charge the highest
rates of interest. So, they suffer more and pay more interest because their family needs are more
desperate. The result is that there are more women who have their gas or electricity turned off for
non- payment.
1/ Who borrows more on their credit cards?
………………………………………………………………………………………………………
2/ Why do women have more problems with paying debts on their credit cards? Find two
reasons.
………………………………………………………………………………………………………
3/ Why do banks refuse to lend money to women?
………………………………………………………………………………………………………
4/ Which of these comments best summarizes the writer’s purpose?
(a) To show that young women earn less than men
(b) To show that men are better at managing money
(c) To show that our popular opinions about women and money are wrong
(d) To show that men and women are not equal

Text 2
WHY STOCK MARKETS MATTER FOR YOU
The saying goes: 'Don't invest what you can't afford to lose'.
But as stock markets fall, it is not just people who own shares who lose out. When the
bears replace the bulls - in other words, when the market falls - it affects almost everyone
because stocks and shares have become an integral part of almost all our financial lives.
There are a variety of ways in which stock market movements impact on our lives. The
upbeat side of the growth in share ownership is that when the stock market goes up, consumers
with shares feel richer, they borrow more and they spend more. But just as the stock market can
go up, it can also go down. Usually the first to react to this are the institutional investors who are
involved in the financial markets on a daily basis.

33
 The Internet boom is an example. Many personal investors felt they were burnt by the
popping of the dot.com bubble. By the time they got around to selling shares in any number of
failing internet-based companies, the big City investors had already pulled out of the market. The
institutional investors did not escape unharmed either. And the hits that they took also have an
indirect, but potentially serious, effect on many people's financial health. Any pain suffered by
these institutional investors impacts on the returns paid on pensions, savings accounts or the
interest charged on mortgages.
For individuals with a more direct interest - say day traders attracted by the tech boom -
share holdings can be used as collateral to borrow money. But if the value and income from
shares evaporate and the bank calls in the loan, the result can be big losses or personal
bankruptcy. Meanwhile pensions linked to the stock market, like the ones being promoted by the
UK government, are not immune. Unlike the state pension which is paid out at a rate set by the
government, investing in a private pension indexed to the stock market can increase the value of
the contributions dramatically, but they can also be erased.
Your job can also depend on the markets as companies use their valuation and the issue
of new shares to raise capital to expand. If they are unable to do this then they have to find ways
of increasing the company's value to attract investors. The key tool they use is to cut jobs.
1/ Who suffers when share prices go down?
………………………………………………………………………………………………………
2/ What will be affected when the institutional investors make a loss in their investments?
………………………………………………………………………………………………………
3/ How can companies raise funds to expand their operations?
………………………………………………………………………………………………………
4/ What do companies do to increase the company’s value?
………………………………………………………………………………………………………
Text 3
People usually borrow money to buy something they need ‘now’ – paying back the loan
(plus interest) over an agreed period of time. Banks provide many different types of loan
‘packages’ to suit different needs.
To be able to provide the most suitable loan for you, your bank needs to know:
• What you want the loan for
• How much you want to borrow
• ‘Term of repayment’, that is, how long you will need to repay.
The bank – as well as you – will need to be sure that you will be able to pay back the
loan.
The six most regularly used types of loan provided by banks are:

34
 The arranged overdraft – you are allowed to overdraw your current account. This is
usually for a short time and you pay an agreement fee plus high interest on the loan.
A permanent overdraft – you can overdraw up to an agreed limit without asking the
bank each time. You pay interest plus an arrangement fee.
A personal loan – this helps you to buy something expensive and spread the payments
over two to three years. The bank loans you:
• a fixed amount of money
• for an agreed period of time
• at a fixed rate of interest
• to be repaid in fixed monthly installments.
Save-and-borrow account- you pay a fixed sum into your new account each month from
your cheque account. The bank will allow you to borrow a maximum amount of up to 30 times
that regular payment.
A mortgage – a special loan to buy your own home. You can usually borrow a maximum
of three times your regular income. You can spread the repayment up to twenty or twenty-five
years.
1/ Who needs to borrow money from their bank?
………………………………………………………………………………………………………
2/ Why do banks have to provide a variety of loans?
………………………………………………………………………………………………………
3/ How can a bank customer use overdraft facilities?
………………………………………………………………………………………………………
4/ Among the five types of loans mentioned in the passage, which of them is the long-term loan?
………………………………………………………………………………………………………
Text 4
DIFFERENT KINDS OF MONEY
What makes money valuable? You could say there is no reason. It’s true that a special
kind of paper is used to make dollar bills, and they are pretty, but that’s not what makes them
valuable. The real reason why money is valuable is that everyone believes it is.
Ancient economies had no paper money or coins. Some used barter — trading one thing
for another. Others used objects as money. Animals or metals were popular, and so were
manufactured products like jewellery or weapons. Wealth in ancient Greece was measured in
tools or cattle. This kind of money had two purposes. First, it was useful because tools and cattle
can be used for farming. Second, it was a way to symbolize and measure value. A house, for
example, would be valued at a certain number of tools or cattle. Other societies used money that

35
was totally symbolic. For instance, American Indians used wampum made from seashells. And
until recently on the Pacific Island of Yap, people used large stone discs as money.
In most places, these types of money no longer exist since more practical forms of money
were invented. People started using precious metals such as gold and silver because they were
easier to carry around. In the eighteenth century, paper money was introduced. At first people
were suspicious of the new currency, but they came to accept it because the government or bank
issuing it would exchange an equal amount of gold for the paper. Nowadays, people are used to
the idea that the government doesn’t have to back its money with gold. But if, for some reason,
people ever lost faith in paper money, ten dollars wouldn’t be worth the paper it’s printed on.
1. According to the text, why is money valuable?
………………………………………………………………………………………………………
2. What objects were used as money in ancient Greece?
………………………………………………………………………………………………………
3. Where were large stone discs used as money?
………………………………………………………………………………………………………
4. Why were gold and silver used as money?
………………………………………………………………………………………………………
Text 5
RAISING CAPITAL
Ruth Henly, who works in an investment bank in New York, said: “Unlike commercial
banks, investment banks don’t lend money. Instead, we act as intermediaries between companies
and investors. We help companies and governments raise capital by issuing securities such as
stocks and bonds – that is, we offer them for sale. We often underwrite securities issues: this
means we guarantee to buy the securities ourselves if we can’t find other purchasers.
As well as initial public offerings (IPOs), when companies offer stock for sale for the
first time, there are other occasions when they raise funds. For example, they might want to
expand their operations, or to acquire another company, or to reduce their amount of debt, or to
finance a specific project. They don’t only raise capital from the public: they can sell stocks or
shares to institutional investors like insurance companies, investment funds (companies that
invest the money of lots of small investors), and pension funds (companies that invest money
that will later be paid to retired workers).
We also have a stockbroking department and a dealing department which buys and sells
stocks for clients (which is stockbroking), and trades with our own money (which is dealing).
The stockbroking department also offers advice to investors.”

36
1. What is the difference between commercial banks and investment banks?
………………………………………………………………………………………………………
2. How can investment banks help companies and governments raise capital?
………………………………………………………………………………………………………
3. According to the text, what does “underwrite securities” mean?
………………………………………………………………………………………………………
4. List 3 institutional investors mentioned in the text.
………………………………………………………………………………………………………
Text 6
Dear Alberta Bank Customer,
The following contains important information about your new Alberta Bank ATM/ Debit
card. This information could help protect you against fraudulent use of your card by others.
Instructions regarding the enclosed item(s):
If the enclosed Alberta Bank Card replaces a valid card that is about to expire, simply
sign the back of the new card and begin using it as you would ordinarily. Your confidential
Personal Identification Number (PIN) is the same one you have been using.
In all other cases, please take it to the Alberta Bank branch which is most convenient for
you to sign and validate your new Bank Card, and choose a new PIN. The Alberta Bank
recommends that customers do not use dates of birth as their PIN. Please remember to bring two
forms of identification with you, such as a passport, student ID card, driver’s license, or credit
card issued by the Alberta Bank.
If your Bank Card is lost, stolen or damaged, please call the Alberta Bank Card Helpline,
in operation 24 hours a day. The telephone number for this helpline can be found on the back of
your card. We advise you to make a note of this and keep it in a safe place. Remember, please
destroy your old bank card properly.
Do not hesitate to visit any of our branches any time you have any questions about the
Alberta Bank and our wide range of services.
Sincerely,
1/ What was enclosed with this letter?
………………………………………………………………………………………………………
2/ Who is the letter from?
………………………………………………………………………………………………………
3/ If this card is a replacement for a lost card, what must the customer do?
………………………………………………………………………………………………………
4/ What shouldn’t be chosen as a PIN?
………………………………………………………………………………………………………

37
V. ENGLISH-VIETNAMESE TRANSLATION
1. The commercial banks will extend (=offer) a number of different types of loans to customers.
………………………………………………………………………………………………………
2. A banker's reference proves to a third party that you are creditworthy.
………………………………………………………………………………………………………
3. Creditors have lent too much money, and are starting to have serious problems.
………………………………………………………………………………………………………
4. Gross domestic product (GDP) is the value of all the goods and services produced by an
economy over a period (e.g. one year).
………………………………………………………………………………………………………
………………………………………………………………………………………………………
5. We evaluate the current situation and the future situation of the customer.
………………………………………………………………………………………………………
6. The company must be able to repay the loan from the operating cash flow.
………………………………………………………………………………………………………
7. Overhead costs depend on the situation of the bank.
………………………………………………………………………………………………………
8. If the loan is secured against a home, a life assurance policy or another suitable asset, the
annual rate is only five per cent.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
VI. WRITING
1. A savings account is a good form of investment because ……………………………………..
………………………………………………………………………………………………………
2. The interest rates are determined .………………………………… ………………...………...
………………………………………………………………………………………………………
3. Investors can trade the stocks/ shares .………………………………… ……………………...
………………………………………………………………………………………………………
4. Issuing stocks/ shares is one of the ways for businesses .………………………………… …..
………………………………………………………………………………………………………
5. They say that overdraft facilities are automatic loans .………………………………… ……..
………………………………………………………………………………………………………
6. When you apply for a mortgage, you .………………………………… ………………………
………………………………………………………………………………………………………
7. You can ask your bank to .………………………………… ………………... ………………..
………………………………………………………………………………………………………

38
 CHAPTER 4: CENTRAL BANKING
1. to issue banknotes (n): 25. profit and loss statement (n) = income
2. to maintain financial stability: statement (n):
3. to ensure monetary stability: 26. balance sheet (n):
4. stable (adj): => stability (n): 27. cashflow statement (n):
5. to regulate: 28. accountant (n):
6. to supervise: 29. accountancy (n):
7. inflation (n): 30. to go bankrupt:
8. to prevent panic: 31. to audit (v):
9. the clearing system: 32. auditor (n):
10. to monitor: 33. financial records (n):
11. base rate (n): 34. financial statements (n):
12. incentive (n): 35. to record (v):
13. Federal Reserve(n): 36. transaction (n):
14. to intervene: 37. revenue (n):
15. to circulate (v) => circulation (n): 38. gross (adj):
16. monetarism (n): 39. net (adj):
17. to speculate => speculation (n): 40. shareholders' equity (n):
18. to eliminate (v): 41. liquidity (n):
19. sterling (n): 42. to assess => assessment (n):
20. bill of lading (n): 43. to appraise => appraisal (n):
21. bill of exchange (n): 44. to consolidate (v):
22. drawer (n): 45. freely converstible (adj):
23. to reshape: 46. budget deficit (n):
24. Lender of last resort:

I. MATCHING
conglomerate policy sterling

letter of credit assets

1. anything of value owned by a business
2. a group of companies that have joined
3. an agreed plan of what to do
4. the name of the British currency
5. a method of international payment for goods
deregulate bill of lading inflation

income drawer
6. abolish or end rules and restrictions
7. all the money received by a person during a particular period
8. the party that issues a bill of exchange
9. the document acknowledging that the goods have been received for shipment
10. a general, continuous increase in prices

39
 maturity shares/ stocks margin
portfolio account statement
11. a record listing the recent debits and credits in a bank account
12. securities representing part-ownership of a company
13. the date on which a bond is repaid
14. the difference between the loan interest rate and deposit interest rate
15. all the securities and financial assets held by a financial institution
bonds capital bank balance
merger staffing
16. the amount of money in a bank account at a particular time
17. the money invested in a business
18. decision on types and number of employees
19. interest-paying securities issued by companies needing to borrow money
20. two formerly separate companies join together
bill of exchange confirming bank investment bank
affluent central bank
21. wealthy
22. an order written by an exporter instructing an importer to pay a specified amount of money at
2a specified time
23. another word for advising bank
24. the government bank setting banking regulations
25. a bank proving M&A services for their corporate customers
merger reshaping takeover
headquarters balance sheet

26. redesigning
27. when a company gains control of another one by buying its stocks
28. when two companies combine to form one
29. the main office of a bank
30. a record of a company’s assets, liabilities and capital
II. GRAMMAR – WORD FAMILY WITH NEGATIVE MEANING AND/OR
DIFFICULT MEANING
1. The Federal Reserve was founded by Congress in 1913 to provide the nation with a safer,
more flexible, and more stable ________ and financial system. (MONEY)
2. Large investment banks have extensive research departments with ________ and
forecasters. (ANALYSE)
40
3. If one bank goes bankrupt, it can quickly affect the ________ of the whole financial system.
(STABLE)
4. In most countries, the central bank prints and issues currency- putting banknotes into
________. (CIRCLE)
5. This form of financing is similar to that of venture ________ who buy the shares of new
companies. (CAPITAL)
6. A ________ agreement (or repo) is a combination of two transactions. (PURCHASE)
7. Savings accounts in Islamic banks can pay a return to depositors, depending on the bank’s
________. (PROFIT)
8. Monetarists and ________ are those who argue that if you control the money supply, you
can control inflation. (ECONOMY)
9. ________ is the theory that the level of prices is determined by monetary growth. (MONEY)
10. Most banks have an annual ________ system and give salary increases according to
performance. (APPRAISE)
11. If she is ________ and ________, our customers will go to another bank. (POLITE/
FRIEND)
12. I don’t like ________ service. Banking transactions need to be easier and faster.
(EFFICIENCY)
13. I use my bank because the interest rates on their savings accounts are ________ those in
other banks. (HIGH)
14. A lot more money is exchanged for buying or selling goods than for ________.
(SPECULATE)
15. We offer first- class qualifications to people who are looking for rewarding careers in
________, finance and management. (ACCOUNT)
16. Accountants produce financial statements ________ (every three months). (QUARTER)
17. The boss won’t be satisfied if we just tell her our ________ of the figures. (ANALYSE)
18. The bond is a _________ instrument in its own right. (TRADE)
19. Who has the power to make ________? (DECIDE)
20. A ______ savings bank has bad debts of $300 million. (PROVINCE)
21. The Bank supervises the ________ system. (CLEAR)
22. How can the ______ of a central bank affect individuals as well as companies? (ACT)
23. At our foreign exchange counter, the ________ sell foreign currencies to customers who
want to go abroad. (CASH)
24. Nearly all customers have a debit card allowing them to make ________ and make other
transactions at cash dispensers. (WITHDRAW)

41
 25. Venture _____ like ourselves expect entrepreneurs to provide us with a business plan.
(CAPITAL)
26. Banks are risk-averse, so they are ____ to lend to new companies. (WILL)
27. Companies can choose to _____ part of their profit or retained earnings. (CAPITAL)
28. _____ distinguish between systematic and unsystematic risk. (ANALYZE)
29. A(n) _____ conglomerate’s stock market value can be less than the sale value of all its
assets. (EFFICIENCY)
30. There’s nearly always inflation, so cash will have lower _____ power in the future.
(PURCHASE)
31. If a project seems to be particularly risky or _____, you can increase the discount rate you
use in your calculations. (CERTAIN)
32. We help corporate customers when they have financial _____ and take of modifying loans
and credit lines. (DIFFICULT)
III. CLOZE TEXTS
Text 1
consolidated has balance sheet made
out of revenue in income
expense had of profit
A profit and loss account shows a company’s ____1_____ and expenses over a particular
period of time, typically either one month or ____2_____ months over a year. These figures
show whether your business has made a ____3_____ or a loss over that time period.
Profit and loss accounts show your total income and expenses, and also show whether
your business ____4_____ earned more income than it has spent on its running costs. If that is
the case, then your business has ____5_____ a profit.
The profit and loss account represents the profitability ____6_____ a business. It cannot,
for example, show you if you are running ____7_____ cash as you build stock. For this sort of
insight, you’ll need a ____8_____..
Text 2
financial position assets financial performance owes

reported balance sheet include recorded

owns competitors whether position

The accounting ____1_____ is one of the major financial statements used by accountants
and business owners. The balance sheet is also referred to as the statement of ____2_____.

42
The balance sheet presents a company's ____3_____ at the end of a specified date. For example,
the amounts ____4_____ on a balance sheet dated December 31, 2016 reflect that instant when
all the transactions through December 31 have been ____5_____.
Because the balance sheet informs the reader of a company's financial position as of one
moment in time, it allows someone—like a creditor—to see what a company ____6_____ as
well as what it owes to other parties. This is valuable information to the banker who wants to
determine ____7_____ or not a company qualifies for additional credit or loans. Others who
would be interested in the balance sheet ____8_____ current investors, potential investors,
company management, suppliers, some customers, competitors, government agencies, and labor
unions.
Text 3
liabilities against equation on
lenders equal shows discontinues
priority borrowers asset to show
Assets, liabilities, and owners' equity are closely related. Reference to Millennium
Music's balance sheet (1) _____ the following relationship: Assets = Liabilities + Owners' Equity
The balance sheet equation relates assets and the claims (2) _____ those assets. All balance
sheets use this simple equation. Balance sheets serve at least two purposes. One is (3) _____ the
various asset, liability, and owner's equity accounts. Another is to compare the claims against the
company's assets.
Millennium Music's balance sheet shows two types of claims against the various assets.
One is the bank loan, a (4) _____. The other is owners' equity, the owners' interest. According to
the balance sheet, assets are $200,000. Therefore, claims must also be $200,000. If the company
(5) _____ business, the liabilities must be paid first. Claims by the owners always take a lower
(6) _____. Thus, if all assets are sold for only $150,000, (7) _____ will receive $20,000 and the
owners will receive the remaining $130,000. An understanding of the balance sheet (8) _____
can be very useful in analysis
Text 4
interest issue advises printing
banks’ deposits monetary institution implemented last resort

disburses money institutions makes regulate

THE CENTRAL BANK
The foremost ____1_____ in a market economy is the central bank. These are usually
government – owned institutions, the responsibility of the central bank is to the national
____2_____.
43
 Most central banks in the present day world perform one or all of the following functions:
they serve as the government’s banker, they act as the banker of the banking system, they
____3_____ the monetary system for both domestic and international policy goals, and they
____4_____ the nation’s currency.
As banker to the government, the central bank collects and ____5_____ government
income and receipts, manages the issue and redemption of government, debts, ____6_____ the
government on all matters pertaining to financial activities, and ____7_____ loans to the
government. As banker to the nation’s banks, the central bank holds and transfers ____8_____,
supervises their operations, acts as a lender of last resort, and provides technical and advisory
services
Text 5
removal economy speculation separation
commercial reforms capable passed
deregulation put into mortgages eliminating
WHAT IS BANKING DEREGULATION?
Banking deregulation is the ____1_____ of regulations governing the banking system.
Banking deregulation reversed laws that were set up in the 1930s, taking away much of the
federal control that was ____2_____ place as part of the New Deal.
Banking Regulation
In 1933, the Glass-Steagall Act was passed, establishing the Federal Deposit Insurance
Corporation (FDIC) and creating banking ____3_____ and regulations which governed financial
institutions in the United States, covering issues from interest rates to ____4_____.
First Act of Deregulation
In 1980, the Depository Institutions Deregulation and Monetary Control Act was passed,
____5_____ the regulation of interest rates in savings accounts, among other things.
Eliminating Separation
In 1999, the Financial Services Modernization Act was passed eliminating regulations
that created a ____6_____ among different branches of finance, like banks, mortgage companies,
insurance companies and ____7_____ banking institutions.
Results of Deregulation
Deregulation led to finance companies taking over other companies. Big banks bought up
one, two, three, and more smaller banks. Financial institutions also became mega institutions
which covered private banking, investing, ____8_____ and insurance.

44
IV. READING COMPREHENSION
Text 1
LAYOFFS IN BANK OF AMERICA CORP
Bank of America Corp (BAC.N), the second-largest in the United States by assets, is
planning to cut about 300 jobs in its investment banking and capital markets group, as it
struggles to reduce costs to make up for weak revenue growth, as said by its CEO on Tuesday.
The layoffs are not as serious as the bank's job cuts in areas like retail banking.
Wall Street companies have broadly been looking at cutting jobs recently. The bank is
also assigning junior bankers to work with broader groups of companies. That move could also
lead to more layoffs. The changes for junior bankers are part of the cost-cutting program known
as "Project New BAC," which the bank launched last year to improve profits as the economy
weighs on revenue growth, and new regulations boost compliance costs. The bank is also trying
to streamline a company that has grown increasingly bigger 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, and commercial banking, are
expected to be finalized in May.
Layoff: sa thải
1. In what sector is the Bank of America Corp. planning to have the layoff?
………………………………………………………………………………………………………
2. Why does the Bank of America Corp want to lay off their employees?
………………………………………………………………………………………………………
3. What is the name of the program to reduce costs?
………………………………………………………………………………………………………
4. By how much will the first round of layoffs cut expenses over the next couple of years?
………………………………………………………………………………………………………
Text 2
Economic indicators are key statistics that indicate the direction of an economy. While
the indicators can be numerous, there are three broad categories of economic indicators: leading
indicators, coincident indicators and lagging indicators.
Leading indicators, such as consumer durables, net business formations and share prices,
are used to predict the future movements of an economy. Coincident indicators, which include
such things as GDP, employment levels and retail sales, are seen with the occurrence of specific
economic activities. Finally, lagging indicators, such as gross national product (GNP), CPI,
unemployment rates and interest rates, are only seen after a specific economic activity occurs.

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Most of these economic indicators have a specific schedule for release, allowing investors to
prepare for and plan on seeing certain information at certain times of the month and year.
An economic indicator is only useful if one interprets it correctly. History has shown
strong correlations between economic growth, as measured by GDP, and corporate profit growth.
However, determining whether a specific company may grow its earnings based on one indicator
of GDP is nearly impossible. Indicators provide signs along the road, but the best investors
utilize many economic indicators, combining them to glean insight into looking patterns and
verifications within multiple sets of data.
Economic indicators are often combined to produce a composite view of economic
performance. For example, the state of Florida, on July 11, 2016, released an analysis on its
economic indicators for the month of May 2016. The analysis consisted of its CPI, employment
levels, unemployment insurance, unemployment rate, real estate and housing price index. It was
found that Florida's CPI for the month of May 2016 was slightly higher than the national
average. Employment within the state grew by 24,000 jobs from April to May, a good sign.
1/ How many types of economic indicators are there? What are they?
………………………………………………………………………………………………………
2/ What is GDP used for?
………………………………………………………………………………………………………
3/ In which case is an economic indicator advantageous to the economists?
………………………………………………………………………………………………………
4/ Is it possible to base on one indicator to predict the future of an economy?
………………………………………………………………………………………………………
Text 3
The BBC says that HSBC, the world's second largest bank, helped rich people to hide
money so they would not have to pay tax. A BBC documentary programme got access to the
details of thousands of private bank accounts, worth $128 billion, from an HSBC bank in
Switzerland. The information was leaked by a whistleblower in 2007. The whistleblower was a
computer expert working for HSBC in Geneva. He stole the details of more than 100,000 clients
worldwide. A French banking team looked at the stolen data in 2013. It concluded that 99.8% of
French citizens on the list were probably evading tax.
HSBC said the bank has changed a lot since 2007. It said: "HSBC has developed
numerous methods to prevent its banking services being used to evade taxes." HSBC told its
reporters that the bank understood that it failed to follow the law properly. However, one woman
lost her job when she complained that the bank did not make these changes. Sue Shelley was
responsible for making sure HSBC followed the law. The BBC said that when she complained

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 that the bank was not keeping its promise to change, the bank fired her. Panorama said HSBC is
now facing criminal investigations in the USA, France, Belgium and Argentina.
1. For what purpose did HSBC help rich people to hide their money?
………………………………………………………………………………………………………
2. What did a whistleblower do in Geneva in 2007?
………………………………………………………………………………………………………
3. What did the French banking team conclude in 2013?]
………………………………………………………………………………………………………
4. What happened with the woman when she complained that HSBC did not keep the promise
to change?
………………………………………………………………………………………………………
V. ENGLISH-VIETNAMESE TRANSLATION
1. When the government doesn't control the exchange rate in any way, the currency is freely
convertible.
………………………………………………………………………………………………………
2. If government expenditure is higher than government income, the result is a budget deficit.
………………………………………………………………………………………………………
3. On 1 January 2002, euro banknotes and coins entered circulation across twelve European
Union countries.
………………………………………………………………………………………………………
4. We have a special calculation system in which we calculate the margin.
………………………………………………………………………………………………………
5. The aim of monetary policy is to keep inflation low and stable.
………………………………………………………………………………………………………
6. The drawer is the party that issues a bill of exchange, and the payee is the party to whom the
bill is payable to.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
7. The bill of lading is a document that the ship’s master signs, acknowledging that the goods
have been received for shipment.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
8. The balance sheet is a statement showing what the company has, and what it owes at the end
of the year.
………………………………………………………………………………………………………

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VI. WRITING
1. The exchange rates are fixed or .………………………………… ……………………...……
………………………………………………………………………………………………………
2. The governments and central banks can .………………………………… …………………...
………………………………………………………………………………………………………
3. Economic indicators are .………………………………… ………………..………….………
………………………………………………………………………………………………………
4. The phrase ‘Lender of last resort’ .………………………………… ………………………….
………………………………………………………………………………………………………
5. The central bank of a country is .………………………………… ……………………………
………………………………………………………………………………………………………

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