Further Practice

Câu 3: Read the text and answer the questions below. Write the answers on the Answer sheet.
Banks are financial institutions that accept deposits from citizens and pay interest in return. However, banks
are not all service institutions, most banks operate in order to make a profit. Even if they are not a non-profit
organization, they have to make money in their operation in order to pay expenses. Banks do this in a variety
of ways.
First, they charge interest on loans from their depositors and from the government. They pay interest to
depositors but charge a higher rate on money they lend out. For example, a bank may pay 3% on a savings
account but charge 9.5 % in interest on a loan. In the case of money borrowed from the government, banks
pay a percentage rate on money they borrow, which is called the discount rate. Banks then lend that money
and charge a higher rate on the loan than the rate that they pay. It’s called using other people’s money!
Second, banks use depositors’ money to make money. They do this by giving loans and earning interest.
These loans are usually real estate loans, other do not. Recently, there have been the mergers between banks
and investments institutions. They do this so that they could step into rather dangerous business areas of
investing and being connected to the stock market.
Thirds, banks charge fees. Today banks have fees for minimum deposit, per check fees and ATM fees. When
ATM were first introduced, they were supposed to replace bank branches, save banks operating expense and
that savings would passed to consumers. However, this has not happened. Instead, ATMs have become a
revenue source for banks as they charge up to $1.50 per transaction. If you use the ATM of a bank other than
your own both your bank as well as the ATM’s bank may charge you a fee.
Questions:
1. Why do banks have to make money?
2. How do banks make money by charging on loans from their depositors?
3. How do banks make profit from depositor’s money?
4. Why do some banks merge with investment institutions?
5. What were the original purposes of ATMs?

Translate the following sentences into Vietnamese. Write the answers on the Answer sheet.
Câu 4:
Porche had been making a larger profit out of option trading than it has out of selling cars.
Câu 5:
In 2007, the US government listed seven credit-rating agencies as nationally recognized statistical
rating organizations.

Complete the following sentences between 8 and 15 words. You have to use your own words. Write the
answers on the Answer sheet.
Câu 6:
This bank refused to lend him the money because ______________________________________________
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Câu 7:
Vietnam has been very active in ____________________________________________________________
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Câu 8: Many foreign companies like to invest in Vietnam because ________________________________
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