DAY 4

TASK 2: BOND KNOWLEDGE

If you buy a company’s bond, ....…*
You can work for the company
You own a part of the company
You can decide the company as their shareholders
You have lent money to the company
Which type of bond is the safest?*
a corporate bond
a junk bond
a government bond
Which is the cheapest way for a company to raise money?*
an ordinary bond
a bank loan
a convertible bond

Which gives the highest potential returns to an investor?*

a government bond
a corporate bond
a junk bond
Which is the most profitable for an investor if interest rates rise?*
gilts
a term bond
a corporate bond

In general, if interest rates go down, then bond prices .....*

go down
go up
Don’t know/Not sure

If a company declares bankruptcy, then all the bonds become

worthless*
False
True
In general, investments that are riskier tend to provide higher returns
over time than investments with less risk.*
True
False

To determine the value of a bond, you need all of the following

EXCEPT: ....*
Coupon
Principal
Time to Maturity
Earnings per Share
What is a bond?*
It's an ownership in a company.
It's a type of equity finance.
It is a corporate regulation.
It's a debt instrument.
Which bond provides the bondholder with the right to exchange the
bond for a specific number of shares in the company's common stock
before the maturity date?*
Mortgage-backed bond
Government bond
Corporate bond
Convertible bond
Corporate bonds tend to yield…………government bonds.*
more than
the same as
less than

What is a bond's coupon?*

The value of a bond at its maturity date
The purchase price of a bond
The value of a bond from the beginning
The rate of interest to be paid
Which of the following is the MOST risky investment?*
U.S. Treasury bonds
Junk bonds
corporate bonds
Gilt

Why would someone buy a bond instead of a stock?*

To receive dividend payments
To have ownership in a company
It can yield a higher return on investment
It is a less risky investment.
Interest payments on bonds are usually paid out at ........*
deregulations
coupons
principals
intervals

TASK 3: INVESTMENTS
1 Investors always seek to minimize their risk of investing.

2 Buying a car can be considered as an investment.

3 Risk could be understood as the possibility of making a loss. 4 Security
analysts and brokers are typically employed only at banks.

5 The majority of people invested in the stock market through their

retirement accounts. 6 A dollar received to day is worth less than the same
dollar received next year.

7. Investment gains are generally taxed at lower rates than regular

incomes.

8 Investors are more likely to invest in a bear market than in a bull market.

9 The lowest price for a share in Vietnam is 10 000 VND. 10 Stock and
bond prices will probably fall if interest rates rise.

11. Ben owns stock in Apple, which is currently paying $2.65 in annual
dividends. Ben is guaranteed to receive a dividend as long as he owns
Apple stock.

12 The higher the risk in an investment, the higher the expected return.

13 If you get into financial trouble, investment against your retirement

plan is a good option.

14 The Dow Jones Industrial Average is one measure of the stock market.
1. FALSE

2. FALSE

3. TRUE

4. FALSE

5. TRUE

6. FALSE

7. TRUE

8. FALSE

9. FALSE

10. TRUE

11. FALSE
12. TRUE

13. FALSE

14. TRUE

TASK 5: WORD FORM

1. Nearly all customers have a debit card allowing them to make
__withdrawals__ and make other transactions at cash dispensers.
(WITHDRAW)*
2. ___Increasingly__, banks also try to sell insurance products to their
customers. (INCREASE)*
3. Banks have more complicated risk __assessment__ methods for
corporate customers. (ASSESS)*
4. The Federal Reserve was founded by Congress in 1913 to provide
the nation with a safer, more flexible, and more stable __monetary__ and
financial system. (MONEY)*
5. Large investment banks have extensive research departments with
__analysts___ and forecasters. (ANALYSE)*
6. If one bank goes bankrupt, it can quickly affect the _stability__ of the
whole financial system. (STABLE)*
7. Through the money markets, __borrowers__ can find short-term
liquidity by turning assets into cash. (BORROW) *
8. Investors can make short-term deposits with investment
companies at _competitive__ interest rates. (COMPETE) *
9. Another __possibility_ is for an Islamic bank to lend money without
interest but to cover its expenses with a service charge.
(POSSIBLE) *
10. Monetarists and __economists_ are those who argue that if you
control the money supply, you can control inflation. (ECONOMY)*
11. Every month, the bank takes the same amount of money out of
her account __automatically_. (AUTOMATIC)*
12. I am a __trainee_ at the moment, so I sit and learn from other
employees. (TRAIN)*
13. I’m going to get all of my _qualifications__ in September and then I will
have lots of options. (QUALIFY)*
14. I can monitor the __performance__ of the stock market with the
portfolio of shares. (PERFORM)*
15. His parents give him an __allowance__ of $80 a month. (ALLOW)*
16. Banks always want to get new customers and so they make
attractive offers. (ATTRACT)*

TASK 6: CLOZE TEST 2C

There are three basic (1) _____ options. First, you can buy shares. You
then become a shareholder, a part owner of a company. When the
company makes a profit, the shareholders get a (2)_____ of that profit.
This payment is called a dividend. The price of shares can go up or (3)
_____, so there is no guarantee that you can make a profit when you
sell your shares. However, share prices can rise a lot, so you can make
a lot of money. Bonds are another type of investment. When you buy a
bond, you are (4) _____ your money to a company, or sometimes to a
government. In return, they agree to pay you a fixed (5) _____ of
interest on your money. In addition, you get your capital 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 collection of shares and bonds.
You put your money together with money from other investors. It is
sometimes called an ‘open- end fund’ because new investors can join
the (7) _____ at any time. You pay a financial professional or 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
return. Your (8) _____ change from day to day.
down, earnings, investment, capital, rate, in,
lending,share, profit, fund, matures, but,

1.*investment
2.*share
3.*down
4.*lending
5.*rate
6.*matures
7.*fund
8.*earnings

TASK 7: CLOZE TEST 2D

A financial institution, such as a (1) _____, buys a loan from a (2)_____
who has already lent an amount of money to a (3)_____ (another person
or institution). This means that the financial institution now has the
right to collect the (4)_____ on the original borrower’s loan. It then uses
the expectation of receiving these as security for a (5)_____, which it
issues to an individual or corporate (6)_____, in return for a specific
amount of money, which the financial institution promises to repay the
investor at a later date. The financial institution also uses the (7)_____
borrower’s repayments to make payments to the bond holder until the
date when the bond is repaid. Both the financial institution who bought
the loan and (8)_____ it in the form of a bond, and the bank who
originally sold the loan to the financial institution, use the capital they
have received from their sales to improve their financial situation or
increase their activities. They lend that money to more borrowers, and
sell on these loans to other institutions, who then securitize them. And
so it goes on.

1.*
bank
crisis
offer
finance

2.*
debtor
agency
principal
lender
3.*
entrepreneur
borrower
bondholder
stockbroker

4.*
interest
measure
dividend
coupon

5.*
loan
bond
interval
recession

6.*
investor
subprime mortgage
operation
returns

7.*
institutional
original
potential
mutual

8.*
speculated
deducted
kickstarted
securitized

TASK 8: READING
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 personal details online 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 ensuring
HSBC followed the law. The BBC said that when she complained 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.
ANSWER WITH NO MORE THAN 5 WORDS ( Sử dụng đúng từ trong bài, kể cả viết hoa. Không dùng
dấu chấm cuối câu)

1. For what purpose did HSBC help rich people to hide their money?*
not have to pay tax

2. What did a whistleblower do in Geneva in 2007?*

stole the personal details online
3. What did the French banking team conclude about 99.8% of
French citizens in 2013?*
were probably evading tax
4. What happened with the woman when she complained that HSBC
did not keep the promise to change?*
one woman lost her job
5. What was the duty of Sue Shelley?*
ensuring HSBC followed the law