investment bank acquisition go burst corporate credit-rating

agency
hedge funds capital central bank merger
consumer lending collapse default high-risk

1. an activity when one

company…another company to
create a larger company merger
2. money which is lent to
private individuals consumer
lending
3. an entity that advises...grow
by joining with, or buying other
companies investment bank
4. an activity when one
company buys…company or
part of another company
acquisition
5. another word for ‘’go
bankrupt’’ go burst
6. private investment funds for
wealthy…whether markets
move up or down hedge funds
7. fail to repay a loan default
8. finance for a newly set-up
company capital
9. when a company,
organization or system…
becomes too weak to continue
collapse
10. the official bank of a
country central bank
11. a company that calculates
the…or its financial products
corporate credit-rating agency
12. an adjective to show a
project…bring a high rate of
return in the later stages high-
risk
I. MATCHING

1. an activity when one company…another company to create a larger company merger

2. money which is lent to private individuals consumer lending

3. an entity that advises...grow by joining with, or buying other companies investment bank

4. an activity when one company buys…company or part of another company acquisition

5. another word for ‘’go bankrupt’’ go burst

6. private investment funds for wealthy…whether markets move up or down hedge funds

7. fail to repay a loan default

8. finance for a newly set-up company capital

9. when a company, organization or system…becomes too weak to continue collapse

10. the official bank of a country central bank

11. a company that calculates the…or its financial products corporate credit-rating agency

12. an adjective to show a project…bring a high rate of return in the later stages high-risk

bid subprime mortgage loan retail deposits

stockbroking bankrupt collaterals deregulation
 cash flow conglomerate Write off credit rating

1. a loan to buy a house which has been…with a poor credit rating subprime mortgage

2. the money that goes in and out of the company,…generated by an investment cash flow

3. unable to pay debts or continue to do business bankrupt

4. an estimation of someone’s ability to fulfill their financial commitments credit rating

5. buying and selling stocks or shares for clients stockbroking

6. a sum of money borrowed from a bank loan

7. a group of companies, operating in different fields,…joined together conglomerate

8. assets which are promised… cannot repay a loan (also known as security) collaterals

9. the price at which a buyer is prepared to buy a security at a particular time bid

10. cancel the bad debt or a worthless asset from an account write off

11. the money that savers put into banks retail deposits

12. the ending or relaxing of legal restrictions deregulation

creditor benchmark principal maturity

auction equity bond issuer the treasury

1. people or institutions to whom money is owned creditor

2. a public sale at which things are sold to the people who offer to pay the highest auction

3. a standard used when comparing other things benchmark

4. part ownership of a company in the form of stocks or shares equity

5. the amount of capital making up a bond or other loan principal

6. a company or bank that makes certain…such as bonds available for sale bond issuer

7. the government department…borrowing, and the money that it spends the treasury

8. the length of time for which a bond is issued (until it is repaid) maturity

kickstart coupon rally speculate

quote yield debt finance soar
interest recession offer mortgage

9. the money a company receives minus the money it spends during a certain period interest

10. the amount of interest that a bond pays coupon

11. the rate of income an investor receives from a security yield

12. the reduction of a country’s gross domestic product (GDP).. quarters of a year recession

13. an improvement or increase in prices rally

14. to revive or stimulate something kickstart

15. a type of money that start-up entrepreneurs need by borrowing debt finance

16. the price at which a seller is prepared to sell a security at a particular time offer

17. to rise quickly soar

18. to invest money in ways that could produce a large…also involve a lot of risk speculate

19. a legal agreement…house) and pays back the money over a period of years mortgage

20. to state a current market price of a security quote

nominal value public limited company portfolio entrepreneur

list cover option boom
derivative underwrite mortgage lender consumer lending

1. an option or future which…that would otherwise be difficult to get access to derivative

2. to register a security on a stock exchange so that it may be traded there list

3. the price written on a share nominal value

4. to guarantee the sale of a security underwrite

5. in Britain, this entity’s shares …share capital of £50,000 public limited company

6. to financially compensate the investors for the losses in investment cover

7. all the investments owned by an individual or organization portfolio

8. a company that provides loans of money for people to buy houses mortgage lender

9. somebody who has set up and runs their own company entrepreneur

10. the right to buy or sell shares…period of time or on a particular date in the future option

11. a time when business activity increases rapidly boom

12. money which is lent to private individuals consumer lending

administration asset retained profits balance sheet

minute bookeeping cash flow statement liabilities
expense income Income statement budget

1. a plan you make about what to buy and how much to spend budget
2. to write down in the official notes of the meeting minute

3. a situation when a company…aim of continuing some of its activities administration

4. all the money received from business activities during a given period income

5. all the money that a business spends on goods or services during a given period expense

6. anything owned by a business-cash, buildings, machines, equipment, etc asset

7. all the money that a company…, including debts, taxes and interest payments liabilities

8. writing down the details of transactions (debits and credits) bookeeping

9. profits that have not been distributed to shareholders retained profits

10. a statement giving…to-day operations, investing and financing cash flow statement

11. a statement showing…the revenues and expenses of a period income statement

12. a statement showing... (money the business has that belongs to its owners) balance sheet

1. an adjective to show something is at risk or open to danger vulnerable

2. money or cash liquidation

3. an adjective to show the situation…is funded by borrowed money highly leveraged

4. a situation when a failing company stops operating…are sold to pay its debts slowdown

5. extremely fast breakneck

6. to change something to make it better reform

7. the use of various mathematical tools to..from financial investment financial engineering

8. an adjective to show something that is wrong or inaccurate misleading

9. a debt method that banks use in addition…to finance operations wholesale funding
10. an activity when the…and buy part of it in order to run it separately management buyout

11. when someone leaves their job voluntarily resignation

12. an adjective to show how a company develops without buying other businesses organic

13. an adjective to show when shares bought on…are paid for with real money liquidity

14. a situation when a company that…the control of an individual by the courts receivership

15. the amount of money an investor…, for example on the stock market mortgage lender

16. the number of shares..at the Annual General Meeting of shareholders blocking minority

17. a firm or enterprise which develops a new product or service exposure

18. a period when demand for products and services decreases recession

19. the buying or selling of an option option trade

20. the right to buy…you think that the market price will rise above that price call option

21. an activity when a company…a company in a foreign country outbound acquisition

22. the right to buy or sell…period of time or on a particular date in the future free float

23. a reduction in the general… required to obtain a loan from the bank credit crunch

24. a business or company that buys and sells securities market maker

25. money which is lent to companies corporate lending

26. the total amount of money a financial institution has lent to customers loan exposure

27. an activity when a foreign…a company in your country inbound acquisition

28. a situation when something...its highest historical point, price or value all-time peak

29. a limitation… inflation, by methods such as increasing interest rates credit squeeze

30. the right to sell shares at a specific price in the future…fall below that price put option

31. strong and stable robust

32. an adjective to show the large return on capital investment healthy

Text 1:

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 offer their customers credit

cards. Any customer can require 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 limit. 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 cost 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.

At the end of the month, the bank will send the customer a statement. If the customer clears his

account every month, the facility will charge him nothing. He will have a month’s credit free.

However, if the customer fails to clear his account every month, he will be charging some interest

per month on the outstanding balance. Therefore, this alternative form of money can become very

expensive.

Text 2:

UBCS international is a leading international bank. We provide 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

withdrawals, check balances, answer questions and help customers with their everyday

banking needs.

 At our foreign exchange transactions, 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 policies.

 Our financial advisers give customers information about stocks and shares, bonds and

other types of investment.

Customers can use the bank’s website to apply out payments and other transitions over the

Internet. This form of banking can be done outside business hours and from anywhere with Internet

access. Features of Internet banking include payment of bills, fund transfers, loan applications, and

viewing bank statements.

Text 3:

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. 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 lender or mortgagee. The person who borrows money in the

form of a mortgage is called a mortgage borrower or mortgagor. There are several different types

of mortgages on the market. Probably the most common is a repayment mortgage, in which the

capital sum and the interest 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 repaid

in another way, for example with an assurance policy. This type of mortgage is known as an

endowment mortgage. With an offset mortgage, the mortgage borrower’s current account is

combined with her/his mortgage. Provided the current account is usually in credit, this can reduce

the interest repayments on the mortgage.

Text 4

Banks are places where people can keep their money. Most people use banks to save money in

their savings accounts and to pay money from their checking accounts. Today, when a person earns

money from their job, their paycheck is often electronically deposited into their savings account.

Then, he or she can pay their bills by writing checks from their checking accounts or pay online

where their bills are electronically connected to their bank accounts.

Banks also give loans to people. Banks use the money that their customers deposit to lend to

people to buy new houses, cars, or to start businesses. The bank makes money from lending by

charging interest. In other words, people have to pay back more than they borrowed. This amount

depends on how risky the bank thinks the borrower is and how fast the loan is paid back among

other things.

Banks offer many different jobs, from trainee cashier right up to senior account manager or

investment analyst. Many jobs are in specialist areas such as IT or corporate banking for business

customers. Some banks have call centers where service advisers answer telephone enquiries. In

the UK today, building societies, insurance companies and even supermarkets can offer the same

services as banks. There is a lot of competition, so banks always need top-quality staff with good

communication skills.

Text 5
I’d like to discuss about three basic investment options. First, you can buy shares. You then

become a shareholder, that is part owner of a company. When the company makes a profit, the

shareholders get a share of that profit. This payment is called a dividend. 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 rise 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

capital back on a certain date in the future. This is called the date when the bond matures. There is

little risk here, but the returns are quite low. Finally, you can invest in a mutual fund. This is a

portfolio 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 predictable rate of return. Your earnings change

from day to day.

Text 6:

Investment means using money to buy something (an asset) with the aim of making a profit by

selling that asset at a higher price sometime in the future. There are many different types of

investments. Some people put their money in art, stamps, or coins. Other people invest on shares

and become part owners of a company. Not only can they make a profit by selling those shares at

a higher price than they paid for them, but they can receive a dividend – a share of the profits

which the company gives to its in every year. People often ask about the difference between

savings and investments. Sometimes the two terms appear interchangeable, but there is a big

difference. Quite simply, investment involves some kinds of capital risk. There is no guarantee

that you will make a profit. In fact, the price of your assets may fall and you may not even get back

your capital, the money you put in. Some banks call their savings accounts investment accounts,

but this is wrong. The only risk of savings accounts is that inflation will risk the value of the money

you put in them. There is no loss of losing your capital.

Text 7:

A financial institution, such as a bank, buys a loan from a investor who has already lent an amount of
money to a borrower (another person or institution). This means that the financial institution now
has the right to collect the interest on the original borrower’s loan. It then uses the expectation of
receiving these as security for a bond, which it issues to an individual or corporate securitized, 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 original 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 lender 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.

Text 8:

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 deposit 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 payments 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 mortgaged their land

to a ''fund'', against which they could write checks.

As cheques became widely accepted 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 travelling and a lot of money. The solution

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 on the other's

bank, and decided to exchange them and save each other the extra trip. The practice evolved into

a system of banking networks that exchange cheques with each other.

Text 9:

Every country has its own stock market, where people can buy and sell shares and other

securities. A stock exchange is a building where this trading takes place. Some of these are very

old – the London Stock Exchange started in the 17th century. However, a lot of share trading today

is traded by computer. This is much faster and cheaper.

They use the money to run their day-to-day business and to expand. Investors buy shares to
make money. They hope to make a profit when the share price goes up. They also get money from

dividends.

A stock market index is a way of measuring a section of a stock market. It is a list of the shares

selling in the stock market. It shows the price of these shares at the end of each trading day and

the number of shares bought and sold. Investors can look at the stock market indices in the

newspaper. They can see how well or how badly their shares are doing. Investors are usually

institutions like banks, insurance companies, mutual funds and pension funds who are investing

money of private individuals indirectly.

TEXT 10:

RAISING CAPITAL

Ruth Henly, who works in an investment bank in New York, said: ‘’Unlike commercial

1. What is the difference between commercial banks and investment banks?

Unlike commercial banks, investment banks don’t lend money.

2. How can investment banks help companies and governments raise capital?

Investment banks help companies and governments raise capital by issuing securities such as

stocks and bonds – that is, investment banks offer them for sale.

3. According to the text, what does ‘’underwrite securities’’ mean?

‘’Underwrite securities’’ means investment banks guarantee to buy the securities themselves if

they can’t find other purchasers.

4. List 3 institutional investors mentioned in the text.

Insurance companies, investment funds and pension funds.

5. What are the roles of the stockbroking department?

The stockbroking department also offers advice to investors.

Text 11

What makes money valuable? You could say there is no reason. It’s true that a special

1. According to the text, why is money valuable?

Because they are a special kind of paper is used to make dollar bills, and they are pretty.

2. What objects were used as money in ancient Greece?

Tools or cattle.
3. Where are large stone discs used as money?

On the Pacific island of Yap.

4. Why were gold and silver used as money?

Because they were easier to carry around.

5. Why did people accept paper money?

Because the government or bank issuing it would exchange an equal amount of gold for the paper.

Text 12

FIRST NATIONAL BANK

First National bank is run entirely through the telephone and the Internet. Its success

1. What is special about the operation of First National bank?

First National bank is run entirely through the telephone and the Internet.

2. What quality do they look for when recruiting a new employee?

They only recruit people who already exhibit good communication skills.

3. Why does First National Bank refuse to use scripts?

Because the managers recognize that customers find them impersonal and unnatural.

4. How can the staff establish good relationship with customers?

The member of staff has to pick up on the caller’s mood and react accordingly.

5. What does First National Bank do to offer services which meet customers’ needs?

They already offer a service in which customers receive a text when funds are received or when

their account falls below a certain level.

Text 13

The way in which a bank is organized and operates is determined by its objectives and

1. What does a bank organization and operation depend on?

A bank organization and operation depends on its objectives and by the type of economy in which

it conducts its business.

2. What are two aims of development banks?

Increase the economic growth of a country and raise the living standard of its population.

3. What are the similarities between wholesale and retail banking?

Wholesale and banking have three essential functions, including deposits, payments, and credits.
4. Why are these three functions very important for bank operation

Because they make it possible for banks to generate profits and to achieve their operating aims.

5. What are some new facilities offered by the banks?

Cheque cards, cash cards, credit cards, insurance cover, investment services.

Text 14

ONLINE SHOPPING

The Internet has expanded our choices of where and when to shop, but it also has its

1. What information of the company should we know before making the purchase?

Check carefully all the contact details of the company. Look for a street address and a telephone

number, not just an e-mail address.

2. How do customers make sure that the site is secure?

At the bottom of the site, you should see a small ‘s’ – which stands for ‘secure’ – along with a

picture of a padlock.

3. When we pay for online goods with credit cards, what should we keep?

Keep copies of the order form and the acknowledgment notice that you receive.

4. What should we do after making a purchase online?

Always check your bank statement after making a purchase and make sure that only the amount

that you paid has been deducted from your balance.

5. What is the role of ‘’consumer affairs offices’’?

Advise you if you find that you have been cheated while shopping online.

Text 15

NEW CUSTOMERS ONLY!

Banks always want to get new customers and so they make attractive offers: new

1. Why do banks make attractive offers?

Because banks always want to get new customers.

2. Where can people see the words ‘’new customers only’’ advertised by banks?

In the small print at the bottom of their advertisements.

3. How do existing customers react when they can’t get the offers?

It makes existing customers angry.

4. Why does an existing customers go to the Nationwide Building Society?

Because the Nationwide Building Society offers the special offers for all customers.

5. What is the clever business strategy?

The clever business strategy is not just to attract new customers, but to keep the ones you already

have.

Text 16

Corporate customers who want to borrow large amounts of money come to the

1. What are two things that a company needs if it wants to arrange a loan?

They have to have a good credit rating and collateral.

2. What does the shareholders’ equity show?

To see how much money has been invested in the company by selling shares.

3. What do companies use their retained earnings for?

This is the money the company uses for their business or to pay debts.

4. What does a bank find out by looking at the income statement?

This shows the bank how much the company earned and what they spent in a period of time.

5. Why is the cash flow statement important for the bank?

Because it shows if the company can pay its bills.

Text 17

Banking began in the twelfth century in Italy. Moneylenders set up benches in the

1. How did banking work in the twelfth century in Italy?

Moneylenders set up benches in the marketplace to do transactions.

2. Why did people in the UK begin to use banks?

Because they want to keep their gold and silver safe.

3. What do people generally use to pay their bills instead of cheques?

Most customers use direct debits or standing orders to pay their bills.

4. Why it is much more difficult today for bankers to get to know their customers?

Because many customers open online accounts. This means that...don’t speak with a banker at all.

5. Why do some banks hold events?

To hear about investments or other financial topics.

Text 18

Prepaid credit cards provide an alternative to all those people that need a credit card…

1. In what way are prepaid credit cards similar to debit cards?

That is an account is set up by a monetary deposit.

2. Why are prepaid credit cards better than credit cards?

Because 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.

3. What is a set-up fee used for?

To both open and maintain the prepaid credit card account.

4. Besides the set-up fee, what are some…customers have to pay for prepaid credit cards?

Customers will be required to pay taxes on your cash deposits, and you may be required to pay an

annual membership fee.

5. Why do most online merchants reject prepaid credit cards?

Because they have no guarantees that the account can completely cover payment for an online

purchase.

Text 19

LAYOFFS IN BANK OF AMERICA CORP

Bank of America Corp (BAC.N), the second-largest in the United States by assets,…

1. In what sector is the Bank of America Corp, planning to have the layoff?

Investment banking and capital markets group.

2. Why does the Bank of America Corp want to lay off their employees?

Because it struggles to reduce costs to make up for weak revenue growth.

3. What is the name of the program to reduce costs?

Project New BAC.

4. By how much will the first round of layoffs cut expenses over the next couple of years?

$5 billion.

5. When is the second phase of the program intended to end?

In May.

Text 20
For tens of millions of Americans, banks are the first choice for saving, borrowing,…

1. Why do Americans need banks?

Because banks are the first choice for saving, borrowing, and investing.

2. How do banks use community’s surplus funds to make a profit?

Lending to people to buy homes and cars, to start and expand businesses, to put their children

through college, and for countless other purposes.

3. For what purpose do OCC examiners use technology in banking?

To help ensure that the banks they supervise…world of financial services.

4. How does OCC supervise national banks and enforce federal banking laws?

It rules on new charter…and the economy.

5. What is the basic mission of OCC?

To ensure a safe, …of the United States.

IV. TRANSLATE

2. A number of American organizations… these organizations have bad credit history.

Một số tổ chức Hoa Kỳ vay các khoản thế chấp từ những người cho vay dưới chuẩn có rủi ro vì

những tổ chức này có lịch sử tín dụng xấu.

10. A major bank has been rescued…losing billions of euros on speculative investments.

Một ngân hàng lớn đã được chính phủ giải cứu sau khi mất hàng tỷ euro vì các khoản đầu cơ.

12. As soon as their business becomes...seek the protection with the insolvency procedure.

Ngay khi doanh nghiệp của họ bị vỡ nợ, các giám đốc cần nhanh chóng hành động để tìm kiếm sự

bảo hộ với thủ tục phá sản.

3. ‘’A profit and loss statement’’ shows the company’s…expenses and profits or losses.

"Báo cáo lãi và lỗ" cho biết thu nhập, chi phí và lãi hoặc lỗ của công ty.

4. A balance sheet lists the company’s assets liabilities and its capital.

Bảng cân đối kế toán liệt kê các khoản nợ tài sản và vốn của công ty.

6. A cash flow looks at three components by…: core operations, investing and financing.

Dòng tiền xem xét ba thành phần mà tiền mặt đi vào và rời khỏi một công ty: hoạt động cốt lõi,

đầu tư và tài trợ.

8. After an investigation, their dealings were found to be fraudulent.

Sau một cuộc điều tra, giao dịch của họ bị phát hiện là gian lận.

10. A licensed insolvency practitioner can help the…follow the most suitable procedure.

Một người hành nghề phá sản được cấp phép có thể giúp các giám đốc công ty thực hiện theo quy

trình phù hợp nhất.

3. Bonds are saleable instruments that can be traded on the secondary bond market.

Trái phiếu là công cụ có thể bán được và có thể giao dịch trên thị trường trái phiếu thứ cấp.

4. Bondholders get back their principal on a fixed…and receive coupon at regular intervals.

Trái chủ nhận lại tiền gốc của họ vào một ngày đáo hạn cố định, và nhận trái tức theo định kỳ.

3. British company dividends...choose to use the money to buy more shares in the company.

Cổ tức của công ty Anh thường được trả hai lần một năm và các cổ đông có thể nhận tiền mặt hoặc

chọn sử dụng tiền để mua thêm cổ phiếu trong công ty.

4. Commercial banks give financial…stocks or bonds, and arrange mergers and takeover.

Các ngân hàng thương mại tư vấn tài chính, huy động vốn bằng cách phát hành cổ phiếu hoặc trái

phiếu, sắp xếp việc sáp nhập và tiếp quản.

5. Commercial banks generally offer stockbroking…services to corporate and rich clients.

Các ngân hàng thương mại thường cung cấp các dịch vụ môi giới chứng khoán và quản lý danh

mục đầu tư cho các khách hàng doanh nghiệp và người giàu.

7. Corporate credit-rating agencies assess the creditworthiness of bonds and bond issuers.

Tổ chức xếp hạng tín nhiệm doanh nghiệp đánh giá mức độ tín nhiệm của trái phiếu và tổ chức

phát hành trái phiếu.

1. Companies finance most of their activities by way of internally generated cash flows.

Các công ty tài trợ hầu hết các hoạt động của họ bằng các dòng tiền được tạo ra từ nội bộ.

5. Corporate financiers are viewing China as one of the next big investment opportunities.

Các nhà tài chính doanh nghiệp đang xem Trung Quốc là một trong những cơ hội đầu tư lớn tiếp

theo.

6. China has tried to control its manufacturing costs through outbound acquisition.
Trung Quốc đã cố gắng kiểm soát chi phí sản xuất của mình thông qua việc mua lại bên ngoài.

12. During the housing crisis, many banks in the USA…others had to be rescued by governments.

Trong cuộc khủng hoảng nhà ở, nhiều ngân hàng ở Mỹ phá sản, và những ngân hàng khác phải

được chính phủ giải cứu.

14. Every company in a portfolio…because the winners will eventually have to cover the losers.

Mọi công ty trong danh mục đầu tư đều cần phải mang lại lợi nhuận tiềm năng cao, bởi vì những

người chiến thắng cuối cùng sẽ phải bù đắp cho những người thua cuộc.

14. Entrepreneurs can attract investors…the risk factors, and to present a persuasive business plan.

Các doanh nhân có thể thu hút các nhà đầu tư bằng cách chứng minh rằng họ hiểu các yếu tố rủi

ro và trình bày một kế hoạch kinh doanh thuyết phục.

9. Finally, the directors were subject to severe remedies and they went to prison.

Cuối cùng, các giám đốc phải chịu những biện pháp khắc phục nghiêm khắc và họ phải vào tù.

6. Hedge funds use a variety of risky investing strategies in order to achieve high returns.

Các quỹ phòng hộ sử dụng nhiều chiến lược đầu tư rủi ro khác nhau để đạt được lợi nhuận cao.

13. He must show at all times that he is acting in the best…the company’s existing creditors.

Ông ta luôn phải thể hiện rằng ông ta đang hành động vì lợi ích tốt nhất của tất cả các chủ nợ hiện

có của công ty.

9. Islamic banks do not pay interest to depositors, but…the profits or losses with their depositors.

Các ngân hàng Hồi giáo không trả lãi cho người gửi tiền, nhưng đầu tư vào các công ty và chia sẻ

lợi nhuận hoặc thua lỗ với người gửi tiền của họ.

1. Investment means using money to…a profit by selling that asset at a higher price in the future.

Đầu tư có nghĩa là dùng tiền để mua một tài sản với mục đích kiếm lời bằng cách bán tài sản đó

với giá cao hơn trong tương lai.

5. If a bondholder wants to sell his bonds…are sold on the secondary market.

Nếu một trái chủ muốn bán trái phiếu của mình trước khi đáo hạn, trái phiếu sẽ được bán trên thị

trường thứ cấp.

8. Investors use the information of corporate...agencies to assess the potential return on investment.

Nhà đầu tư sử dụng thông tin của các tổ chức xếp hạng tín nhiệm doanh nghiệp để đánh giá tỷ suất

tiềm năng hoàn vốn đầu tư.

11. In case of insolvency, the interests of the company’s creditors must become a priority.

Trong trường hợp mất khả năng thanh toán, quyền lợi của các chủ nợ của công ty phải được ưu

tiên.

2. In Britain, shares of public limited company are…with a minimum share capital of £50,000.

Ở Anh, cổ phiếu của công ty trách nhiệm hữu hạn đại chúng được giao dịch tự do với vốn cổ phần

tối thiểu là 50.000 bảng Anh.

4. If a company needs to raise money to expand their, can either issue new shares or borrow money.

Nếu một công ty cần huy động tiền để mở rộng hoạt động, họ có thể phát hành cổ phiếu mới hoặc

vay tiền.

6. It is easier for potential investors to make…about a business which is already running.

Các nhà đầu tư tiềm năng sẽ dễ dàng đưa ra quyết định đầu tư hơn vào một doanh nghiệp đang

hoạt động.

7. Investors in start-up companies will not invest…, however profitable they might potentially be.

Các nhà đầu tư vào các công ty mới thành lập sẽ không đầu tư vào các dự án mạo hiểm, cho dù họ

có thể có khả năng sinh lợi đến đâu.

9. In 2007, the US government listed …as nationally recognized statistical rating organisations.

Năm 2007, chính phủ Hoa Kỳ đã liệt kê bảy tổ chức xếp hạng tín nhiệm là các tổ chức xếp hạng

thống kê được công nhận trên toàn quốc.

5. If your assets include research and development…difficult to put a value on those things.

Nếu nội dung của bạn bao gồm nghiên cứu và phát triển, thì rất khó để đặt giá trị cho những thứ

đó.

7. It was discovered that some important items in their …not been written down in the minutes.

Người ta phát hiện ra rằng một số mục quan trọng trong cuộc họp của họ đã không được ghi vào

biên bản.
9. I am worried about my responsibilities and my…liabilities if the business becomes insolvent.

Tôi lo lắng về trách nhiệm của mình và các nghĩa vụ tài chính của mình nếu doanh nghiệp mất khả

năng thanh toán.

12. I want them to make sure that they…supplies or lines of credit that the company cannot repay.

Tôi muốn họ đảm bảo rằng họ không tiếp nhận nguồn cung cấp mới hoặc hạn mức tín dụng mà

công ty không thể hoàn trả.

2. In 2008, the UK experienced a credit crunch…found it more difficult to get a loan from a bank.

Vào năm 2008, Vương quốc Anh đã trải qua một cuộc khủng hoảng tín dụng khi mọi người cảm

thấy khó khăn hơn trong việc vay vốn từ ngân hàng.

8. Nowadays, large banks became international…a complete range of financial services.

Ngày nay, các ngân hàng lớn đã trở thành những tập đoàn quốc tế cung cấp đầy đủ các dịch vụ tài

chính.

15. Penalties for insolvency may include disqualification…director or even imprisonment.

Hình phạt cho việc mất khả năng thanh toán có thể bao gồm việc không đủ tư cách làm giám đốc

công ty hoặc thậm chí bị phạt tù.

1. Porsche had been making a larger profit out of option trading than it has out of selling cars.

Porsche đã kiếm được lợi nhuận lớn hơn từ giao dịch quyền chọn so với việc bán ô tô.

3. Retail banks receive deposits from, and make loans to, individuals and small companies.

Các ngân hàng bán lẻ nhận tiền gửi và cho vay các cá nhân và công ty nhỏ.

10. Some food retailers and department stores…like personal loans, credit cards and insurance.

Một số nhà bán lẻ thực phẩm và cửa hàng bách hóa hiện cung cấp các sản phẩm như khoản vay cá

nhân, thẻ tín dụng và bảo hiểm.

2. The company stopped trading, and its assets were sold to pay off its creditors.
Công ty ngừng giao dịch và tài sản của nó đã được bán để trả nợ cho các chủ nợ.

7. There were regulations in the US, Britain and Japan…banks from doing investment businesses.

Ở Mỹ, Anh và Nhật Bản đã có những quy định ngăn cản các ngân hàng thương mại kinh doanh

đầu tư.

11. The subprime borrowers are those with poor credit ratings and a high risk of default.

Những người đi vay dưới chuẩn là những người có xếp hạng tín dụng kém và có nguy cơ vỡ nợ

cao.

15. The Central bank suffered from criticism…of the US subprime mortgage lending crisis.

Ngân hàng Trung ương hứng chịu nhiều chỉ trích vì không lường trước được hậu quả của cuộc

khủng hoảng cho vay thế chấp dưới chuẩn của Mỹ.

9. These credit-rating agencies were complained because…the issuers whose securities they rated.

Các tổ chức xếp hạng tín nhiệm này đã bị khiếu nại vì họ thu được một khoản phí từ các tổ chức

phát hành có chứng khoán mà họ xếp hạng.

14. They need to take independent professional advice…or licensed insolvency practitioner.

Họ cần phải có lời khuyên chuyên môn độc lập từ một chuyên gia hoặc nhân viên hành nghề phá

sản có cấp phép.

8. The success of a start-up depends on how…takes into account the needs of a potential investor.

Sự thành công của một công ty khởi nghiệp phụ thuộc vào việc kế hoạch kinh doanh của một

doanh nhân có tính đến nhu cầu của một nhà đầu tư tiềm năng tốt như thế nào.

10. The market watchdogs started questioning the roles…in the subprime mortgage crisis.

Các cơ quan giám sát thị trường bắt đầu đặt câu hỏi về vai trò của các cơ quan xếp hạng trong cuộc

khủng hoảng thế chấp dưới chuẩn.

11. The rating agencies said that their job…of a company defaulting on its debt repayments.

Các tổ chức xếp hạng cho biết công việc của họ là đưa ra ý kiến về xác suất một công ty không trả

được nợ.

12. The rating agencies said that their ratings…the role reason for an investment decision.

Các cơ quan xếp hạng cho rằng xếp hạng của họ không bao giờ được sử dụng làm lý do cho một

quyết định đầu tư.

13. This accountant has recently warned…is unlikely to be able to survive much longer.
Người kế toán này gần đây đã cảnh báo tôi rằng công việc kinh doanh của anh ta khó có thể tồn

tại lâu hơn nữa.

14. The directors need to act…, because the penalties for doing this can be severe.

Các giám đốc cần phải hành động cẩn thận để tránh việc kinh doanh buôn bán mất khả năng thanh

toán, bởi vì hình phạt cho việc này có thể rất nặng.

2. The cash flow statement is important for finding out if the company can pay its bills.

Báo cáo lưu chuyển tiền tệ rất quan trọng để tìm hiểu xem công ty có thể thanh toán các hóa đơn

của mình hay không.

8. They had entered false items into their order..business look more successful than it actually was.

Họ đã nhập sai các mặt hàng vào sổ đặt hàng để làm cho công việc kinh doanh của họ trông thành

công hơn thực tế.

10. The directors have to know latest transactions…based on the company’s latest order book.

Các giám đốc phải biết các giao dịch, tài khoản quản lý và dự báo mới nhất dựa trên sổ đặt hàng

mới nhất của công ty.

13. The CEOs should hold regular meetings…discussions and the key decisions they make.

Các CEO nên tổ chức các cuộc họp thường xuyên và lưu giữ biên bản các cuộc thảo luận và các

quyết định quan trọng mà họ đưa ra.

3. This company had adopted a very aggressive…very vulnerable when the credit crunch hit.

Công ty này đã áp dụng một mô hình tài trợ rất tích cực khiến nó rất dễ bị tổn thương khi cuộc

khủng hoảng tín dụng xảy ra.

4. This bank had relied too heavily on wholesale funding and not enough on retail deposits.

Ngân hàng này đã phụ thuộc quá nhiều vào nguồn vốn bán buôn và không đủ tiền gửi bán lẻ.

1. When a company cannot pay its creditors, it is called ‘’insolvency’’.

Khi một công ty không thể thanh toán cho các chủ nợ của mình, nó được gọi là ‘’ mất khả năng

thanh toán ’’.

13. We think that company looks particularly…it claims a very high internal rate of return.

Chúng tôi nghĩ rằng công ty đó có vẻ đặc biệt hứa hẹn vì nó tuyên bố tỷ lệ hoàn vốn nội bộ rất cao.

6. When buying or selling a bond through a brokerage firm..investor will be charged a commission.
Khi mua hoặc bán một trái phiếu thông qua một công ty môi giới, một nhà đầu tư cá nhân sẽ phải

trả tiền hoa hồng.

1. When looking at the income statement…of our company is higher this year than last year.

Khi nhìn vào báo cáo kết quả hoạt động kinh doanh, chúng ta có thể thấy tỷ suất lợi nhuận ròng

của công ty năm nay cao hơn năm ngoái.

11. We need to ensure that the assets of the …and not sold for less than their real value.

Chúng tôi cần đảm bảo rằng tài sản của công ty luôn được bảo vệ và không được bán với giá thấp

hơn giá trị thực của chúng.

15. We expect to see their sales hit the fast-growth curve very soon.

Chúng tôi kỳ vọng rằng doanh số bán hàng của họ sẽ sớm đạt được đường cong tăng trưởng nhanh.

5. What was first believed to be a short credit crunch had turned into a more serious recession.

Điều đầu tiên được cho là một cuộc khủng hoảng tín dụng ngắn hạn đã chuyển sang một cuộc suy

thoái nghiêm trọng hơn.

7. When economic conditions become difficult… can experience a sharp downturn in trading.

Khi điều kiện kinh tế trở nên khó khăn, các doanh nghiệp có thể bị suy thoái mạnh trong hoạt động

kinh doanh.

V. COMPLETE

4. All banking services nowadays are diverse and meet the needs of customers.

2. As a bank teller, you should be welcoming and help customers when making transactions.

8. As a CEO, you should take care of your staffs to boost their morale.

11. A start-up company needs to have a good business strategy to make a profit

5. Although the director tried his best to protect the company, the company was still in default and

will soon go bankrupt.

8. After I had invested all his money into the stock market, I made a profit to pay the expenses.

VI. VOCABULARY

CHAPTER 1

1. Money in notes and coins is called cash

2. The dollar, yuan and yen are all currencies

3. Money borrowed from a bank is a loan

4. Money paid by the government or a company to a retired person is a pension

5. The money needed to start a company is called capital

6. Mortgage is a debt instrument or legal agreement to borrow money from a bank, especially to

7. The borrowers who have low credit ratings or can default on a loan are called subprime

8. If you have an overdraft, it means you have spent more money than you have in your bank

9. Bonds mean the certificates of debt issued by governments or companies to raise money

10. Credit rating refers to a calculation of the ability of a person, business, or government to pay

CHAPTER 2

1. When the bond is mature, you can change it for money

2. Companies finance most of their activities by way of internally generated cash flows

3. If a company needs to raise more money to expand their operations, they can either issue new

4. The original investment that bondholders get is also called as principal

5. Bondholders receive interest payments at regular intervals

6. When a limited company become insolvent, it is likely to go into liquidation

7. The money a lender receives from a loan or an investment is expressed as its returns or yield

8. If your business fails, the bank will be the first in a long line of creditors to get their money back

9. Companies deduct their interest payments from their profits before paying tax

10. If tax revenue is insufficient, government also..these are considered to be a risk-free investment

11. In Britain, government bonds are also known as gilts

12. In the UK, Treasury bonds have a maturity of ten to 30 years

13. Bonds are saleable instruments that can be traded on the secondary bond market

14. Banks and brokerage companies sell bid and offer prices for bonds with a very small difference

15. The yield of a bond refers to how much income it gives

CHAPTER 3

1. Two key principles of the economy are supply and demand

2. To sell its shares to the general public, a company must be listed on the stock exchange

3. The stock market usually begins to increase before an economic recession

4. The Sensex index of the Bombay Stock Exchange plummeted on Monday on fears of a recession
5. Visa shot up yesterday on the NYSE on its first trading day, rising as high as $69 a share

6. The Footsie revived a little in London in the afternoon, gaining 30 points in late trading

7. Share prices recovered in Hong Kong today, the Hang Seng finishing up ten points

8. On the São Paulo exchange, the Bovespa Index advanced a little, up 12 points

9. Shares are certificates representing part ownership of the company

10. ‘’Going public’’ means offering stocks for sale to financial institutions and the general public

11. Companies use an investment bank to underwrite the stock issue, which means to guarantee to

12. Shares can be traded at the stock exchange on which the company is quoted

13. A period during which most stocks (and the stock index) are rising is called a bull market

14. Stock markets are measured by stock indexes

15. Stocks and shares are also known as equity

16. On the stock market, you can buy bonds which are loans to a company or government

CHAPTER 4

1. Things in a company which are worth money are called assets

2. Look at the assets and liabilities on the balance sheet if you want to know how the company’s

3. Possessions of a company for long-term use (e.g. buildings) are called fixed assets

4. Money which a company sets aside to cover bad debts is listed in the balance sheet as deductions

5. The things a company owes are called its liabilities

6. Amortisation is the gradual decrease in value of an intangible asset

7. Operating cost is the amount of money spent to produce and sell a product

8. Finished or partially finished goods owned by a company is called inventory

9. The cashflow statement shows if the company generates cash or not

10. Rent makes up the fixed costs of a company

11. The name and logo on a product constitute its brand

12. Income statement is a statement showing the difference between the revenues and expenses of

13. Balance sheet a statement showing the value of a business’s assets, its liabilities, and its capital

14. Management accounting provides information that will allow a business to make decisions,

15. Our company’s expenses are much higher than its profits so it will make a loss this year

Word form:
1. If the borrower doesn’t repay the mortgage, the bank will repossess the house or flat. (POSSESS)
2. Nearly all customers have a debit card allowing them to make withdrawals and make other
transactions at cash dispensers. (WITHDRAW)
3. There is less risk for a bank with a mortgage than with unsecured loans without collateral.
(SECURE)
4. Banks have to find a balance between liquidity and different maturities. (LIQUID)
5. Banks have more complicated risk assessment methods for corporate customers. (ASSESS)
6. 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)
7. Large investment banks have extensive research departments with analysts and forecasters.
(ANALYSE)
8. If one bank goes bankrupt, it can quickly affect the stability of the whole financial system.
(STABLE)
9. In most countries, the central bank prints and issues currency- putting banknotes into
circulation. (CIRCLE)
10. The rate that borrowers pay depends on their creditworthiness, also known as credit standing.
(CREDITWORTHY)
11. Through the money markets, borrowers can find short-term liquidity by turning assets into cash.
(BORROW)
12. A purchase agreement (or repo) is a combination of two transactions. (PURCHASE)
13. Another possibility is for an Islamic bank to lend money without interest but to cover its
expenses with a service charge. (POSSIBLE)
14. Investors can make short-term deposits with investment companies at competitive interest
rates. (COMPETE)
15. This form of financing is similar to that of venture capitalists who buy the shares of new
companies. (CAPITAL)
16. Savings accounts in Islamic banks can pay a return to depositors, depending on the bank’s profit.
(PROFIT)
17. Investment accounts are fixed- term deposits which cannot be withdrawn before maturity.
(MATURE)
18. Monetarists and economists are those who argue that if you control the money supply, you can
control inflation. (ECONOMY)
19. Monetarism is the theory that the level of prices is determined by monetary growth. (MONEY)
20. I’m going to get all of my qualifications in September and then I will have lots of options.
(QUALIFY)
21. At our foreign exchange counter, the cashiers sell foreign currencies to customers who want to
go abroad. (CASH)
22. Most banks have an annual appraisal system and give salary increases according to
performance. (APPRAISE)
23. I don’t like inefficient service. Banking transactions need to be easier and faster. (EFFICIENCY)
24. A lot more money is exchanged for buying or selling goods than for speculating. (SPECULATE)
25. Spreading risk by including many different types of investments in a portfolio is called
diversification. (DIVERSIFY)
26. We offer first- class qualifications to people who are looking for rewarding careers in accounting,
finance and management. (ACCOUNT)
27. Accountants produce financial statements every quarter (every three months). (QUARTER)
28. The boss won’t be satisfied if we just tell her our analysis of the figures. (ANALYSE)
29. The advising bank authenticates the letter of credit and sends the beneficiary the details.
(ADVICE)
30. A provincial savings bank has bad debts of $300 million. (PROVINCE)
31. The Bank supervises the clearing system. (CLEAR)

32. Venture capitalists like ourselves expect entrepreneurs to provide us with a business plan.
(CAPITAL)

33. Banks are risk-averse, so they are unwilling to lend to new companies. (WILL)

34. Some companies also have preferred shares whose holders receive fixed dividend. (PREFER)

35. The company makes a _ float ___ or IPO (Initial Public Offering). (FLOAT)

36. Companies can choose to __ capitalize___ part of their profit or retained earnings. (CAPITAL)

37. More than two-thirds of all blue chips in industrialized countries are owned by _
institutional____ investors. (INSTITUTION)

38. When an investor buys shares on the __ secondary ___ market, they are either cum div or ex div.
(SECOND)

39. __Analysts___ distinguish between systematic and unsystematic risk. (ANALYZE)

40. By analyzing a company, you can determine its real value. This sometimes allows you to make a
profit by buying _ underpriced shares. (PRICE)

41. Bonds with a low credit rating, but paying high interest, __ are called___ junk bonds. (CALL)

42. Bonds are traded by banks, acting as market makers for their customers, __ quoting___ bid and
offer prices with a very small spread or difference between them. (QUOTE)

43. Futures were invented to enable regular buyers and sellers of commodities _ to protect ____
themselves against losses. (PROTECT)

44. Stock index futures are alternatives to _ buying__ the stocks or shares themselves. (BUY)

45. Unlike call options, which last three, six or nine months, warrants have long _ maturities__ of up
to ten years. (MATURE)

46. Swaps are arranged between institutions to exchange interest rates or currencies. (ARRANGE)

47. Some asset managers choose an active strategy- buying and selling frequently, adapting the
portfolio to _ changing__ marketing circumstances. (CHANGE)

48. The portfolio’s objectives determine the returns expected or needed, and the _ acceptable __
level of risk. (ACCEPT)
49. The value of index-linked funds _ changes _ frequently if the whole market is volatile. (CHANGE)

50. Despite their name, hedge funds do not __ necessarily___ use hedging techniques. (NEED)

51. The most widely used structured products can be classified into four broad categories. (WIDE)

52. Horizontal integration is when a company gets _ bigger_ by acquiring competitors in the same
field of activity. (BIG)

53. A raid is when a company buys as many shares as possible on the stock market, hoping to gain a
__ majority___. (MAJOR)

54. If the buyout is _ financed_ by issuing preference shares and convertibles, this is called
mezzanine financing, half way between debt and equity. (FINANCE)

55. A(n) _ inefficient____ conglomerate’s stock market value can be less than the sale value of all its
assets. (EFFICIENCY)

56. There’s nearly always inflation, so cash will have lower _ purchasing_ power in the future.
(PURCHASE)

57. If a project seems to be particularly risky or _ uncertain__, you can increase the discount rate
you use in your calculations. (CERTAIN)

58. She is the compliance officer at a large US bank with _ subsidiaries__ in major financial centres.
(SUBSIDY)

59. I have to make sure no one does any insider trading/ dealing- buying and selling securities when
they have confidential _ information__ about them. (INFORM)

60. The Fed tries to prevent __ fraudulent___ or illegal practices in the securities markets. (FRAUD)

61. Fed says Chinese walls are not functioning in investment banks: _ suspicious__ trading is
increasing. (SUSPECT)

62. The World Trade Organization (WTO) tries to encourage free trade and reduce protectionism.
(PROTECT)

63. Trade in goods is sometimes called visible trade, while services such as banking, insurance and
tourism are called __ invisible___ imports and exports. (VISION)

64. There are an increasing number of free trade areas, _ without_ any import tariffs, in Europe,
Asia, Africa and the Americas. (WITH)

65. Since the early 1970s, there _ has been_ a system of floating exchange rates in most Western
countries. (BE)

66. Purchasing Power Parity means the cost of a given __selection_ of goods and services would be
the same in different countries. (SELECT)

67. Chinese experts say the speculators betting on _ revaluation_ are threatening the economy.
(REVALUE)
68. What _ has happened _ to the value of your currency in the past few years? (HAPPEN)

69. If a bill _ is endorsed_ by a well-known bank, the exporter can sell it at a discount in the financial
markets. (ENDORSE)

70. Payment for imported products is usually by _ documentary__ credit, also called a letter of
credit. (DOCUMENT)

71. Exporters can get __ paid___ sooner if a bill of exchange is accepted by a bank. (PAY)

72. Companies exporting or importing goods use standard arrangements called Incoterms.
(ARRANGE)

73. If property is stolen or damaged, the person/ company who is insured _ can make _ a claim from
the insurer. (MAKE)

74. Central banks can use monetary policy to influence the level of economic activity. (MONEY)

75. If the economy keeps _ contracting____ for more than six months, the downsizing is called a
recession. (CONTRACT)

76. For people who want to regularly deposit and withdraw money, we suggest _ opening____ a
current account with us. (OPEN)