Unit 1: economic 1

Unit 3: microeconomics 2
Unit 4: macroeconomics 2
Unit 5: Demand and supply 3
Unit 6: Public finance 4
Unit 7: Fiscal Policy 4
Unit 8: Taxation 5
Unit 12: monetary policy 6
Unit 14: The foreign exchange market 6
B----- MAKE UP COMPLETE SENTENCES 7
Unit 1: economic 7
Unit 2: economic systems 8
Unit 3: Microeconomic 9
Unit 4: Macroeconomic (Kt học vĩ mô) 10
Unit 5: Demand and Supply 11
Unit 6: Public finance 13
UNIT 7: FISCAL POLICY 14
UNIT 8: TAXATION 15
Unit 10: insurance 16
UNIT 12: MONETARY POLICY 17
Unit 14: The foreign exchange market 18

Unit 1: economic
1. What does economics study?
Economics is the study of how people choose to use resources. Resources are limited
but human wants are unlimited. Therefore, people must make important choices to
improve their well-being. Economics is also the study of production and
consumption of goods and the transfer of wealth to produce and obtain these goods
2. What are some main ideas of Adam Smith's theory?
In his theory, Adam Smith believed that people who acted in self-interest produced
goods and wealth that benefited all of society. In addition, he theorized that
government shouldn’t restrict and interfere in markets because the markets could
regulate themselves
3. What are some main ideas of Mark's theory ?
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 In his theory, Karl Mark believed that labor exploitation by factory owners and
CEOs leads to social unrest and class conflict. To ensure social and economic
stability, he theorized that labors should own and control means of production
4. What are some main ideas of Keynes' theory?
Keynes’s theory describes how governments can act within capitalistic economies
to promote economic stability. The government can reduce taxes or increase
government spending when the economy becomes stagnant. On the other hand, the
government can increase taxes or reduce government spending when the economy
is overly active. In addition, this theory strongly influences US economic policy
today

Unit 3: microeconomics
1. What does microeconomics study?
Microeconomics is a branch of economics that deals with how consumers and firms
behave while making decisions on the allocation of scarce resources. Three
important themes of microeconomics are making optimal trade offs by consumers,
workers and firms, the role of price on trade-offs, the central role of market
2. What are trade-offs made by consumers?
Consumers have limited incomes so they must make some trade-offs. They trade-
off purchase of more of some goods with purchase of less of others. They also trade
off current consumption for future consumption
3. What are trade-offs made by workers?
Workers face the limit of hours in a week so they must make some trade-offs.
Firstly, they trade off working now with continued education. Secondly, they trade
off the choice of employment: working for large corporations or small companies.
Lastly, they trade off labor or leisure
4. What are trade-offs made by firms?
Firms face limited budgets and technical knowledge so they must make some trade-
offs. They trade off producing some certain kinds of products instead of the others.
In addition, companies want to produce more, they trade off hiring more workers,
building new factories, or buying more machines

Unit 4: macroeconomics
1. What does macroeconomics study?
Macroeconomics is a branch of economics that studies economic activity of an
entire country and economy-wide phenomena. It looks at overall economic trends
such as employment levels, economic growth, balance of payment, inflation and so
on. Therefore it provides people with bird’s eye view of country’ economic
landscape
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2. What are the differences between microeconomics and macroeconomics?
There are some differences between microeconomics and macroeconomics. Firstly,
microeconomics studies individual and business decisions while macroeconomics
looks at higher up country and government decisions. Secondly, microeconomics
focuses on supply and demand and other forces that determine the price. On the
other hand, macroeconomics centers on economy-wide phenomena such as GDP,
national income, inflation, etc. lastly, microeconomics takes a bottom-up approach
while macroeconomics takes a top-down approach
3. What are 2 branches of economics? What do they study?
Two branches of economics are microeconomics and macroeconomics.
Microeconomics studies the action of individuals and industries. Macroeconomics
studies the economic activity of an entire country and economy wide phenomena

Unit 5: Demand and supply

1. How do prices of a good influence its quantity demanded and quantity
supplied?
If the price of a good increases, the quantity demanded will decrease and the
quantity supplied will increase. On the other hand, if the price of a good decreases,
the quantity demanded will increase and the quantity supplied will decrease
2. What are shifts – factors of demand? Analyzing one of the shift –
factors?
Shift-factors of demand are society’s income, price of other goods, expectations
and tastes. For example, if society’s income is higher, people are willing and able
to buy more at various prices. Therefore, demand is increasing and the demand
curve will shift to the right. On the other hand, if society’s income is lower, people
are willing and able to buy less at various time so demand is decrease and the
demand curve will shift to the left
3. What are shift-factors of supply? Analyzing one of the shift – factors?
Shift-factors of supply are prices of inputs, technology, taxes and supplier’s
expectation. For example, if prices of inputs are higher, producers are willing and
able to produce less at various prices. Therefore, supply will decrease and the
supply curve will shift to the left. On the other hand, if prices of inputs are lower,
producers are willing and able to produce more at various prices. So supply will
increase and the supply curve will shift to the right
4. What is the difference between demand and quantity demanded?
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 Demand refers to all the possible quantities of goods and services that buyers are
willing and able to buy at various prices while quantity demanded refers to the
particular quantities that buyers are willing and able to buy at a certain price. In
addition, demand is influenced by shift-factors whereas quantity demanded is
influenced by the price
5. What is the difference between supply and quantity supplied?
Supply refers to all of the possible quantities of goods and services that sellers are
willing and able to sell at various prices while quantity supplied refers to the
particular quantities that sellers are willing and able to sell at a certain price. In
addition, supply is influenced by shift-factors whereas quantity supplied is
influenced by the price
Unit 6: Public finance
1. What are two types of funds from taxation?
Two types of funds from taxation are federal funds and trust funds. Federal funds
are general revenues which include income taxes and corporate taxes and they can
be used to finance the government in general. On the other hand, trust funds which
include payroll taxes can be used only to pay for specific programs such as Social
Security and Medicare
2. What is federal debt / public debt?
Federal debt is the sum of the debt held by the public plus debt held by a federal
account. In detail, debt held by the public is the total amount the government owes
to all of its creditors in the general public. Debt held by federal account is the
amount of money that treasury has borrowed from itself
3. What are the main sources of government revenue
Main sources of government revenue are from taxation and borrowing.
Government revenue comes from many different kinds of taxes. Among them,
three main sources are individual income taxes, payroll taxes, and corporate income
taxes. In addition, government revenue comes from borrowing. Borrowing is
mainly achieved through issuing bonds

Unit 7: Fiscal Policy

1. In what way (how) do government spending and taxation affect the economy?
Government spending and taxation directly affect the overall performance of the
economy. For example, if the government increases spending to build new
highways, the construction of the highway will create jobs. Jobs create income that
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 people spend on purchases, and the economy tends to grow. On the other hand, if
government increases taxes, households and business have less of their income to
spend, they purchase fewer goods, the economy tends to shrink
2. What is deficit spending? How is deficit spending helpful for the economy?
+ the government can undertake projects that use workers who would otherwise be
idle. The economy can then expand because more money is being pumped into it
3. What is deficit spending? How is deficit spending harmful for the economy?
Deficit spending is spending obtained by borrowing and printing instead of
taxation. Deficit spending can be harmful for the economy when unemployment is
low. For example, when unemployment is low, a deficit spending may result in
rising prices or inflation. The additional government spending creates more
competitions for scarce workers and resources and this inflates wages and prices
4. What is contractionary fiscal policy?
Fiscal policy is contractionary when taxation is increased or public spending is
reduced. Contractionary fiscal policy might occur when the economy is growing
too fast or inflation is too high. Contractionary fiscal policy is used to restrict
demand, control inflation and slow down the economy
5. What factors should be considered in making decisions on fiscal policy?
Factors considered in making decisions on fiscal policy are inside factors and
outside factors. Inside factors consist of the level of economic growth or
unemployment likely in the future, whether or not to run a budget deficit and
political considerations. Outside factors include fiscal policy of other countries and
the requirement of IMF

Unit 8: Taxation
1. What are the functions of taxation?
The primary function of taxation is to raise revenue to finance government
expenditure. Taxation also has other functions. Indirect excise duties can be
designed to dissuade people from consuming some kind of products. Taxation is
also used by government to encourage capital investment
2 What are ways to avoid tax on salaries? (=how do people avoid tax on
salaries?)
People avoid tax on salaries in some ways. Some employers give highly-paid
employees instead of taxable money to reduce income tax liability. Individuals can

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 postpone the payment of tax through life insurance policies, pension plans and
other investments. Donations and charities that can be subtracted from income on
which tax if calculated
2. What are ways to avoid tax on profits? (=how do companies avoid tax on
profits?)
Companies have a variety of ways of avoiding tax on profit. They can bring
forward expenditure capital so that at the end of the year all the profits have been
used up, which is known as a tax loss. Multinational companies often set up their
offices in countries where tax is low. Some criminal organizations tend to pass
money through a series of companies in very complicated transactions to disguise
its origin from tax inspectors and police
3. What are ways to evade tax? (= how do people evade tax?)
People have some ways to evade tax. Self-employed people whose income is more
difficult than that of a company undeclare their income. Lots of people also
undeclare their part-time evening jobs with small and medium-sized family firms
Unit 12: monetary policy
1. What are three tools of monetary policy?
three tools of monetary policy are the reserve requirement, the discount rate and
open market operations. The reserve requirement is the percentage the FED sets as
the minimum amount of reserves the bank must have. The discount rate is the rate
of interest the Fed charges for those loans. Open market operations are the fed’s
buying and selling government securities
2. What is expansionary monetary policy?
Monetary policy is expansionary when the money supply is increased.
Expansionary monetary policy might occur when the economy is slowing down.
Expansionary monetary policy is used to increase the money supply by lowering
the reserve requirement, dropping discount rate or buying more bonds
3. What is restrictive monetary policy?
Monetary policy is restrictive when the money supply is decreased. Restrictive
monetary policy might occur when the economy is overheating. Restrictive
monetary policy is used to decrease the money supply by raising the reserve
requirement, increasing discount rate or selling bonds
Unit 14: The foreign exchange market
1. What is the concept and the functions of the Forex market ?
The forex market is the market in which national currencies are exchanged. The
foreign exchange market is an over-the-counter market, the primary
communication instruments being the telephone and the computer. The foreign
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 exchange market enables banks and international corporations to trade foreign
currencies in large amounts. The foreign exchange market trades 24 hours a day
2. What are participants in the Forex market?
Participants in the Forex market include customers (multinational corporations),
market makers (banks), dealers (other banks and corporations) and brokers
(specialist companies). Customers require foreign currencies for cross border trade
or investment business. Market makers quote buying and selling rate for currencies.
Dealers buy and sell foreign currencies on their own accounts. Brokers act as
intermediaries between banks. They contact the banks throughout the world to find
the best dealing rate.

B----- MAKE UP COMPLETE SENTENCES

Unit 1: economic
1. Economics /the study / how / people / choose /use /resources / improve/ well-being.
Economics is the study of how people choose to use resources to improve their well-
being.
2. Microeconomics / focus / actions / individuals / industries / like/ dynamics / between/
buyers /sellers.
Microeconomics focuses on the actions of individuals and industries, like the dynamics
between buyers and sellers.
3. Macroeconomics /take /a much broader view / analyzing / economic activity / an entire
country.
Macroeconomics takes a much broader view by analyzing the economic activity of an
entire country
4. Adam Smith / believe / that/ people / acted / their own self-interest / produced / goods
and wealth / benefited / all of society.
=> Adam Smith believed that people who acted in their own self-interest to produced
goods and wealth that benefited all of society.
5. He / believed / governments / should not /restrict / interfere /markets.
He believed that governments should not restrict or interfere in markets.

6. ensure / social and economic stability /Karl Marx / theorized / laborers should/
own/control /means/ production.
To ensure social and economic stability, Karl Marx theorized that laborers should own
and control the means of productions.
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 7. The Keynesian School / describe / how /governments / can / act / capitalistic economies
/ promote / economic stability.
The Keynesian School describes how the government can act within capitalistic
economies to promote economic stability.
8. One / benefits/ economics / is / through/economics / people / countries / become /
wealth.
One of the benefits of economics is that through economics people and countries can
become wealthy.
9. Economists/study/ ways /a society / use /scarce resources/land / labor material
/machinery/ produce/goods/ services.

Economists study the ways a society uses scarce resources such as land, labor, material and machin

10. Economics /study / how / combine/ limited resources/ produce/goods / services.

Economics studies how to combine limited resources to produce goods and services.

11. capitalism /most / important/ means/ production / to be / money/ rather/ land / labor.
In capitalism, the most important means of production is money rather than land or
labor.

Unit 2: economic systems

1. A free market economy/ to be/economic system /the market/ supposed/ regulated/ by/
law/ supply / demand.

⇨ A free market economy is an economic system in which the market is supposed to

be regulated by the law of supply and demand.
2. Direct government intervention / theoretical / ruled / although / government/influence/
economic/ situation / fiscal / budgetary policies.

⇨ Direct government intervention is theoretically ruled out although the government

influences the economic situation through its fiscal and budgetary policies.
3.A planned economy / to be / economic system / structure / market / deliberate/planned /
the state.

⇨ A planned economy is an economic system in which the structure of the market is

deliberately planned by the state.

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 4. A mixed economy/ economic system / some goods serVices / produced/ the
government/ and/ some private enterprise.

⇨ A mixed economy is an economic system in which some goods and services are produced
by the government and some by private enterprises.
5. Production factors to be/ inputs/use/ production/goods/ services/ include / land / labor /
capital.

⇨ Production factors are inputs that are used in the production of goods and services
including land, labor and capital.
6. Distribution channel / the chain /businesses/intermediaries /a good service/ pass / until /
reach/ end consumer.

⇨ Distribution channel is the chain of businesses and intermediaries through which a

good or service passes until it reaches the end consumer.

Unit 3: Microeconomic
1. Microeconomics/ deal / how / consumers / firms / behave / while making decisions /
allocation/ scarce/ resources.

⇨ Microeconomics deals with how consumers and firms behave while making
decisions on allocation of scarce resources.
2. Microeconomics/ explain / how / workers / can/ best/ allocate/ time/ labor/ instead/
leisure.

⇨ Microeconomics explains how workers can best allocate their time to labor
instead of leisure.
3. a planned/ economy/ allocation decisions/ made/ mostly/ the government.

⇨ In a planned economy, the allocation decisions are made mostly by the

government.
4. Consumer theory/ describes/ how/ consumers/, /based / preferences/, / maximize / well-
being/ making/ some/ trade-offs.

⇨ Consumer theory describes how consumers, based on their preferences, maximize

their well-being by making some trade-offs.
5. Consumers / have/ limit/ incomes/ they/ purchase/ more/ some good/ purchase/ less/
others.
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 ⇨ Consumers have limited incomes so they trade off the purchase of more of some
goods with the purchase of less of others.
6. Firm/ face/ limits / terms/ kinds / products/ they/ can/ produce/ and/ resources/ available/
produce/ them.

⇨ Firms face limits in terms of the kinds of products that they can produce, and
resources available to produce them.
7. If/ companies / want / produce/ larger/ number/ products/ next year/ they / must / decide/
whether/ hire/ more workers/ build / new factories.

⇨ If companies want to produce a larger number of products next year, they must
decide whether to hire more workers or build new factories.
8. All / trade-offs / made / consumers / workers / firms / base / prices.

⇨ All trade-offs made by consumers, workers and firms are based on the prices.
9. a market economy / prices / set / interactions / consumers / workers / firms.

⇨ In a market economy, prices are set by the interactions of consumers, workers and firms.

Unit 4: Macroeconomic (Kt học vĩ mô)

1. Macroeconomics / to be / branch / economies / analyze / economic activity/ entire /
country/ economy-wide phenomena.

⇨ Macroeconomics is a branch of economics that analyzes the economic activity of

an entire country and economy-wide phenomena.
2. goal / macroeconomics / to be / look / overall / economic trends / employment levels /
economic growth / inflation / so on.

⇨ The goal of macroeconomics is to look at overall economic trends such as

employment levels, economic growth, inflation, and so on.
3. Macroeconomics / provide / us / a bird’s eye view / country / economic landscape.

⇨ Macroeconomics provides us with a bird's eye view of a country's economic

landscape.
4. Macroeconomics / influence / mainly / macroeconomic policies / monetary policy / fiscal
policy.

⇨ Macroeconomics provides us with a bird's eye view of a country's economic

landscape.
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5. Monetary policy / control / a nation / money supply / supervise / each country / central
bank.

⇨ Monetary policy which controls a nation's money supply is supervised by each country's
central bank.
6. Fiscal policy / control /government / revenue / spending /to be / hand / Ministry of
Finance.

⇨ Fiscal policy which controls a government's revenue and spending is in the hands of the
Ministry of Finance.
7. Two main/macroeconomic policies / aimed/ promote / economic growth / keep inflation /
control.

⇨ Two main macroeconomic policies are aimed at promoting economic growth and keeping
inflation under control.
8. Productivity /refer / average / amount / output / produce / employee / hour of work.

⇨ Productivity refers to the average amount of output produced per employee or per hour
of work.
9. GDP / to be / total /value/ goods / services / produce/ country / year.

⇨ Gross Domestic Product (GDP) is the total value of goods and services produced in a
country in a year.
10. GNP/to be / total / value / goods / services/ produce / country / year/ include /income/
foreign investments.

⇨ Gross National Product (GNP) is the total value of goods and services produced
by a country in a year, including income from foreign investments.
11. Balance of trade /refer / difference / money / a country/ receive / exports / and money/
spend/ imports.

⇨ Balance of trade refers to the difference between the money that a country receives
from exports and the money it spends on imports.
12. Balance/ payment / refer/ amount /money/ go/ in/ out / country.

⇨ Balance of payments refers to the amount of money going in and out of a country.
13. Government budget deficit / excess / government expenditures / goods / services /transfer
payments/ government's tax revenues.

⇨ Government budget deficit is the excess of government expenditures (on goods,

services and transfer payments) over the government's tax revenues.
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14. Foreign trade deficit / excess / nation/ imports / goods and services / exports / goods and
services.

⇨ Foreign trade deficit is the excess of the nation's imports of goods and services
over its exports of goods and services.
15. Interest rate/ percentage rate/ year/ paid/ borrowers / lenders.

⇨ Interest rate is the percentage rate per year that is paid by borrowers to lenders.

Unit 5: Demand and Supply

1. Demand / refer / all / possible / quantity / goods / services / buyers / willing / able / buy /
various/ price.
=> Demand refers to all possible quantities of goods or services that buyers are willing and
able to buy at various prices
2. Quantity demanded / quantity / goods / services / buyers / willing / able / buy / certain / price /
a period / time
=> Quantity demanded is the quantities of goods or services that buyers are willing and
able to buy at a certain prices in a period of time
3. Supply / refer / all / possible / quantity / goods / services / sellers / willing / able / sell /
various / price
=> Supply refers to all possible quantities of goods or services that sellers are willing and
able to sell at various price
4. Quantity supplied / quantity / goods / services / sellers / willing / able / sell / certain / price / a
period / time
=> Quantity supplied is the quantities of goods or services that sellers are willing and able
to sell at a certain prices in a period of time
5. If / buyers / willing / able / buy / less / all / the various prices /,/there/ decrease /demand /
demand curve / shift / left
=> If buyers are willing and able to buy less at all the various prices, there is a decrease in
demand and the demand curve shifts to the left
6. If / buyers / willing / able / buy / more / all / the various prices /,/ there/ increase / demand /
demand curve / shift / right.
=> If buyers are willing and able to buy more at all the various prices, there is an increase
in demand and demand curve shifts to the right.
7. If / sellers / willing / able / sell / less / all / the various prices /,/there/ decrease /supply / supply
curve / shift / left
=> If sellers are willing and able to sell less at all the various prices, there is a decrease in
supply and the supply curve shifts to the left
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 8. An increase / costs / produce / a good / will / result / a decrease / supply /,/ therefore / shift /
supply curve / left.
=> An increase in the costs of producing a good will result in a decrease in supply, therefore
shifting the supply curve to the left
9. Law / demand / state / price / quantity demanded / inverse / related / each other
=> The law of demand states that price and the quantity demanded are inversely related to
each other.
10. A price change / cause / change / quantity demanded / represented / a movement / demand
curve.
=> A price change causes a change in quantity demanded represented by a movement along
the demand curve
11. A price change / cause / change / quantity supplied / represented / a movement / supply curve.
=> A price change causes a change in quantity supplied represented by a movement along
the supply curve
12. If / sellers / willing / able / sell / more / all / the various prices /,/there/ increase /supply /
supply curve / shift / right
=> If sellers are willing and able to sell more at all the various prices, there is an increase in
supply and the supply curve shifts to the right.
13. A market / will / be / equilibrium / when / there / no reason / market price / rise / fall.
=> A market will be in equilibrium when there is no reason for the market price of the
product to rise or to fall
14. Equilibrium price / to be / price / quantity demanded / equal / quantity supplied
=> Equilibrium price is the price at which quantity demanded equals the quantity supplied.
15. law / supply / state / price / quantity supplied / direct / related / each other
=> The law of supply states that price and the quantity supplied are directly related to each
other

Unit 6: Public finance

1. Public finance / concerned / how / governments / raise / spend / funds.
=> Public finance is concerned with how governments raise and spend their funds.
2. Some taxes / fund / specific / government programs / while / other / tax / fund / government /
general
=> Some taxes fund specific government programs, while other taxes fund the government
in general
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3. Two / kind / funds / taxation / American / to be / federal funds / trust funds
=> Two kinds of funds from taxation in American are federal funds and trust funds
4. Trust funds / can / use / only / pay / very / specific / programs / Social Security / Medicare
=> Trust funds can be used only to pay for very specific programs such as Social Security
and Medicare
5. make / difference / tax revenue / government’s expenses / Treasury / borrow / money / issue /
bonds.
=> To make up the difference between tax revenue and government’s expenses, the
Treasury borrows money by issuing bonds.
6. Treasury / must / pay / money / it / borrow / pay / interest / well
=> The Treasury must pay back the money it has borrowed, and pay interest as well
7. treasury bond / to be / mature / date / it / worth / face value
=> A treasury bond is mature on the date at which it is worth its face value
8. federal debt / to be / sum/ debt / hold / the public / debt / hold / federal accounts
=> The federal debt is the sum of debt held by the public debt and the debt held by federal
accounts.
9. The debt/hold/ the public/to be/total/amount/government/owe/all/its creditors/general public
=> The debt held by the public is the total amount the government owes to all of its
creditors in the general public
10. The debt / hold / federal accounts / to be / amount /money/ Treasury / borrow / itself
=> The debt held by the federal accounts is the amount of money that the Treasury has
borrowed from itself
11. General / if / you / buy / a bond / the price / you / pay / to be / less / what /bond / worth
=> General, if you buy a bond, the price you pay is less than what the bond is worth
12. Government bonds / issue / governments / raise / money / finance / projects / day-to-day
operations
=> Government bonds are issued by governments to raise money to finance projects or day-
to-day operations
13. Government bonds / to be / government security / terms / more / one year
=> Government bonds are government security with terms of more than one year

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 UNIT 7: FISCAL POLICY
1. Fiscal policy / concerned / government spending / taxation / carried / Ministry of Finance
=> Fiscal policy concerned with government spending and taxation and is carried out by
the Ministry of finance
2. Budget deficit / to be/ situation / government / spend / more / collect / tax revenues
=> Budget deficit is a situation in which a government spends more than it collects/takes in
from tax revenues
3. Fiscal policy / to be / loose / when / public spending / increase / aim / stimulate / total spending
/ economy
=> Fiscal policy is loose when the public spending is increased with the aim of stimulating
total spending in the economy
4. Expansionary fiscal policy / might / occur /when / economy / not / grow / fast /
unemployment / high
=> Expansionary fiscal policy might occur when the economy is not growing fast enough or
unemployment is high
5. Grant / be / amount / money / give / especially / government / a person / an organization / a
special purpose
=> Grant is an amount of money given especially by the government to a person or an
organization for a special purpose
6. Fiscal policy / to be / tight / when / public spending / reduce / aim / decrease / spending /
demand / ultimately / pressure / prices
=> Fiscal policy is tight when the public spending is reduced with the aim of decreasing
spending, demand, and ultimately, pressure on prices
7. Outside factors / should / consider / make decisions / fiscal policy / include / fiscal policies /
other countries / requirements / IMF
=> Outside factors which should be considered in making decisions on the fiscal policy
include fiscal policies of other countries and the requirements of the IMF
8. If / government / finance / budget deficit / borrow / money / it / decrease / supply / money /
available / economy / lending
=> If the government finances a budget deficit by borrowing money, it will decrease the
supply of money available in the economy for lending
9. If / government / finance / budget deficit / print / money / it / increase / supply / money /
economy.
=> If the government finances a budget deficit by printing more money, it will increase the
supply of money in the economy

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 UNIT 8: TAXATION
1. Taxation / to be / compulsory / fee / individuals / corporations / must / pay / government.
=> Taxation is a compulsory fee that individuals or corporations must pay to the
government
2. Individual income tax / to be / tax / levy / wages / salaries / dividends / other income / a
person / earn / year
=> Individual income tax is a tax levied on the wages, salaries, dividends, and other income
a person earns throughout the year
3. Sales tax / to be / consumption tax / imposed / government / sale / goods / services
=> Sales tax is a consumption tax imposed by the government on the sale of goods and
services
4. Property tax /to be/ tax / impose / value / real estate / other / personal property
=> Property tax is a tax imposed on the value of real estate or other personal property
5. Progressive tax / to be / tax / levy / higher / rate / higher / income
=> Progressive tax is a tax levied at a higher rate on higher incomes
6. Excise duties / can / be / design / dissuade / people / smoke / drink alcohol / so on
=> Excise duties can be designed to dissuade people from smoking, drinking alcohol and so
on
7. Capital gain tax / to be / tax / impose / profits / made / sell / assets
=> Capital gain tax is a tax imposed on profits made by selling assets
8. Capital transfer tax / to be / tax / impose / gifts / inheritances / certain / value
=> Capital transfer tax is a tax imposed on gifts and inheritances over a certain value
9. value – added -tax/ be / tax / collect / each / stage / production / excluding / already – taxed /
costs / previous / stages
=> Value- added-tax is a tax collected at each stage of production, excluding the already –
taxed costs from previous stages
10. Regressive tax / to be / tax/ poor people / pay / higher percentage / income / rich people
=> Regressive tax is a tax in which poor people pay a higher percentage of their income
than rich people
11. primary / function / taxation / to be / raise / revenue / finance / government expenditure
=> The primary function of taxation is to raise revenue to finance government expenditure
12. Sales tax / unfair / because / poor / people / need / spend / larger proportion/ income /
consumption / the rich

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=> Sales tax is unfair because poor people need to spend a larger proportion of their income
on consumption, while the rich do not
13. A tax shelter / to be / vehicle / use / individuals / postpone / payment / tax / life insurance
policies / pension plans / other investments
=> A tax shelter is a vehicle used by individuals to postpone the payment of tax through life
insurance policies, pension plans and other investments
14. Tax evasion / mean / make / false / declaration / tax / authorities
=> Tax evasion means making false declaration to the tax authorities
15. Companies / can / avoid / tax / profits / bringing / capital expenditure/ new factories /
machines/ so on
=> Companies can avoid tax on profits by bringing forward capital expenditure on new
factories, machines, and so on
16. Laundering money / mean / pass / money / a series / company / very complicated
transactions / disguise / origin
=> Laundering money means passing money through a series of companies in very
complicated transactions to disguise its origin

Unit 10: insurance

1. Insurance/ be / financial / arrangement / that / redistribute / costs /unexpected losses.
=> Insurance is a financial arrangement that redistributes the costs of unexpected losses.
2. exchange / payment / premium /insured / receive / promise / insurance system / be /
compensate / event / loss.
=> In exchange for the payment of the premium, the insured receives a promise from the
insurance system to be compensated in the event of loss.
3. insurance / system/ accomplish/ redistribution / costs / losses / collect / premium /
payment /every/participant/ system.
=> An insurance system accomplishes the redistribution of the costs of losses by
collecting a premium payment from every participant in the system.
4. insurance system /to be /able / operate / because/all the insured / to be /willing /
substitute / relative/ small / certain outlay / relative / large /uncertain loss.
=> An insurance system is able to operate because all the insured are willing to
substitute a relatively small certain outlay for a relatively large uncertain loss.
5. People /to be / willing / pay / insurance premium / relieved / uncertainty / loss / as well/
compensated / if/ the loss / actually / occurs.
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 => People are willing to pay an insurance premium to be relieved of the uncertainty
about a loss, as well as to be compensated if the loss actually occurs.
6. Even /if/ no loss / occur/a year / value / have / still / received / the form / eliminate /
anxieel / a loss.
=> Even if no loss occurs during a year, value has still been received in the form of
eliminating the anxiety about a loss.

UNIT 12: MONETARY POLICY

1. Reserve requirement / percentage / Fed / set / minimum / amount / reserves / as / bank / must /
have
=> Reserve requirement is the percentage the Fed sets as minimum amount of reserves as
bank must have
2. change / reserve requirements / Fed / increase / decrease / supply / money
=> By changing the reserve requirements, the Fed increases or decreases the supply of
money
3. discount rate / to be / rate / interest / Fed / charge / loans / it / lend / other / bank
=> The discount rate is the rate of interest the Fed charges for the loans which it lends other
banks
4. decrease / discount rate / make / less / expensive / banks / borrow / Fed
=> A decrease in the discount rate makes it less expensive for banks to borrow from the Fed
5. central bank / can / increase / supply / money / lower / reserve requirements / drop / discount
rate / buy / more bonds
=> The central bank can increase the supply of money by lowering reserve requirements,
dropping the discount rate, or buying more bonds
7. open market operations / be / fed’s / buy / sell / government securities
=> The open market operations are the Fed’s buying and selling government securities
8. Fed / increase / money / supply / buy / government bonds / open market / and / decrease /
supply / sell/ these securities
=> The Fed increases the money supply by buying government bonds in the open market,
and decreases the supply by selling these securities
9. change/ discount rate / usually / follow / similar / changes / interests rates / charge / banks
=> A change in the discount rate is usually followed by similar changes in the interest rates
charged by banks.
10. central bank/ can / reduce / supply / money / raise / reserve requirements / increase / discount
rate / sell / bonds / open market

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 => The central bank can reduce the supply of money by raising reserve requirements,
increasing the discount rate, or selling bonds in the open market
11. increase / discount rate / make / more / expensive / banks / borrow / Fed
=> An increase in the discount rate makes it more expensive for banks to borrow from the
Fed

Unit 14: The foreign exchange market

1. foreign exchange market / be /market/ national currencies / dollars / pesos / yen / so on/
exchange.
=> The foreign exchange market is the market in which such national currencies as
dollars, pesos, yen and so on are exchanged
2. foreign exchange market / have / develop / rapid / recent years / response /growth /
volume / world trade / goods and services.
=> The foreign exchange market has developed rapidly in the recent years in response to
the growth in the volume of world trade in goods and services
3. Two / type / transactions / foreign / exchange / market / be / spot transactions forward
transactions.
=> Two types of transactions in the foreign exchange market are spot transactions and
forward transactions
4. foreign exchange market / have / develop / rapid / recent years / response to the expansion
/ international capital flows.
=> The foreign exchange market has developed rapidly in recent years in response to the
expansion of international capital flows
5. London / to be / world / largest / foreign exchange center / because / London/ trading
position/ geographical location.
London is the world ‘s largest foreign exchange center because of London's trading
position and its geographical location
=> London is the world's largest foreign exchange center because of London's trading
position and its geographical location.
6. foreign exchange market / enable / banks /international corporations / trade/ foreign
currencies / large / amounts.
The foreign exchange market enables banks and international corporations to trade
foreign currencies in large amounts
=> The foreign exchange market enables banks and international corporations to trade
foreign currencies in large amounts.
7. Spot transactions / undertake / actual exchange / currencies / two / business day /
later.

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Spot transactions are undertaken for an actual exchange of currencies two business days
later
=> Spot transactions are undertaken for an actual exchange of currencies two business
days later.
8. Forward transactions /involve / delivery date / further/ future / possibly / as / far /a
year / more ahead.
=> Forward transactions involve a delivery date further into the future, possibly as far
as a year or more ahead.
9. Multinational corporations / take/ foreign exchange market / because / they /
require/ foreign currency / cross border trade.
=> Multinational corporations take part in the foreign exchange market because they
require foreign currency for cross border trade.
10. Some / bank/as /market makers / earn / profit / difference / buying rates / selling
rate.
=> Some banks as market makers earn a profit on the difference between their buying
rates and selling rates.
11. Brokers/ contact / banks / the world /know / highest / bid rate / lowest / offer rate
/a currency.
=> Brokers contact the banks all over the world to know the highest bid rate and the
lowest offer rate for a currency.
12. brokers / not/ deal /own/ accounts / charge / commission /services.
=> The brokers do not deal on their own accounts but charges a commission for their
services.

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