Terms Associate with Crisis :

Bankruptcy – Indebtedness – Fall (Credit, Crunch) – Disorders – Hyperinflation –

Stagflation – lack of jobs (unemployment) – Regression – Instability – stagnation
– chaos – deterioration – digression/drift – degradation – decline – decrease –
downturn – drop - distress.

Downsizing: reduce the number of workers - dismiss/ fire and lay off workers.
Degradation of the GDP: Gross Domestic Product
Liquidation: liquidate: sell the assets of a business to repay debts.
Fall of the Prices of: -stocks and shares – commodities – currencies
Bear Market: Bearish market in which offer exceeds demand -> prices fall
Greed: the avarice of the desire to have more
Exceeds: excess/ surplus

Causes of Crisis (singular)  Plural: crises

• Disaster
• Poor or bad government on the greedy of leaders of decision makers
• Pandemic
• Natural catastrophe: flood, drought
• Calamities
• Drain: exhaust: use up resources
• War: civil war, instability, unrest and chaos
• Capital flight
• Slow economic growth
• Political instability
• Wars
• High rates of inflation: hyperinflation
• Lack of financial planning
 • Planning involves- analyses: budgetisation, elaboration of financial law,
capacity to predict forecast.

Effect of crisis:
• Unemployment/ joblessness
• Poverty
• Lack/ shortage and insufficiency of income
• Less consumption: regression of householders, buying capacity /
purchasing faculty, power.
• Offer > demand.
• Price fall: interruption of production/ manufacturing cryptocurrencies
• Shift in people’s attitudes: movement toward
• Austerity policy companies are going bankrupt
• Decrease of the household’s buying/ purchasing capacity
• Disorganization of economy
• Reduced trade volumes
• Rise of interest rates
• Creating of excess money
• Ascension of debt: the government borrows more money.
• Inability to repay debt: bankruptcy
• Lack of enough cash: insolvency
• Currency devaluation
• Loss of the governments purchasing power: deficit
• Loss of sovereignty

Definitions:
Hyperinflation: Extremely rapid increase in the price of goods & services.
Bear market: In which securities & commodities are persistently declining in
value= prices fall
Sovereign: Having supreme rank, power, or authority and greatest in degree.
Bankruptcy: Inability to repay debt
Stagflation: Persistent inflation combined with stagnant consumer demand,
relatively high unemployment & unsuccessful businesses.
Subsidy: Financial assistance aid furnished by a government to a private
industrial undertaking, a charity organization, or the like.
Jurisdiction: The power or right to exercise authority & apply the law
Solvency: The state of having enough cash and not being in debt
Debt: Sth owed-being under the obligation to repay someone in return for sth
received.
❖ Synonyms of recessions:
-degradation
-deterioration
- drop
-decline
-down turn
- depression
-distress

❖ R.R.R:
Reduction: to encourage sales
Refund: paid to costumers who bought defective products
Rebate: paid back to customers who paid more than they should
Regression of household’s buying capacity/ purchasing faculty/ procurement

Purchasing Production Supply Chain

procurement

Offer > demand: higher than/ superior to / exceeds

-less investment: heighten the bells= austerity policy= less public spending
-price fall: interruption of production/ manufacturing/ inflation
-ascension of debt: the government borrows more money -be solvent: be in the black
- exhaust= drain= use up resources -be in debt: (indebted) to be
in the red
- donation: money given for free to charities NGO’s
Type of sentence:
-simple sentence: independent: proposition, clause
“several factors may trigger an economic collapse”
“many countries are closing their borderlines”
-independent clause: can stand by itself, does not need depend on other
element to complete its meaning.

Noun phrases: a lead noun notified/ qualified by other adjectives

and/ or noun. Ex: slow economic growth, debt crisis (noun + noun).
Cause: noun (to bring out sth)/ verbe (effect, result, impact,
consequence)

-The complex sentence: main clause + subordinate clause.

Expressing causes: (because, as, since)

Ex: many countries are closing their borders because they want to hide the
diffusion of the virus.

Expressing cause and effect:

-due to
-owing to
-thanks to
-in view of
-Because of
Expressing purpose:
(+): (-):
-in order to, -In order not to
-so as to -So as not to
-to -Not to

The history of Financial Institutions:

Type of banks: central banks
-Islamic/ participative banks.
-conventional banks: deal with:
-distinction: -commercial banks: private/ individuals
-investment banks: corporate/business customers.
-private banks.
The history of banking:
1933: the banking Act
-Distinction between commercial/ retail & investment/ merchant, banks=>
financials crises
-comm banks used the deposit of their customers in trading which is very risky
and triggered: crises, and the need of regulation.
1980-90s: the glass slegall
Act: regulation: differentiate between comm & invest banks
1947: treaty of Britten woods
-the GATT: Globalization General agreement on Tariffs and Trade.
-WTO: World Trade Organizations.
-advent of open marble policies free trade/ liberation
-cancelation of taxes
-free circulation of goods and services

Definitions:
Tarnish: make the reputation of sth dirty.
-greed: adj, greediness: noun
-Greed the insatiable dowel of having more of extend one’s profits at all costs,
because of bank’s greediness, banks:
-increase the interest rate.
-take more risks
-give huge lanes (lend) without collateral (guarantee of repayment)
-collateral sth of value that borrower promises to give the lender if sth faults on
repayment be unable to repay/pay back
=> -absence of trust among banks
-involvement of banks in risky projects.

Consequences of the banking crises:

• Distrust among banks and deposit of investment
 • Disruption of the whole financial & eco system of the country as the
crisis tarnishes, its reputation
• As a result, inventors avoid a country inflation: these would be a low rate
of FDI (foreign direct invest)
• Unemployment=> jobless=>poverty=> less consummation=>brain drain,
human trafficking => migration

Solutions:
• Intervention of government: by establishing a strict monetary policy
through the central banks
• Tighten the bills
• Austerity: less public spending; rescue the bank crises before the bank
run: run on the bank: a situation which depositors rush to claim of with
raw / restive their deposits.
• Brest and enhance economic recovery
• Increase taxes or tariffs (customer & duties) on imported products to
discourage importation, and encourage locale production, consumption
& importation, faster the entrepreneurial spirit among young people: by
giving loans at law ‘interest rates to project holders (1,5%)
• Control money supply
• Fight against corruption & bribery
• Facilitate business and administration procedures
• Establish a transparent crisis communication with customers to restore
trust
• Set up a trustworthy com with all stakeholders to show that the crisis
underway and enhance rebuild confidence.

There was a significant (adj) fall (noun)

Economic Growth
Growth:
-progression
-development
-enhancement
-progress
-increase
-improvement
-expansion
-amelioration

Growth indicators: what indicates there is growth within some country?

-GDP: growth domestic product
- GNP: gross national product
- balance of payment: exportation > importation
There is a deficit # there is an excess
Exports exceed imports

Excess: prosperity, wealth, richness, affluent, affluence, opulent

-Hight employment rate: availability of job opportunities (stock, low level of

joblessness/ unemployment)
=>high income => savings =>consumption=>improved household
Baying capacity: high demand > offer, triggers production, saving,
reinvestment, creating of add value.
- Improved infrastructure: roads, high way/ multiway, bridges, see/
airports….
- The rate of urbanization, hospitals, uneversities…

Growth hurdles: (obstacle)

Why isn’t Africa as developed as other continents?
- Consumption: a broad term that includes different forms of
malfunctioning within country
- It is a state of mind: mindset
- bribery, bribe: the act of giving/ receiving some benefit so that you
advantage of privilege that is not one’s own right.
- Allude: to move an allusion to sth
- Poor governance: ineffective allocation of resources, allocate resources
(human, natural) wisely.
- Authority within a democratic government,

we distinguish three separate authourities:

1-legislative authority: represented by the house of parliament.
2- executives authority: represented by the government which executes &
implements the laws produced by the 1st authority
3-juridiciary authority: counts: judges, lawyers, prosecutor
4-the 4th estate: the press/ media

- Legacy of colonization
- Dependence, followership
- Monetary policy: an instrument of subjugating
- Many countries to an in balanced financial policy through these posse’s
high rate of the gold reserve

Factors that promote growth:

-natural resources
-good governance
-independence

Growth progress:
Individual proprietorship => increase capital, revenues/ workers
Indexed at the stock exchange
Issus shares/stocks for sale
Expand / raise capital