Vocabulary on Finance and Banking

CHECK YOUR ENGLISH VOCABULARY FOR BANKING AND FINANCE Jon Marks A & C Black London www. acblack. com First edition published 1997 This second edition published in Great Britain 2007 A & C Black Publishers Ltd 38 Soho Square, London W1D 3HB © Jonathan Marks 2007 All rights reserved. No part of this publication may be reproduced in any form without the permission of the publishers.

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A CIP entry for this book is available from the British Library ISBN-10: 0 7136 8250 7 ISBN-13: 978 0 7136 8250 2 eISBN-13: 978-1-4081-0250-3 Text typeset by A & C Black Printed in Great Britain at Caligraving Ltd, Thetford, Norfolk This book is produced using paper that is made from wood grown in managed, sustainable forests. It is natural, renewable and recyclable. The logging and manufacturing processes conform to the environmental regulations of the country of origin. Contents page Introduction 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16 17. 18. 19. 20. 1. 22. 23. 24. 25. 26. 27. 28. 29. 30. Money – the basics Banks – the basics Operating an account Credit and debit cards Internet banking Mortgages The housing market The consumer credit boom Pensions and other financial products Insurance Wills and other legal matters Money and work Currency markets 1 Currency markets 2 International payments International Banking and investments National central banks (NCBs) National economies and international trade Taxation Profit and loss accounts Balance sheets Corporate finance Mergers and acquisitions Investments The dot. om bubble Banking and financial problems Numbers and statistics Phrasal verbs for banking and finance Financial idioms and expressions Pronunciation and word-building Answer key Index 5 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 76 3 Introduction Who is the book for? This book has been written for people whose first language is not English, and who need to use English in the context of banking and finance. It covers language useful for working in retail banking, company finance departments and other situations involving financial transactions.

There is a strong focus on the language needed to communicate on financial topics, discuss financial problems and plan projects. It does not cover rarely-used terms, or academic terms used by economists. All the language in the book is intended to be accessible to intermediate level students and above. How can the book be used? The vocabulary is arranged by topic. Choose the topics that interest you. The pages do not have to be completed in any particular order, and there is no need to complete all the pages if some are on topics which are not useful to you.

It is better to complete one or two pages in a day, and remember the vocabulary, rather than completing as many pages as possible. The answers to the exercises can be found at the back of the book. There is also an index to help you find the pages which are most useful to you. Write new words and phrases you learn in a notebook or file. Review this language regularly so that it becomes part of your active vocabulary. A good general dictionary will be very helpful, providing pronunciation guides and more contexts.

For vocabulary relating specifically to Banking and Finance, Dictionary of Banking and Finance (A&C Black, ISBN 978-07136-7739-3) will be a useful reference source. 5 1. Money – the basics A. Put the correct word in each space. account change lent sum 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. back coin note wages banknotes currency salary waste borrowed earn spend win In the USA, “quarters” (25 cents) and “dimes” (10 cents) are types of _______________. In the United Kingdom, “a tenner” means a ten pound _______________. The US dollar, the Yen and the Euro are types of _______________.

Hundred dollar bills and twenty pound notes are _______________. 2,000,000 Swiss francs is a large _______________ of money. I need to _______________ some Euros into Australian dollars. My friend _______________ a hundred pounds from me. I _______________ a hundred pounds to my friend. When she can, she’ll pay me _______________ I buy a lottery ticket every week, but I never _______________ anything. Most dentists _______________ at least ? 30,000 a year. __________ are paid to employees weekly. _______________ are paid to employees monthly. In business, you have to _______________ money to make money.

A: Do you have a bank _______________? B: Yes. I bank with the Bank of Scotland. 14. In my opinion, eating in expensive restaurants is a _______________ of money. B. Match the words on the left with the words on the right. 1. 2. 3. 4. 5. 6. 7. 8. a small an income donate high make pay by pay in winners and a. b. c. d. e. f. g. h. a profit amount of money cash cost of living credit card losers money to charity of ? 25,000 a year 6 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). C. Choose the correct word. 1. Spain now uses the euro.

Pesetas are no longer ____________. a. good money b. legal money c. legal tender 2. I bought a TV which doesn’t work. I’ll take it back to the shop to get ___________. a. my money returned b. a refund c. a repayment 3. In a shop, to get a refund, you usually have to show the ___________. a. receipt b. recipe 4. I’m paying for my new car in 36 monthly __________. a. instalments b. pieces 5. I earn a lot of money, but I have a lot of _________. a. payouts b. expenses 6. Famous paintings are usually sold by __________. a. bid b. highest price c. payment ticket c. parts c. paying c. uction 7. In an auction, the item is sold to the person who makes the highest __________. a. bid b. price c. offer 8. In Japan, the US dollar is __________ . b. strange money a. foreign money 9. In Britain, it’s not usual to discuss your personal __________ a. money b. finances 10. You can _________ a house and __________ a car. a. hire / rent b. hire / hire 11. Here’s the fifty dollars I __________. a. owe you b. pay you back 12. The best things in life are __________. a. free b. not for sale c. a foreign currency c. money arrangements c. rent / rent or hire c. must return c. ot bought and sold D. Find the opposites of these words in the grid. 1. 2. 3. 4. 5. 6. spender / _______________ A S S R A H G D O X J E A P V A S E W Z O E Y P E C R V Q W J P A U R B L E N D E R C F E D G Q V E D O I O U Y C X T I W F B L O S S E S S L I Z O N F L E T K I T U E N M B U Y E R S O borrower / _______________ winnings / _______________ losses / _______________ high prices / _______________ prices sellers / _______________ T R L H N K I 7 For reference see A & C Black Banking and Finance (978-07136-7739-3) Unit 0000 the basics 2. Banks – A. Choose the correct words.

Grimleys Bank Open an account today! Open an account with Grimleys Bank, and start benefiting from our great 1 rates / levels of interest and 2 small / low charges. With over 3,000 3 branches / outlets, you’ll never be far from us, and unlike many other 4 high street / town centre banks, we’re open all day on Saturdays. Grimleys customers can 5 take money / make withdrawals from more than a million 6 cash dispensers / money machines worldwide, and of course you’ll receive a 7 cheque book / book of cheques and a 8 paying card / debit card within a few days of opening your account.

Computer-users may be interested in our e-account – all the benefits of a regular Grimley’s 9 current / day-to-day account, with the added convenience of being able to view your 10 lists / statements and 11 make / do payments online. Whether you’re opening your first current account, 12 switching / changing from another bank or simply want to take advantage of our 13 range / variety of savings accounts, you’ll be glad you chose Grimleys – the bank that always 14 makes / puts the customer first. B. Match the method of payment with the definition. 1. Credit card a.

A piece of paper which transfers money from your account to somebody else’s account. b. Similar to a credit card, but usually operated by a chain of shops or other retailer. c. The money is deducted from your bank account almost immediately. d. These can be exchanged for foreign currency, or in some cases used instead of cash. e. You owe the card provider money. You can pay it back in one instalment, or over a longer period if you wish. f. You owe the retailer money. 2. Debit card 3. Charge card 4. Cheque 5. Traveller’s cheque 6. Charge account 8 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).

C. Choose the best word. The Grimleys Bank current account TERMS AND CONDITIONS 1. Regular bank statements will be sent to you by post, listing recent __________. a. payments b. events c. transactions 2. New current account customers can borrow up to ? 200 in the form of a low-interest __________. a. overdraft b. overtake c. overspend 3. The current rate of interest for __________ overdrafts is 6. 7% APR. a. permitted b. allowed c. authorised 4. While your account is __________ credit, there are no charges. a. under b. in c. with 5. If your account is overdrawn, charges may __________. a. appen b. apply c. occur 6. When you acknowledge __________ of your new debit card… a. receipt b. the receiving c. reception 7. …you will be sent a PIN (Personal _________ Number) a. identifying b. identifier c. identification 8. You will need to _________ your PIN each time you use the card. a. put in b. type c. enter 9. Two or more customers may apply for a __________. a. two-person account b. joint account c. together account 10. Current account __________ may apply for a Grimleys Credit Card. a. holders b. owners c. users 11. Credit cards will be issued __________. a. if you’re rich enough b. f you have money c. subject to status 12. You may __________ your account at any time. a. close b. finish c. end 9 For reference see A & C Black Banking and Finance (978-07136-7739-3) 3. Operating an account Unit 0000 A. Match the formal phrases on the left with the informal phrases on the right. 1. I deposited some money. 2. I withdrew some money. 3. The funds have been transferred. 4. My account is overdrawn. 5. It’s paid by standing order. 6. My account was debited. 7. My account was credited. 8. I used an ATM. 9. I made a balance enquiry. a. The money’s been sent. b. I paid in some money. c.

It goes out of my account every month. d. I went to a cashpoint. e. I took out some money. f. I’m in the red. g. I checked my balance. h. It went into my account. i. It went out of my account. B. Match the words with the parts of the cheque. account number logo amount in figures payee amount in words signature sort code cheque number Central and Eastern Bank 14 – 16 St James’s Lane Northampton NT5 8JQ Date 13/08/2007 ? 122. 50 A/C Payee Pay Jon Marks One hundred and twenty-two pounds + 50p only 000375 22-34-06 27863201 Liz Allen C. Answer the questions. 1. Who has this cheque been made out to? . Has it been signed and dated? 3. Is it crossed or uncrossed? 4. Can it be paid into somebody else’s account? __________________________ __________________________ __________________________ __________________________ 10 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). D. Choose the words to complete the sentences. 1. After they have been paid in, cheques usually take three working days to __________. a. pass b. credit c. clear 2. When I write out a cheque, I keep a record by filling in the __________. a. receipt b. invoice c. counterfoil 3.

If you don’t have a cheque book, you can pay by getting a _________ from a branch of your bank. a. banker’s draft b. bank paper c. bank ticket 4. Unlike a personal cheque, a banker’s draft can’t __________. a. be rejected b. bounce c. crash 5. A banker’s draft is also known as a bank draft or a __________. a. banker’s cheque b. banker’s note c. banker’s ticket 6. If you need to borrow money, you can apply to your bank for an __________. a. overdraft possibility b. overdraft facility c. overdraft opportunity 7. If you need to borrow more money from your bank, you can ask them to increase your _________. . overdraft limit b. overdraft level c. overdraft supply 8. If you want to borrow money from a third party*, you may have to supply a __________. a. banker’s support b. banker’s promise c. banker’s reference 9. A banker’s reference proves to a third party that you are __________. a. moneyed b. creditworthy c. rich enough 10. Regular automatic payments of the same amount (e. g. to a charity) are called __________. a. standing orders b. direct debits c. direct orders 11. Regular automatic payments of varying amounts (e. g. electricity bills) are called __________. a. standing orders b. direct debits c. irect orders 12. With my savings account, I have to ________ 30 days notice if I want to ________ a withdrawal. a. say / do b. give / make c. ask for / take 13. Many employees receive their salaries directly into their accounts by __________. a. BACS payment b. BATS payment c. BAPS payment 14. BACS stands for Bankers Automated __________. a. cheque system b. cost system c. clearing system * “A third party” means another person or company 11 For reference see A & C Black Banking and Finance (978-07136-7739-3) 4. Credit Unit 0000and debit cards EPOS and EFTPOS A. Choose the correct words.

EPOS (electronic point of sale) terminals are cash 4 1 registers / machines found in 3 2 selling / retail outlets such as shops and restaurants. Data about each sale is entered / put via barcode scanners, keyboards or touch / finger screens. The data is used to provide an itemised 5 receipt / ticket for the customer. It can also be used for stock control and to help with marketing. EFTPOS (electronic funds transfer point of sale) terminals are similar to EPOS terminals, but they can also 6 understand / read credit and debit cards, and 7 transfer / transmit funds directly from the customer’s account to the retailer’s account.

When customers pay 8 by / with card at an EFTPOS terminal, they either 9 sign / signature a sales voucher, or enter a PIN (Personal 10 identifying / identification number). Obviously, a PIN is a more 11 secure / safe method of verification than a 12 signing / signature, and in many countries, all EFTPOS 13 transactions / sellings are now 14 checked / verified by PIN. Chip and PIN payments A. Number the following in the correct order. The transaction appears on the customer’s bank statement. 1 The customer arrives at a supermarket checkout. The card’s electronic chip is read, and the customer enters his or her PIN.

Funds are transferred from the customer’s account to the retailer’s account. The customer inserts her/his card into the chip and PIN keypad. The payment is authorised. The PIN is verified. The cashier scans the barcodes on the products. 12 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). Magstripes and chip cards C. Write the words into the spaces. encrypted magnetic erased expiry microprocessor guarantee swipes The stripe on the back of a credit card is a 1 ______________ strip, often called a magstripe. ATMs and EFTPOS terminals can read the information stored on the strip.

If a card can’t be read, it is usually because the magstripe is scratched, or has been 2 ______________, usually from being placed close to a strong magnet. When the cashier 3 ______________ a credit or debit card through the card reader of an EFTPOS terminal, the terminal is connected by telephone to a company which takes credit-authentication requests from retailers and provides them with payment 4 ______________. When one of these companies receives a request, it checks for retailer identification, valid card number and card 5 ______________ date. This information is 6 ______________ for security reasons.

Similarly, when a card is inserted into an ATM, the ATM is linked to the bank’s central computer over an encrypted connection. Chip cards (also known as smart cards) offer greater security and versatility than magstripe-only credit and debit cards. These cards also have a 7 ______________, and each time a transaction is made, the user must enter a PIN number (in the same way that PINs are used with ATMs). D. Number these phrases from a part of a telephone conversation. And finally, the name as it’s printed on the card. And the expiry date? Can I take credit or debit card details, please?

Can you give me the card number, please? December 2011. It’s 4293 5274 3877 3305. Mr J C Smith. Sure. I have my card right here. That’s fine. Your payment has gone through. 13 For reference see A & C Black Banking and Finance (978-07136-7739-3) 5. Internet Unit 0000 banking A. Write the words into the spaces below. applications facilities protected authentication passwords transactions encrypted PINs victims a. b. c. Customers with facilities for Internet banking (also known as online banking) can use their bank’s or building society’s website to carry out payments and other 1 _______________ 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, funds transfers between a customer’s own accounts, transfers to a third party’s account, loan 2 _______________ and viewing bank statements. In addition to the Internet banking 3 _______________ offered by high-street banks, a new generation of banks operate exclusively online. These banks tend to offer high interest rates on savings accounts and low rates on loans because their overheads are much lower than those of traditional banks. Security has become a key issue in Internet banking.

For most secure Internet sites, such as Internet shopping sites, single password 4 _______________ is considered sufficient. In an increasing number of countries, this is no longer considered adequate for Internet banking. In these cases, entry to the site requires the input of one of a selection of passwords and multiple 5 _______________. All information is 6 _______________, making it almost impossible for a third party d. e. f. (i. e. a hacker) to access the information. However, hackers can gain access to inadequately 7 _______________ home PCs, and can record the password as it is typed in (keylogging).

Spyware and other malicious programs can record private banking details, and send them to a third party. A more commonplace danger is written passwords and PINs falling into the wrong hands. Internet banking is perceived by some as being too vulnerable to fraud to consider using. However, the number of 8 _______________ of Internet banking fraud is very small. Statistically, in fact, conventional banking activities carry a higher risk of fraud than Internet banking – simple credit card fraud and various forms of identity theft are far more widespread.

It is far easier to obtain banking and other details by going through a bag of rubbish and collecting old bank statements etc. than it is to obtain it by hacking. Generally speaking, unless users are careless or gullible, Internet banking does not carry a great level of risk. Nevertheless, criminals continue to come up with inventive ways to access accounts. An example is “phishing” – using emails purporting to be from the customer’s bank to persuade people to hand over their 9 _______________. B. Find words in the article which mean the same as the following. 1. money (paragraph a) 2. nother person or company (paragraph a) 3. only (paragraph b) 4. business expenses (paragraph b) ______________________ ______________________ ______________________ ______________________ 14 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). 5. more than one (paragraph c) 6. person who illegally access somebody else’s computer (paragraph c) 7. a program which steals private information from a computer (paragraph d) 8. intended to do bad things (paragraph d) 9. financial crime (paragraph e) 10. stealing money by pretending to be somebody else (paragraph e) 11. ommon (paragraph e) 12. easily deceived / will believe anything (paragraph f) 13. pretending (paragraph f) 14. give (paragraph f) __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ C. Match the verbs with the nouns. 1. access 2. carry 3. click on 4. enter / input / key in / type in 5. fall into 6. make 7. pay 8. transfer a. a bill online b. a password c. a risk d. an electronic payment e. an icon f. funds g. the internet h. the wrong hands D.

Match the words on the left with words on the right. 1. a high 2. a low risk of 3. an Internet-only 4. offer higher-than-average 5. outside 6. vulnerable a. business hours b. fraud c. interest rates d. level of security e. savings account f. to fraud 15 For reference see A & C Black Banking and Finance (978-07136-7739-3) 6. Mortgages Unit 0000 A. Choose the best words from each pair in grey type. For the majority of 1 homeowners / houseowners, 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 2 lender / giver or mortgagee.

The person who borrows money in the form of a mortgage is called a mortgage 3 borrower / taker or mortgagor. There are several different types of mortgage 4 in / on the market. Probably the most common is a repayment mortgage, in which the 5 capital sum / capital price and the interest are paid in 6 instalments / pieces 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 7 repaid / paid in another way, for example with an endowment assurance policy (see unit 9). This type With an offset mortgage, the mortgage borrower’s 8 f mortgage is known as an endowment mortgage. daily / current account is combined with her/his mortgage. Provided the current account is usually 9 in / with credit, this can reduce the interest repayments 10 on / for the mortgage. B. Match the types of mortgage with the definition (you can find some of the information above). 1. repayment mortgage a. The mortgage interest rate is linked to the interest rate of country’s central bank (see unit 16). 2. interest-only mortgage b. The mortgage interest rate stays the same. 3. endowment mortgage c. You pay the capital sum and the interest. . offset mortgage d. You pay the interest in instalments, and you pay the capital sum by another method. 5. fixed rate mortgage e. The mortgage interest rate can only rise as far as a certain level. 6. base-rate tracker mortgage f. An interest-only mortgage, with the capital repaid by an endowment (see unit 9). 7. variable rate mortgage g. Your current and mortgage accounts are combined to reduce the interest. 8. capped mortgage h. The mortgage lender can change the interest rate as they wish. 16 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).

C. Choose the best word. 1. Houses, bungalows, apartments, offices, shops and any other type of building you can own are called __________. a. housing b. property c. buildings 2. The __________ are a document which proves who owns a property. a. owner’s deeds b. owner’s papers c. title deeds 3. In some countries you can get a mortgage for __________ your annual salary. a. times five b. five times c. five of 4. If a mortgage borrower ___________ the instalments… a. doesn’t pay b. defaults on 5. …the mortgage lender will eventually __________ the property. a. retake b. ake back c. fails on c. repossess 6. Before a property can be repossessed, the lender must apply to a court for a __________. a. repossession order b. repossession paper c. repossession document 7. When the lender has a repossession order, the occupants of the property can be __________, a. evicted b. put out c. ejected 8. Generally, mortgage lenders only repossess as ____________. a. a desperate action b. a last resort 9. A mortgage lender can also be called a mortgagee or a __________. b. mortgage maker a. mortgage provider c. the final option c. mortgage producer 10.

A mortgage borrower can also be known as a mortgagor or a __________. a. mortgage owner b. mortgage possessor c. mortgage holder 11. To change your mortgage agreement is to __________ your property. b. remortgage a. mortgage again 12. A mortgage paid over 25 years is called a __________ mortgage. a. 25 b. 25 year c. unmortage c. 25 years 13. When somebody’s mortgage is the most they can possible afford, you can say they are “mortgaged up to the __________”. a. hilt b. top c. head 14. If property prices go down, and your house is mortgaged for more than its current value, you have __________. . negative money b. negative value c. negative equity 15. After you have paid your last mortgage instalment, you can say that you have __________ your mortgage. c. paid off a. paid out b. paid up 17 For reference see A & C Black Banking and Finance (978-07136-7739-3) 7. The housing market Unit 0000 Mortgage arrears reduce building society profits 1. The growth in building society profits for this financial year is expected to be restrained due to a sharp increase in the number of buy-to-let property owners going into mortgage arrears.

However, the recent interest rate cut is likely to cause arrears to level off, and recentlyintroduced government measures aimed at supporting the buy-to-let market are likely to provide a last-minute boost to building society annual profits. James Edwards, chief executive of the market leaders City and Provincial Building Society, said in a trading statement last week that he broadly concurred with analysts’ forecasts of full-year profits for his company to rise by 5% to ? 240m. However, the fact that soaring growth in the buy-to-let market (where C&P has a 19% share) has cooled significantly coupled with concerns about arrears has knocked 7. 5p off the company’s share price, leaving it at 264p. Despite predictions for growth across the sector as a whole averaging around 4. 5%, the share prices of the five leading players in the market have declined by an average of just under 3%. Yields may be falling, but the restricted supply of new-build homes and continuing enthusiasm for buy-to-let have kept the housing market buoyant, and only the most pessimistic of analysts are predicting a slump. Nevertheless, cautious corporate investors have been reducing their holdings.

Such fears may well prove to be misplaced. Hints by the Bank of England regarding a further interest rate cut could underpin further growth. An additional boost is likely to be provided by changes to pension rules from April 5th next year. Holders of Self Invested Personal Pensions (SIPPs) will be permitted to invest funds from their pensions in residential property. Up to ? 15bn of pension cash is expected to flood into the market, including tax relief worth as much as ? 5bn. This is certain to create a boom in buy-to-let nvestment, shoring up building society yields, and to push up house prices, especially in areas where they have been in decline, creating more attractive investment opportunities. In addition, the buy-to-let market is likely to continue to benefit from the fact that many would-be first time buyers remain priced out of the market, ensuring healthy demand for rental properties. Evidence suggests that large numbers of potential first time buyers are also delaying their plans to buy to due uncertainty on house prices, creating a build-up of demand which is likely to be released when house prices stabilise.

A spokesperson for the number two mortgage lender Bolton and Rochdale reported last month that new business volumes have grown steadily month on month from a low base, and that the growth of both the residential and buyto-let mortgage markets remains robust. However, this upbeat stance was offset by Banker and Mortgage Lender magazine, which predicted that house prices are poised to fall by an average of up to 7% across the UK. The South West in particular was viewed as overvalued, with prices in some areas set to see a drop as high as 15%.

In contrast, London is now seen as slightly undervalued, following some dramatic falls over the last year and, according to the magazine, house prices there are set to rise by a minimum of 4% a year for the next three years. 7. 2. 3. 8. 4. 9. 10. 5. 6. A. Choose the definition which is closest to the meaning in the article. 1. buy-to-let property owners (paragraph 1) a. people who rent their homes b. people who buy homes to rent to others 2. growth has cooled significantly (paragraph 3) a. it’s growing more slowly b. it’s declining 3. a boom in buy-to-let investment (paragraph 7) a. a lot more people buying-to-let b. lightly more people buying-to-let 4. tax relief worth as much as ? 5bn (paragraph 7) a. up to ? 5bn reduction in tax to be paid b. up to ? 5bn increase in tax to be paid 18 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). 5. would-be first-time buyers… (paragraph 8) a. people who are going to buy their first home. b. people who would like to buy their first home 6. …remain priced out of the market (paragraph 8) a. find it very expensive b. can’t afford it B. Find words in the article with the same meaning as the following. 7. overdue mortgage payments (paragraph 1) 8. profits (paragraph 4) 9. upport (paragraph 7) 10. low starting point (paragraph 9) 11. worth less than the current price (paragraph 10) m____________ a_____________ y____________ s____________ u____________ l____________ b____________ o____________-v____________ C. Complete the definitions. 12. Mortgage arrears are starting to level off means that mortgage arrears … a. have stopped increasing b. are decreasing c. are increasing more slowly than they were 13. There was soaring growth in the buy-to-let market means that… a. profits from buy-to-let mortgages increased b. house prices increased c. buy-to-let mortgages became more expensive 14.

The housing market is buoyant means that … a. house prices are rising c. house prices are falling b. house prices are static 15. Investors have been reducing their holdings means that investors have been… a. buying more shares b. selling all their shares c. selling some of their shares 16. Interest rate cuts could underpin further growth means that interest rate cuts could… a. cause further growth b. prevent further growth c. be caused by further growth 17. Pension cash will flood into the market means that pension fund managers will… a. avoid this market b. invest heavily in this market c. ake a lot of money from this market 18. New business volumes have grown steadily month on month means that… a. business has increased every month b. profits have increased every month c. the number of new customers has increased every month 19. Prices are poised to fall by 7% means that… a. prices are falling c. prices will fall b. prices are expected to fall 19 For reference see A & C Black Banking and Finance (978-07136-7739-3) 8. The consumer credit boom Unit 0000 A. Read the article, and put these word into the spaces. credit rating loans 1. creditors owe creditworthy pay it back into the red write off . 3. The people of the United Kingdom are estimated to _____________ around a trillion pounds in personal debt, which is about ? 16,000 for every man, woman and child. Much of this debt is of course in the form of mortgages, but an ever-increasing proportion is in the form of consumer credit: unsecured _____________ in the form of overdrafts, credit card debts, store card debts, hirepurchase agreements and the numerous other ways in which the British public are able to “buy now, pay later”. An inevitable result of this is that an increasing number of people are taking on more debt than they can service.

Credit cards and store cards especially can have very high APRs*, and the interest soon mounts up, pushing the borrower further and further _____________. Repayment in full may simply become impossible. Of particular concern are so called “loansharks”. While the major lenders such as banks _____________ millions of pounds every year in bad debts, small credit companies sometimes 4. 5. resort to heavy-handed measures such as sending in the bailiffs and even (although of course this is illegal) threatening physical violence. Naturally, creditors try to avoid lending money to people who won’t be able to _____________.

Although they may not know it, every person who has ever had dealings with a financial institution (for example, had a bank account) has a credit rating. This data is stored on computers by credit reference agencies, and before agreeing to a loan, most creditors will check the applicant’s _____________. However, this information can be misleading. Apparently _____________ people may already be struggling to keep up the payments on their existing debts. As well as having potentially disastrous consequences for people who get too heavily into debt, the boom in consumer credit could have serious repercussions for lenders.

If people are genuinely unable to repay their debts, ultimately there is very little their _____________ can do about it. *APR = Annual Percentage Rate B. Find words in the text which mean the same as the following. 1. Money owed by people, not businesses (paragraph 1) p____________ d____________ 2. Paying for something like a sofa or a car in instalments (paragraph 1) h____________-p____________ 3. Increases (paragraph 2) m____________ u____________ 4. …of all the money (paragraph 2) i____________ f____________ 5. Having problems (paragraph 4) s____________ 6. Maintain (paragraph 4) ____________ u____________ 7. Cause big problems (paragraph 5) h____________ s____________ r____________ 20 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). B. Answer these questions in your own words. 1. What’s the difference between a secured loan and an unsecured loan? ____________________________________________________________ ________________________________ ____________________________________________________________ ________________________________ 2. What’s a bad debt? ____________________________________________________________ ________________________________ 3.

What does a credit reference agency do? ____________________________________________________________ _______________________________ 4. What does a bailiff do? ____________________________________________________________ ________________________________ D. Match the phrases on the left with the alternatives on the right. 1. apply for a loan 2. set up a loan 3. take out a loan 4. pay back a loan 5. pay off a loan 6. write off a loan a. arrange a loan b. decide the borrower will never repay the loan c. get a loan d. repay the loan in instalments e. repay all the loan at once f. sk for a loan E. Which of the following sentences best summarises the article? 1. Creditors have lent too much money, and are starting to have serious problems. 2. British people love to “buy now, pay later”, but the majority of them are not very creditworthy. 3. Creditors are lending more and more money, and this is causing an increase in debt-related problems. 4. If more creditors used credit-reference agencies, there would be fewer debtrelated problems. 21 For reference see A & C Black Banking and Finance (978-07136-7739-3) 9. Pensions Unit 0000 and other financial products A. Pensions

A pension is a 1 sum / quantity of money paid regularly to a person who has reached a certain age or retired. It is usually paid until the 2 receiver’s / recipient’s death, although in some cases a 3 widow / wife may continue to receive payments after her husband’s death. State pensions Pensions paid by the state. In many countries, these are contribution-based: people who have not paid 4 sufficient / satisfactory contributions during their 5 work lives / working lives do not receive the full amount. Occupational pension schemes Pension schemes for employees working in a particular industry or for a particular company.

In some cases, these are administered by insurance companies who invest the 6 payments / premiums and use the profits from this to pay out the 7 benefits / rewards. In other cases they are self-administered: the premiums are invested by the pension fund 8 trustees / trusteds. Personal pension schemes Schemes provided by 9 pension givers / pension providers such as insurance companies and banks. The premiums are invested in a 10 pension treasure / pension fund, and on retirement the pensioner receives a 11 lump sum / chunk sum to invest in an annuity (see below).

Personal pension schemes are also known as 12 “private pensions” / “alternative pensions”. B. Financial products Match the financial product with the benefits. 1. annuity a. If you’re too ill to work, you receive payments. b. You pay a lump sum, and receive regular payments for the rest of your life. c. You receive a lump sum on a certain date (or earlier if you die). d. Your beneficiaries receive money if you die young. e. You borrow money to buy a house. Many years later, your 5. endowment mortgage endowment repays the loan. f. You borrow money. When you die, your house is sold to repay the loan. 7. ickness insurance g. Your beneficiaries receive money when you die. h. Your private hospital bills are paid. 2. life insurance 3. life assurance 4. endowment assurance 6. private health insurance 8. equity release scheme 22 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). C. Choose the best word to complete the sentence. 1. A person who gives you information about financial products is a __________. a. financial adviser b. financial helper c. financial assistant 2. Some financial advisers only earn money by giving advice. Others earn ________ from selling financial products. . wages b. payments c. commission 3. An actuary is a person who __________ insurance risk and calculates premiums. a. thinks about b. assesses c. decides 4. When an endowment __________, you receive a lump sum. a. finishes b. ends c. matures 5. Prices go up every year. This is because of __________. a. inflation b. expansion c. evolution 6. Some pension payments increase every year __________ inflation. a. in time with b. in line with c. at the speed of 7. Pension payments which increase in line with inflation are __________. a. index connected b. index linked c. index controlled 8.

Many financial analysts predict a __________ caused by too many pensioners and not enough workers. a. pensions crisis b. pensions disaster c. pensions emergency 9. A small additional pension is known as a __________. a. topper pension b. topping pension c. top-up pension 10. Banks and insurance companies are types of __________. a. financial institution b. finance company c. financier 11. Pension funds are usually administered by a __________ of trustees. a. group b. bunch c. board 12. Pension funds, insurance companies and other financial institutions that invest on the stock market are known as __________. . commercial investors b. institutional investors c. company investors 13. Individual people who invest on the stock market are known as __________. a. private investors b. personal investors c. one-man investors 14. In most countries, financial products and services are __________ by the government. a. watched b. decided c. regulated 23 For reference see A & C Black Banking and Finance (978-07136-7739-3) 10. Insurance Unit 0000 A. Match these types of insurance with the definitions. 1. Third party only 2. Third party fire and theft 3. Fully comprehensive 4. Buildings only 5. Buildings and contents 6.

Third party liability 7. Worldwide travel 8. Private health 9. Indemnity insurance 10. Personal injury 11. Life a. Home insurance covering the fabric of the building only. b. Pays out if you die or after a set period – whichever is later. c. Home insurance covering most risks. d. Motor insurance. Will only pay claims made against you by others. e. Covers the costs of private health care. f. Motor insurance. Will pay claims made against you by others plus damage caused by fire. g. Motor insurance covering all risks. h. Covers claims made against you by others, for example if you run a business. i.

Insurance cover for problems while on holiday abroad. j. Any insurance which covers financial loss (numbers 1 to 8 are types of indemnity insurance). k. Pays out in the event of a personal accident. B. Put the words into the correct spaces. take out covered broker claim quote pay out premium fill in How to ______________ an insurance policy. 1. Choose an insurance ______________, or contact an insurance company direct. 2. Phone up and get a ______________ (or you can do this on the internet). 3. Pay the ______________. 4. Now you’re ______________. 5. If you need to make a ______________, contact the insurance company. . You will probably have to ______________ a claim form. 7. You may have to wait several weeks for the insurance company to ______________. 24 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). C. Choose the best words to go into each space. 1. A person who assesses insurance claims is called a __________. a. loss adjuster b. claim adjuster 2. Your home insurance will be expensive if you live in a _________ area. a. big risk b. risky c. insurance adjuster c. high risk 3. An insurance broker usually __________ several different insurance companies a. deals with b. contacts c. orks for 4. In many cases, the insurance company doesn’t take the financial __________. a. problem b. risk c. damage 5. The financial risk is taken by _________ such as Lloyds of London. a. underwriters b. undertakers c. underpasses 6. Natural disasters usually mean that insurance underwriters suffer __________. a. heavy losses b. high expenses c. big debts 7. A __________ proves you have insurance while the policy is being processed. a. cover letter b. cover paper c. cover note 8. If you agree to pay, for example, the first ? 200 of a claim, then your policy has a ? 200 __________. b. extra c. excess a. urplus 9. A company giving insurance cover is known as the __________. a. insurer b. insured c. insurance 10. A person who has taken out insurance cover is known as the __________… a. insurer b. insured c. insurance 11. …or the __________. a. policyholder b. policy-taker c. policy 12. A life insurance policy pays out __________ your death or after a set period, whichever is first. a. in case of b. if c. in the event of D. Choose the correct prepositions. 1. I’ve never claimed on / from my insurance. 2. Don’t worry. It’s covered by / with my insurance. 3. I’m insured for / by the Lion Rock Insurance Company. . This sculpture is insured for / at ? 100,000. 5. I’m insured to / for drive any car. 6. I’m covered by / for all risks. 7. Which insurance company are you with / in? 25 For reference see A & C Black Banking and Finance (978-07136-7739-3) 11. Wills and other legal matters Unit 0000 A. In each space put a word which means the same as the word in brackets. In each case, the words in the list below are more suitable than the words in brackets. assets frozen inheritance tax nearest and dearest own pockets deceased heirs intestate prior claim estate inherit liability no-obligation Have you made a will?

Millions of people have not made a will, yet dying (1. without a will) ______________ can have disastrous consequences for the families of the (2. dead person) ______________. If you have not yet made a will, consider what would happen if you were to die unexpectedly. Your (3. money and possessions of a dead person) ______________ would be (4. stopped) ______________ while a court decided how it should be distributed. Your (5. people inheriting money) ______________ would be left to cover funeral and other expenses from their (6. personal money) ______________. Also, don’t assume that your (7. oney and property) ______________ will automatically go to your (8. immediate family) ______________. There may be a distant relative with a (9. reason why they should get it) ______________. Make sure the right people (10. receive from a dead person) ______________. Make a will today. At Barnaby and Allen, making a will is quick, easy, and may cost less than you think. And we can also help you reduce your (11. amount that has to be paid) ______________ for (12. death tax) ______________. Call today for a (13. you don’t have to continue if you don’t want to) ______________ consultation with a member of the team.

Barnaby and Allen Solicitors 26 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). B. Match the word with the definition. 1. solicitor 2. barrister 3. advocate 4. attorney 5. lawyer 6. legal practice 7. executor 8. beneficiary 9. probate 10. conveyancing a. (British English) a person qualified to act as a legal advocate, especially in higher courts b. a law firm c. (British English) a person qualified to draw up wills, deal with conveyancing etc, and to represent clients in lower courts d. somebody who represents somebody else in court e. person appointed by the deceased to carry out the terms of a will f. the process of proving a will is genuine g. (American English) a barrister h. drawing up contracts for the buying and selling of houses i. a person who benefits from a will j. a solicitor, barrister or attorney C. Use the verbs below to complete the sentences. act draw up prosecute be exchange sue comply grant take defend hear 1. In the UK, it takes several weeks for the authorities to ________________ probate. 2. I’ll get a lawyer to ________________ a contract. 3. We’re going to ________________ contracts on Tuesday, and then we can move into our new house. . We going to ________________ them for a million pounds in damages. 5. If you don’t ________________ you will ________________ in breach of contract. 6. They are going to ________________ legal proceedings against us. 7. The court will ________________ the case next Monday. 8. My solicitor will ________________ for me in this matter. 9. The police are going to ________________ him for fraud. 10. He’s hired a very good barrister to ________________ him against the charges. 27 For reference see A & C Black Banking and Finance (978-07136-7739-3) 12. Money and work Unit 0000 A.

Put words into the spaces. a year makes salary Set 1: 1. She’s ________________ 40k a year. 2. She’s on forty thousand ________________. 3. Her monthly ________________ is about ? 3,300. 4. She ________________ forty thousand pounds a year. 5. Parker Publishing offer an excellent remuneration ________________ to executives. Set 2: 6. He works ________________ Parker Publishing. 7. He’s employed ________________ Parker Publishing. 8. He’s ________________ of Parker Publishing. 9. He’s on the ________________ of Parker Publishing. 10. He’s a Parker Publishing ________________. Set 3: 11.

Parker Publishing pay their delivery drivers a good ________________ rate. 12. Parker Publishing pay their delivery drivers ________________. 13. Parker Publishing delivery drivers are on ________________. 14. Parker Publishing delivery drivers are ________________. 15. Parker Publishing delivery drivers get a good weekly ________________. by on the staff staff member good money package wage hourly payroll well paid for on well B. Choose the best words to go into the spaces. 1. Tony doesn’t pay tax. He gets paid ________________. a. cash in pocket b. cash in hand c. cash in fingers. 2.

Anna is a ________________ illustrator. She works for many different ________________. a. freelance / customers b. free / clients c. freelance / clients 3. Anna is ________________. a. self-employed b. self-working c. self-paid 4. Steve works for BurgerPlanet. He only earns about ? 6 ________________. a. for an hour b. an hour c. the hour 28 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). Unit 0000 5. Working in a fast-food restaurants is usually a __________ occupation. a. bad-pay b. short-pay c. low-pay 6. Many company executives receive a performance-related __________. . bonus b. gift c. extra 7. Extra benefits from employers such as free health insurance, free cars and free mobile phones are called __________. a. presents b. extras c. perks 8. Factory workers who get paid for each item they make are ___________. a. in pieces b. on piecework c. on pieces C. Which two of these sentences are not possible? 1. I think you should ask for a pay rise. 2. I think you should ask for a pay increase. 3. I think you should ask for more pay. 4. I think you should ask for higher money. 5. I think you should ask for a salary increase. 6. I think you should ask for bigger money.

D. Put the words / phrases into the correct boxes. attractive salary dynamic line manager remuneration package boss highly motivated loads of money they pay peanuts committed huge salary member of a team worked off your feet JOB ADVERTISEMENT INFORMAL CONVERSATION 29 For reference see A & C Black Banking and Finance (978-07136-7739-3) 13. Currency markets 1 Unit 0000 Today’s exchange rates 1 US dollar = 1 Euro = 1 GB pound = Euro 0. 82 US dollar 1. 23 US dollar 1. 90 GB Pound 0. 53 GB Pound 0. 65 Euro 1. 54 A. Which is correct? (Choose one from each group. ) 1. a. There are 1. 3 dollars to a Euro. b. There are 1. 23 dollars for a Euro. c. There are 1. 23 dollars to the Euro. d. There are 1. 23 dollars to a Euro. a. The euro is currently at 1. 23 against the dollar. b. The euro is currently at 1. 23 for the dollar. a. No. 1 above is how ordinary people say it; no. 2 is how it’s reported in the news. b. No. 2 above is how ordinary people say it; no. 1 is how it’s reported in the news. 2. 3. B. Look at the exchange rate chart, and write words or numbers into the spaces. 1. 2. 3. 4. 5. 6. 7. 8. At the moment there are _________________ euros to the pound.

The pound is standing _________________ _________________ against the dollar. You’ll get just _________________ two dollars to the pound. A dollar is worth just _________________ fifty pence. How many euros will I _________________ for ? 100? How much is $39. 95 _________________ pounds? I’d like to change these pounds _________________ euros please. I’d like to exchange these pounds _________________ euros please. C. Look at the chart, and answer true or false. $ 0. 60 0. 58 0. 56 0. 54 0. 52 0. 50 January February March April ? 30 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). . The dollar started the year just below sixty pence. 2. The dollar went into free fall in January and February. 3. The decline of the dollar levelled off in March 4. The dollar hit a low of ? 0. 50 at the beginning of March. 5. Since March, the dollar has made a full recovery. 6. The dollar has recovered very slightly since March. 7. Since March, the dollar has made a partial recovery, but remains weak. 8. The dollar halved in value in the first three months of the year. 9. The dollar lost nearly a fifth of its value in the first quarter. 10. The dollar is currently trading at around 53p.

TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE D. Put the words into the correct columns. All could go into this sentence: The dollar __________ against the euro. rose gently gained slightly levelled off rose sharply soared slid a little dropped slightly hit a new high remained steady remained level plummeted shot up fell sharply weakened gained strongly hit a new low bottomed out slipped half cent went up half a cent went into free fall gained some ground went down several cents fell very slightly plunged rose gently

See also Unit 28 Numbers and statistics 31 For reference see A & C Black Banking and Finance (978-07136-7739-3) 14. Currency markets 2 Unit 0000 A. Put the words into the spaces below. black market stability hard currency transactions pegged convertible A soft currency The Kzarnian florint is not 1_______________ outside the Republic of Kzarnia. Until recently, the official exchange rate was KF20 to the US dollar, although the 2_______________ rate was at least double that. However, last month the government 3_______________ the currency to the dollar at a lower level, and the gap between the official and unofficial rates has narrowed.

The official rate currently stands at around KF35. Despite the improved 4_______________ of the currency, most major 5_______________ within the country are still carried out in 6_______________. Tourists may never even see a Kzarnian florint, as all goods and services they are likely to require can be paid for in euros or US dollars. B. Look at the article. Are the following sentences true or false? 1. The Kzarnian florint can be bought in any bureau de change that has them in stock. 2. At the moment, the black market rate is only slightly better than the official rate. 3. KZ are mostly used for small everyday transactions. . In Kzarnia, you can pay for you hotels, restaurants and taxi drivers in any hard currency. TRUE / FALSE TRUE / FALSE TRUE / FALSE TRUE / FALSE C. Put the words into the spaces below. cost of living legal tender denominations monetary unit Eurozone rounding up A hard currency The euro is the 1_______________ of the majority of countries within the European Union. Notes come in 2_______________ of 5, 10, 20, 50, 100 and 500 euros. The currency was introduced on 1st January 2002, and shortly afterwards the national currencies of the countries in the 3_______________ ceased to be 4_______________.

One effect of the introduction of the euro was “euro inflation”, with the 5_______________ rising sharply as a result of the 6_______________ of prices. 32 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). D. Choose the best words. 1. When the government doesn’t control the exchange rate in any way, the currency is __________. a. freely convertible b. totally convertible c. absolutely convertible 2. The Japanese yen is trading for less than its usual value. You can talk about __________. a. a small yen b. a bad yen c. a weak yen 3. The Mexican peso is trading for more than its usual value.

You can talk about __________. a. a big peso b. a good peso c. a strong peso 4. A sovereign is a coin made of 7. 3 grams of gold, and is worth a lot of money. However, its __________ is just one pound. a. front value b. face value c. written value 5. Changes in the values of currencies are called __________. a. currency fluctuations b. currency alterations c. currency changes 6. An Internet site which does currency calculations based on the latest exchange rates is called a __________. a. currency changer b. currency converter c. currency setter 7. When you change money, you usually have to pay a __________. a. ommission b. percentage c. fee 8. When changing money, banks tend to offer a _________ exchange rate than bureaus de change. a. better b. nicer c. fatter 9. Traders sometimes agree to trade currency in the future for an agreed rate. A “long position” means that the trader will make a profit if the currency __________. a. goes up b. goes down c. stays the same 10. A “short position” means that the trader will make a profit if the currency __________. a. goes up b. goes down c. stays the same E. Which two of the following are not a way of saying €1. 50? 1. One euro fifty 2. One-and-half-euros 3. One euro fifty cents 4.

One euro and fifty cents 5. One point fifty euros 6. One point five euros 7. A euro with fifty 33 For reference see A & C Black Banking and Finance (978-07136-7739-3) 15. International payments Unit 0000 A. Match the type of payment with the description, and choose the best word from each pair in grey type. Four methods of payment for imports/exports advance payment documentary credit (or letter of credit) a. ________________________________ The exporter sends the goods and 1 documents / papers to the foreign buyer. The buyer pays the invoice when the goods arrive, or within a certain period from the invoice date.

This can be risky, as the exporter trusts the buyer to 2 respect / honour the original sales contract. bill of exchange open account b. _______________________________ A foreign bank issues 3 a promise / an undertaking to the exporter (through a bank in the exporter’s country) to pay for the goods as long as the exporter 4 matches / complies with the conditions of the contract. This is a much safer form of payment for the exporter. To be even safer, the exporter can arrange for the bank in his/her country to 5 act as / be “confirming bank”, which means that the bank in the exporter’s country is responsible for the transaction. . _______________________________ A 6 legally-binding / legally-holding agreement that the importer will, on acceptance of the bill, pay the exporter for the goods. The risks are that the importer does not accept the bill even though the goods have arrived, or 7 doesn’t pay / dishonours an accepted bill when it 8 matures / is time to pay. d. _______________________________ The exporter does not 9 send / dispatch the goods until payment has been received from the importer. There is no risk for the exporter – all the risk is 10 taken by / with the importer. 34

For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). B. Put words below into the spaces in the sentences. bill of lading defer issuing bank release shipment title consignments courier forwarded import duty payment on delivery penalty remit remittance shipped tariffs vessel wire 1. We are expecting two ___________________ of computer printers from China. 2. Another word for a consignment is a ___________________, even if it doesn’t travel on a ship. 3. The consignment ___________________ ten days ago. I’m surprised you haven’t received it yet. A detailed list of a ship’s cargo is called a ___________________. 5. Another word for ship is ___________________. 6. In many cases, when goods are imported, an ___________________ has to be paid. 7. Another word for import duties is ___________________. 8. A document proving that you own a consignment of goods is called a ___________________ to the goods. 9. After payment, the bank will ___________________ the title to the goods. 10. The bank took a long time to ___________________ payment to my account. 11. If we don’t deliver on time, we’ll have to pay a late-delivery ___________________ 12.

We would like to ___________________ payment until delivery of the shipment. 13. We usually ask our customers for ___________________. 14. If there’s a problem with the letter of credit, I suggest you contact the ___________________. 15. The quickest way to send money to another country is to ___________________ it, for example, by Western Union. 16. Thank you for sending the ___________________ by Western Union. I collected it this morning. 17. An effective way to ship consignments is to use a ___________________ such as UPS, DHL or FedEx. 18. The exporter’s bank has ___________________ the bill of exchange to the importer’s bank. 5 For reference see A & C Black Banking and Finance (978-07136-7739-3) 16. International banking and investments Unit 0000 A. Choose the best words to go into the spaces. 1. Because Britain is an island, in British English, a bank account in another country is known as an __________ account. a. off-island b. off-coast c. offshore 2. Transferring money from Britain to another country is called sending money _________. a. overseas b. over-water c. over-waves 3. A country with very low taxes is known as a __________. a. tax heaven b. tax haven c. tax paradise 4.

The principal aim of offshore banking in tax havens is to reduce the customer’s tax __________. a. liabilities b. expenses c. costs 5. A person of any nationality who normally lives in the UK is called a UK ________. a. resident b. inhabitant c. citizen 6. A person with a UK passport is called a ________, even if they don’t live in the UK. a. UK resident b. UK inhabitant c. UK citizen 7. A person who is has a UK passport but doesn’t normally live in the UK is called a ________. a. non-resident b. non-inhabitant c. non-citizen 8. Jim mostly lives in Spain, but for tax __________ he’s resident in the UK. . purposes 9. Jim is __________. a. UK taxed b. UK taxable c. a UK tax-payer b. registration c. payment 10. Although she lives and works in Germany, Maria’s company is __________ in Liechtenstein. a. registered b. recorded c. officially situated 11. An informal way of saying that Maria lives in Germany is that Maria is __________ in Germany. a. housed b. domiciled c. based 12. A formal way of saying that Maria lives in Germany is that Maria is __________ in Germany. a. housed b. domiciled c. based 13. A __________ payment is a fast and secure way to make an international payment. a. fast-track b. riority c. top priority 14. SWIFT is an international __________ payment system. a. electric b. electrical c. electronic 15 A person who receives an international payment is called the __________. a. getter b. beneficiary c. receiver 36 For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3). B. Fill in the missing words. Then number these stages in order, 1 to 6. funds sterling identification tradable prevailing working days Making a priority payment from the UK If the payment is in a foreign currency, the bank carries out the currency exchange at the _________________ rate.

The payment is sent by SWIFT. Instruct your bank to make the payment. If transferring __________ to a bank account, quote the beneficiary’s IBAN (International Bank Account Number). The transfer usually takes three or four _________________ The payment is credited to the beneficiary’s account, or can be collected by the beneficiary upon production of a suitable means of _________________ Decide if you want to send the payment in _________________ or in another _________________ currency. C. Complete the chart below. Is each sentence true for UK-based unit trusts*, offshore funds, both or neither?

UK-based unit trust Aimed at private investors Aimed at institutional investors, such as pension funds Usually operated by fund managers Liable for UK tax Based in a tax haven Usually based on a portfolio of stocks and shares Regulated by UK authorities May carry additional risks A no-risk investment Called a “mutual fund” in the United States * For a definition of unit trust, see Unit 24 Investments x offshore fund x 37 For reference see A & C Black Banking and Finance (978-07136-7739-3) 17. National central banks (NCBs) Unit 0000 Bank of England raises interest rate to 5% 1.

Mortgage repayments, along with the cost of overdrafts and credit card debts, are set to rise after the Bank of England surprised the City yesterday by announcing its first rise in interest rates for more than a year. News of the quarter-point rise to 5% was cautiously welcomed by some financial institutions, but was largely condemned by industry and trades unions. A statement from the Bank of England’s monetary policy committee said that strong growth, a recent recovery in consumer spending, buoyant export markets and signs of a pick-up in investments meant that action was necessary in order to meet the government’s 2. % inflation target. The statement said: “With inflation likely to remain above target for some while, it was judged necessary to bring consumer prices inflation back to target in the medium term. ” A response from the London Board of Businesses and Exporters described the move as premature, and likely to damage businesses, especially those dependent on export earnings. 6. Many homeowners will face higher monthly bills through increased mortgage costs, especially those with variable rate and base-rate tracker mortgages. If mortgage lenders pass on the rise in full, it will add around ? 20 to the monthly repayments on a ? 00,000 mortgage. According to Sarah Parker of the Family Income Monitoring Unit, the average family will need to find around another ? 40 a month. 7. Few analysts predicted a rate increase, and some had even been expecting a decrease to help boost a subdued housing market. Many were talking about the increase being a pre-emptive strike, with the small increase in borrowing costs now intended to ward off the need for a more painful rise later. 8. In the City’s money markets, however, there were expectations of a further tightening of the Bank’s policy and further interest rate rises perhaps up to 5. 5% – unfolding over the next twelve months. Fears that further rate increases would affect consumer spending wiped ? 17bn off the value of the London stock market. 2. 3. 4. 5. A. Choose the definition which is closest to the meaning in the article. 1. the Ci