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.
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 5
1. Money  the basics 6
2. Banks  the basics 8
3. Operating an account 10
4. Credit and debit cards 12
5. Internet banking 14
6. Mortgages 16
7. The housing market 18
8. The consumer credit boom 20
9. Pensions and other financial products 22
10. Insurance 24
11. Wills and other legal matters 26
12. Money and work 28
13. Currency markets 1 30
14. Currency markets 2 32
15. International payments 34
16 International Banking and investments 36
17. National central banks (NCBs) 38
18. National economies and international trade 40
19. Taxation 42
20. Profit and loss accounts 44
21. Balance sheets 46
22. Corporate finance 48
23. Mergers and acquisitions 50
24. Investments 52
25. The dot.com bubble 54
26. Banking and financial problems 56
27. Numbers and statistics 58
28. Phrasal verbs for banking and finance 60
29. Financial idioms and expressions 62
30. Pronunciation and word-building 64
Answer key 66
Index 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 back banknotes borrowed
change coin currency earn
lent note salary spend
sum wages waste win
1. In the USA, "quarters" (25 cents) and "dimes" (10 cents) are types of _______________.
2. In the United Kingdom, "a tenner" means a ten pound _______________.
3. The US dollar, the Yen and the Euro are types of _______________.
4. Hundred dollar bills and twenty pound notes are _______________.
5. 2,000,000 Swiss francs is a large _______________ of money.
6. I need to _______________ some Euros into Australian dollars.
7. My friend _______________ a hundred pounds from me.
8. I _______________ a hundred pounds to my friend. When she can, she'll pay me _______________
9. I buy a lottery ticket every week, but I never _______________ anything.
10. Most dentists _______________ at least Ł30,000 a year.
11. __________ are paid to employees weekly. _______________ are paid to employees monthly.
12. In business, you have to _______________ money to make money.
13. 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. a small a. a profit
2. an income b. amount of money
3. donate c. cash
4. high d. cost of living
5. make e. credit card
6. pay by f. losers
g. money to charity
7. pay in
h. of Ł25,000 a year
8. winners and
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 c. payment ticket
4. I'm paying for my new car in 36 monthly __________.
a. instalments b. pieces c. parts
5. I earn a lot of money, but I have a lot of _________.
a. payouts b. expenses c. paying
6. Famous paintings are usually sold by __________.
a. bid b. highest price c. auction
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 __________ .
a. foreign money b. strange money c. a foreign currency
9. In Britain, it's not usual to discuss your personal __________
a. money b. finances c. money arrangements
10. You can _________ a house and __________ a car.
a. hire / rent b. hire / hire c. rent / rent or hire
11. Here's the fifty dollars I __________.
a. owe you b. pay you back c. must return
12. The best things in life are __________.
a. free b. not for sale c. not bought and sold
D. Find the opposites of these words A R P P U F O L O E
in the grid.
S A V E R E U O N N
1. spender / _______________
S H A C B D Y S F M
2. borrower / _______________
T G S R L G C S L B
R D E V E Q X E E U
3. winnings / _______________
L O W Q N V T S T Y
4. losses / _______________
H X Z W D E I S K E
N J O J E D W L I R
5. high prices / _______________ prices
K E E P R O F I T S
6. sellers / _______________
I A Y A C I B Z U O
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
6
million 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.
a. A piece of paper which transfers money from your account to
1. Credit card
somebody else's account.
2. Debit card
b. Similar to a credit card, but usually operated by a chain of shops or
other retailer.
3. Charge card
c. The money is deducted from your bank account almost immediately.
d. These can be exchanged for foreign currency, or in some cases
4. Cheque
used instead of cash.
e. You owe the card provider money. You can pay it back in one
5. Traveller's cheque
instalment, or over a longer period if you wish.
6. Charge account f. You owe the retailer money.
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 Ł200 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. happen 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. if 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. a. The money's been sent.
2. I withdrew some money. b. I paid in some money.
3. The funds have been transferred. c. It goes out of my account every month.
4. My account is overdrawn. d. I went to a cashpoint.
5. It's paid by standing order. e. I took out some money.
6. My account was debited. f. I'm in the red.
7. My account was credited. g. I checked my balance.
8. I used an ATM. h. It went into my account.
9. I made a balance enquiry. i. It went out of my account.
B. Match the words with the parts of the cheque.
account number amount in figures amount in words cheque number
logo payee signature sort code
13/08/2007
Central and Eastern Bank
Date
14 - 16 St James's Lane
Northampton NT5 8JQ
Pay
Jon Marks
Ł 122.50
One hundred and twenty-two
pounds + 50p only
Liz Allen
000375 22-34-06 27863201
C. Answer the questions.
1. Who has this cheque been made out to? __________________________
2. 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).
A/C Payee
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 _________.
a. 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. direct 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 and debit cards
Unit 0000
EPOS and EFTPOS
A. Choose the correct words.
EPOS (electronic point of sale) terminals are cash 1 registers / machines found in 2 selling / retail outlets
such as shops and restaurants. Data about each sale is 3 entered / put via barcode scanners, keyboards or
4
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.
The customer arrives at a supermarket checkout.
1
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 erased expiry guarantee
magnetic microprocessor 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
5
retailer identification, valid card number and card ______________ 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 banking
Unit 0000
A. Write the words into the spaces below.
applications authentication encrypted
facilities passwords PINs
protected transactions victims
a. Customers with facilities for Internet (i.e. a hacker) to access the information.
banking (also known as online banking) can d. However, hackers can gain access to
7
use their bank s or building society s website
inadequately _______________ home PCs,
to carry out payments and other 1
and can record the password as it is typed in
_______________ over the Internet. This form
(keylogging). Spyware and other malicious
of banking can be done outside business hours
programs can record private banking details,
and from anywhere with Internet access.
and send them to a third party. A more
Features of Internet banking include payment
commonplace danger is written passwords and
of bills, funds transfers between a customer s
PINs falling into the wrong hands.
own accounts, transfers to a third party s
e. Internet banking is perceived by some as
account, loan 2 _______________ and viewing
being too vulnerable to fraud to consider using.
bank statements.
However, the number of 8 _______________
b. In addition to the Internet banking 3
of Internet banking fraud is very small.
_______________ offered by high-street
Statistically, in fact, conventional banking
banks, a new generation of banks operate
activities carry a higher risk of fraud than
exclusively online. These banks tend to offer
Internet banking  simple credit card fraud and
high interest rates on savings accounts and low
various forms of identity theft are far more
rates on loans because their overheads are
widespread. It is far easier to obtain banking
much lower than those of traditional banks.
and other details by going through a bag of
c. Security has become a key issue in Internet
rubbish and collecting old bank statements etc.
banking. For most secure Internet sites,
than it is to obtain it by hacking.
such as Internet shopping sites, single
f. Generally speaking, unless users are careless
4
password _______________ is considered
or gullible, Internet banking does not carry a
sufficient. In an increasing number of
great level of risk. Nevertheless, criminals
countries, this is no longer considered adequate
continue to come up with inventive ways to
for Internet banking. In these cases, entry to the
access accounts. An example is  phishing 
site requires the input of one of a selection of
5
using emails purporting to be from the
passwords and multiple _______________.
6
All information is _______________, customer s bank to persuade people to hand
making it almost impossible for a third party over their 9 _______________.
B. Find words in the article which mean the same as the following.
1. money (paragraph a) ______________________
2. another 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. common (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 a. a bill online
2. carry b. a password
3. click on c. a risk
4. enter / input / key in / type in d. an electronic payment
5. fall into e. an icon
6. make f. funds
7. pay g. the internet
8. transfer h. the wrong hands
D. Match the words on the left with words on the right.
a. business hours
1. a high
b. fraud
2. a low risk of
c. interest rates
3. an Internet-only
d. level of security
4. offer higher-than-average
e. savings account
5. outside
f. to fraud
6. vulnerable
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
of mortgage is known as an endowment mortgage.
With an offset mortgage, the mortgage borrower's 8 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).
a. The mortgage interest rate is linked to the interest rate of
1. repayment mortgage
country's central bank (see unit 16).
2. interest-only mortgage
b. The mortgage interest rate stays the same.
c. You pay the capital sum and the interest.
3. endowment mortgage
d. You pay the interest in instalments, and you pay the capital
sum by another method.
4. offset mortgage
e. The mortgage interest rate can only rise as far as a certain
5. fixed rate mortgage
level.
f. An interest-only mortgage, with the capital repaid by an
6. base-rate tracker mortgage
endowment (see unit 9).
g. Your current and mortgage accounts are combined to
7. variable rate mortgage
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 c. fails on
5. & the mortgage lender will eventually __________ the property.
a. retake b. take back 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 c. the final option
9. A mortgage lender can also be called a mortgagee or a __________.
a. mortgage provider b. mortgage maker 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.
a. mortgage again b. remortgage c. unmortage
12. A mortgage paid over 25 years is called a __________ mortgage.
a. 25 b. 25 year 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
__________.
a. 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.
a. paid out b. paid up c. paid off
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 Pensions (SIPPs) will be permitted to invest
financial year is expected to be restrained due funds from their pensions in residential
to a sharp increase in the number of buy-to-let property.
property owners going into mortgage arrears. 7. Up to Ł15bn of pension cash is expected to
2. However, the recent interest rate cut is likely flood into the market, including tax relief
to cause arrears to level off, and recently- worth as much as Ł5bn. This is certain to create
introduced government measures aimed at a boom in buy-to-let investment, shoring up
supporting the buy-to-let market are likely to building society yields, and to push up house
provide a last-minute boost to building society prices, especially in areas where they have
annual profits. been in decline, creating more attractive
3. James Edwards, chief executive of the market investment opportunities.
leaders City and Provincial Building Society, 8. In addition, the buy-to-let market is likely to
said in a trading statement last week that he continue to benefit from the fact that many
broadly concurred with analysts forecasts of would-be first time buyers remain priced out of
full-year profits for his company to rise by 5% the market, ensuring healthy demand for rental
to Ł240m. However, the fact that soaring properties. Evidence suggests that large
growth in the buy-to-let market (where C&P numbers of potential first time buyers are also
has a 19% share) has cooled significantly delaying their plans to buy to due uncertainty
coupled with concerns about arrears has on house prices, creating a build-up of demand
knocked 7.25p off the company s share price, which is likely to be released when house
leaving it at 264p. prices stabilise.
4. Despite predictions for growth across the 9. A spokesperson for the number two mortgage
sector as a whole averaging around 4.5%, the lender Bolton and Rochdale reported last
share prices of the five leading players in the month that new business volumes have grown
market have declined by an average of just steadily month on month from a low base, and
under 3%. Yields may be falling, but the that the growth of both the residential and buy-
restricted supply of new-build homes and to-let mortgage markets remains robust.
continuing enthusiasm for buy-to-let have kept 10. However, this upbeat stance was offset by
the housing market buoyant, and only the most Banker and Mortgage Lender magazine, which
pessimistic of analysts are predicting a slump. predicted that house prices are poised to fall by
Nevertheless, cautious corporate investors an average of up to 7% across the UK. The
have been reducing their holdings. South West in particular was viewed as over-
5. Such fears may well prove to be misplaced. valued, with prices in some areas set to see a
Hints by the Bank of England regarding a drop as high as 15%. In contrast, London is
further interest rate cut could underpin further now seen as slightly undervalued, following
growth. some dramatic falls over the last year and,
6. An additional boost is likely to be provided according to the magazine, house prices there
by changes to pension rules from April 5th next are set to rise by a minimum of 4% a year for
year. Holders of Self Invested Personal the next three years.
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. slightly more people buying-to-let
4. tax relief worth as much as Ł5bn (paragraph 7)
a. up to Ł5bn reduction in tax to be paid b. up to Ł5bn 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) m____________ a_____________
8. profits (paragraph 4) y____________
9. support (paragraph 7) s____________ u____________
10. low starting point (paragraph 9) l____________ b____________
11. worth less than the current price (paragraph 10) 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 b. house prices are static
c. house prices are falling
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. make 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 b. prices are expected to fall
c. prices will 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 creditors creditworthy into the red
loans owe pay it back write off
1. The people of the United Kingdom are resort to heavy-handed measures such as
estimated to _____________ around a trillion sending in the bailiffs and even (although of
pounds in personal debt, which is about course this is illegal) threatening physical
Ł16,000 for every man, woman and child. violence.
Much of this debt is of course in the form of 4. Naturally, creditors try to avoid lending
mortgages, but an ever-increasing proportion is money to people who won t be able to
in the form of consumer credit: unsecured _____________. Although they may not know
_____________ in the form of overdrafts, it, every person who has ever had dealings with
credit card debts, store card debts, hire- a financial institution (for example, had a bank
purchase agreements and the numerous other account) has a credit rating. This data is stored
ways in which the British public are able to on computers by credit reference agencies, and
 buy now, pay later . before agreeing to a loan, most creditors will
2. An inevitable result of this is that an check the applicant s _____________.
increasing number of people are taking on However, this information can be misleading.
more debt than they can service. Credit cards Apparently _____________ people may
and store cards especially can have very high already be struggling to keep up the payments
APRs*, and the interest soon mounts up, on their existing debts.
pushing the borrower further and further 5. As well as having potentially disastrous
_____________. Repayment in full may consequences for people who get too heavily
simply become impossible. into debt, the boom in consumer credit could
3. Of particular concern are so called  loan- have serious repercussions for lenders. If
sharks . While the major lenders such as banks people are genuinely unable to repay their
_____________ millions of pounds every year debts, ultimately there is very little their
in bad debts, small credit companies sometimes _____________ 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) k____________ 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 a. arrange a loan
2. set up a loan b. decide the borrower will never repay the loan
3. take out a loan c. get a loan
4. pay back a loan d. repay the loan in instalments
5. pay off a loan e. repay all the loan at once
6. write off a loan f. ask 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 debt-
related problems.
21
For reference see A & C Black Banking and Finance (978-07136-7739-3)
9. Pensions and other financial products
Unit 0000
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
2. life insurance
of your life.
3. life assurance
c. You receive a lump sum on a certain date (or earlier if you die).
d. Your beneficiaries receive money if you die young.
4. endowment assurance
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
6. private health insurance
the loan.
7. sickness insurance
g. Your beneficiaries receive money when you die.
8. equity release scheme h. Your private hospital bills are paid.
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.
a. 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 __________.
a. 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 a. Home insurance covering the fabric of the building only.
b. Pays out if you die or after a set period - whichever is later.
2. Third party fire and theft
c. Home insurance covering most risks.
3. Fully comprehensive
d. Motor insurance. Will only pay claims made against you by
others.
4. Buildings only
e. Covers the costs of private health care.
5. Buildings and contents
f. Motor insurance. Will pay claims made against you by others
6. Third party liability
plus damage caused by fire.
g. Motor insurance covering all risks.
7. Worldwide travel
h. Covers claims made against you by others, for example if you
8. Private health
run a business.
9. Indemnity insurance
i. Insurance cover for problems while on holiday abroad.
j. Any insurance which covers financial loss (numbers 1 to 8 are
10. Personal injury
types of indemnity insurance).
11. Life
k. Pays out in the event of a personal accident.
B. Put the words into the correct spaces.
take out broker quote premium
covered claim pay out 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.
6. 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 c. insurance adjuster
2. Your home insurance will be expensive if you live in a _________ area.
a. big risk b. risky c. high risk
3. An insurance broker usually __________ several different insurance companies
a. deals with b. contacts c. works 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 Ł200 of a claim, then your policy has a Ł200 __________.
a. surplus b. extra c. excess
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.
4. This sculpture is insured for / at Ł100,000.
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 deceased estate
frozen heirs inherit
inheritance tax intestate liability
nearest and dearest no-obligation
own pockets prior claim
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. money 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 a. (British English) a person qualified to act as a legal advocate,
especially in higher courts
2. barrister
b. a law firm
3. advocate
c. (British English) a person qualified to draw up wills, deal with
4. attorney conveyancing etc, and to represent clients in lower courts
d. somebody who represents somebody else in court
5. lawyer
e. a person appointed by the deceased to carry out the terms of a
6. legal practice
will
7. executor f. the process of proving a will is genuine
g. (American English) a barrister
8. beneficiary
h. drawing up contracts for the buying and selling of houses
9. probate
i. a person who benefits from a will
10. conveyancing j. a solicitor, barrister or attorney
C. Use the verbs below to complete the sentences.
act be comply defend
draw up exchange grant hear
prosecute sue take
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.
4. 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 by good money hourly for
makes on the staff package payroll on
salary staff member wage well paid well
Set 1:
1. She's ________________ 40k a year.
2. She's on forty thousand ________________.
3. Her monthly ________________ is about Ł3,300.
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 ________________.
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 Ł6 ________________.
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 __________.
a. 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 boss committed
dynamic highly motivated huge salary
line manager loads of money member of a team
remuneration package they pay peanuts 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 = Euro 0.82 GB Pound 0.53
1 Euro = US dollar 1.23 GB Pound 0.65
1 GB pound = US dollar 1.90 Euro 1.54
A. Which is correct? (Choose one from each group.)
1. a. There are 1.23 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.
2. a. The euro is currently at 1.23 against the dollar.
b. The euro is currently at 1.23 for the dollar.
3. 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.
B. Look at the exchange rate chart, and write words or numbers into the spaces.
1. At the moment there are _________________ euros to the pound.
2. The pound is standing _________________ _________________ against the dollar.
3. You'll get just _________________ two dollars to the pound.
4. A dollar is worth just _________________ fifty pence.
5. How many euros will I _________________ for Ł100?
6. How much is $39.95 _________________ pounds?
7. I'd like to change these pounds _________________ euros please.
8. 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
Ł
0.52
0.50
January February March April
30
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
1. The dollar started the year just below sixty pence. TRUE / FALSE
2. The dollar went into free fall in January and February. TRUE / FALSE
3. The decline of the dollar levelled off in March TRUE / FALSE
4. The dollar hit a low of Ł0.50 at the beginning of March. TRUE / FALSE
5. Since March, the dollar has made a full recovery. TRUE / FALSE
6. The dollar has recovered very slightly since March. TRUE / FALSE
7. Since March, the dollar has made a partial recovery, but remains weak. TRUE / FALSE
8. The dollar halved in value in the first three months of the year. TRUE / FALSE
9. The dollar lost nearly a fifth of its value in the first quarter. TRUE / FALSE
10. The dollar is currently trading at around 53p. TRUE / FALSE
D. Put the words into the correct columns. All could go into this sentence:
The dollar __________ against the euro.
rose gently dropped slightly fell sharply went up half a cent
gained slightly hit a new high weakened went into free fall
levelled off remained steady gained strongly gained some ground
rose sharply remained level hit a new low went down several cents
soared plummeted bottomed out fell very slightly
slid a little shot up slipped half cent 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 hard currency pegged
stability transactions 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
3
was at least double that. However, last month the government _______________ 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. TRUE / FALSE
2. At the moment, the black market rate is only slightly better than the official rate. TRUE / FALSE
3. KZ are mostly used for small everyday transactions. TRUE / FALSE
4. In Kzarnia, you can pay for you hotels, restaurants and taxi drivers in any hard currency. TRUE / FALSE
C. Put the words into the spaces below.
cost of living denominations Eurozone
legal tender monetary unit 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. commission 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 Ź 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 bill of exchange
documentary credit (or letter of credit) open account
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.
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.
c. _______________________________
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 consignments courier
defer forwarded import duty
issuing bank payment on delivery penalty
release remit remittance
shipment shipped tariffs
title 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.
4 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.
35
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.
a. purposes b. registration c. payment
9. Jim is __________.
a. UK taxed b. UK taxable c. a UK tax-payer
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. priority 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 identification prevailing
sterling tradable 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
offshore fund
trust
Aimed at private investors x x
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
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 6. Many homeowners will face higher monthly bills
overdrafts and credit card debts, are set to rise after
through increased mortgage costs, especially those
the Bank of England surprised the City yesterday
with variable rate and base-rate tracker mortgages.
by announcing its first rise in interest rates for
If mortgage lenders pass on the rise in full, it will
more than a year.
add around Ł20 to the monthly repayments on a
2. News of the quarter-point rise to 5% was
Ł100,000 mortgage. According to Sarah Parker of
cautiously welcomed by some financial
the Family Income Monitoring Unit, the average
institutions, but was largely condemned by
family will need to find around another Ł40 a
industry and trades unions.
month.
3. A statement from the Bank of England s
7. Few analysts predicted a rate increase, and some
monetary policy committee said that strong
had even been expecting a decrease to help boost a
growth, a recent recovery in consumer spending,
buoyant export markets and signs of a pick-up in
subdued housing market. Many were talking about
investments meant that action was necessary in
the increase being a pre-emptive strike, with the
order to meet the government s 2.5% inflation
small increase in borrowing costs now intended to
target.
ward off the need for a more painful rise later.
4. The statement said:  With inflation likely to
8. In the City s money markets, however, there
remain above target for some while, it was judged
were expectations of a further tightening of the
necessary to bring consumer prices inflation back
Bank s policy and further interest rate rises -
to target in the medium term.
perhaps up to 5.75%  unfolding over the next
5. A response from the London Board of
twelve months. Fears that further rate increases
Businesses and Exporters described the move as
would affect consumer spending wiped Ł17bn off
premature, and likely to damage businesses,
especially those dependent on export earnings. the value of the London stock market.
A. Choose the definition which is closest to the meaning in the article.
1. the City (paragraph 1)
a. the people of London b. financial professionals working in London
2. a quarter-point rise (paragraph 2)
a. a 0.25% rise b. a 2.5% rise
3. consumer spending (paragraph 3)
a. money spent by businesses b. money spent by ordinary people
4. a pick-up in investments (paragraph 3)
a. an increase in share prices b. a drop in share prices
5. in the medium term (paragraph 4)
a. over the next few months b. over the next few years
6. a pre-emptive strike (paragraph 7)
a. an action taken before it becomes necessary b. an action taken after it becomes necessary
38
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
B. Find words in the article with the same meaning as the following.
7. steady economic expansion (paragraph 3) s______________ g______________
8. higher than desired (paragraph 4) a______________ t______________
9. too soon (paragraph 5) p______________
10. avoid (paragraph 7) w______________ o______________
11. occurring (paragraph 8) u______________
C. Complete the definitions.
12. The move was condemned by industry means businesspeople thought the action was ____________
a. a good thing b. a bad thing c. neither good nor bad
13. Most banks passed on the 0.25% rise in full means that most banks increased their lending
rates by&
a. less than 0.25% b. 0.25% c. more than 0.25%
14. Base-rate tracker mortgages are ____________ the Bank of England's interest rate.
a. lower than b. the same as c. linked to
15. I'll need to find an extra Ł40 a month means that I'll have to ____________ another Ł40 a month.
a. pay b. earn c. save
16. A further tightening of policy is another ____________
a. review of targets b. policy reversal c. unpopular implementation of policy
17. Ł17bn was wiped off the value of the London stock market means that
a. fewer shares were traded in the UK b. UK share prices mostly went down
c. a lot of UK companies went bankrupt
D. Which of the following are not usually done by the NCBs of Developed
Economies?
a. Implement the government's monetary policy
b. Decide monetary policy
c. Hold reserves of foreign currency
d. Hold reserves of gold
e. Hold reserves of jewels and valuable paintings
f. Set exchange rates
g. Help the government manage the exchange rate if necessary
h. Manage the government's accounts
i. Provide current accounts for businesses
j. Issue banknotes
k. Control the money supply
l. Control banks' lending rates
m. Manage share issues
39
For reference see A & C Black Banking and Finance (978-07136-7739-3)
18. National economies and international trade
Unit 0000
A. Match the terms with the definitions.
1. trade surplus a. Money owed by a country to foreign creditors
b. The accounts setting out a country's transactions with the
2. trade deficit
rest of the world
3. balance of trade
c. The value of a country's imports exceeds its exports
d. The accounts setting out a country's total imports and
4. balance of payments
exports.
5. external debt
e. The value of a country's exports exceeds its imports
6. debt servicing
f. Expansion of the economy
g. The value of all the goods and services produced by an
7. devaluation
economy over a period (e.g. one year).
8. growth
h. Contraction of the economy
9. recession
i. GDP plus other forms of income such as interest, profits and
dividends received from abroad.
10. gross domestic product (GDP)
j. The national income divided by the population
11. gross national product (GNP)
k. The payment of interest on debts
12. national per capita income l. Reduction in the value of a currency
B. Look at these sentences about the economy of the United Kingdom. Do you
think the answers are TRUE or FALSE? (If you don't know, guess.)
1. The UK is a market economy. TRUE / FALSE
2. Most major industries are state-owned. TRUE / FALSE
3. Many state-owned industries were privatised in the 1980s. TRUE / FALSE
4. The pound was floated in 2006. TRUE / FALSE
5. The UK owes several trillion pounds to the IMF (International Monetary Fund). TRUE / FALSE
6. The UK spends nearly a quarter of its GNP on servicing external debt. TRUE / FALSE
7. The UK has never experienced hyperinflation. TRUE / FALSE
8. The UK has never had a trade deficit. TRUE / FALSE
9. In 2006 the UK economy shrank slightly. TRUE / FALSE
10. From 1990 to 2005, the UK economy experienced double-digit growth. TRUE / FALSE
40
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
C. Write the words into the spaces in the sentences.
"boom and bust" budget deficit budget surplus
crops deregulation disposable income
free trade globalisation industrial base
infrastructure market forces natural resources
private sector public sector quota
Retail Price Index (RPI) social security subsidies
trade barrier trading partners
1. European farmers receive large sums of EU money in the form of _______________.
2. If government expenditure is higher than government income, the result is a _______________.
3. If government income is higher than government expenditure, the result is a _______________.
4. In a _______________ economy periods of growth are followed by periods of recession.
5. People who work for state-owned organisations such as public hospitals and state schools work in
the _______________.
6. People who work for privately-owned organisations work in the _______________.
7. Payments by the government to people with little or no other income is called _______________.
8. Buildings, roads, railway lines, telephone networks and power supplies are all part of a country's
_______________.
9. A limit on the amount of particular type of import is a _______________.
10. Import tariffs and quotas are types of _______________.
11. The absence of trade barriers is known as _______________.
12. Britain's most important _______________ are France, Germany and the USA.
13. "The world is one big market". This is one way of describing _______________.
14. The world price of coffee is not fixed. It is largely controlled by _______________.
15. When a government makes something easier and less bureaucratic, this is called _______________.
16. One of the main ways to measure inflation is the _______________ which is based on the prices of
goods and services.
17. The money people have after paying for food, housing and other necessities
is called _______________.
18. Manufacturing, mining and oil refining are parts of the UK's ______________.
19. Oil, coal and water are _______________.
20. Wheat, potatoes and apples are _______________.
41
For reference see A & C Black Banking and Finance (978-07136-7739-3)
19. Taxation
Unit 0000
My name's Marcus. I work for a bank. I'm on PAYE
(Pay As You Earn). This means that tax is
automatically deducted from my salary. My salary
isn't particularly high, so I only pay tax at the basic
rate. My personal allowance is Ł5,000 a year. Then I
pay 10% on the next Ł2,500, and 22% on
everything above that. I also have to pay National
Insurance, of course, which is another 9%. My gross
pay is about Ł19,000 but my take-home pay is
around Ł15,000.
My name's Yvonne. I'm a self-employed dentist. Every year I
have to fill in a tax return. Dentists can earn quite a lot of
money, and my income is usually well into the higher rate. In
other words, I have to pay 40% on everything I earn over
Ł45,000 a year. However, the salary I pay my receptionist, the
rent for my surgery and the cost of my equipment are all tax
deductible. Only about half my turnover counts as taxable
income. The National Insurance rules are quite complicated
for self-employed people, but my accountant takes care of
that for me.
A. Does each sentence describe Marcus, Yvonne, both or neither?
Marcus Yvonne
1. Is a tax payer x x
2. Works for himself / herself
3. Has tax deducted at source
4. Submits an annual tax return
5. Income exceeds the personal allowance
6. Income exceeds the 10% band
7. Income exceeds the 22% band
8. Pays tax at the higher rate
9. Net earnings are about Ł4,000 lower than gross earnings
10. Gross earnings are below the National Insurance threshold
11. Pays National Insurance
12. Has tax-allowable expenses
13. Employs an accountant
14. Lives entirely on unearned income
42
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
B. Match the type of tax with the definition.
1. Income tax a. Tax on profits made by selling assets such as businesses, rented
houses and shares.
2. Capital gains tax
b. A tax on specific transactions. For example, in the UK, it is
payable by the buyer of a house.
3. Value Added Tax (VAT)
c. Tax on earnings, profits from investments and any other sources
of personal income.
4. Stamp duty
d. Tax on goods and services. In the UK it is charged at 17.5%.
e. In the UK, this is the name for the tax paid by companies.
5. Wealth tax
f. Tax on assets (such as houses) payable in some countries, but not
in the UK.
6. Inheritance tax
g. Tax on the assets of a person who has died. Used to be called
7. Corporation tax "death duties".
C. Match the terms with the examples. It's not easy  some of the terms have close
meanings.
1. tax relief a. Ms Brown is British, but to save tax she lives in Monaco.
b. No tax is payable on winnings from the National Lottery.
2. tax break
c. From April 6th next year, theatres will not have to pay tax on
profits below Ł20,000.
3. tax exile
d. VAT
4. direct taxation
e. Ms Smith pays an accountant to find legal ways to reduce her
tax liability.
5. indirect taxation
f. income tax
6. tax avoidance
g. Liability for capital gains is reduced by 7.5% for each year of
ownership of the asset.
7. tax evasion
h. Mr Jones made a profit of Ł100,000 from selling a business, but
8. tax free didn't declare it to the Inland Revenue.
D. Choose the best word from each pair in grey type.
1. Alan's company is registered in his wife's name for tax reasons / motives.
2. Until last year, some companies paid part of their executives' salaries in valuable antiques, to save tax.
However, the government has now closed this wormhole / loophole.
3. In the UK, food and children's clothes are free / exempt from VAT.
4. Only about 4% of the population are in the highest tax bracket / level.
5. Any company which relocates to Wales will pay not tax for the first two years. This tax incentive / gift
is designed to help reduce unemployment in the region.
6. Last year I paid too much tax, so this year I received a tax refund / rebate.
43
For reference see A & C Black Banking and Finance (978-07136-7739-3)
20. Profit and loss accounts
Unit 0000
Parker Publishing Group Plc
Summary Profit and Loss Account
Audited for the year to March 31st 2007
Ł million
__________________________________________________________________________
Income
Revenue from main business, magazine publishing: 228
Revenue from other activities: 17
Total turnover: 245
__________________________________________________________________________
Expenses
Pay and other employee costs: 69
Depreciation of fixed assets: 3
Selling and marketing costs: 38
Other operational costs: 61
Total operating costs: 171
__________________________________________________________________________
Profits
Operating profit: 157
Profit from sale of fixed assets: 6
Net interest payable: 2
Profit before tax: 149
Tax: 32
Profit after tax: 117
Shareholder dividends: 55
Profit retained in the business: 62
Earnings per share: 17.4p
A. Match the words from the account summary with the definitions.
1. audited a. reduction in value of an asset over time
2. revenue b. money paid to shareholders
3. turnover c. asset purchased for long-term use, such as land, buildings and equipment
4. fixed asset d. after any deductions
5. depreciation e. accounts checked by an independent examiner
6. net f. a person who has invested in the company through buying shares
7. shareholder g. income
8. dividend h. total income
44
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
B. Look at the account summary, and answer true or false.
1. Turnover is income after outgoings have been deducted. TRUE / FALSE
2. Salaries and wages were the only major operating cost. TRUE / FALSE
3. Depreciation of fixed assets seriously reduced operating profits. TRUE / FALSE
4. Parker Publishing spent a lot on sales and marketing. TRUE / FALSE
5. The company sold some assets. TRUE / FALSE
6. Nearly all the profits went to the shareholders. TRUE / FALSE
7. Dividends were only 17.4p per shareholder. TRUE / FALSE
8. It was a very bad year for Parker Publishing. TRUE / FALSE
C. Choose the best words to fill the spaces.
1. The year to March 31st can also be called the year __________ March 31st.
a. finishing b. ending c. terminating
2. Another term for "main business" is __________ business.
a. central b. first c. core
3. A company which makes a profit can be described as profitable or __________.
a. profit-getting b. profit-making c. profit-having
4. A company which makes a loss can be described as __________.
a. loss-getting b. loss-making c. loss-having
5. "Profit before tax" can also be called __________.
a. pre-tax profit b. without-tax profit c. non-tax profit
6. Another word for shareholders (especially in American English) is __________.
a. ticket-holders b. stockholders c. paper-holder
7. Another word for "operating costs" is __________.
a. overheads b. headings c. heads
8. A company which makes neither a profit or a loss is said to __________.
a. fall even b. drop even c. break even
The profit and loss account summary on the previous page is simplified.
45
For reference see A & C Black Banking and Finance (978-07136-7739-3)
21. Balance sheets
Unit 0000
Parker Publishing Group Plc
Balance Sheet
Audited for the year to March 31st 2007
Ł million
____________________________________________________________________________
Fixed assets
Property 47
Fleet 9
Computers and other equipment 2
Total fixed assets: 58
____________________________________________________________________________
Current assets
Stock 5
Money outstanding 12
Other current assets 2
Total current assets: 19
____________________________________________________________________________
Liabilities
Current liabilities: 7
Long-term liabilities: 23
____________________________________________________________________________
Assets less liabilities: 47
____________________________________________________________________________
Money invested in Parker Publishing
Share capital (40m 50p shares) 20
Reserves: 98
Total: 118
A. Match the words from the balance sheet with the definitions.
1. property a. vehicles (cars, delivery vans, lorries etc.)
2. fleet b. not yet paid (in this case, not yet paid to Parker Publishing)
3. stock c. money in deposited in bank accounts
4. outstanding d. land, buildings and parts of buildings
5. current liabilities e. money which must be paid out within one year
6. long-term liabilities f. money which must be paid out after one year
7. share capital g. goods not yet sold
8. reserves h. money raised by issuing shares in the company
The balance sheet above is simplified.
46
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
B. Write the words into the spaces.
arm cash flow founded in its own right
liabilities outstanding pounds' worth sale or return
subsidiary tied up trading went public
Parker Publishing was 1_________________ in 1872 by Hieronymous Parker, originally as the publisher of a
religious periodical called The Preacher. It now specialises in lifestyle magazines, and, through its
2
_________________ Tekpress, also publishes several highly successful periodicals on consumer interest
subjects such as computing and hi-fi. The distribution 3________________ also distributes magazines from
other publishers, and has become highly profitable 4_________________.
The company 5_________________ in 1987. The shares, originally priced at 50p, are
6
_________________ at the time of writing for around Ł3.20.
Like many magazine publishers, Parker are vulnerable to 7_________________ problems. As their
magazines are on 8_________________, they usually have millions of pounds 9_________________ from
retailers, and have 10_________________ of several million more in printers' bills. In addition they have to
keep large sums of money 11_________________ in stock  the firm's warehouses in London and
Manchester usually contain around five million 12_________________ of magazines.
C. Look at the article above and the balance sheet on the opposite page. Answer
the questions.
1. What are Parker Publishing's main current liabilities?
a. money owed to other companies (particularly printers).
b. salaries and wages
2. The article doesn't mention long-term liabilities. In the case of Parker Publishing are these more likely to
be& ?
a. money that must be paid to printers in the distant future.
b. repayments on a bank loans used to buy a fleet of lorries and the warehouse in Manchester.
3. The company's share capital is Ł20m. Does this mean that& ?
a. their shares are currently worth a total of Ł20m
b. the shares were worth Ł20m when issued, but are now worth much more
4. What's the company currently worth?
a. Ł20,000,000
b. Ł98,000,000
c. Ł118,000,000
47
For reference see A & C Black Banking and Finance (978-07136-7739-3)
22. Corporate finance
Unit 0000
A. Money TV was a financial news Cable TV station. Put the story in order.
After a shaky start, Money TV went into profit after three years.
They raised some capital from a merchant bank.
As a result, Money TV's advertising revenue fell dramatically.
Three companies, Tennant Entertainment, Planet Media and K9 Communications formed a
1
consortium.
Money TV started to make heavy losses.
A new station, The Money Channel was launched by Wolf Media Group, the US media
5
empire.
Money TV went into liquidation.
They bought equipment, rented premises, hired staff and set up Money TV.
Viewing figures dropped sharply because of competition from The Money Channel.
B. Put the words into the spaces.
annual report capital intensive cost-benefit analysis
into partnership joint venture lease
monopoly profit margin recoup
start-up costs supply and demand working capital
1. Before deciding to invest in a new computer system, we need to do a __________________ to see if it's
going to be worth it.
2. The new machinery cost a lot, but we'll __________________ the investment in just a few months.
3. You can read about the company's finances, performance and plans for the future in its
__________________.
4. We don't actually own our delivery lorries. We __________________ them.
5. We'd like to launch a new airline, but the __________________ are very high.
6. Airlines are a very __________________ form of business, as aeroplanes are extremely expensive.
7. Jewellery retailers need a lot of __________________, as the cost of their stock is high.
8. Petrol filling stations operate on a very narrow __________________. They only make about 1p a litre.
48
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
9. All business are subject to the laws of __________________.
10. The new mobile phone banking service is a __________________ between �berBank and Telkom.
11. �berBank and Telkom have gone __________________ with each other.
12. In Italy, Telecom Italia used to have a __________________ on telecommunications.
C. Choose the best words to go into the spaces.
1. I sold my furniture shop as __________.
a. an operating company b. a going concern c. an active business
2. We can get a government __________ to help build a new factory in an area with high unemployment.
a. grant b. money c. payment
3. Before building the new factory, we'll have to do an environmental __________.
a. check b. survey c. audit
4. We don't employ our own cleaning staff. We've _________ the cleaning to an outside firm.
a. contracted out b. contracted c. contracted over
5. We need a building firm to build a new warehouse. We're going to put the contract __________.
a. out to price b. under offer c. out to tender
6. Three firms have _________ for the contract.
a. tendered b. offered c. given prices
7. Due to several years of falling sales, we're going to __________ the company.
a. stop b. finish c. wind up
8. The company _________ trading in 2006.
a. gave up b. finished c. ceased
9. Money invested in helping other people start new businesses is called __________.
a. venture capital b. adventure capital c. start capital
D. Which of the options in not possible?
As a result of online ticket purchases, several independent travel agents have __________.
a. gone under
b. gone out of business
c. gone past their sell-by dates
d. gone bust
e. gone into liquidation
f. gone to the wall
E. Three of the phrases above are informal.
Which three?
49
For reference see A & C Black Banking and Finance (978-07136-7739-3)
23. Mergers and acquisitions
Unit 0000
A. Choose the best word from each pair in grey type.
1. Anderson Accounting has been taken over / taken up by Berlin Brothers.
2. Collins Corporation has made a bid / play for Dacher Deutsche
3. The board of Dacher Deutsche rejected / denied Collins Corporation's offer.
4. Eastern Electricity has joined / merged with Grampian Gas
5. Inter-tek has been sold by its father / parent company, Harrison Holdings.
6. Inter-tek has been acquired / got by Johnson & Johnson
7. Harrison Holdings is expected to sell more of its subsidiaries / children in the future.
B. Put the words below into the correct spaces.
conditional bid controlling interest hostile takeover
merger "poison pill" shareholders
target company unconditional bid "white knight"
Takeover bids
In a takeover bid, another person or business makes an offer to the 1______________ to
buy their shares at a fixed price. The aim of this is to take control of the
2
______________.
If it is a welcome takeover bid, the directors of the company advise the shareholders
to accept the offer. If the shareholders accept the offer, the result is usually called a
3
______________.
If the bid is unwelcome, the directors advise the shareholders against accepting it. The
bidders may then write to the shareholders explaining the advantages of the takeover,
and perhaps improving the offer for the shares. This is known as a 4______________ bid.
To avoid an unwelcome takeover bid, the directors may devise a 5______________  a
tactic that will mean the company is worth much less if the takeover bid is successful.
Alternatively, they may look for a 6______________  an alternative bidder for the
company whose takeover would be more welcome.
In an 7______________, the bidder offers a price for each share regardless of how
many shares it can buy. In a 8______________, the offer price depends on the bidder
being able to buy enough shares to gain a 9______________ in the target company.
50
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
C. Choose the best word to go into the space.
1. Berlin Brothers bought a __________ shareholding in Anderson Accounting.
a. more-than-half b. biggest c. majority
2. In the UK, mergers and acquisitions are not __________ by the government.
a. controlled b. checked c. regulated
3. However, they are subject to a voluntary __________.
a. code of conduct b. code of practice c. way of doing things
4. Buying a company for less than the value of its assets, then selling those assets to make a profit is called
__________.
a. asset stripping b. profiteering c. exploitation
5. Sometimes a controlling interest in a company is bought by its managers. This called a management
__________.
a. buy-out b. buy-up c. buy-in
6. In the past, a lot of small banks were __________ by larger ones.
a. bought up b. eaten up c. chewed up
7. In other words, there was __________ in the banking industry.
a. amalgamation b. combining c. consolidation
8. A takeover of a foreign company is known as a __________ deal.
a. cross-boundary b. cross-border c. cross-state
D. Match the words on the left with the words on the right.
1. make / reject / accept / improve / retract a. a code of practice
2. buy up some b. a controlling interest
3. subscribe to / follow / ignore c. a deal
4. an unregulated d. activity / industry
5. do / close e. unwanted subsidiary
6. gain f. an offer / a bid
7. consolidate g. our position in the market
8. sell off an h. shares / smaller companies
51
For reference see A & C Black Banking and Finance (978-07136-7739-3)
24. Investments
Unit 0000
Make a profit and make a difference
The Aware Finance Ethical Investment Fund aims to offer everything you would
expect from an ethical investment: capital growth, a competitive yield and the
knowledge that your gain isn't at the expense of the environment or exploited
workers. Naturally, we only invest in companies that have been thoroughly
screened, and fully match up to ethical investment criteria.
Yet Aware Finance goes one step further. 20% of the fund is invested in small,
unquoted companies developing the next generation of renewable energy
technologies. Of course, most of these technologies are in their infancies, and this
fund is particularly aimed at investors looking for long-term growth potential.
With Aware, the return on your investment isn't just financial.
The Neptune Tracker Fund
Sometimes the simple things in life are the best. With The Neptune Tracker Fund
there are no investment strategies and no fund managers to pay. The fund is
invested in the 100 companies that comprise the Financial Times-Stock
Exchange 100 Share Index. If the FTSE 100 goes up by 5%, the value of your
holding goes up 5%. It's as simple as that.
Despite the promises of high growth and high return associated with managed
funds, the truth is that in seven out of the last ten years on average tracker funds
have equalled or out-performed managed funds.
And unlike managed funds, there are no hefty fees to pay. Entry to the fund costs 1.75% of the sum invested,
with a tiny 0.5% administration fee payable each year thereafter. Yields can be reinvested in the fund or can be
taken as income  the choice is yours.
A. Find words in the advertisements which mean the same as the words below.
1. a specific investment h_______________
2. as good, in financial terms, as others on the market c________________
3. checked s_______________
4. give a higher return than o______________ -p______________
5. income from an investment y ________________
6. increase in value of a holding c_______________ g_______________
7. an increase in value over several years l________-t_________ g_________
8. not listed on a stock exchange u_______________
9. principles for deciding how to invest i_______________ c_______________
B. Answer the questions.
1. Which fund is probably higher risk? AWARE / NEPTUNE
2. which fund is likely to have higher fees? AWARE / NEPTUNE
3. Which fund is more suitable for investors needing a reliable yield? AWARE / NEPTUNE
4. Which fund is entirely invested on the stock market? AWARE / NEPTUNE
5. Which fund would you prefer to invest in? AWARE / NEPTUNE
52
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
C. Match the term with the definition.
1. bond a. An agreement to buy commodities, currencies or shares at a fixed price
on a fixed date in the future.
2. futures contract b. Private investors can buy a small interest in a large fund invested in
many companies.
3. share option c. An investment in which the issuer (often a government) promises to pay
back the invested sum plus interest.
4. trust fund d. Prices are going down / up.
e. A fund which is managed by the trustee(s) for the beneficiary /
5. unit trust beneficiaries. A common example is money held in a trust for a child or
young person.
6. bear / bull market f. Employees are offered shares in the company at a reduced price.
D. Put the words in the spaces in the sentences.
blue chip closing price commission commodities
downturn financial adviser fixed-interest flotation
issue price portfolio public company put some money into
share certificates speculate
1. I've decided to __________________ stocks and shares.
2. I bought a five-year __________________ government bond.
3. Unfortunately for investors, there has been a significant __________________ in the market
4. When I bought the bond, I didn't realise that the agent who sold it to me would get a 3%
__________________.
5. To get advice on personal investments, you can see an independent __________________.
6. Shell, British Airways, Sony and Nestl� are __________________ companies.
7. Coffee, cotton, coal and aluminium are __________________.
8. A __________________ is owned by its shareholders, and its share price is quoted on a stock exchange.
9. Shares in Western Gas were launched with an __________________ of 50p per share.
10. The __________________ of Western Gas on the stock exchange was in 1990.
11. Yesterday's __________________ for Western Gas was 178p per share, down 2p on the day before.
12. Jason has a __________________ of shares worth about half-a-million pounds.
13. Unfortunately, all Jason's __________________ were destroyed in a fire.
14. Investing is a form of gambling. As the saying goes "You have to __________________ to accumulate".
53
For reference see A & C Black Banking and Finance (978-07136-7739-3)
25. The dot.com bubble
Unit 0000
1. At the height of the high-tech stocks gold- an hour or more to get through to a broker.
rush, private investors were piling money into 5. Following the crash, high-tech stocks
internet and technology companies. In many continued to be traded, of course. But many
cases, these were little known businesses that investors, nursing burnt fingers, pulled out of
had been in existence for only a few months. the market altogether. Others scaled down
Nevertheless, investors were hungry for their trading. The result was a dramatic drop
stocks, with many buying large holdings in trading volumes. In the May following the
simply on the basis of wildly optimistic crash, transactions were down to around
internet bulletin boards tips. 100,000 a day, with subsequent months
2. Then in March and April 2000 share prices mostly seeing further declines in the number
crashed. A lucky minority had got out in the of shares changing hands. In other words,
nick of time, but the majority of dot-com there was a full-blown slump.
investors suffered substantial paper losses. 6. Although the party was over for private
Looking back at the frenzy that led up to the investors, online share-dealing services
crash, it now seems amazing that so many mostly continued to be profitable, with many
were taken in by the glitter of fool's gold, and new companies joining the already crowded
were willing to part with their cash so readily. market.
Dot-com shares doubtless seemed to many to 7. However, despite the fact that there was still
be a casino where they couldn't lose, but as money to be made, shares in the sector fared
the old saying goes,  If it seems too good to poorly, and in late 2000 some were standing at
be true, it probably is . just a tenth of their value prior to the crash 
3. London Stock Exchange figures show how comparable losses to those seen by the dot-
cheap online share-trading services caused coms whose shares they had once been
net-based share-dealing to rocket in the trading so frenetically.
months leading up to the crash. The average 8. In the years following one of the most
number of transactions ballooned to 134,000 talked-about crashes in recent history, some
a day in January, and hit a peak of 157,000 a investors who hung on to their shares have
day in March  just days before the first signs partially recouped their losses, particularly
of disaster. when smaller companies have been bought
4. Many of the new share-dealing services out by larger ones. In the majority of cases,
were struggling to cope with the demand, and though, the recovery has been modest, and
some had to close their doors to new accompanied by a strong sense of caution in
customers. There were numerous complaints investors. It general it can be said that the
from investors having to wait on the phone for bubble has well and truly burst.
A. Choose the definition which is closest to the meaning in the article.
1. gold-rush (paragraph 1)
a. lots of people investing b. lots of people making money
2. online bulletin board tips (paragraph 1)
a. advice from internet services b. information about internet services
3. share prices crashed (paragraph 2)
a. share prices fell dramatically b. share prices stopped rising
4. paper losses (paragraph 2)
a. losses of banknotes b. losses of money which never really existed
5. fool's gold (paragraph 2)
a. good profits for stupid people b. something worth much less than many
people believed
54
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
B. Find words in the article with the same meaning as the following.
6. only available on the internet (paragraph 3) n______________-b______________
7. reduced (paragraph 5) s______________ d______________
8. being bought and sold (paragraph 5) c______________ h______________
9. taken over (paragraph 8) b______________ o______________
C. Complete the definitions.
10. Investors piled money into the market means that people &
a. invested cautiously b. invested heavily c. invested all their money
11. People parted with their cash readily means that people were&
a. able to spend money b. spending too fast c. happy to spend their money
12. Small investors got their fingers burnt means that small investors&
a. were unhappy b. were cheated c. lost money
13. There was a drop in stock exchange trading volumes means that &
a. fewer shares were traded b. more shares were traded c. many shares went down in
value
14. Many investors pulled out of the market altogether means that many investors&
a. sold all their shares b. stopped buying shares c. sold their shares at the same time
15. In financial terms, the party's over means that it's no longer possible to&
a. enjoy making money b. make money easily c. lose more money
16. Investors have partially recouped their losses means that investors have got&
a. all their money back b. most of their money back c. some of their money back
D. These sentences use vocabulary from the article. Write "up" or "down" next to
each.
17. share prices rocketed. __________
18. share prices slumped. __________
19. share prices recovered. __________
20. share prices hit a new peak. __________
21. share prices soared. __________
22. share prices dropped dramatically. __________
23. share prices ballooned. __________
24. share prices crashed. __________
25. There was a sizeable drop in share prices. __________
55
For reference see A & C Black Banking and Finance (978-07136-7739-3)
26. Banking and financial problems
Unit 0000
A. Write the problem in the correct box.
capital flight conflict of interests credit card cloning
embezzlement foreclosure forgery
fraud identity theft insider dealing / trading
insolvency money laundering undercapitalisation
_______________________ _______________________ _______________________
Shootemup is a developer of
Lemon Industries borrowed Susan Green is a scientist.
money to buy a new factory. She has been appointed by
computer games. Producing
They have been unable to the government to
new computer games is
repay the loan. The factory investigate any health risks
expensive, and they don't
was the security for the connected with fizzy drinks.
have enough money to
loan, and the bank is now However, she also regularly
bring out new games as
going to take possession of works as a consultant for
it and sell it to recover the ColaCo, a major fizzy drinks often as their competitors.
debt. manufacturer.
_______________________ _______________________ _______________________
Jane Jackson looked at her
Greg Davis knew that his
company was secretly
bank statement, and found
A criminal gang used money
planning to buy a profitable
that somebody had used her
subsidiary. He bought a lot
from drug-dealing to buy
bank details to pay for 1,000
of shares in his own
antiques for cash, which
litres of diesel fuel in
company. When the
they then sold at public
Moscow. She has never
acquisition was announced,
auction.
been to Russia. the share price went up, and
he made a lot of money.
_______________________ _______________________ _______________________
The democratically elected When Ian Barlow paid for a
president of the country was restaurant meal, the waiter
Until she was discovered,
deposed in a military coup. took his credit card away for
Tina Edwards managed to
Many investors withdrew several minutes. A month
steal Ł100,000 from the
their capital in order to later, Ian found that a copy
pension fund she was
deposit it in other countries. of his card had been used to
managing.
buy some diamonds in
Colombia.
_______________________ _______________________ _______________________
Turkey Trading owe large
Geoff Parker persuaded
sums of money to several
Using some special paper
several people to invest
creditors. There is virtually
and a colour photocopier,
substantial sums of money
no chance that they will be
Henry Black has been
in a company which didn't
able to repay these debts,
making counterfeit 100 euro
exist. He then took the
and the company will
notes in his garden shed.
money and disappeared.
probably go into liquidation.
56
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
B. Choose the best words to go into each space.
1. An insolvent company often goes into liquidation. A private individual who cannot pay his/her debts may
be declared __________ by a court.
a. bankrupt b. indebted c. penniless
2. A bankrupt person's __________ can be taken and used to repay his/her debts.
a. things b. items c. property
3. A person who has not yet completed this process is called an ___________ bankrupt
a. unfinished b. incomplete c. undischarged
4. The technical meaning of insolvency is that a person or company's __________ exceed their assets.
a. payments b. liabilities c. expenses
5. When a limited company* becomes insolvent, it is likely to go into __________.
a. liquid b. liquidity c. liquidation
6. The person responsible for winding up a company which has gone into liquidation is called the
__________.
a. liquid b. liquidator c. liquidiser
7. When all the assets of a company have been used as security for a loan, and the company defaults on
repayments, the lender may force the company to go into ___________.
a. receivership b. reception c. reciprocation.
8. In this case, a receiver will be appointed to __________ the assets of the company in order to repay the
debt.
a. sell b. trade c. realise
9. A mistake in an account is often called a _________.
a. disturbance b. distraction c. discrepancy
10. Supermarket chains have a __________ interest in keeping agricultural subsidies high, as they make food
cheaper to buy from farmers.
a. invested b. vested c. vestal
11. A force majeure is an __________ event such as strike, riot or natural disaster which prevents a contract
from being __________.
a. unforeseen / fulfilled b. unseen / fulfilled c. unforeseen / filled
12. Many contracts contain a force majeure __________ to cover this situation.
a. sentence b. phrase c. clause
* A limited company is a company whose members have only limited liability for that company's debts. In
other words, if the company cannot pay its debts, the members of the company don't have to pay the debts
out of their own pockets.
57
For reference see A & C Black Banking and Finance (978-07136-7739-3)
27. Numbers and statistics
Unit 0000
A. Match the numbers with the phrases.
1. 1,000,000 a. one percent
2. 1,000,000,000 b. a thousand
3. 1,000,000,000,000 c. a trillion
4. 1% d. "nought point oh oh one percent"
5. 0.1% e. "nought point oh one percent"
6. 0.01% f. "nought point one percent"
7. 0.001% g. a billion (often written 1bn)
8. >1 h. a million (often written 1m)
9. <1 i. greater than 1
10. 1 j. greater than or equal to 1
11. 1 k. less than or equal to one
12. 1k l. less than one
Notes
For American English, change nought and oh to zero: 0.01 = "zero point zero one"
An alternative to "nought point one" is "point one".
In the past the US and the UK had different meanings for billion and trillion. Occasionally, therefore, in the
UK, billion may mean [1 plus 12 zeros], and trillion may mean [1 + 18 zeros].
B. Match the numbers with the phrases.
1. 3 - 2 a. the square root of three
2. 3 + 2 b. three cubed
3. 3 x 2 c. three divided by two (or three over two)
4. 3 / 2 d. three minus two
5. 32
e. three multiplied by two (or three times two or three by two)
6. 33
f. three plus two
7. 310
g. three squared
8. "3
h. three to the power of ten (or three to the tenth)
58
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
c. Answer the questions.
1. "Three plus two __________ five." Which is not possible?
a. equals b. makes c. is d. comes to e. does
2. Which is not a very usual way to say $7.90?
a. seven ninety b. seven dollars ninety c. seven dollars and ninety cents
d. seven point nine dollars
3. Choose the best words to fill the spaces
In PC Planet, the Micron X9000 desktop computer _________ $999.95.
a. is for sale at b. retails at c. is bought at
4. I'll work it out and give you the __________ tomorrow morning.
a. figures b. numbers c. numerals
5. "I don't care how you worked it out. Just tell me the bottom line." Bottom line =
a. amount of profit b. final result of a calculation c. total losses
6. What's the best way to say anna.brown@globalindustries.com
a. "Anna point brown at global industries dot com"
b. "Anna dot brown at global industries dot com"
7. Alan earns Ł10k a year, Bella earns Ł20k a year and Cathy earns Ł60k a year. What's their mean
annual income?
a. Ł20,000 b. Ł30,000 c. Ł60,000
8. Reference code 14/689G. What's the best way to say this?
a. "fourteen slash six eight nine G" b. "fourteen, six hundred and eighty-nine G"
9. The subtotal of credits is Ł8m and the subtotal of debits is Ł10m. What's the total?
a. "less two million pounds" b. "negative two million pounds"
c. "minus two million pounds"
10. In most English-speaking countries, how do you write "minus two thousand five hundred and
seventy"?
a.  2.570 b. 2.570 c.  2,570
11. Which two are not another way to say "about fifty"
a. around fifty b. fifty-ish c. fifty, up or down
d. fifty, more or less e. fifty or thereabouts f. fifty or so
g. in the region of fifty h. on the fifty i. fifty, give or take
59
For reference see A & C Black Banking and Finance (978-07136-7739-3)
28. Phrasal verbs for banking and finance
Unit 0000
ACROSS
2. They're ________ by their original offer. = Their offer is unchanged.
6. I've ________ up a trust fund. = I've arranged a trust fund.
8. Do you want to ________ off the meeting? = Do you want to cancel the meeting?
9. They b________ out of the deal. = They withdrew from the deal.
10. They've ________ down a deposit. = They've paid a deposit.
11. We've ________ out of money. = We don't have any more money.
13. I'm ________ out the figures. = I'm calculating the figures.
15. We've ________ up on the debt. = We've stopped trying to collect the debt.
16. I want to ________ in my ISA.* = I want to take the money out of my ISA.
19. They p_______ out of the deal. = they withdrew from the deal.
20. He's ________ in an offer. = He's made an offer.
21. We'll ________ them up on their offer. = We'll accept their offer.
DOWN
1. We can ________ 10% off the price. = We can reduce the price by 10%.
3. The company has ________ under. = The company has collapsed.
4. Her money is ________ up in property. = Her money is invested in property.
5. I hope the deal doesn't ________ through. = I hope the deal happens.
7. The bank has been ________ over. = The bank has been bought by another company.
8. We're ________ back on production costs. = We're reducing production costs.
10. We ________ in an order for new computers. = We ordered new computers.
11. The costs ________ into six figures. = The costs were more than Ł100,000.
12. They haven't ________ up with the money yet. = They haven't paid yet.
14. I hope the deal ________ through. = I hope the deal happens.
17. The costs ________ up to six figures. = The costs total around Ł100,000.
18. They're going to h________ over the money. = They're going to give us the money.
19. We can ________ 10% on the price. = We can add 10% to the price.
20. The company has been _______ up for sale. = The company has been put on the market.
* Individual Savings Account, a UK tax-free investment
60
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
1
2 3
4
5 6 7
8 9
10 11
12
13 14
15
16 17 18
19
20
21
61
For reference see A & C Black Banking and Finance (978-07136-7739-3)
29. Financial idioms and expressions
Unit 0000
A. For each sentence, decide whether the people being described are rich or poor.
1. We'll have to tighten their belts. RICH / POOR
2. He's raking it in at the moment. RICH / POOR
3. They're very hard up. RICH / POOR
4. He's finding it hard to make ends meet. RICH / POOR
5. She's absolutely loaded. RICH / POOR
6. They're a lot better off than most. RICH / POOR
7. She's rolling in money. RICH / POOR
8. He's fallen on hard times. RICH / POOR
9. They've got money to burn. RICH / POOR
10. She seems very down at heel. RICH / POOR
11. We're totally broke. RICH / POOR
12. They don't have two pennies to rub together. RICH / POOR
Most of these expressions can also be used to describe businesses. For example, "EnTex have fallen on
hard times".
B. In each sentence, has the share price gone up, down or both?
1. Since the merger was announced, the share price has gone crazy. UP / DOWN
2. Following the news, the share price has gone through the roof. UP / DOWN
3. As a result of the strike, the share price has gone through the floor. UP / DOWN
4. We believe the share price has hit rock bottom. UP / DOWN
5. The share price has been going up and down like a yo-yo. UP / DOWN
6. A lot of investors have lost their nerve. UP / DOWN
7. News of the takeover bid has caused a lot of investors to get cold feet. UP / DOWN
8. Investors are queuing up to buy shares. UP / DOWN
9. Shares in the new company have been changing hands for silly prices. UP / DOWN
10. Those shares? You can't give them away. UP / DOWN
11. The collapse EnTek has had a knock-on effect on our share price. UP / DOWN
12. After two years of bad news, the share price has finally rallied. UP / DOWN
62
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. "In the red" means your bank account is overdrawn. "In the _________" means your account is in credit.
a. blue b. black c. green
2. They're a very rich company. $10,000 is just __________ to them.
a. small money b. coins c. loose change
3. At the moment plasma-screen TVs are a _________ on the market. Everybody who wanted one has now
got one.
a. glut b. surplus c. excess
4. Suppliers have been __________ the market with cheap MP3 players.
a. filling b. flooding c. dumping
5. The market for holiday apartment rentals is now __________.
a. over-full b. too many c. saturated
6. The new computer game console has been a huge hit. Just before Christmas, you couldn't get one for
__________.
a. gold b. diamonds c. love nor money
7. The publishers of School for Wizards have __________ the book's success, and have negotiated a series of
lucrative merchandising deals.
a. maximised cash with b. cashed in on c. cashed up
8. Following the success of Banco Credito's internet share-trading service, a lot of other banks have jumped
__________ and launched similar services.
a. on the bandwagon b. into the sea c. onto the table
9. In those days, you could buy a house for Ł50,000 and let it out for Ł800 a month. It was a licence to
_________.
a. make money b. mint money c. print money
10. If we want a new photocopier, we'll have to ask the Resources Manager. She __________.
a. holds the purse strings b. guards the money c. opens the purse
11. It doesn't matter how much we spend on designing the front cover. Money is ___________.
a. no limit b. no object c. no maximum
12. A large payment to somebody when they leave a job is called a __________.
a. golden goodbye b. golden hand c. golden handshake
13. I get an accountant to fill in my tax return for me. I don't have a very good __________ for figures.
a. mind b. brain c. head
14. Do I have any savings? yes, I've got a little put by for a __________.
a. rainy day b. bad day c. hard time
63
For reference see A & C Black Banking and Finance (978-07136-7739-3)
30. Pronunciation and word-building
Unit 0000
A. Put the words into the correct column.
authorise
bankruptcy
billion
borrower

capital
authorise consignment
consignment
creditor
currency
dividend
economy
encrypted
endowment
executor (of a will)
financial
flotation
fluctuate
foreclosure
homeowner
inflation
insolvent
insurance
internet
intestate
monetary
monopoly
overheads
percentage
profiting
remittance
repayment
salary
shareholder
signature
solicitor
subsidy
taxable
taxation
transaction
turnover
withdrawal
64
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
B. Complete each sentence using a word based on the root word given in bold
type. Then mark the stress of the word you have written. You may need a prefix
(for example un-).
x
1. certify My share certificates are deposited with my bank.
2. partner JKK Industries and Marlowe Manufacturing have gone into _______________ with
each other.
3. convey A large part of many solicitors' work is _______________ house purchases.
4. percent They pay us a small _______________ in commission.
5. inherit Jake spent his _______________ on champagne and fast cars.
6. globe The clothes are made in China, packaged in Italy, and sold in the USA. This
is an example of _______________.
7. liquid As they are unable to repay debts, Northern technologies will have to go
into _______________.
8. benefit Who are the main _______________ of the will?
9. insure This building cannot be insured. It is _______________.
10. convert This currency only became _______________ outside the country last year.
11. possess Malcolm defaulted on his mortgage repayments, so eventually the bank
_______________ his house.
12. receive Who was the _______________ of this payment?
C. Complete the table, and underline the stress in each word.
adjective/past participle
abstract noun verb person
used as adjective
finance to finance financial financier
regulated
insurable / insured
credit-worthy
donated
guaranteed
economic / economical
invested
analysable / analysed
signed
65
For reference see A & C Black Banking and Finance (978-07136-7739-3)
Answer key
1. Money  the basics
A: 1 coin, 2 note, 3 currency, 4 banknotes, 5 sum, 6 change, 7 borrowed, 8 lent / back, 9 win, 10 earn, 11 wages / salaries,
12 spend, 13, account, 14 waste
B: 1 b, 2 h, 3 g, 4 d, 5 a, 6 e, 7 c, 8 f
C: 1 c, 2 b, 3 a, 4 a, 5 b, 6 c, 7 a, 8 c, 9 b, 10 c, 11 a, 12 a
D: 1 save, 2 lender, 3 losses, 4 profits, 5 low, 6 buyers
L
S A V E R O
S
L S B
E E U
L O W N S Y
D E
E R
P R O F I T S
2. Banks  the basics
A: 1 rates, 2 low, 3 branches, 4 high street, 5 make withdrawals, 6 cash dispensers, 7 cheque book, 8 debit card, 9 current,
10 statements, 11 make, 12 switching, 13 range, 14 puts
B: 1 e, 2 c, 3 b, 4 a, 5 d, 6 f
C: 1 c, 2 a, 3 c, 4 b, 5 b, 6 a, 7 c, 8 c, 9 b, 10 a, 11 c, 12 a
3. Operating an account
A: 1 b, 2 e, 3 a, 4 f, 5 c, 6 i, 7 h, 8 d (also known as a cash dispenser, cash machine and "hole-in-the-wall"), 9 g
B (from left to right): payee, logo, amount in words, amount in figures;
cheque number, sort code, account number, signature
C: Jon Marks, Yes, Crossed, No (because it's been crossed)
D: 1 c, 2 c, 3 a, 4 b, 5 a, 6 b, 7 a, 8 c, 9 b, 10 a, 11 b, 12 b, 13 a, 14 c
4. Credit and debit cards
A: 1 registers, 2 retail, 3 entered, 4 touch, 5 receipt, 6 read, 7 transfer, 8 by, 9 sign, 10 identification, 11 secure,
12 signature, 13 transactions, 14 verified
B:
1. The customer arrives at a supermarket checkout.
2. The cashier scans the barcodes on the products.
3. The customer inserts her/his card into the chjp and PIN keypad.
66
Answer key
Answer key
4. The card's electronic chip is read, and the customer enters his or her PIN.
5. The PIN is verified.
6. The payment is authorised.
7. Funds are transferred from the customer's account to the retailer's account.
8. The transaction appears on the customer's bank statement.
C: 1 magnetic, 2 erased, 3 swipes, 4 guarantees, 5 expiry, 6 encrypted, 7 microprocessor
D:
1. Can I take credit or debit card details, please?
2. Sure. I have my card right here.
3. Can you give me the card number, please?
4. It's 4293 5274 3877 3305.
5. And the expiry date?
6. December 2011.
7. And finally, the name as it's printed on the card.
8. Mr J C Smith.
9. That's fine. Your payment has gone through.
5. Internet banking
A: 1 transactions, 2 applications, 3 facilities, 4 authentication, 5 PINs, 6 encrypted, 7 protected, 8 victims, 9 passwords
B: 1 funds, 2 third party, 3 exclusively, 4 overheads, 5 multiple, 6 hacker, 7 spyware, 8 malicious, 9 fraud, 10 identity theft,
11 widespread, 12 gullible, 13 purporting, 14 hand over
C: 1 g, 2 c, 3 e, 4 b, 5 h, 6 d, 7 a, 8 f
D: 1 d, 2 b, 3 e, 4 c, 5 a, 6 f
6. Mortgages
A: 1 homeowners, 2 lender, 3 borrower, 4 on, 5 capital sum, 6 instalments, 7 repaid, 8 current, 9 in, 10 on
B: 1 c, 2 d, 3 f, 4 g, 5 b, 6 a, 7 h, 8 e
C: 1b, 2 c, 3 b, 4 b, 5 c, 6 a, 7 a, 8 b, 9 a, 10 c, 11 b, 12 b, 13 a, 14 c, 15 c
7. The housing market
1 b, 2 a, 3 a, 4 a, 5 b, 6 b, 7 mortgage arrears, 8 yields, 9 shore up, 10 low base, 11 over-valued, 12 c, 13 a, 14 a, 15 c,
16 a, 17 b, 18 c, 19 b
8. The Consumer Credit Boom
A:
Paragraph 1  owe / loans
Paragraph 2  into the red
Paragraph 3  write off
Paragraph 4  pay it back / credit rating / creditworthy
Paragraph 5  creditors
B: 1 personal debt, 2 hire-purchase, 3 mounts up, 4 in full, 5 struggling, 6 keep up, 7 have serious repercussions
C:
1. A secured loan is money lent against collateral (for example a car or a house). If the loan is not repaid, the lender can
take the collateral. With an unsecured loan, there is no collateral.
2. A loan which will never be repaid.
3. They hold details of people's credit ratings, and supply these details to potential creditors.
4. Enters a debtor's home, and takes away any valuable objects to repay a debt. Although legal, this is no longer widely
practised in the UK by corporate lenders such as banks, as it attracts a lot of negative publicity.
67
Answer key
Answer key
D: 1 f, 2 a, 3 c, 4 d, 5 e, 6 b
E: sentence 3
9. Pensions and other financial products
A: 1 sum, 2 recipient's, 3 widow, 4 sufficient, 5 working lives, 6 premiums, 7 benefits, 8 trustees, 9 pension providers,
10 pension fund, 11 lump sum, 12 private pension
B: 1 b, 2 d, 3 g, 4 c, 5 e, 6 h, 7 a, 8 f
C: 1 a, 2 c, 3 b, 4 c, 5a, 6 b, 7 b, 8 a, 9 c, 10 a, 11 c, 12 b, 13 a, 14 c
10. Insurance
A: 1 d, 2 f, 3 g, 4 a, 5 c, 6 h, 7 i, 8 e, 9 j, 10 k, 11 b
B: 0 take out, 1 broker, 2 quote, 3 premium, 4 covered, 5 claim, 6 fill in, 7 pay out
C: 1 a, 2 c, 3 a, 4 b, 5 a, 6 a, 7 c, 8 c, 9 a, 10 b, 11 a, 12 c
D: 1 on, 2 by, 3 by, 4 for, 5 to, 6 for, 7 with
11. Wills and other legal matters
A: 1 intestate, 2 deceased, 3 estate, 4 frozen, 5 heirs, 6 own pockets, 7 assets, 8 nearest and dearest, 9 prior claim,
10 inherit, 11 liability, 12 inheritance tax, 13 no-obligation
B: 1 c, 2 a, 3 d, 4 g, 5 j, 6 b, 7 e, 8 i, 9 f, 10 h
C: 1 grant, 2 draw up, 3 exchange, 4 sue, 5 comply / be, 6 take, 7 hear, 8 act, 9 prosecute, 10 defend
12. Money and work
A: 1 on, 2 a year, 3 salary, 4 makes, 5 package, 6 for, 7 by, 8 on the staff, 9 payroll, 10 staff member, 11 hourly, 12 well,
13 good money, 14 well paid, 15 wage
B: 1 b, 2 c, 3 a, 4 b, 5 c, 6 a, 7 c, 8b
C: 4 and 6 are not possible
D:
JOB ADVERTISEMENT INFORMAL CONVERSATION
attractive salary boss
committed
huge salary
dynamic
highly motivated loads of money
line manager
they pay peanuts
member of a team
worked off your feet
remuneration package
13. Currency markets 1
A: 1 c, 2 a, 3 a
B: 1 1.54, 2 at 1.90, 3 under / below, 4 over, 5 get; 6. in, 7 into / for, 8 for
68
Answer key
Answer key
C: 1 T, 2 T, 3 F (levelled off means it stayed at the same low level for a while), 4 T, 5 F (it's made a partial recovery), 6 F
(see 5), 7 T, 8 F (it went down by about 15%), 9 T, 10 T
D:
hit a new high rose gently levelled off dropped slightly fell sharply
gained strongly went up half a remained steady weakened went into free fall
rose sharply cent remained level fell very slightly hit a new low
soared gained slightly bottomed out slid a little went down
shot up gained some slipped half a cent several
ground cents
plummeted
plunged
14. Currency markets 2
A: 1 convertible, 2 black market, 3 pegged, 4 stability, 5 transactions, 6 hard currency
B: 1 F, 2 T, 3 T, 4 F
C: 1 monetary unit, 2 denominations, 3 Eurozone, 4 legal tender, 5 cost of living, 6 rounding up
D: 1 a, 2 c, 3 c, 4 b, 5 a, 6 b, 7 a, 8 a, 9 a, 10 b
E: 5 and 7 are not possible
15. International payments
A: a. open account, b. documentary credit, c. bill of exchange, d. advance payment
1 documents, 2 honour, 3 an undertaking, 4 complies with, 5 act as, 6 legally-binding, 7 dishonours, 8 matures,
9 dispatch, 10 taken by
B: 1 consignments, 2 shipment, 3 shipped, 4 bill of lading, 5 vessel, 6 import duty, 7 tariffs, 8 title, 9 release, 10 remit, 11
penalty, 12 defer, 13 payment-on-delivery, 14 issuing bank, 15 wire, 16 remittance, 17 courier, 18 forwarded
16. International Banking and investments
A: 1 c, 2 a, 3 b, 4 a, 5 a, 6 c, 7 a, 8 a, 9 c, 10 a, 11 c, 12 b, 13 b, 14 c, 15 b
B:
1. Decide if you want to send the payment in sterling or in another tradable currency.
2. Instruct your bank to make the payment. If transferring funds to a bank account, quote the beneficiary's IBAN
(International Bank Account Number).
3. If the payment is in a foreign currency, the bank carries out the currency exchange at the prevailing rate.
4. The payment is sent by SWIFT.
5. The transfer usually takes three or four working days.
6. The payment is credited to the beneficiary's account, or can be collected by the beneficiary upon production of a
suitable means of identification.
69
Answer key
Answer key
C:
UK-based unit
offshore fund
trust
Aimed at private investors x x
Aimed at institutional investors, such as pension funds
Usually operated by fund managers x x
Liable for UK tax x
Based in a tax haven x
Usually based on a portfolio of stocks and shares x x
x
Regulated by UK authorities
May carry additional risks x
A no-risk investment
Called a "mutual fund" in the United States x
17. National central banks (NCBs)
A, B & C: 1 b, 2 a, 3 b, 4 a, 5 a, 6 a, 7 strong growth, 8 above target, 9 premature, 10 ward off, 11 unfolding, 12 b,
13 b, 14 c, 15 a, 16 c, 17 b
D: b, e, f, i, l, m
18. National economies and international trade
A: 1 e, 2 c, 3 d, 4 b, 5 a, 6 k, 7 l, 8 f, 9 h, 10 g, 11 i, 12j
B:
1. True
2. False
3. True
4. False. To float a currency means to let it trade freely instead of fixing the exchange rate. The UK has not had a fixed
exchange rate in modern times.
5. False
6. False
7. True. Hyperinflation is inflation of around 100% a year or more.
8. False. Trade deficits have occurred regularly.
9. False. It grew slightly.
10. False. "double digit" means more than 10% a year.
C: 1 subsidies, 2 budget deficit, 3 budget surplus, 4 "boom and bust", 5 public sector, 6 private sector, 7 social security,
8 infrastructure, 9 quota, 10 trade barrier, 11 free trade, 12 trading partners, 13 globalisation, 14 market forces,
15 deregulation, 16 Retail Price Index (RPI), 17 disposable income, 18 industrial base, 19 natural resources, 20 crops
70
Answer key
Answer key
19. Taxation
Marcus Yvonne
1. Is a tax payer x x
2. Works for himself / herself x
3. Has tax deducted at source x
4. Submits an annual tax return x
5. Income exceeds the personal allowance x x
6. Income exceeds the 10% band x x
7. Income exceeds the 22% band x
8. Pays tax at the higher rate x
9. Net earnings are about Ł4,000 lower than gross earnings x
10. Gross earnings are below the National Insurance threshold
11. Pays National Insurance x x
12. Has tax-allowable expenses x
13. Employs an accountant x
14. Lives entirely on unearned income
A:
B: 1 c, 2 a, 3 d, 4 b, 5 f, 6 g, 7 e
C: 1 g, 2 c, 3 a, 4 f, 5 d, 6 e, 7 h, 8 b
D: 1 reasons, 2 loophole, 3 exempt, 4 bracket, 5 incentive, 6 rebate
20. Profit and loss accounts
A: 1 e, 2 g, 3 h, 4 c, 5 a, 6 d, 7 f, 8 b
B:
1. False. Turnover is total income.
2. False. Others were depreciation of fixed assets and selling and marketing cost.
3. False. The reduction was very small percentage.
4. True  nearly a quarter of their total expenses.
5. True
6. False  less than half went to the shareholders.
7. False. Dividends were 17.4p per share.
8. False. They made a healthy profit
C: 1 b, 2 c, 3 b, 4 b, 5 a, 6 b, 7 a, 8 c
21. Balance sheets
A: 1 d, 2 a, 3 g, 4 b, 5 e, 6 f, 7 h, 8 c
B: 1 founded, 2 subsidiary, 3 arm, 4 in its own right, 5 went public, 6 trading, 7 cash flow, 8 sale or return, 9 outstanding,
10 liabilities, 11 tied up, 12 pounds' worth
C: 1 a, 2 b, 3 b, 4 c
71
Answer key
Answer key
22. Corporate finance
A:
4 After a shaky start, Money went into profit after three years.
2 They raised some capital from a merchant bank.
7 As a result, Money TV's advertising revenue fell dramatically.
1 Three companies, Tennant Entertainment, Planet Media and K9 Communications formed a consortium.
8 Money TV started to make heavy losses.
5 A new station, The Money Channel was launched by Wolf Media Group, the US media empire.
9 Money TV went into liquidation.
3 They bought equipment, rented premised, hired staff and set up Money TV.
6 Viewing figures dropped sharply because of competition from The Money Channel.
B: 1 cost benefit analysis, 2 recoup, 3 annual report, 4 lease, 5 start-up costs, 6 capital intensive, 7 working capital, 8 profit
margin, 9 supply and demand, 10 joint venture, 11 partnership, 12 monopoly
C: 1 b, 2 a, 3 c, 4 a, 5 c, 6 a, 7 c, 8 c, 9 a
D: c
E: a, d, f
23. Mergers and acquisitions
A: 1 taken over, 2 bid, 3 rejected, 4 merged, 5 parent, 6 acquired, 7 subsidiaries
B: 1 shareholders, 2 target company, 3 merger, 4 hostile takeover, 5 "poison pill", 6 "white knight", 7 unconditional bid,
8 conditional bid, 9.controlling interest
C: 1 c, 2 c, 3 b, 4 a, 5 a, 6 a, 7 c, 8 b
D: 1 f, 2 h, 3 a, 4 d, 5 c, 6 b, 7 g, 8 e
24. Investments
A: 1 holding, 2 competitive, 3 screened, 4 out-perform, 5 yield, 6 capital growth, 7 long-term growth, 8 unquoted,
9 investment criteria
B: 1 Aware, 2 Aware, 3 Neptune, 4 Neptune, 5 your choice!
C: 1 c, 2 a, 3 f, 4 e, 5 b, 6 d
D: 1 put some money into, 2 fixed-interest, 3 downturn, 4 commission, 5 financial adviser, 6 blue chip, 7 commodities,
8 public company, 9 issue price, 10 flotation, 11 closing price, 12 portfolio, 13 share certificates, 14 speculate
25. The dot.com bubble
1 a, 2 a, 3 a, 4 b, 5 b, 6 net-based, 7 scaled down, 8 changing hands, 9 bought out, 10 b, 11 c, 12 c, 13 a, 14 a, 15 b,
16 c, 17 up, 18 down, 19 up, 20 up, 21 up, 22 down, 23 up, 24 down, 25 down
26. Banking and financial problems
A:
foreclosure conflict of interest undercapitalisation
identity theft money laundering insider dealing / trading
capital flight embezzlement credit card cloning
fraud insolvency forgery
72
Answer key
Answer key
B: 1 a, 2 c, 3 c, 4 b, 5 c, 6 b, 7 a, 8 c, 9 c, 10 b, 11 a, 12 c
27. Numbers and statistics
A: 1 h, 2 g, 3 c, 4 a, 5 f, 6 e, 7 d, 8 i, 9 l, 10 j, 11 k, 12 b
B: 1 d, 2 f, 3 e, 4 c, 5 g, 6 b, 7 h, 8 a
C: 1 e, 2 d, 3 b, 4 a, 5 b, 6 b, 7 b, 8 a, 9 c, 10 c, 11 c / h
28. Phrasal verbs for banking and finance
T
S T A N D I N G
K O
E N T
F S E T I
A A E
C A L L B A C K E D
U L E
P U T R U N
U T C A
T I W O R K I N G
N M O
G E E
C A S H
D A
P U L L E D N
U D
P U T
U
T A K E
73
Answer key
Answer key
29. Financial idioms and expressions
A: RICH: 2, 5, 7, 9
All others: POOR
B: UP: 1, 2, 8, 9
UP and DOWN: 5, 12
All others: DOWN
C: 1 b, 2 c, 3 a, 4 b, 5 c, 6 c, 7 b, 8 a, 9 c, 10 a, 11 b, 12 c, 13 c, 14 a
30. Pronunciation and word-building
A:

authorise consignment
bankruptcy economy
billion encrypted
borrower endowment
capital executor (of a wi l l )
creditor financial
currency flotation
dividend foreclosure
fluctuate inflation
homeowner insolvent
internet insurance
monetary intestate
overheads monopoly
profiting percentage
salary remittance
shareholder repayment
signature solicitor
subsidy taxation
taxable transaction
turnover withdrawal
74
Answer key
Answer key
B: 2 partnership, 3 conveyancing, 4 percentage, 5 inheritance, 6 globalisation, 7 liquidation, 8 beneficiaries, 9 uninsurable,
10 convertible, 11 repossessed, 12 recipient
(stressed syllables in italic)
C:
adjective/past participle
abstract noun verb person
used as adjective
finance to finance financial financier
regulation to regulate regulated regulator
insurance to insure insurable / insured insurer
credit to credit (with / to) credit-worthy creditor
donation to donate donated donor
guarantee to guarantee guaranteed guarantor
economics to economise economic / economical economist
investment to invest invested investor
analysis to analyse analysable / analysed analyst
signature to sign signed signatory
75
Answer key
Index
access 5 bear market 24 cashpoint 3
account 1, 2, 3, 4, 5, 16, 17, 18, beneficiary 9, 11, 16, cash register 4
20, 21 24, 30 cease trading 22
accountant 19 benefit 9, 11, 12 cent 1, 14
account number 3 bid 1, 23 central bank 6, 17
account summary 20 bidder 23 change 1, 13, 14
acquire 23 bill 1, 5, 15, 21 charge 2, 11
acquisition 23, 26 billion 27, 30 charge account 2
act 11 bill of exchange 15 charge card 2
actuary 9 bill of lading 15 charity 1
add up 28 black 29 checkout 4
administer 9 black market 14 cheque 2
administration fee 24 blue chip 24 cheque book 2
advance payment 15 bn 7, 27 cheque number 3
advocate 11 board 9, 23 chip 4
agent 24 bond 24 chip and PIN 4
analysable 30 bonus 12 chip card 4
analyse 30 boom 7, 8 citizen 16
analysis 30 boom and bust 18 City 17
analyst 7, 30 borrow 1, 3, 6, 9, claim 10, 11
annual percentage rate 8 26 claim form 10
annual report 22 borrower 1, 6, 8, 30 clause 26
annuity 9 borrowing costs 17 clear 3
application 5 boss 12 click on 5
apply for 8 bottom line 27 cloning 26
APR 2, 8 bottom out 13 close 2
arrears 7 bounce 3 closing price 24
assess 9 branch 2 code of practice 23
asset 11, 19, 20, 21, 23, 26 breach of contract 11 coin 1
asset stripping 23 break even 20 come up with 28
assurance 9 broker 10, 25 commission 9, 14, 24
ATM 3, 4 budget deficit 18 committed 12
attorney 11 budget surplus 18 commodity 24
auction 1 buildings and contents insurance 10 competition 22
audit 20, 21 buildings insurance 10 comply with 11, 15
Australian dollar 1 building society 5, 6, 7 conditional bid 23
authentication 5 bull market 24 confirming bank 15
authorise 4, 30 buoyant 7, 17 conflict of interests 26
average 7 bureau de change 14 consignment 15, 30
back out of 28 business 1, 7, 17, 22, 23, 25 consolidate 23
BACS 3 businesspeople 17 consolidation 23
bad debt 8 bust 22 consortium 22
bailiff 8 buy 9, 11, 23, 24, 26 consumer credit 8
balance 3 buyer 1, 7, 15 consumer spending 17
balance enquiry 3 buy out 25 contents 10
balance of payments 18 buy-to-let 7 contract 11, 15, 22, 26
balance of trade 18 buy up 23 contract out 22
balance sheet 21 call off 28 contribution 9
balloon 25 capital 6, 22, 26, 30 contribution-based 9
bandwagon 29 capital flight 26 controlling interest 23
bank 1, 2, 3, 5, 6, 9, 14, 15, capital gains 19 convertible 14, 30
16, 17, 21, 23, 26, 30 capital gains tax 19 conveyancing 11, 30
bank details 26 capital growth 24 cool 7
Bankers Automated Clearing System capital intensive 22 core business 20
3 capital sum 6 corporate finance 22
banker's cheque 3 capped mortgage 6 corporate investor 7
banker's draft 3 card 4, 26 corporation tax 19
banker's reference 3 card reader 4 cost 10, 20, 22
banknote 1, 17 card number 4 cost-benefit analysis 22
Bank of England 7, 17 case 11 cost of living 1, 14
bankrupt 26 cash 1, 7, 25 counterfeit 26
bankruptcy 30 cash dispenser 2 counterfoil 3
bank statement 2, 4, 5, 26 cash flow 21 courier 15
barrister 11 cash in 28 court 11
base-rate tracker mortgage 6, 17 cash in hand 12 cover 10
basic rate 19 cash in on 29 cover note 10
76
Index
Index (cont.)
crash 25 draw up 11 fixed rate mortgage 6
credit 3, 6, 8, 30 drop 7, 13, 25 float 18
credit-authentication 4 earn 1 flood 7
credit card 1, 2, 4, 5, 17, 26 earnings 17, 19 flotation 24, 30
creditor 8, 18, 26, 30 earnings per share 20 fluctuate 30
credit rating 8 economic(al) 30 fool's gold 25
credit reference agency 8 economics 30 force majeure 26
creditworthy 3, 8, 30 economise 30 forecast 7
crop 18 economist 30 foreclosure 26, 30
crossed cheque 3 economy 18, 30 foreign currency 1, 16, 17
cubed 27 EFTPOS 4 forgery 26
currency 1, 13, 14, 18, 24, 30 electronic funds transfer at point of forward 15
currency converter 14 sale 4 franc 1
currency exchange 16 electronic point of sale 4 fraud 5, 11, 26
currency market 13, 14 email 5 free fall 13
currency fluctuation 14 embezzlement 26 freelance 12
current account 2, 6, 17 employee 1, 12, 24 free trade 18
current assets 21 encrypt 4, 5, 30 frozen 11
current liabilities 21 endowment 6, 9, 30 FTSE 100 24
cut 7 endowment assurance 9 fulfil 26
cut back 28 endowment assurance policy 6 fully comprehensive 10
damage 10 endowment mortgage 6, 9 full-year 7
damages 11 enter 4, 5 fund 24
date 3 environmental audit 22 fund manager 16, 24
deal 23 EPOS 4 funds 3, 4, 7, 16
deal with 10 equity 6, 9 funds transfer 5
death duties 19 equity release scheme 9 futures 24
debit 3 estate 11 gain 13
debit card 2, 4 ethical investment 24 gain ground 13
debt 8, 17, 18, 26, 30 EU 18 GDP 18
debt servicing 18 euro 1, 13, 14, 26 give up 28
deceased 11 Eurozone 14 globalisation 18, 30
declare 19 evict 6 glut 29
decline 25 excess 10 GNP 18
deduct 19 exchange 11, 13 go down 13
deducted at source 19 exchange rate 13, 14, 17 going concern 22
deduction 20 executive 12 gold 14, 17
default 6, 26, 30 executor 11, 30 golden handshake 29
defend 11 exempt 19 gold-rush 25
defer 15 expenditure 18 goods 15, 18, 21
deficit 18 expenses 1, 11, 20 go public 21
demand 7, 25 expiry date 4 go through 28
denomination 14 export 17, 18 go under 22, 28
deposit 3, 21, 26, 30 exporter 15 grant 11, 22
depreciation 20 external debt 18 gross domestic product 18
deregulation 18 fabric 10 gross earnings 19
devaluation 18 face value 14 gross national product 18
dime 1 facilities 5 gross pay 19
direct debit 3 fall 7, 13 growth 7, 17, 18, 24
direct taxation 19 fall through 28 guarantee 30
discrepancy 26 fee 24 guaranteed 30
dishonour 15 figure 27 guarantor 30
dispatch 15 finance 6, 21, 30 hack 5
disposable income 18 financial 30 hacker 5
divide 27 financial adviser 9, 24 hand over 28
dividend 18, 20, 30 financial institution 9 hard currency 14
document 15 financial product 9 health insurance 9
documentary credit 15 Financial Times-Stock Exchange 100 hear 11
dollar 1, 13 Share Index 24 heir 11
domicile 16 financial year 7 higher rate 19
donate 1, 30 financier 30 high street bank 2, 5
donation 30 fire 10 high-tech 25
donor 30 first quarter 13 hire 1, 11, 22
dot.com 25 first-time buyer 7 hire-purchase 8
double-digit 18 fixed assets 20, 21 hit a high 13
downturn 24 fixed-interest 24 hit a low 13
77
Index
Index (cont.)
holding 7, 24, 25 invoice date 15 24, 25
home insurance 10 ISA 28 money laundering 26
homeowner 6, 17, 30 issue 21 money market 17
honour 15 issue price 24 money supply 17
hostile takeover 23 issuer 24 monopoly 22, 30
hourly rate 12 issuing bank 15 mortgage 6, 17, 30
housing market 7, 17 joint account 2 mortgage arrears 7
hyperinflation 18 joint venture 22 mortgage borrower 6
IBAN 16 k 27 mortgagee 6
icon 5 keylogging 5 mortgage lender 6, 7, 17
identification 4, 16 launch 22, 24 mortgage provider 6
identity theft 5, 26 lawyer 11 mortgagor 6
IMF 18 lease 22 motivated 12
import 18 legal practice 11 motor insurance 10
import duty 15 legal proceedings 11 mount up 8
importer 15 legal tender 1, 14 multiply 27
import tariff 18 lend 1, 6 mutual fund 16
income 1, 18, 19, 20, 24 lender 1, 6, 26 national central bank 17
income per capita 18 lending rate 17 National Insurance 19
income tax 19 letter of credit 15 National Lottery 19
increase 12, 17, 24 level 13 natural resources 18
in credit 2, 6 level off 7, 13 NCB 17
indemnity insurance 10 liability 10, 11, 16, 19, 21, 26 negative equity 6
independent financial adviser 24 life assurance 9 net 20
index linked 9 life insurance 9, 10 net-based 25
indirect taxation 19 limited company 26 net earnings 19
Individual Savings Account 28 limited liability 26 new-build 7
industrial base 18 line manager 12 no-obligation 11
industry 18 liquidation 22, 26, 30 no-risk 16
inflation 9, 17, 18, 30 loads of money 12 note 1
infrastructure 18 loan 5, 8, 9, 21, 26 notice 3
inherit 11 logo 3 nought 27
inheritance 30 long position 14 number 27
inheritance tax 11, 19 long-term liabilities 21 occupant 6
Inland Revenue 19 loophole 19 occupational pension scheme 9
input 5 loose change 29 official rate 14
insider dealing/trading 26 lose 13 offer 23
insolvency 26 loser 1 offer price 23
insolvent 26, 30 loss 1, 10, 22, 25 offset mortgage 6
instalment 1, 6, 8 loss adjuster 10 offshore account 16
institution 9 lottery ticket 1 online 5, 25
institutional investor 9, 16 low 13 online banking 5
insurable 30 low-pay 12 on the market 6
insurance 9, 11, 30 lump sum 9 open account 15
insurance company 9 m 27 operating cost 20
insurance policy 10 magstripe 4 operating profit 20
insure 30 magnetic strip 4 operational cost 20
insured 10 majority shareholding 23 outgoings 20
insurer 30 managed fund 24 out-perform 24
interest 6, 18, 20, 24 management buy-out 23 outstanding 21
interest-only mortgage 6 market 7, 25 over 27
interest rate 5, 6, 7, 17 market economy 18 overdraft 2, 17
interest rate cut 7 market forces 18 overdraft facility 3
interest repayment 6 mature 9 overdrawn 2, 3
international banking 16 mean 27 overdue 7
International Bank Account Number merchant bank 22 overheads 5, 20, 30
16 merge 23 overseas 16
International Monetary Fund 18 merger 23 over-valued 7
Internet 5, 10, 25, 30 mergers and acquisitions 23 owe 8, 21
Internet banking 5 million 27 owner 6
intestate 11, 30 minus 27 package 12
invest 9, 20, 22, 24, 30 monetary 30 paper loss 25
investment 7, 16, 17, 19, 22, 24, 30 monetary policy 17 parent company 23
investment strategy 24 monetary policy committee 17 partnership 22, 30
investor 7, 9, 24, 25, 26, 30 monetary unit 14 password 5
invoice 15 money 12, 15, 16, 18, 19, 21, 22, pay 1, 6, 10, 19, 20
78
Index
Index (cont.)
payable 19, 20 profit before tax 20 20, 21, 30
Pay As You Earn 19 profiting 30 sale 20, 22
pay back 8 profit-making 20 sale or return 21
pay by card 4 profit margin 22 saturated 29
PAYE 19 profit retained 20 save 17
payee 3 property 6, 7, 21, 26 saver 1
payment 4, 9, 15, 16, 18, 30 property owner 7 savings account 2, 3, 5
payment guarantee 4 prosecute 11 scale down 25
payment on delivery 15 protect 5 sector 25
pay off 6, 8 provider 6, 9 secure 4
pay out 9, 10 public company 24 secured loan 8
pay rise 12 public sector 18 security 5, 26
payroll 12 pull out 25, 28 self-administered 9
peak 25 purchase 6 self-employed 12, 19
peanuts 12 put down 28 Self Invested Personal Pension 7
peg 14 put in 28 sell 11, 23
penalty 15 quarter 1, 13 seller 1
pence 13 quarter-point 17 services 18
pension 7, 9 quota 18 set up 8, 22, 28
pensioner 9 quote 10, 24 share 7, 16, 20, 21, 23, 24, 26
pension fund 9, 16, 26 rate of interest 2 share capital 21
pension provider 9 receipt 1, 4 share certificate 24, 30
pension scheme 9 receiver 26, 30 share-dealing 25
percent 27 receivership 26 shareholder 20, 23, 24, 30
percentage 30 recession 18 shareholding 23
perk 12 recipient 9 share issue 17
personal allowance 19 recoup 22, 25 share option 24
personal debt 8 recover 13, 26 share price 7, 24, 25, 26
personal finances 1 recovery 13, 17, 25 share-trading 25
personal identification number 2, 4 red 8 ship 15
personal investment 24 reduce 7 shipment 15
personal injury insurance 10 refund 1 shoot up 13
personal pension scheme 9 register 16 short position 14
peseta 1 regulate 9, 16, 23, 30 shrink 18
peso 14 regulation 30 sickness insurance 9
phishing 5 regulator 30 sign 3, 4, 30
piecework 12 reinvest 24 signatory 30
PIN 2, 4, 5 reject 23 signature 3, 4, 30
plummet 13 release 15 SIPP 7
plunge 13 remit 15 site 5, 14
plus 27 remittance 15, 30 slash 27
point 27 remortgage 6 slide 13
poison pill 23 remuneration package 12 slip 13
police 11 rent 1, 7, 19, 22 slump 25
policy 6, 10, 17 repay 6, 8, 9, 26, 30 smart card 4
portfolio 16, 24 repayment 17, 21, 26, 30 soar 7, 13, 25
possession 26 repayment mortgage 6 social security 18
pound 1, 13, 18 repossess 6, 30 solicitor 11, 30
power 27 repossession order 6 sort code 3
prediction 7 reserve 17, 21 sovereign 14
premium 9, 10 resident 16 speculate 24
pre-tax profit 20 retail at 27 spend 1
price 7, 14, 24 Retail Price Index 18 spender 1
priority payment 16 retire 9 spyware 5
private health care 10 retirement 9 square 27
private health insurance 9, 10 return 24 square root 27
private investor 9, 16, 24, 25 return on investment 24 stabilise 7
private pension 9 revenue 20, 22 stability 14
private sector 18 rise 13, 17 staff 12, 22
privatise 18 risk 9, 10, 16, 24 stamp duty 19
probate 11 rocket 25 standing order 3
profit 1, 7, 9, 14, 18, 19, 20, 22, round up 14 start-up costs 22
23, 24 RPI 18 statement 2
profitable 20, 21, 25 run into 28 state-owned 18
profit after tax 20 run out 28 state pension 9
profit and loss account 20 salary 1, 3, 6, 12, 19, statistics 27
79
Index
Index (cont.)
steady 13 tenner 1 unregulated 23
steal 26 terminal 4
unit trust 16, 24
sterling 16 theft 10
unquoted 24
stick by 28 third party 3, 5, 10
unsecured loan 8
stock 16, 21, 22, 24, 25 third party fire and theft 10
value 13, 18, 20, 24
stock exchange 24 third party liability 10
Value Added Tax 19
stockholder 20 thousand 27
variable rate mortgage 6, 17
stock market 9, 17, 24 threshold 19
strong 14, 17 tie up 28
VAT 19
subsidiary 21, 23, 26 title 15
venture capital 22
subsidy 18, 30 title deeds 6
verification 4
subtotal 27 top-up pension 9
verify 4
sue 11 total 27
vessel 15
sum 1, 9, 24 tracker fund 24
vested interest 26
supply 7 tradable 16
supply and demand 22 trade 13, 14, 18, 21, victim 5
surplus 18 25
volume 7
SWIFT 16 trade barrier 18
wage(s) 1, 12, 20, 21, 25
Swiss franc 1 trade deficit 18
waste 1
take-home pay 19 trader 14
weak 13, 14
take off 28 trade surplus 18
weaken 13
take out 8, 10 trading 22, 25
takeover 23 trading partner 18 wealth tax 19
take over 23, 28 trading statement 7
website 5
takeover bid 23 trading volume 25
white knight 23
take up 28 transaction 2, 4, 5, 14, 15, 18, 19,
widow 9
target company 23 25, 30
will 11, 30
tariff 15, 18 transfer 3, 4, 5, 16
win 1
tax 7, 16, 19, 20 travel insurance 10
taxable 19, 30 traveller's cheque 2 wind up 22, 26
taxation 19, 30 trillion 27
winner 1
tax avoidance 19 trust 24
winnings 1
tax break 19 trustee 9, 24
wire 15
tax deductible 19 trust fund 24
withdraw 3
tax evasion 19 turnover 19, 20, 30
withdrawal 2, 3, 30
tax exile 19 unconditional bid 23
work 12
tax free 19 uncrossed cheque 3
tax haven 16 undercapitalisation 26
working capital 22
tax incentive 19 underpin 7
work out 28
tax liability 16 19 undertaking 15
write off 8
tax-payer 16, 19 undervalued 7
yen 1, 14
tax rebate 19 underwriter 10
yield 7, 24
tax relief 7, 19 undischarged bankrupt 26
zero 27
tax return 19 unearned income 19
tender 22 uninsurable 30
80
Index


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