5.1
Money and finance
VOCABULARY Money expressions
1 How do you interpret this quotation?
‘Money often costs too much.’ Ralph Waldo Emerson, Essayist
2 Complete these flow charts. Use the words in the box.
do invest save earn withdraw owe bet repay invoiced do lend 0 earn money→ be paid for your work→spend money 1 borrow money →________ money→pay back money 2 _______ money→charge interest→make a profit
3 order goods →be _______ for the goods →pay for the goods 4 _______ money on a horse →win money→collect your winnings 5 _______ money in shares →earn interest→ buy more shares 6 go to the bank → ________ some money→spend the money 7 put your car up for sale→receive an offer→ _______ a deal
8 find a car you want to buy → negotiate a discount → ________ money 9 _______ business → make a profit →reinvest the profit 10 be short of money →take out a loan→_______ the loan
3 What’s the difference between the following?
1 win money and earn money 2 lend and borrow money 3 spend and waste money 4 costs and is worth ￡300
SPEAKING
A bank loan
4 Work with a partner. Take the roles of bank manager and
loan applicant and act out the conversation. Look at the notes and plan what you are going to say.
Bank manager You must decide if you are able to lend the money to the applicant. Find out: ﹒about his / her financial situation (salary, other income, saving, main outgoings, other debts). ﹒what the loan is for. Be prepared to give details of interest rates, terms of the loan, security needed, etc.
LISTENING
Loan applicant You need to borrow some money. Be prepared to say: ﹒what you want to buy, how much money you need and for how long. ﹒what your financial situation is (salary, other income, saving, main outgoings, other debts). Also find out about the interest rates and other terms of the loan. A culture of debt
5 Discuss these questions.
1 Is it easy to get credit in your country, for example, to
buy a house, a car, a new TV?
2 Is consumer confidence high at the moment? Why? /
Why not?
Exam Success 3 What is people’s general attitude to borrowing in your
country?
Your answer will be
exact word-for-word 6 You will hear part of a lecture given by an economist to phrases from the a group of bankers and economists. In it she describes listening text. They the impact of Alan Greenspan’s economic policy on must be spelt the US and global economies. A friend who can’t attend correctly has asked you to take some notes. Before listening
predict the kind of words that will go in each space.
7 Listen and complete the notes below. Use up to three
words in each space.
Business MAGAZINE
THE LEGACY OF ALAN GREENSPAN
The background
1 Alan Greenspan changed people’s attitudes to ________________. 2 People have been against borrowing money since _____________. 3 Now young people take out loans to pay their way through_________. 4 For many homeowners it’s normal to have a second _________.
The current lending market
5 Credit is easy and interest rates are_________. 6 Banks often lend money _________.
7 In some states it’s possible to get a Mortgagee with no ________.
Reasons for this policy
8 As long as people are spending,_________.
9 In Germany, in times of uncertainly people tend to _________.
The future
10 In 2005 American personal debt was_________________. 11 Some people say we are sitting on _____________. 12 Asset values will not continue to rise ______________.
8 Do you think a policy of borrow and spend helps the economy? Or
do you think sooner or later there will be a debt crisis?
9 Explain the following financial terms from the text. 1 to remortgage your home 2 to make a down-payment 3 asset values will crash 4 to be in negative equity 5 64 trillion dollars
GRAMMAR
Expression of comparison
1 Underline the expressions of comparison and the adverbs /
prepositions that go with them.
0Warsaw is much cheaper than Oslo. 1 I find the train more comfortable than the bus. 2 Wal-mart is the biggest food retailer in the USA.
3 It’s not as expensive as you think.
4 The two articles present the same arguments as each other. 5 Hungarian is a different language to German. 6 Australian food is similar to New Zealand’s. 7 It took me less time than I thought it world.
8 The average American consumes twice as much energy as the
average European. 2 What word(s) could you add to the statements in exercise 1 to show that the difference (or similarity) is big? Use these words to help you (sometimes there is more than one possibility) much far by far over very exactly nearly completely 0 Warsaw is cheaper than Oslo. Warsaw is much cheaper than Oslo.
3 Make comparisons (differences and similarities) between the following.
1 you and another member of your family (father, mother, brother, sister, etc) 2 two cities you know well
3 two employers or teachers you have had
4 your own country and another country you have visited
5 two companies you have worked for or colleges you have attend
4 Read this article about energy consumption in the USA. Write one word to
fill each gap.
Energy consumption in the USA Although the USA has only 5% of the world’s population, it is (0) the largest consumer of energy (1)______ far, consuming 26%. This is (2)_______ so surprising as it is also the world’s largest industrialized economy. However, the USA does waste more energy (3)________ other nation: gas-guzzling cars which consume (4)_______ more fuel than the average European or Asian car; planes which endlessly criss-cross the country. Indeed 28% of the USA’s energy is consumed by transportation and (5)_______ all this transport uses oil for fuel. The standard for car fuel consumption in America today is (6)_______ the same as it was twenty years ago-27.5 miles per gallon. (7)________ last, however, there are moves by the government to control this consumption. Politicians are beginning to realize that, of all the players in the equation, it is consumers who have the (8)________ leverage, not the oil supplier.
SPEAKING Choosing an investment
5 In the city where you live (180,000 people), two independent
cinemas have recently come up for sale. Both are in a popular suburb of the city. The city has three other cinemas-a big out-of-town mutiplex, a six-screen cinema in the centre of town and a small independent in a different suburb.
The details of the two cinema are given below. Study the information and decide which you think would be a better investment. The Last Picture Palace Location: one mile from the city centre in popular student area Seating capacity: 180 people Parking facilities: None Current cost of a ticket: ￡5 Lease: 15 years remaining: ￡15,000 p.a. Turnover last years: ￡110,000 Costs: 30% of ticket sales to distributor; ￡35,000 p.a.; running costs ￡10,000 p.a. Facilities: None (ticket office and auditorium only) Condition: In need of repair and redecoration (￡40,000 investment needed) Price: ￡40,000 (includes all fittings and cinema equipment) The Regal Cinema Location: Two miles from the city centre on main road out of city Seating capacity 620people Parking facilities: 50 cars Current cost of a ticket: ￡5 Lease: 9 years remaining: ￡50,000 p.a. Turnover last years: ￡390,000 (made a loss) Costs: 30% of ticket sales to distributor; salaries ￡130,000 p.a.; other overheads and taxes ￡85,000 p.a. Facilities: single auditorium, food and drinks counter, bar Condition: In need of complete refurbishment to create two new auditoriums (￡300,000 investment needed) Price: ￡1