ESP

Chapter 1:

Vocabulary for Banking and

Finance
 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 coin .

2. In the United Kingdom, "a tenner" means a ten pound note .

3. The US dollar, the Yen and the Euro are types of currency .

4. Hundred dollar bills and twenty pound notes are banknotes .

5. 2,000,000 Swiss francs is a large sum of money.

6. I need to change some Euros into Australian dollars.

7. My friend borrowed a hundred pounds from me.

8. I lent a hundred pounds to my friend. When she can, she'll pay me back

9. I buy a lottery ticket every week, but I never win anything.

10. Most dentists earn at least £30,000 a year.

11. Wages are paid to employees weekly. Salaries are paid to employees monthly.

12. In business, you have to spend money to make money.

13. A: Do you have a bank account ?

B: Yes. I bank with the Bank of Scotland.

14. In my opinion, eating in expensive restaurants is a waste of money.

B. Match the words on the left with the words on the right.

1. a small a. a profit 1+b

2. an income b. amount of money 2+h
3. donate c. cash 3+g
4. high d. cost of living 4+d
5. make e. credit card 5+a
6. pay by f. losers 6+e
7. pay in g. money to charity 7+c
8. winners and h. of £25,000 a year 8+f

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 c. .
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 b .
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 .

a. receipt b. recipe c. payment ticket

4. I'm paying for my new car in 36 monthly a .

a. instalments b. pieces c. parts

5. I earn a lot of money, but I have a lot of b .

a. payouts b. expenses c. paying

6. Famous paintings are usually sold by c .

a. bid b. highest price c. auction

7. In an auction, the item is sold to the person who makes the highest a .
a. bid b. price c. offer

8. In Japan, the US dollar is c .

a. foreign money b. strange money c. a foreign currency

9. In Britain, it's not usual to discuss your personal b

a. money b. finances c. money arrangements

10. You can c a house and c a car.

a. hire / rent b. hire / hire c. rent / rent or hire

11. Here's the fifty dollars I a .

a. owe you b. pay you back c. must return

12. The best things in life are a .

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 / saver
S H A C B D Y S F M

2. borrower / lender T G S R L G C S L B

R D E V E Q X E E U
3. winnings / losses
L O W Q N V T S T Y
4. losses / profits H X Z W D E I S K E

N J O J E D W L I R
5. high prices / low prices
K E E P R O F I T S
6. sellers / buyers
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
million 6 cash dispensers / money machines worldwide, and of course you'll
receive a 7 cheque book / book of cheques and a 8 paying
card / debit card within a few days of opening your account.

Computer-users may be interested in our e-account - all the

benefits of a regular Grimley's 9 current / day-to-day account,
with the added convenience of being able to view your 10 lists /
statements and 11 make / do payments online.

Whether you're opening your first current account, 12

switching / changing from another bank or simply want to take
advantage of our 13 range / variety of savings accounts, you'll
be glad you chose Grimleys – the bank that always 14 makes /
puts the customer first.

B. Match the method of payment with the definition.

1. Credit card +e a. A piece of paper which transfers money from your account to
somebody else's account.

2. Debit card +c b. Similar to a credit card, but usually operated by a chain of shops or
other retailer.

3. Charge card + b
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 + a
used instead of cash.

5. Traveller's cheque e. You owe the card provider money. You can pay it back in one
+d instalment, or over a longer period if you wish.

6. Charge account f. You owe the retailer money.

+f
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 c .

a. payments b. events c. transactions

2. New current account customers can borrow up to £200 in the form of a low-interest a .
a. overdraft b. overtake c. overspend

3. The current rate of interest for c overdrafts is 6.7% APR.

a. permitted b. allowed c. authorised

4. While your account is b credit, there are no charges.

a. under b. in c. with

5. If your account is overdrawn, charges may b .

a. happen b. apply c. occur

6. When you acknowledge a of your new debit card…

a. receipt b. the receiving c. reception

7. …you will be sent a PIN (Personal c Number)

a. identifying b. identifier c. identification

8. You will need to c your PIN each time you use the card.
a. put in b. type c. enter

9. Two or more customers may apply for a b .

a. two-person account b. joint account c. together account

10. Current account a may apply for a Grimleys Credit Card.

a. holders b. owners c. users

11. Credit cards will be issued c .

a. if you're rich enough b. if you have money c. subject to status

12. You may a 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)
Unit 0000
3. Operating an account

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. +3

2. I withdrew some money. b. I paid in some money. +1

3. The funds have been transferred. c. It goes out of my account every month. +5

4. My account is overdrawn. d. I went to a cashpoint.+8

5. It's paid by standing order. e. I took out some money.+2

6. My account was debited. f. I'm in the red.+4

7. My account was credited. g. I checked my balance.+9

8. I used an ATM. h. It went into my account.+7

9. I made a balance enquiry. i. It went out of my account.+6

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

Payee Logo Amount in words Amount in figures

 Central and Eastern Bank Date

13/08/2007
14 - 16 St James's
Lane Northampton
NT5 8JQ
Pay Jon Marks £ 122.50
A/C Payee

One hundred and twenty-two

pounds + 50p only Liz Allen
000375 22-34-06 27863201

Cheque Number Sort Code Account number Signature

C. Answer the questions.

1. Who has this cheque been made out to? John Marks

2. Has it been signed and dated? Yes

3. Is it crossed or uncrossed? Crossed

4. Can it be paid into somebody else's account? No 11

For reference see A & C Black Banking and Finance (978-07136-7739-3)
D. Choose the words to complete the sentences.
1. After they have been paid in, cheques usually take three working days to .
a. pass b. credit c. clear

2. When I write out a cheque, I keep a record by filling in the .

a. receipt b. invoice c. counterfoil

3. If you don't have a cheque book, you can pay by getting a from a branch of your bank.
a. banker's draft b. bank paper c. bank ticket

4. Unlike a personal cheque, a banker's draft can't .

a. be rejected b. bounce c. crash

5. A banker's draft is also known as a bank draft or a .

a. banker's cheque b. banker's note c. banker's ticket

6. If you need to borrow money, you can apply to your bank for an .
a. overdraft possibility b. overdraft facility c. overdraft opportunity

7. If you need to borrow more money from your bank, you can ask them to increase your .
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

For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
 Unit 0000and debit cards
4. Credit

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.

8 The transaction appears on the customer's bank statement.

1 The customer arrives at a supermarket checkout.

4 The card's electronic chip is read, and the customer enters his or her PIN.

7 Funds are transferred from the customer's account to the retailer's account.

3 The customer inserts her/his card into the chip and PIN keypad.

6
The payment is authorised.

5
The PIN is verified.

2
The cashier scans the barcodes on the products.

12 11
For reference see A & C Black 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 magnetic 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 erased , usually from being placed close to a strong magnet.

When the cashier 3 swipes 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 guarantee . When one of these companies receives a request, it
checks for retailer identification, valid card number and card 5 __expiry____________ date. This
information is 6
encrypted 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 microprocessor , 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. 7

5
And the expiry date?

Can I take credit or debit card details, please? 1

Can you give me the card number, please?

3

December 2011. 6

It's 4293 5274 3877 3305. 4

Mr J C Smith.
8

Sure. I have my card right here. 2

That's fine. Your payment has gone through. 9

13
For reference see A & C Black Banking and Finance (978-07136-7739-3)
Unit 0000 banking
5. Internet

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
use their bank’s or building society’s website inadequately 7 protected home PCs,
to carry out payments and other 1 and can record the password as it is typed in
transactions 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 applications and viewing
being too vulnerable to fraud to consider using.
bank statements.
However, the number of 8 victims
b. In addition to the Internet banking 3
of Internet banking fraud is very small.
___facilities____________ offered by high-
street banks, a new generation of banks Statistically, in fact, conventional banking
operate exclusively online. These banks tend activities carry a higher risk of fraud than
to offer high interest rates on savings accounts Internet banking – simple credit card fraud and
and low rates on loans because their various forms of identity theft are far more
overheads are much lower than those of widespread. It is far easier to obtain banking
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
password 4authentication ______ 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 using emails purporting to be from the
passwords and multiple 5 PINS . customer’s bank to persuade people to hand
All information is 6encrypted ____________ , over their 9 passwords .
making it almost impossible for a third party

B. Find words in the article which mean the same as the following.

1. money (paragraph a) funds

2. another person or company (paragraph a) third party

3. only (paragraph b) exclusively

4. business expenses (paragraph b) overheads

For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
5. more than one (paragraph c) multiple

6. person who illegally access somebody else's computer (paragraph c) hacker

7. a program which steals private information from a computer (paragraph d) spyware

8. intended to do bad things (paragraph d) malicious

9. financial crime (paragraph e) fraud

10. stealing money by pretending to be somebody else (paragraph e) identity theft

11. common (paragraph e) widespread

12. easily deceived / will believe anything (paragraph f) gullible

13. pretending (paragraph f) purporting

14. give (paragraph f) hand over

C. Match the verbs with the nouns.

1. access a. a bill online

2. Carry +c b. a password

3. click on + e c. a risk

4. enter / input / key in / type in d. an electronic payment

+b
e. an icon
5. fall into +h
f. funds
6. make +d
g. the internet
7. pay +a
h. the wrong hands
8. transfer +f

D. Match the words on the left with words on the right.

1. a high +d a. business hours

2. a low risk of +b b. fraud

3. an Internet-only +e c. interest rates

4. offer higher-than-average d. level of security

+c
e. savings account
5. outside +a
f. to fraud
6. vulnerable +f
15
For reference see A & C Black Banking and Finance (978-07136-7739-3)
 Unit 0000
6. Mortgages

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).

1. repayment mortgage +c a. The mortgage interest rate is linked to the interest rate of
country's central bank (see unit 16).

2. interest-only mortgage +d b. The mortgage interest rate stays the same.

c. You pay the capital sum and the interest.

3. endowment mortgage +f

d. You pay the interest in instalments, and you pay the capital
4. offset mortgage +g sum by another method.

e. The mortgage interest rate can only rise as far as a certain

5. fixed rate mortgage +b level.

f. An interest-only mortgage, with the capital repaid by an

6. base-rate tracker mortgage
endowment (see unit 9).
+a

7. variable rate mortgage +h g. Your current and mortgage accounts are combined to
reduce the interest.

8. capped mortgage +c 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 Dictionary of Banking and Finance (978-07136-7739-3).
 13. Currency
Unit 0000 markets 1

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.
a. There are 1.23 dollars for a Euro.
b. There are 1.23 dollars to the Euro.
c. 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 1.54 euros to the pound.
2. The pound is standing at 1.90 against the dollar.
3. You'll get just under two dollars to the pound.
4. A dollar is worth just over fifty pence.
5. How many euros will I get for £100?
6. How much is $39.95 in pounds?
7. I'd like to change these pounds into/for euros please.
8. I'd like to exchange these pounds for euros please.

C. Look at the chart, and answer true or false. ➔ line graph

$
0.60
0.58
0.56
0.54
£
0.52
0.50
January February March April

18
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
 14. Currency
Unit 0000 markets 2

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 £0.50 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 1 dropped slightly 7 fell sharply 13 went up half a cent 19

gained slightly 2 hit a new high 8 Weakened 14 went into free fall 20
levelled off 3 remained steady 9 gained strongly 15 gained some ground 21
rose sharply 4 remained level 10 hit a new low 16 went down several cents22
Soared 5 Plummeted 11 bottomed out 17 fell very slightly23
slid a little 6 shot up 12 slipped half cent 18 Plunged 24

4 1 9 6 13
5 2 3 7 16
8 19 17 14 20
12 21 10 18 22
15 23 24
11

See also Unit 28 Numbers and statistics

32 31
For reference see A & C Black Dictionary of Banking and Finance (978-07136-7739-3).
A. Put the words into the spaces below.

black market • hard currency • pegged

stability • transactions • convertible

A soft currency
convertible
The Kzarnian florint is not outside the Republic of Kzarnia. Until recently,
co 1conv
the official exchange rate was KF20 to the US dollar, although the 2 blackmarket
rate was at least double that. However, last month the government 3 pegged _______ 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 stability of the currency, most major 5 transactions within the country are still
tr tra
carried out in 6 hard currency . 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 monetary unit of the majority of countries within the European Union.
denominations
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 Eurozone ceased to be 4 legal tender .

One effect of the introduction of the euro was "euro inflation", with the
5 cost of living rising sharply as a result of the 6 rounding up of prices.

For reference see A & C Black 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 €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)
 READING PASSAGE 1
You should spend about 20 minutes on Questions 1-13 which are based on Reading
Passage 1 below.

Why we need to protect polar bears

Polar bears are being increasingly threatened by the effects of climate change, but their
disappearance could have far-reaching consequences. They are uniquely adapted to the extreme
conditions of the Arctic Circle, where temperatures can reach -40°C. One reason for this is that
they have up to 11 centimetres of fat underneath their skin. Humans with comparative levels of
adipose tissue would be considered obese and would be likely to suffer from diabetes and heart
disease. Yet the polar bear experiences no such consequences.

A 2014 study by Shi Ping Liu and colleagues sheds light on this mystery. They compared the
genetic structure of polar bears with that of their closest relatives from a warmer climate, the
brown bears. This allowed them to determine the genes that have allowed polar bears to survive
in one of the toughest environments on Earth. Liu and his colleagues found the polar bears had
a gene known as APoB, which reduces levels of low-density lipoproteins (LDLs) – a form of
‘bad’ cholesterol. In humans, mutations of this gene are associated with increased risk of heart
disease. Polar bears may therefore be an important study model to understand heart disease in
humans.
The genome of the polar bear may also provide the solution for another condition, one that
particularly affects our older generation: osteoporosis. This is a disease where bones show
reduced density, usually caused by insufficient exercise, reduced calcium intake or food
starvation. Bone tissue is constantly being remodelled, meaning that bone is added or removed,
depending on nutrient availability and the stress that the bone is under. Female polar bears,
however, undergo extreme conditions during every pregnancy. Once autumn comes around,
these females will dig maternity dens in the snow and will remain there throughout the winter,
both before and after the birth of their cubs. This process results in about six months of fasting,
where the female bears have to keep themselves and their cubs alive, depleting their own
calcium and calorie reserves. Despite this, their bones remain strong and dense.
Physiologists Alanda Lennox and Allen Goodship found an explanation for this paradox in
2008. They discovered that pregnant bears were able to increase the density of their bones
before they started to build their dens. In addition, six months later, when they finally emerged
from the den with their cubs, there was no evidence of significant loss of bone density.
Hibernating brown bears do not have this capacity and must therefore resort to major bone
reformation in the following spring. If the mechanism of bone remodelling in polar bears can
be understood, many bedridden humans, and even astronauts, could potentially benefit.
The medical benefits of the polar bear for humanity certainly have their importance in our
conservation efforts, but these should not be the only factors taken into consideration. We tend
to want to protect animals we think are intelligent and possess emotions, such as elephants and
primates. Bears, on the other hand, seem to be perceived as stupid and in many cases violent.
And yet anecdotal evidence from the field challenges those assumptions, suggesting for
example that polar bears have good problem-solving abilities. A male bear called GoGo in
Tennoji Zoo, Osaka, has even been observed making use of a tool to manipulate his
environment. The bear used a tree branch on multiple occasions to dislodge a piece of meat
hung out of his reach. Problem-solving ability has also been witnessed in wild polar bears,
although not as obviously as with GoGo. A calculated move by a male bear involved running
and jumping onto barrels in an attempt to get to a photographer standing on a platform four
metres high.
In other studies, such as one by Alison Ames in 2008, polar bears showed deliberate and focused
manipulation. For example, Ames observed bears putting objects in piles and then knocking
them over in what appeared to be a game. The study demonstrates that bears are capable of
agile and thought-out behaviours. These examples suggest bears have greater creativity and
problem-solving abilities than previously thought.

As for emotions, while the evidence is once again anecdotal, many bears have been seen to hit
out at ice and snow – seemingly out of frustration – when they have just missed out on a kill.
Moreover, polar bears can form unusual relationships with other species, including playing with
the dogs used to pull sleds in the Arctic. Remarkably, one hand-raised polar bear called Agee
has formed a close relationship with her owner Mark Dumas to the point where they even swim
together. This is even more astonishing since polar bears are known to actively hunt humans in
the wild.

If climate change were to lead to their extinction, this would mean not only the loss of potential
breakthroughs in human medicine, but more importantly, the disappearance of an intelligent,
majestic animal.

Questions 1-7
Do the following statements agree with the information given in Reading Passage
1?
In boxes 1-7 on your answer sheet, write
TRUE if the statement agrees with the information
FALSE if the statement contradicts the information
NOT GIVEN if there is no information on this4

1 Polar bears suffer from various health problems due to the build-up of fat under their
skin. FALSE
2 The study done by Liu and his colleagues compared different groups of polar bears.
FALSE
3 Liu and colleagues were the first researchers to compare polar bears and brown
bears genetically. FALSE
4 Polar bears are able to control their levels of ‘bad’ cholesterol by genetic means.
TRUE
5 Female polar bears are able to survive for about six months without food. TRUE
6 It was found that the bones of female polar bears were very weak when they came
out of their dens in spring. FALSE
7 The polar bear’s mechanism for increasing bone density could also be used by people
one day. TRUE

Questions 8-13
Complete the table below.

Choose ONE WORD ONLY from the passage for each answer.
Write your answers in boxes 8-13 on your answer sheet.

Reasons why polar bears should be protected

People think of bears as unintelligent and 8 violent .

However, this may not be correct. For example:
● In Tennoji Zoo, a bear has been seen using a branch as a 9 tool . This allowed him
to knock down some 10 meat .
● A wild polar bear worked out a method of reaching a platform where
a 11 photographer was located.
● Polar bears have displayed behaviour such as conscious manipulation of objects
and activity similar to a 12 game .
Bears may also display emotions. For example:
● They may make movements suggesting 13 frustration if disappointed when
hunting.
● They may form relationships with other species.

Source:
https://ieltstrainingonline.com/practice-cambridge-ielts-16-reading-test-01-
with-answer/
 general vocabulary
Changes 1
1 Look at the graph, and complete the sentences with the correct form of the words and phrases in
the box. In most cases, more than one option is possible.

decline decrease drop fall fluctuate go down

go up increase peak at reach a peak of remain constant
remain steady rise

English school student numbers: May – August.

Briarwood School of English Speakeasy School of Languages

Windsor Language Centre Harefield College

150
140
130
120
110
Student numbers

100
90
80
70
60
50
40
30
20
10
May June July August

Between May and August…

1. …student numbers at the Briarwood School of English increased / went up / rose .

2. …student numbers at the Windsor Language Centre dropped / fell /went down

decreased / declined .
3. …student numbers at the Speakeasy School of Languages remained constant / remained steady .

4. …student numbers at Harefield College fluctuated. They peaked at / reached a peak of 120 in June.

2 Look at this table, and complete the sentences on the next page with words and phrases from
the box. In some cases, more than one answer is possible. There is one word or phrase that you do
not need.

Petrol prices
January £1.10 / litre June £1.55 / litre
February £1.12 / litre July £1.52 / litre
March £1.15 / litre August £1.53 / litre
April £1.18 / litre September £1.58 / litre
May £1.16 / litre October £1.60 / litre

downward trend dramatically gradually sharply slightly steadily

upward trend
1
general vocabulary
Changes 1
1. Between January and April, petrol prices increased gradually /steadily .

2. In May, petrol prices fell slightly .

3. In June, petrol prices rose sharply / dramatically .

4. Overall, there has been an upward trend in petrol prices

3 Look at the task in the box, then complete the sample answer with words and phrases from
Exercises 1 and 2. In some cases, more than one answer may be possible.

The graph below shows the number of visitors to three seaside towns over a five-month period.
Summarise the information by selecting and reporting the main features, and make
comparisons where relevant.

Seahaven Bridgeport Westhampton

16
15
14
13
12
Visitor numbers x 1000

11
10
9
8
7
6
5
4
3
2
1
April May June July August

Sample answer
The graph shows how many people visited three seaside towns between April and August.

The number of visitors to Seahaven (1) increased (2)gradually between April and June, then

(3) rose (4) sharply in July, and continued to (5) go up in August. For the first four
months, visitor numbers to Bridgeport (6) fluctuated , but then (7) dropped (8) dramatically

in the final month. Westhampton visitor numbers (9) remained constant from April to June, then

(10) increased (11) slightly in July and finally (12) peaked at 11,000 in August.

Overall, there was an (13) upward trend in the number of visitors to Seahaven and Westhampton,

but a (14) decline in the number of people visiting Bridgeport.

2
 general vocabulary
Changes 2
1 Complete these sentences with the correct form of one of the verbs in the box. Both sentences
in each sentence pair should use the same verb. In some cases, the meaning of the verb may
change slightly.

adjust alter deteriorate exchange fade reduce renovate

swell switch vary

1. Moving to the countryside radically altered Some people choose to alter their
our lifestyle. appearance with surgery.

2. By switching to a different provider, it can I chose drama as an extra-curricular activity,

be possible to pay much less for your mobile but switched to photography a few weeks
phone bills. later.

3. It can take time to adjust to living in a Prices seem low, but when you adjust
different country. them to allow for tax, they are considerably
higher.

4. The noise built up rapidly, and then just as As the applause faded, the speaker
quickly it faded into the distance. started talking.

5. The amount of tax you pay on a car People’s reactions to the medicine
varies according to the amount of vary a lot, with some people complaining
carbon dioxide it emits. it has no effect at all.

6. Everyone should try to reduce the Many companies were forced to reduce
amount of fat in their diet. their workforce during the recession.

7. Economic crises often deteriorate The weather deteriorated rapidly when it

into social started raining and the winds picked up.
unrest.

8. Ankles and other joints often swell The town is home to 3,000 people, but this
when people travel by air. figure swells to 12,000 in the same
summer.

9. The tokens can be exchanged for food in Shops will normally exchange damaged
the student canteen. goods if you have a receipt.

10. Businesses in the city centre were offered In some cases it can be more expensive to
funding so they could renovate their renovate an old building than knock
premises. it down and build a new one.

3
general vocabulary
Changes 2
2 Now do the same with these.

adapt cut decline disappear expand improve promote

relax replace transform

1. Email has largely replaced the traditional The plan is to replace all the old desktop
letter as a means of written business computers in the library with netbooks.
communication.

2. Some companies are slow to adapt to a Courses can be adapted to suit the needs
changing market. of individual students.

3. The symptoms of illnesses like measles aren’t As the sun disappeared behind the clouds, the
usually serious, and disappear within a few temperature quickly dropped.
days.

4. A college course can help you to find a job The ‘Peter Principle’ is a theory which says
or get promoted .at work. that in a big company, everyone eventually
gets promoted . to a job that is beyond their
ability.

5. Some people think that the government For the final part of the exercise, you need
should relax the rules regarding to repeatedly tighten, then relax your
building on protected land. stomach muscles.

6. The government’s aim in the next five years The best way of improving your English is to
is to improve educational standards. practise using it as much as possible.

7. Water freezes in the pipes, forcing them to Britain’s universities expanded at an

expand and burst. unprecedented rate at the end of the
twentieth century.

8. Supermarkets cut prices on many I believe that governments should increase

basic items to attract more customers. spending on the arts instead of cutting it.

9. Email and social networking websites have When it was closed down, the old fire
transformed the way people station was transformed into an art
communicate. gallery.

10. House prices are so high that the number of Because so many people are out of work, living
people buying their own home has declined
in the last five years. Standards are declining rapidly.

4
general vocabulary
Contrast & comparison
Complete these sentences with the most appropriate word or phrase from A, B or C.

1. The two machines differ considerably. One has an electric motor, the other runs on oil.
A. differ B. differentiate C. differential

2 The ...................................... in weather between the north and the south of the country
is very noticeable.
A. comparison B. contrast C. compare

3. Many people cannot .......................................between lemon juice and lime juice.

A. differ B. differentiate C. contrast

4. Children must be taught to .......................................between right and wrong.

A. differ B. contrast C. distinguish

5. There is a .................................................... between being interested in politics and joining a

political party.
A. distinguish B. distinctive C. distinction

6. Can you tell the ...................................... between a good boss and a bad one?
A. difference B. differentiate C. contrast

7. The management must not ...................................... between male and female applicants.
A. differ B. contrast C. discriminate

8. Asia covers a huge area. ........................................ , Europe is very small.

A. By way of contrast B. By ways of comparing C. By similar means

9. The new model of car is very ...................................... to the old one.

A. same B. similar C. common

10. Her political opinions are ...................................... to mine.

A. same B. exactly C. identical

11. Some political parties have such similar manifestoes that they are difficult to
.................................................... .
A. tell apart B. say apart C. speak apart

12. My friends and I enjoy doing many of the same things. In that respect, we have a lot
.................................................... .
A. in similar B. in particular C. in common

13. There seems to be a large ..................................... between the number of people employed
in service industries, and those employed in the primary sector.
A. discriminate B. discretion C. discrepancy

14. The nation’s economy is largely based on its industry, .................................................... a few
hundred years ago it was an agrarian country.
A. while B. whereas C. whereby

15. British and Australian people share the same language, but in other respects they are as different
as .................................................... .
A. cats and dogs B. chalk and cheese C. salt and pepper
 Describing sequences
1. Decide which one of the following linking words or phrases in the box below cannot be used
to describe sequences.

Initially first/firstly at first next as soon as after

Before following that finally when where

2. Work in pairs. Underline the linking words in 1-7 below and find the first step in the
sequence. Then decide what is being described and put the sentences in order.

1. If it is the latter, the broken components are mended. 6

2. and the phone is then sent for sale. 7
3. Once a device is broken, it is either thrown away or sent for recycling. 5
4. These are then shipped to a different factory for assembly. 3
5. First, the various internal components like the chip are manufactured in one place. 1
6. After that they are dispatched to a central warehouse for distribution. 4
7. At the same time, the case and the SIM card are produced. 2

3. Match 1-6 below with a sentence or part of a sentence a-f to complete the sequence.

1. As soon as the wheat is fully grown,

2. Before it is wrapped,
3. Once the mangoes are ripe, they are picked.
4. The components are imported and then put together.
5. When the tea bush reaches a certain height, the leaves are picked.
6. Milk production goes through various stages. When the cows are milked, the milk is
taken to a dairy where various products are made.
a. the chocolate is put into moulds and left to cool.
b. It is heated to kill bacteria to make it suitable for drinking, or churned to produce butter.
c. and sent to the market for sale, or kept in a cold refrigerator for export.
d. it is reaped.
e. They are then dried, sorted, blended and wrapped in packets for sale.
f. After that the machines are put into boxes and transported to warehouses or to shops.

1+d 2+a 3+c 4+f 5+e 6+b

4. Match each of the words below to a sequence in exercise 3.

Packaging storage delivery pasteurization harvesting assembly

1: harvesting 2: packaging 3: storage 4: delivery+ assembly 5: harvesting+ packaging

6: pasteurization
 Describing Tables
Study the following table showing the participation of people over 15 in selected sports and
recreation activities by gender in Australia during the period 2011-2012.

Males (%) Females (%)

Walking for exercise 16.5 30.4
Fitness/Gym 15.1 19.1
Cycling/BMXing 9.8 5.4
Jogging/Running 8.7 6.4
Golf 8.2 0
Swimming/Diving 7.5 8.0
Tennis 4.9 3.4
Netball 0 4.5
Football (outdoor) 4.1 0
Basketball 2.8 0
Yoga 0 3.3
Total 77.6 79.4

1. Work in pairs. Study the table above and prepare questions about the data using
comparative adjectives where possible.

Example:

What is the proportion of men walking for exercise?

Is the proportion of men walking for exercise greater/smaller than women?

Is the percentage of men cycling greater/smaller than/the same as women’s?

2. Work in pairs. Look at sentences 1-8 below. Find a sentence which does not give tru or false
information about the data (not given). Then decide whether the other sentences are true or
false.

1. A smaller percentage of men than women went swimming or diving. True

2. There was a far greater proportion of men than women involved in walking. False
3. Proportionately, males were less likely than females to take part in sporting activities.
True
4. Nearly twice as many men as women went cycling/BMXing. True
5. The table compares data about male and female involvement in a selection of activities
in Australia in 2011/12. True
6. A small percentage of men (2.8 per cent) played football, while no women played. False
7. Jogging/running was the least popular activity overall. NOT GIVEN
8. Overall, there are some noticeable differences in the proportions of male and female
involvement in the selected activities. True
 3. Rewrite the sentences in exercise 2 which give false and not given information to make them
true.
4. Work in pairs. Match each of the sentences in exercise 2 to a section a, b or c below.

a. Introduction 5 b. the overview 8 c. specific data (1-2-3-4-6-7)

5. Work in pairs. Look at the overview in question 8 of exercise 2. Paraphrase the sentence
using the following:

It is clear that the participation of males and females/both genders is different/noticeably

different/dissimilar.

6. Explain how you paraphrased the sentence and suggest other ways of paraphrasing.
7. Underline the words and phrases used to make comparisons in questions 1-8 in exercise 2.
8. Rewrite sentences 1-6 below using the words and phrases in the box. Make any necessary
changes.

a smaller proportion of a third of the number of 40% of three quarters

half five times the number of over 50%

Example:

Twice as many cars were sold in June compared to March.

Half as many cars were sold in March compared to June.

1. The football match was attended by three times as many spectators as the rugby match.

The rugby match was attended by a third of the number of spectators as the football
match.

2. The sports department was visited by only 20 per cent the shoppers in February 2009
when compared to February 2008.

The sports department was visited by five times the number of shoppers in February
2008 compared to February 2009.

3. More than four out of every ten / 40 % of competitors were from the main city.
4. The bulk of players were from overseas rather than home-grown.

A smaller proportion of players were home-grown.

5. A quarter of the members of the sports club are paid by cash rather than credit card.

Three quarters of the members of the sports club are paid by credit card rather than
cash.

6. The team lost just under half of the games they played last season.
The team won over 50% of the games last season.
 Verbs of Movement

B-C: d B-D: b D-F: g F: j F-H: i G: a I-J: e J-K: c L-M: f

2. For sentences 1-10 below, use the verbs in exercise 1 to replace the underlined text.

1. The price of laptops dropped and this was followed by a period of stability. Fell and then
leveled off.

2. Numbers reached a high in the year 2009. Hit a peak

3. The amount of money spent fell slightly and then quickly recovered. Dipped

4. Visitor numbers to the website plunged in the first quarter of the year. Plummeted

5. Book purchases increased steadily over the year. Rose gradually

6. The number of students applying to the university stabilized over the decade. Remained
flat.

7. Attendance at the conference decreased gradually over the past five years. Declined
steadily

8. The growth rate was erratic during the previous year. fluctuated

9. Member numbers reached their lowest point in March. Hit a low

10. Car sales rocketed over the period. Soared