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Marketing & banking

  1. 1. Mr. Joel D. Aldrich BA Elementary English MA English Comprehension1 Mr. Joel D. Aldrich BA Elementary English MA English Comprehension
  2. 2. Table of Contents Unit 1Statistics 1 Unit 2The Stock Market 9 Unit 3Telephoning 16 Unit 4Marketing 18 Unit 5Transport 20 Unit 6Advertising 24 Unit 7Banking Services 28 Unit 8Cash and Currencies 31 Unit 9Finance and Banking 34Electronic Banking 38Checking Account and Debit Card SimulationStudent Instructions & Work Sheets 45Practice Writing Checks 52Student Assessment 63 2
  3. 3. Unit 1 StatisticsVocabularyRose sharply = to go up very fastFell gradually = to go down slowlyReached a peak = to reach the highest pointIncreased gradually = to go up slowlyRemained constant = to stay the sameDeclined sharply = to go down very fastLeveled off = to move toward stability or consistency: Prices leveled off.Fluctuated = to move up and downTurnover = usually, total sales for a given period (for example, annual turnover of $10 million).Profits = the excess of total revenues over total costs in a given time period.Demand = 1. (economic definition) A schedule of the amounts that buyers would be willing topurchase at a corresponding schedule of prices, in a given market at a given time. 2. (businessexecutive definition) The number of units of a product sold in a market over a period of time.Overheads = costs incurred whether you make a profit or not, such as salaries, rent, electricity,wear and tear; they are often expensive and usually unavoidable.Output = the quantity of something (as a commodity) that is created (usually within a givenperiod of time)Costs = the money expended to produce and market a product or service.Graphs:Graphs give a clear picture of trading performance and other statistical information.From the words above, match the correct picture. Turnover Profits Sales _________________ __________________ _________________ 3
  4. 4. Costs Demand Overheads __________________ __________________ _________________ Prices Output _________________ __________________Read the following article and study the graph.Britain’s inflation rate climbed to 8.1% last month, its highest since last summer and up from7.5% in February. The underlying rate of inflation, excluding mortgage-interest payments, roseto 6.3%The main reason for the inflation increase was the March 1 rise in mortgage rates from 14.5% to15.4%.But there was a range of other price increases. Food prices, for example, rose 0.6% last monthand have increased 8.7% over the past year. Seasonal food prices are 14.1% up on a year ago.Official figures also showed that average earnings grew by 9.5% in the 12 months to February,up from 9.25% in the previous month. 4
  5. 5. earningsRise in average inflation Retail price Line Graph 4 verbs that mean went up 4 nouns connected with money 5
  6. 6. 4 adjectives connected with timeChoose the word that is closest in meaning to these two words in the text.Figures are:a. information b. symbols c. subjects d. statisticsEarnings are:a. taxes b. income c. winnings d. profitLine Graphs are one way of presenting data. What are these two other ways called? ___________________ ______________ 6
  7. 7. Task: Create a graph from one of these three topics below.Topic 1: Bar GraphHow long McDonald’s cleaners must work to buy a BigMacAs this issue of ALU is about wages, the editorial team decided it would be a good idea to seehow long it would take a cleaner to buy one of the products she/he helps to sell.Now almost a traditional target for anti-globalisation / anti-capitalist protesters, we choseMcDonald’s, known throughout the world for union-busting, low pay, and cheap food.We decided to compare what we thought would be a universal meal, the Happy Meal. Howeverwe discovered that Happy Meals varied across the region, and so decided on the BigMac. Ofthe responses we received, only India does not sell the product, so we took the burgerconsidered nearest to the BigMac, the McChicken Burger.The responses we received show quite clearly that the target consumer group varies fromcountry to country. Taking extreme examples, an Australian cleaner could buy three BigMacsafter working for one hour, whereas a Pakistani cleaner would have to work for more thanfourteen hours to buy the same burger.Pay rates and burger prices seem to vary in large countries like China, and we have chosen thecheaper burger for comparison.Pay rates quoted apply to adults. However we learn that in Australia, an adult (over 19 yearsold) part-time worker who has completed training would be paid $10.61 per hour. But many fastfood workers are younger and are paid less - for instance, if they are under 17 years old theyreceive only $5.83 per hour.Staff turnover in this sector is often quite high, and as we have seen, ‘trainees’ can be paidreduced rates. This means that significant numbers of McDonald’s workers are often notearning the official rates quoted here.There are no McDonald’s outlets in Nepal. Big Mac A$3.00 US$1.58 Australia Staff A$10.61 US$5.60 per hour BigMac Rmb9.90 US$1.19 China Sales staff 2.5 US$0.30 per hour BigMac HK$10.20 US$1.30 Hong Kong Cleaner HK$15.00 US$1.92 per hour McChicken burger IRs48 US$0.98 India Min wage IRs5.60 US$0.11 per hour Big Mac MR4.30 US$1.13 Malaysia Cleaner MR3.00 US$0.78 per hour 7
  8. 8. Big Mac NZ$3.95 US$1.72 NZ Worker NZ$8.30 US$3.61 per hour Big Mac PR185 US$3.08 Pakistan Cleaner PR13 US$0.22per hour Big Mac P65 US$1.27 Philippines Staff P28 US$0.54 per hour Big Mac W 3,100 South Korea Staff W 2,100 per hour Big Mac SRs265 Sri Lanka Worker SRs45 per hour Big Mac B55 US$1.26 Thailand Min wage B20 US$0.46 per hourFrom: Asia Monitor Resource Center: http://www.amrc.org.hk/4202.htmBar Chart: Big Mac Price and Salary ComparisonIf you are a cleaner in McDonalds in the countries below, how long do you have to work beforeyou can afford to buy a Big Mac?Write 150 words describing the bar graph.Topic 2: Pie-ChartsUK Regions and PopulationThe table below gives the population and area of each country in the UK in 2001. Country Area (000 km2) Population (millions) England 130.4 49.2 Northern 13.6 1.7 Ireland Scotland 78.1 5.1 Wales 20.8 2.9Copy and paste this data into Excel to draw TWO pie charts - one for area and one forpopulation.Write a short description of the pie-charts. 8
  9. 9. Pie-Charts 3: UK Population and AreaIn the pie-charts, you have to compare two chartsSuggested AnswerThe two pie-charts compare the areas of regions in the UK with their populations. Overall,although England is the largest region by size, its population is much bigger than that of theother areas.England has more than three-quarters of the population of the UK, but just over half the area. Incontrast, Scotland, with just 5 million people, or one-tenth the population of England, occupiesover a quarter of the land area of the UK. Wales and Northern Ireland are more denselypopulated than Scotland. Their combined population is just under 5 million, but they have halfthe area of Scotland.In conclusion, England is the most densely populated area, followed by Wales, NorthernIreland, and finally, Scotland.Topic 3: Line Graph Weather in Three African CitiesAssessment: Students should accurately complete the line graphs and be able to interpret theinformation provided by the graphs. Temperature Data Cities Lat. Long. J F M A M J J A S O N D Aswan 24deg.N 33deg.E 59 63 70 78 85 90 91 90 88 82 72 62 Walvis Bay 23deg.S 14deg.E 65 66 66 65 62 60 59 57 58 60 61 64 Cairo 30deg.N 31deg.E 55 57 63 70 76 80 82 82 78 74 65 58 Kayes 14deg.N 12deg.W 77 81 89 94 96 91 84 82 82 85 83 77 Mogadishu 2deg.N 45deg.E 77 79 81 82 80 77 75 76 76 77 76 77 Bulawago 21deg.S 29deg.E 71 70 69 66 61 58 57 61 67 71 72 72 Algiers 37deg.N 3deg.E 53 55 58 61 66 71 77 78 75 68 62 57 Cape Town 34deg.S 18deg.E 70 70 68 63 59 56 55 56 68 61 64 68 Addis Ababa 9deg.N 39deg.E 60 62 65 64 66 64 62 61 61 62 59 59 Yaounde 4deg.N 12deg.E 74 74 74 72 72 71 70 71 71 71 72 73 Kananga 6deg.S 22deg.E 76 76 76 77 77 76 77 76 76 76 77 77 Mombassa 4deg.S 40deg.E 80 80 82 81 78 77 75 76 77 78 79 80 Nairobi 1deg.S 37deg.E 64 65 66 65 63 61 59 60 63 66 64 63 Rainfall Data Cities J F M A M J J A S O N D 9
  10. 10. Aswan - - - - - - - - - - - - Walvis Bay - - - - - - - - - - - - Cairo 0.4 0.2 0.2 0.2 - - - - - 0.3 0.7 1.4 Kayes - - - - 0.6 3.9 8.3 8.3 5.6 1.9 0.3 0.2 Mogadishu - - - 0.7 2.2 3.5 2.0 0.6 0.5 0.7 0.4 - Bulawago 5.5 4.8 4.5 0.8 0.6 - - - 0.3 0.6 3.1 4.9 Algiers 4.2 3.5 3.5 2.3 1.3 0.6 0.1 0.3 1.1 3.1 4.6 5.4 Cape Town 0.7 0.6 0.9 1.9 3.8 4.5 3.7 3.4 2.3 1.6 1.1 0.8 Addis Ababa 0.6 1.9 2.8 3.4 3.0 5.7 11. 12. 7.6 0.8 0.5 0.2 Yaounde 1.6 2.7 5.9 9.1 8.1 4.5 2.6 3.3 7.6 8.9 5.9 2.0 Kananga 7.2 5.4 7.9 6.1 3.1 0.2 0.1 2.5 6.5 6.6 9.1 6.6 Mombassa 0.8 0.9 2.3 7.8 13. 3.6 3.5 2.2 1.9 3.4 5.0 2.2 Nairobi 1.9 4.2 3.7 8.3 5.2 2.0 0.8 0.9 0.9 2.0 5.8 3.5Line Graph: Weather in Three African CitiesThe graphs show the average monthly temperature and rain fall in five different African cities.Write a short description of the chart.Find a map of Africa, locate the five cities and add it to your description.From: http://www.hawaii.edu/hga/Lessons/Africa/climoAFR.html Unit 2 10
  11. 11. The Stock MarketThis is an introductory teaching unit on the stock market.I. Introduction to StocksA share of stock is a share of a business. Many people try to gain more money by investingtheir money in stocks. People who own stock are called stockholders. They are then a partialowner of the company that issues the stock and may share in a company’s profits, if thecompany makes a profit during the year. This is paid in the form of dividends. The company’sboard of directors distributes the dividends proportionately by the number of shares outstanding.Common stock is always issued by the corporation. It represents an ownership interest in thecompany. People owning common stock usually have the right to vote for the directors of thecompany. Preferred stock may also be issued by the corporation. This kind of stock is givencertain preferential treatment over common stock. These stockholders may receive fixeddividends before the common stockholders are paid, along with other advantages. However,they generally have no voting privileges and cannot expect to receive more than their fixeddividend.The prices of stock change often. Most active stocks change in value during a day’s trading. Acorporation only has a certain number of shares available to buy. The laws of supply anddemand cause the prices to fluctuate. Prices depend on general business conditions, companyearnings, and what people think is the future prospect of the corporation. When more peoplewant to buy, the market in stocks will rise. When more people want to sell, prices go down. Thetrick is to try and guess correctly; buy when the price is low, sell when the price is as high as it isgoing to go.Stockbrokers (or "brokers") are the people whose job it is to buy and sell stocks for the buyer.They also can give advice about which stocks might be good investments. The buyer pays thebroker a small commission, or fee for services, each time stocks are bought and sold.An excellent list of stock terms can be found on the net at the USA Today web page. Lookunder the heading "Financial Glossary."A stock exchange is the market place where brokers buy and sell stocks. The NYSE (NewYork Stock Exchange), AMEX (American Stock Exchange), and NASDAQ (National Associationof Securities Dealers) are the three main U. S. stock exchanges. The current prices of manystocks are available on the net, along with a lot of other stock market information. Two sourcesare listed on the home page "hot points." See the "Reading and Understanding Stocks" sectionbelow on how to read the stock listings.II. Reading and Understanding the Stocks 11
  12. 12. Current stock listings on the net are organized a little differently from source to source, but theyall have the same basic information.First you have to type in the correct SFN, the abbreviation for the name of the company. If youdon’t know what the abbreviation is, you can find it by looking in the "Search for Symbol" sectionon the USA Today web page. There are many other sources, too.Once you have entered the correct SFN, you will see the information you need.Last - The most recent trade of a stock.Change - This shows the change in price from the previous day’s closing price.Currency - This shows the currency that is used, such as USD for U. S. dollar.% Change - This calculates the percentage change in the price of a stock from the previousdays closing price.Open - The price at which a stock opens the trading day.Day Low- This is the lowest price that a stock has traded at during the day.Day High - This is the highest price that a stock has traded at during the day.Volume - This is the daily number of shares of a stock that changes hands between a buyerand a seller. Some sources give these listings in hundreds or thousands.Dividend - The annual per share cash payout investors should expect.P.E. - The Price-to-Earnings Ratio - The ratio of the market price per share to the earnings pershare.You practice reading real stock information. Looking at a companys listing and figure out theanswers to questions like these:1. What was the highest price paid per share that day?2. What was the lowest price paid that day?3. What was the closing price paid that day? (This might not be available because the webcarries the latest information, and the market can still be open and changing!)4. Now figure the net change. This is the difference in price from the last price paid per share onthe previous day. It can be positive or negative.Use a newspaper, too.Stock quotations on the net are available in fractional form and. If you want to, which I want youto, practice converting prices from their fractional form, as they are listed in the newspaper, to adecimal to the nearest thousandth. For example 12 3/8 means 12 3/8 dollars. Change the 3/8by dividing 3 by 8. The result is 0.375, so 12 3/8 = 12.375III. Stock Market Practice Problems 12
  13. 13. 1. Jessica earned $5.00 an hour baby-sitting. In an entire year that turned out to be 410 hours.How many shares of Disney stock, that is selling for 83 5/8 dollars per share, could she buy withthat money? Dont include transaction costs at this time. Solution:$5.00 x 410 = $2050 to spendThe price of one share is $83 5/8, or $83.625$2050 divided by $83.625 = 24.5142003Jessica cannot buy part of a share of stock, so she drops the decimal portion of the number.She can buy 24 shares of the stock.Now find out how many shares Jessica could have purchased if the Cost per share is: 5 1/4 16 1/8 31 7/8 22 1/2 75 5/162. Pat earned $3170 during the summer. How many shares could he buy of a stock that isselling for 29 3/8 per share? This time include the brokers commission of 3%. Solution:Change the commission of 3% to 0.03 and multiply by 31703170 x 0.03 =$95.10 That is the brokers commission, which should be subtracted from theamount to be invested.$3170 - $95.10 = $3074.90The price of one share is 29 3/8, or $29.375Divide the amount he has left after the commission by the price per share: $3074.90 Ö $29.375= 104.6774468Again, the decimal portion of the number must be dropped because he cannot buy part of ashare of stock. He can buy 104 shares of stock.Now find out how many shares could be purchased if Pat had $3170 with a 3% brokerscommission, and:Cost per share is: 5 1/4 16 1/8 31 7/8 22 1/2 75 5/163. Jason bought 36 shares of stock at 43 3/8, or $43.3125, per share. He didnt have to pay acommission fee. What was the total amount that Jason invested, to the nearest cent? Solution: 13
  14. 14. Multiply and then round off to the nearest cent36 x $43.31 = $1559.16Jason invested $1559.16Now find out the total amount invested (to the nearest cent) when: Number of Shares: Cost per Share: 25 $55.125 60 $11.25 100 $26.375 250 $9.875 40 $71.754. Henry bought 40 shares of stock at 32 7/8, or $32.875, per share. He paid a commission of$39.45. What was the total amount that Henry invested, to the nearest cent? Solution:Multiply to find the cost of the shares, and round to the nearest cent.$32.875 x 40 = $1315.00Then add the commission$1315.00 + $39.45 = $1354.45Henry invested $1354.45 in all.Now find out the total amount invested, to the nearest cent, when: Number of Shares: Cost per Share: Commision Paid: 25 $46.50 $37.20 60 $16.45 $28.62 100 $9.375 $25.15 85 $49.125 $118.27 200 $37.75 $206.505. Georgia sold her 30 shares of Nike stock five months after she bought them. The sale pricewas $82 5/8 per share. She paid a commission of $74.36. What was the profit or loss on the$2416.77 that Georgia invested? Solution:Multiply the price per share by 30 to find the total price of the stock 14
  15. 15. $82.625 x 30 = $2478.75Now subtract the amount of the commission$2478.75 - $74.36 = $2404.39Since the amount received was more than the amount invested, there was a gain. Subtract tofind the gain.$2416.77 - $2404.39 = $12.38Georgia had a gain of $12.38 on her investment.Now find the amount of profit or loss when: Amount Invested: Number of Shares Sold: Sale Price per Share: Commission Paid:$75.00 100 $10.375 $31.13$1254.75 30 $42.125 $31.60$1500.00 70 $22.50 $47.25$3328.00 200 $17.75 $88.75$1950.86 50 $39.875 $59.81Now you are ready for the project, see below!IV. Stock Market ProjectThis project is for students who are already familiar with the stock market. They can use theirunderstanding in an investing simulation.This can be done individually, in pairs, or in small groups. Each group starts with $20,000 (oramount of your choice) to purchase stock. You are to surf the net for stock advice. Stockselections can have other certain criteria of your choice. For example, one from: • Clothing / shoe company • Food / restaurant • toys • one each from the NYSE, AMEX, and NASDAQ. • one picked randomlyYou should calculate a 3% commission each time they buy or sell stocks.You will then collect their data using the net and other sources. You will make your stockselections and purchase stock. You then calculate their beginning portfolio value. (Seedirections below). At designated intervals, they should assess their portfolios. You will showyour progress to the rest if the class using charts, graphs, and oral presentations.At the end of the project, you prepare a written report summarizing how you did and what youlearned. It may even include what you would like to do with the imaginary money earned, orwhat you would have to do without, in the case of losses. 15
  16. 16. You need "Buy/Sell Forms" to purchase and sell stocks. Here is an example of what a Buy/SellForm could look like: Buy / Sell FormGroup -Stock- Buy Sell Price of the Stock Number of Shares Price of Shares in all 3% Commission + - Total Price:You will also need a "Stock Form" to record the price, change, and value of that stock. Here isan example of a Stock Form: Stock FormGroup -Stock- Date Old Price New Price Change Number of Stocks ValueAs a group keep track of their holdings on a "Portfolio Form." Example: Portfolio FormGroup - Date Stock Value__________________ ___________________________________ ______________________________ ___________________________________ ______________________________ ___________________________________ ______________________________ ___________________________________ ____________ 16
  17. 17. You will use plenty of math when they are trying to spend their $20,000 on stocks. You shoulddiscover that you need to have a system for figuring out and keeping track of your purchases.Hopefully you will come up with an organized list that will look something like this:Stock Price Number of Shares Cost of Purchase 3% Commission Total Price Unit 3 TelephoningLook at these pictures and label them using the words below:Directory Car phone Phone card Memory Pay phoneOperator Handset Answering machine Switchboard Mobile phone2.__________________ 3.___________________________ 17
  18. 18. 4._________________5.________________ 1.__________________6.____________________7._______________________ 10.___________________8.___________________ 9.__________________A: Read this newspaper article. Then answer the questions that follow. The Mobile Phone Market is BoomingThere are now over one due to its deregulated phones is slowly increasingmillion telephone subscribers telecommunications market around Europe. The Germanin the UK – the most in and the competition this government has authorized aEurope. introduced: at the moment, third cellular network to copeBut Scandinavians are the the cost of owning a portable with the new demand. In Italymost enthusiastic mobile phone in the UK is the a consortium is competing tophone users. Almost one in a cheapest in Europe. Using provide the country’s secondhundred Swedes has a portable phones in Sweden is system. It has beenmobile phone compared to more than twice as expensive calculated there will be 30one in five hundred in the UK. as in the UK and in France million portable phones in useElsewhere in Europe the use and Germany it costs almost in Europe by the year 2000.of the mobile phone has been five times as much. In Eastern Europe the figurelimited. The introduction of mobile will be around 1.5 million.The growth in the UK is partly 18
  19. 19. Which of the following statements is true? If it is false, then correct it.The UK has the highest percentage of mobile phone users in Europe.Mobile phones are more popular in Scandinavia than in EC countries.Using a mobile phone in France is five times as expensive as in Sweden.By the end of this century, there will be more than one million portable phones in EasternEurope.A telephone subscriber is – a. a person who has a telephone b. a person who has shares in the telephone company c. a person who works in telecommunicationsTo cope with a demand is to – a. meet and satisfy b. to stimulate and encourage it c. to provide competition for itWhen a market is deregulated – a. a standard system has been imposed b. prices have been kept as low as possible c. government control has been reducedA consortium is – a. a group of companies in competition for a contract b. a state authority c. a group of companies working together Unit 4 MarketingWhat are the five words beginning with P in the marketing mix?1. p _ _ _ _ _ _ (the item made for sale)2. p _ _ _ _ (how much it will cost)3. p _ _ _ _ _ _ _ _ (what does the container look like)4. p _ _ _ _ (where it will be sold)5. p _ _ _ _ _ _ _ _ (what publicity it will get)This diagram shows the marketing process from start to finish. Insert the six missing words intheir correct positions.Research Distribution Strategy Consumer Costing Development 19
  20. 20. Consumer Market _________ Product _______________ Production Marketing _____________________ _______________ Promotion Channels of _______________ Selling _____________________ 1. Packaging can attract consumers and encourage them to buy. 2. Products that are used for a long time are worth smarter packaging than goods that are stored outPackaging is an Design part of marketing. Read this article and of sight. Packaging important match each sentence on the Besides protecting text. product and to number one has been underlined.right with the same idea in the the The answer making it easy to handle, manufacturers 3. Packaging can prevent and retailer attach great importance to damage to the goods packaging as a means to lure shoppers. inside. For example, Griffins steak pie was 4. The best packaging not recently re-designed – same contents and only says what is in side, box, just different graphics – and, with but also suggests how subsequent marketing and promotion, good the product is. sales reportedly went up 200 per cent. 5. The fundamental rule For different types of product, about packaging is that it different types of design may be more should be seen clearly in appropriate: toiletries are not quickly the shop. thrown away so their design may be more stylish then, say, baked beans which are Now find the words that kept in a cupboard. Packaging does have correspond to these definitions one basic design principle, though: it (They are in the same order in should stand out on the shop shelves. the text). Designed with flair, it can promote the quality of a product. 20 6. change 7. what is inside something 8. drawings and pictures
  21. 21. Labels can give the consumer quite a lot of information about a product. Which of the following are onthis cheese packet label? 1. the type of product 2. the name of the retailer 3. the weight 4. the price the shopper pays 5. the bar code 6. instructions on how to store it 7. instructions on how long to keep it 8. a price given for the purposes of comparison with similar productsTask: For your next class, present the following information to the class. 1. Find a selection of labels and explain the information on each one. Approximately 5 labels. 2. Choose two examples of what you consider to be good packaging and explain why you think they are good examples of packaging. 21
  22. 22. Unit 5 TransportContainerization has streamlined the whole system of transporting goods. These pictures showthe final stages in the delivery of a cargo of tropical fruit to the retailer. Match each sentencewith the correct picture and choose word(s) from the list to fill in the gaps. 22
  23. 23. dories retailers docked quality assurance packed port delivery cartons inspected hold weighed containers Picture No.A: Using the vocabulary above, fill in the blanks and the write the picture number in the box provided to the right. 1a. The fruit is _____(7)____, graded and _______(8)_____ into cartons.b. The fruit is delivered to a variety of ______(9)____ and markets. 23
  24. 24. c. Once he ship has _____(10)______ at the discharge _____(11)_____, the _______(12)______ are taken out of the ______(13)______ of the vessel by gantry cranes.d. The _______(14)______ are loaded on to vans for _______(15)_______.e. Once the containers reach the distribution center, they are opened and a _______(16)______ team conducts an __________(17)__________.f. The containers are moved around the port by straddle carriers and then loaded onto ____________(18)_______________. 7. _____weighed_______________ 8.___________________________ 9.___________________________ 10.__________________________ 11.__________________________ 12.__________________________ 13.__________________________ 14.__________________________ 15.__________________________ 16.__________________________ 17.__________________________ 18.__________________________B: Each company has to choose the most suitable form of transport for its own needs. Here aresome advantages and disadvantages of road, rail and air transport. Put each item into thecorrect box to complete the table.  Reduced insurance costs due to shorter  Most economical fuel transit times  Especially suitable for containers  Door-to-door service  Delayed by traffic congestion in cities  Fastest over long distances  Weight and size of cargo limited  Not tied to any time table  Can reach places inaccessible to other  No need for trans-shipment forms of transport  Routs limited by lines and stations  High freight rates  Good for bulk commodities in large quantities1 Road: advantages 2 Rail: advantages 3 Air: advantages 24
  25. 25. 4 Road: disadvantages 5 Rail: disadvantages 6 Air: disadvantagesC: If you heard the following comments, which of the three forms of transport would the people be talking about?1. The roll-on roll-off facilities mean the carrier doesn’t have to unload in transit. ____________________________ We’d received an2. S.O.S. for the drugs so I didn’t hesitate._____________________________ Of course it’s even faster now there’s the3. new motorway. ________________________________ I sent the coal that way as it was cheaper.4._________________________________5. The high-speed container service operates mainly at night when there is much less traffic on the lines 25
  26. 26. _______________________________ We try to make sure the lorry has a fresh load for6. the return journey to keep haulage costs low. ______________________________________D: Containerization is becoming more and more widespread. 1. Make a chart showing what the advantages and disadvantages are. 2. Present to the class next week. Unit 6 AdvertisingIf a retail chain is to maintain its profits, it is essential that stock moves in and out of the storequickly. Here department store personnel are discussing the eight different ways of encouragingturnover listed below. 26
  27. 27. A: Which is each person talking about?introductory offers money-off coupons competitions jinglesfree samples gimmicks demonstrators window displayB: Identify the five key advertising media pictured here. 27
  28. 28. 1. ___________________________2. ___________________________3. ___________________________4. ___________________________5. ___________________________C: These eight verbs are commonly used in advertising. Choose the right one tocomplete each sentence. 28
  29. 29. attack spend promote appeal boost launch persuade project1. The copywriter created a slogan which would ________ to a wide cross-section ofconsumers2. The agency wants to _________ a campaign targeting the under -16 market.3. The consumers we want to ________ are professionals who purchase up-market products.4. All advertising must __________ the right product image.5. Giving away free badges helped to _____________ ice-cream sales to children.6. The number of TV commercials in a campaign depends on how much the client wants to_____________ and the people he wants to reach.7. The function of advertising is primarily to inform and to _____________.8. Our plan is to _____________ the new product across a wide range of media.D: Create your own advertisement for your own product. Present it to the class. Unit 7 Banking Services 29
  30. 30. A: Banks offer a wide range of services. Look at these eight customers and choose theleaflet that they each need.1. 5.____________________________________ ____________________________________2. 6.____________________________________ ____________________________________3. 7.____________________________________ ____________________________________4. 8.____________________________________ ____________________________________B: Read this information about one bank’s travel and holidays services. When you travel….. 30
  31. 31. Whether your journey is for holiday or business, we’ve the widest range of services to help you onyour way.Travers Cheques Eurocheques and CardsAvailable in most of the worlds currencies, these Used like an ordinary check and guarantee card,are both a safer way to carry cash – and in these guarantee up to the equivalent of aboutmany countries the only legal way to travel with £100 each, and can be used wherever you seeall you need. Our sterling travelers cheques are the ‘EC’ symbol – at over 200,000 bank branchesavailable over the counter in values of £10, £20, and five million outlets in 40 countries.£50 and £100. They’re accepted in hotels, In most countries you write your Eurocheque inrestaurants and shops around the world and the local currency. When using or cashing morebanks will cash them for a small charge. than two checks at a time, you will be asked forForeign Currency identification – so it’s a good idea to carry yourWe cannot meet all your requirements – and passport with you.advise you of any local restrictions. Please try to Eurocheque books are issued free. The card itselforder well in advance. Exchange rates fluctuate: is valid up to two years, at a £5 annual fee.a footnote on the application form explains how Cardsafethese are calculated. Before returning home, we Register for cardsafe protection for only £6 a yearsuggest you spend any forieng coins locally, as (£15 for three years) and safeguard all you creditthese cannot be exchanged for sterling. and charge cards. Are the following statements true or false according to the text? Give reasons. True False Explanation 1 Travelers cheques are cashed X Banks will cash them for a small free of charge charge. 2 Foreign currency does not always cost the same 3 Only foreign notes can be exchanged 4 Travellers’ cheques must be presented with a guarantee card 5 You can not use more than two Eurocheques to pay for any one purchase 6 You need a new Eurocheque card every two years. 7 Each new Eurocheque card costs £5 8 If your travellers’ cheques are stolen, you should contact Cardsafe for a refund. C: Match the words in list 1 with the correct word in list 2. 1 2 31
  32. 32. Retail Limit Interest Currency Credit Form Application Rate Foreign Outlet Exchange Branch Bank freeD: What services does your bank offer their clients? Present to the next class. Unit 8 32
  33. 33. Cash and CurrenciesA: Look at these two pictures and find six objects in them which start with the wordcash.1. ________________________________ 2. _______________________________3. ________________________________ 4. _______________________________5. ________________________________ 6. _______________________________ 33
  34. 34. Here are eight more vocabulary items that include the word cash. Choose the correctdefinition.1. to cash a cheque is to 5. to cash up is to a. exchange a cheque for cash a. add up the cash at the end of the day b. pay money into your account b. obtain cash from a bank c. pay money into someone else’s c. get a reimbursement account 6. a cash crop is2. to cash inis to a. commission charged on foreign a. sell something (shares/travelers exchange cheques) b. something that is grown in order to b. pay cash for something be sold (shares/travelers cheques) c. a company’s reserves in cash for c. open the cash register emergencies3. to cash in on is to 7. cash flow is a. forecast the receipt of cash a. the conversion rate between b. profit from something currencies c. calculate money spent b. money which is immediately available c. the movement of money into and out4. a cashier is a of a business a. dealer of foreign currency b. book in which payments are recorded 8. petty cash is c. person who pays and receives a. small denomination bank notes money b. money held in a business to cover small expenses c. small denomination coinsB: Where do these currencies come from? The list of countries is given to help you.1 peso 2 schilling 3 drachma 4 cruzado 5 krona 6 rupee 7 dollar Mexico8 naira 9 zloty 10 lira 11 yen 12 pound 13 yuan 14 mark15 rouble 16 escudo 17 shekel 18 baht 19 rial 20 dinar 21 pesetaAustria Brazil China Germany Greece India Iran IsraelItaly Japan Mexico Nigeria Poland Portugal SpainSweden Thailand U.S.S.R. U.K. U.S.A. YugoslaviaC: Read this article on Eastern Europe. 34
  35. 35. Cash is best when traveling in Eastern Europe For travel in Eastern Europe, it is best to take cash in dollars, marks or pounds, though credit cards and travellers’ cheques are good back-up and Eurocheques, too, can be useful. In Hungary, the Soviet Union and Romania, according to regular visitors, the dollar is king, but the mark is preferred in Czechoslovakia. Pounds are accepted but not as popular. In those countries with an active black market, taxi drivers will exchange money for you. They are normally reliable although they do not give top rates. Do not forget, however, that it is illegal. Traveler’s cheques have one big disadvantage. Queues at banks and exchange bureau can be so long that you may have to wait for several hours to get your money.Now find: 1. three places to exchange money _____________ ___________ ____________ 2. three currencies _____________ ___________ ____________ 3. three countries that prefer dollars _____________ ___________ ____________ 4. three other ways of paying _____________ ___________ ____________Are these statements true or false, according to the article? T F 5. The mark is more popular than the dollar in Romania.   6. The mark is more popular than the pound in Czechoslovakia   7. Credit cards are not accepted in Eastern Europe.   8. It is illegal to exchange money with a taxi driver.   9. Taxi drivers give top rates of exchange.   10. You may have to wait a long time to cash traveler’s cheques.   35
  36. 36. Unit 9 Finance and Banking Electronic BankingBenefits ofE-Banking How is this Possible?  24 hour service  Fast Electronic funds transfer (EFT) makes electronic baking possible. EFT uses  No paper What is E-Banking computer networks to transfer money  Variety of methods electronically (rather than by check or Electronic banking or e- cash) amoung bank accounts. E-banking  Convenience banking gives people allows a person to make withdrawals,  Worldwide access electronic access to bank deposits, computer or machines (such as a accounts and cash in a fast point-of-sale (POS) terminal or automated and paperless way. It can be teller machines (ATMs) or cash a accessed 24 hours a day. machines), rather than in person or via the mail with cash or check Types of E-Banking  Debit Card A debit card is a plastic card  ATMs which looks like a credit  Direct Deposit & card, but it is connected to transactions. A PIN confirms Payments the cardholder’s bank that the user of the debit card  Smart Card account for purchases. is authorized to access the When a purchase is made, account.  Stored-Value Card money is automatically Debits cards can be used with:  Home Banking Debit Card designated taken from the Point-of-sale (POS) terminal. account. It provides access These are located at a store to the EFT system by and allows the customer to use running a card through an a debit card to make ATM or POS terminal. purchases. Some cards are dual Automated teller machines function cards, meaning one (ATMs) or cash machines are card performs both ATM electronic computer terminals and debit functions. Debit which offer automated, cards require using a computerized banking personal identification number (PIN) to access an account to perform 36
  37. 37. ATMsAutomated teller machines After the transaction is finished,(ATMs) or cash machines are a receipt is printed. Keep ATMelectronic computer terminals receipts to compare them withwhich offer automated, accessed with an ATM or debit the monthly account statement.computerized banking. Most card and a PIN. Customers Remember to take the ATMATMs allow customers to belonging to a specific financial card when finished.make deposits, cashwithdrawals, transfers network may use ATMs free ofbetween accounts, and to charge. However, a customercheck account balances. fee may be charged for usingATMs can be found in a another financial institution’svariety of places including ATM. Fees will vary and befinancial institutions, posted on the ATM. To use an ATM DO’S & DON’TSsupermarkets, and ATM, put the card into the cardconvenience stores. ATMs slot and enter the PIN when it is Never choose a PIN easilyoffer simple and fast 24 hour asked for, then perform the associated with the user. Foraccess to bank accounts. ATM transaction. example: birthdays or addresses.cards may be provided with Don’t choose a repetitive orbank accounts, but they are consecutive PIN numbers.not mandatory. ATMs are Don’t write the PIN number down in the place where the card is kept. Do shield screen from onlookers at ATMs when entering PIN. If something suspicious happens at the ATM, cancel the transaction, take the card, leave, and report it to the authorities. Direct Deposit & PaymentsDirect deposit allows paychecks and flexible expenses like electricand benefit checks to be directly and phone bills. The customerdeposited into a specified bank sighns an authorization form toaccount (usually checking or automatically deduct money fromsavings) the customer signs an his / her account to pay the bill.authorization form to allow their According to Federal Law, theemployer to automatically deposit customer can choose to stop thethe paycheck or benefit check. authorization by writing or callingDirect payments authorize bills to the financial institution at least 3be paid by a specified bank account. days prior to payment. If calling,This can be done for fixed expenses some institutions may also requirelike mortgages or vehicle payments a written record. 37
  38. 38. How To Use ATM / Debit Cards SafelySign the back of the debit card and write seeID. Be ready to transact quickly – haveKeep PIN hidden. Do not write it down in the everything readyplace where the card is kept. Write down the card number and financialMemorize the PIN. institution contact information. Store it in aProcect the PIN. This can be done by: safe place separate from the card. This willNot telling oters the PIN be needed if the card is lost or stolenNot giving the PIN out over the phone Report a lost or stolen card immediately!Shielding the PIN when entering it at an Plan activities so it will not be necessary toATM use the ATM after darkChange the PIN if it is suspected that Use an ATM located inside a supermarketsomeone else knows it or other place of businessKeep receipts from all transactions and Usa a drive-up ATM. Pull up close to it,compare them to the monthly account lock car doors, and roll up the windowsstatement. Be aware of the surroundings – if something suspicious happens, leave and report everything unusual to the proper authorities (financial institution, police Future Trends E-banking is a continually changing market due to technology. Each financial institution has its own e-banking rules and services. Dual-function debit and ATM cards areLost or Stolen Cards examples of commonly used services developed in the past few years.If an ATM or debit card is lost or stolen, Financial institutions are working toward thereport it to the financial institution goal of one card to function as a smart card,immediately! If it is reported within two debit card, credit card, and an ATM card.business days, the cardholder is only liablefor $50.00. If the cardholder waits longer to People currently use signatures and PINs toreport it missing, they could be liable for up access accounts. This may be replaced byto $500. codes, voice commands, or eye, fingerprint, and handprint scans. Some universities have already begun using hand scanning than a card for cafeterias and dorm access. Because technology is always changing, it is important to keep up to date with new trends and the safety that goes along with them. 38
  39. 39. Smart Card & Stored -Value A smart card is a card with a built- Stored-value cards are disposable in computer chip to store prepaid cards that are thrown away when amounts of money. Money is the money is used. Store gift cards electronically loaded onto the card are common examples. The cards, and is automatically deducted like cash, can be used by other from the balance when a purchase people if lost or stolen. Keep trackCheck 21 is made. These cards are re- of the card! Other examples are st loadable(Check21)money can keep phone cards and one-card system.Check Clearing for the 21 Century Act meaning Float time allows a person to write a check whenis a current trend in EFT that is changing banking. the card.not enough money in the account and being added to reuse there is A A one-card system (generallyPrior to Check 21, a customer would write a checkis the same as amoney later.universities) is a cardpay stored-value card deposit the found a (Using float time to thatto pay for a service or product, And have several not re-loadable. isacts a recommendeda smart card. smart card, but is for purchases not as an ID and as practice).days before the money would transfer from the Now, because of Check 21, the check is sentcustomer’s bank account to the service provider’s electronically to the customer’s bank and theaccount. This time between when the a person money is withdrawn within hours of thewrites the check to when the money is actually transaction, therefore, eliminating all float time.withdrawn is called float time. Check 21 is similar to the debit card processHome BankingA new area of e-banking home banking, where customers may use a touch-tone phone or a computer withinternet access to access their accounts. Phone access allows customers to transfer money betweenaccounts, view account balances, change PINs, and report lost or stolen debit cards. With internet access,a customer can go to their financial institution’s website if it offers internet banking. The customer logson with their social security number and a password. This allows a person to view account balances,transfer money between accounts, stop check payments, pat bills, order checks, and apply for loans andcredit cards. In a Hurry? Many supermarkets and super discount stores combine shopping and banking into one stop! Banks now have branches in stores with extended hours to provide customers better service! 39
  40. 40. Introduction Electronic banking (e-banking) is relatively new in the banking industry. E-banking allows24-hour access to move money electronically in a fast and paperless way. This electronicmovement of money is made possible by electronic funds transfers (EFTs). EFTs use computernetworks to transfer funds electronically (rather than by check or cash) among various bankaccounts. E-banking allows a person to make withdrawals, deposits, and bill payments viaphone, computer or machines (like an ATM or POS terminal) rather than in person via the mailwith cash or check. Benefits to e-banking include: ◊ 24-hour access; ◊ Fast; ◊ Paperless; ◊ Convenient; ◊ World-wide access; ◊ A variety of methods. A debit card is a plastic card which looks like a credit card, but it is connected to thecardholder’s bank account for purchases. When a purchase is made, money is automaticallytaken from the designated account. It provides access to the EFT system by swiping the cardinto an ATM or POS terminal. Some cards are dual function cards for ATMs and debit cards,meaning one card performs both functions. Debit cards require using a personal identificationnumber (PIN) to access an account to perform transactions. A PIN confirms that the user of thedebit card is authorized to access the account. Automated teller machines (ATMs) or cash machines are electronic computer terminalswhichoffer automated, computerized banking. ATMs allow customers to make deposits, cashwithdrawals, account transfers, and to check account balances. ATMs can be found in a varietyof places including supermarkets, financial institutions, and convenience stores. ATMs areaccessed with an ATM or debit card and a PIN. Fees may be charged for ATM use, but it willvary depending on the financial institution. Another type of electronic computer terminal is apoint-of-sale (POS) terminal. The POS terminal is located at a store and allows the customer touse a debit card to make purchases. Direct deposit allows paychecks and benefit checks to bedirectly deposited into a specified bank account (usually checking or savings). The customersigns an authorization form to allow their employer to automatically deposit the paycheck. Directpayments authorize bills to be paid by a specified bank account. This can be done for fixedexpenses like mortgages or vehicle payments and for flexible expenses like the phone orelectricity bill. Smart cards are cards with a built-in computer chip to store pre-paid amounts ofmoney. Money is electronically loaded onto the card and is automatically deducted from thebalance when a purchase is made. More money can be reloaded onto the card. Stored-valuecards are like smart cards, but they are not re-loadable. They are thrown away when the moneyhas been used. Gift cards are a good example of a stored-value card. Check Clearing for the 21st Century Act (Check 21) is a current trend in EFT that ischangingbanking. Prior to Check 21, a customer would write a check to pay for a service or product, andhave several days before the money would transfer from the customer’s bank account to theservice provider’s bank account. This time between when a person writes the check to when themoney is actually withdrawn is called float time . Float time allows a person to write a checkwhen there is not enough money in the account and deposit the money later. (Using float timeto pay for purchases is not a recommended practice; however, people use it anyway.) Now, 40
  41. 41. because of Check 21, the check is sent electronically to the customer’s bank and the money iswithdrawn within hours of the transaction, therefore, eliminating all float time. Check 21 issimilar to the debit card process. A new area of e-banking is home banking, where customers may use a touch-tone phoneor acomputer with internet to access their accounts. Phone access allows customers to transfermoney between accounts, check account balances, change PINS, and report lost or stolendebit cards. Internet access allows customers to check account balances, transfer moneybetween accounts, pay bills, order checks, stop check payments, and apply for loans or creditcards.Safety Precautions in E-Banking E-banking does not always involve exchanges between people. Because of this, a photoID is often requested to verify that the person making the payment is the person responsible forpayment; ebanking procedures and products must be protected from theft and fraud. Thefollowing are tips to protect consumers who use debit cards and other e-banking products andservices.To use ATM and debit cards safely, follow these tips: ◊ Sign the back of the card and write “see ID”; ◊ Memorize the PIN; ◊ Do not write down the PIN in the place where the card is kept; ◊ Protect the PIN; ◊ Keep receipts; ◊ Be aware of surroundings (location, people nearby, etc.). Report lost or stolen Debit cards immediately. If it is reported within 2 business days, thecardholder is only liable for $50.00. If the cardholder waits longer, he/she could be liable for upto $500.00. However, this can vary depending upon the financial institution because some maynot charge the account holder anything if the correct reporting steps were taken.E-banking is a continually changing market due to technology. Each financial institution has itsown rules and ways they use e-banking. Some future trends of e-banking include developingone card which functions as a smart card and credit card. People may also begin using voicecommands or eye, fingerprint, or handprint scans instead of PINs. Because technology isalways changing, it is important to keep up to date with new trends and the safety that goesalong with them. Electronic BankingName: _____________________________________ Total points earned 28 Total points possible Percentage 41
  42. 42. Date: ____________________Directions: Answer the following questions based on the information on electronic banking.1. Define electronic banking (E-banking). (1 point)2. What are three transactions people perform via E-banking? (3 points)3. Identify three benefits to E-banking. (3 points)4. What is the difference between a debit card and a credit card? (2 points)5. Does it cost to use an ATM? If so, what kind of charges may apply? (4 points)6. What can the use of direct deposits prevent? How? (2 points)7. Define direct payment. (1 point)8. What is the difference between smart cards and stored-value cards? (2 points)9. What are two ways a person can bank from home? Describe each way. (4 points)10. Check 21 eliminates float time. Define float time. (1 point)11. What should a consumer do if his/her ATM or debit card becomes lost or stolen? (1 point)12. What are four tips consumers should know about using an ATM/debit card safely? (4 points)13. What is one future trend in the financial marketplace? (1 point) Scenarios 42
  43. 43. 1. Beyonce moved to a new city four months ago. She is still finding her way around and doesnot know all of the streets. She needs to get some cash before the weekend because she willbe going on an overnight trip and needs to pay for three meals. On Thursday evening, sherealizes she still has not gone to the ATM. She gets in her car and heads to the nearestconvenience store to use the ATM. However, it is outside the building in an unlit area. It isalready dark outside and she feels a little unsure about using the ATM. What options doesBeyonce have besides using this outside ATM?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________2. George went to dinner last night with some friends. He used his debit card to pay for dinner,but he woke up this morning and cannot seem to find it. What should George do about hismissing debit card?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________3. Laura likes the convenience of ATMs. She usually makes her deposits and withdrawals at theATM. When she makes a deposit, what can she do to shorten her time at the ATM? Whatshould she have ready before going to the ATM?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________4. Juan was vacationing out of the country last week. While he was there, his wallet was stolenwhich included his debit card. He did not report it immediately because he did not have thebank’s phone number. The wallet was returned to him three days after it was stolen. When hegot back from vacation, he called his bank to tell them what happened. While the card was 43
  44. 44. missing, multiple charges were made totaling $500 which he is now liable for. What could Juanhave done differently to prevent him from being liable for the charges?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________5. Jody went to use the ATM outside of a convenience store. While she was making atransaction, a suspicious person came up behind her and tried to watch her. She tried to finishher transaction as quickly as possible and leave. What should a person do when this situationoccurs?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________6. Dan’s paychecks are mailed to him through the postal service. A few months ago, one of thepaychecks was stolen and cashed by an unknown person. What could Dan do to prevent thisfrom happening?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________7. Anna has trouble paying her bills on time. She always has enough money, but she does notremember to send in the checks before the due date. She always mails them late and ends uppaying late charges. What are some suggestions for Anna to help her make the bill paymentson time? 44
  45. 45. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________8. Marcus has to go birthday shopping for his niece who lives in another state. He cannotdecide on what to get her. He does not feel comfortable sending cash in the mail and prefersnot to purchase a gift certificate. What other options are available to Marcus for sending her amonetary gift?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________9. Nelli has a large long distance bill each month because she just moved away from her familyand calls them every day. The phone bill is getting so big that she can no longer afford to pay iteach month. Instead of running up a long distance phone bill, what are some ways Nelli cancontrol her long distance costs?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________10. Tamarr had a problem with his ATM/debit card recently. Someone discovered his PIN, stolehis card, and removed all the money out of his account. Tamarr reported the card stolenimmediately and was not liable for the money stolen from his account. What are some waysTamarr can protect his PIN with the new ATM/debit card?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 45
  46. 46. 46
  47. 47. Checking Account AndDebit Card Simulation Student Instructions & Work Sheets 47
  48. 48. Checking Account Checking accounts are a common financial service used by many customers. They can help to manage money and makes paying bills convenient. Why do people use checking accounts? Funds in a checking account  Reduces the need to carry large amounts are easily accessed through: of cash  Check  Convenience – useful for paying bills  ATM instead of cash or money order  Debit Card  Written record of expenses – keeps track  Telephone where money is spent on a check register  Internet and can act as a spending plan tool  Safety – using checks is safer than carrying cashChecks  Legal documents that function like cash  Checks can ”bounce” if there is insufficient funds, or not enough money in the account to cover the total check amount, in an account  A checking account register and checkbook are used to record all transactions ATM  Automated teller machine that is electronically connected to an individual’s bank account  Can be used to withdraw cash and make deposits  Additional bank fees may be charged Debit Card • Plastic card that is electronically connected to an individual’s bank account. • When purchases are made, money is automatically withdrawn from the bank account. • Requires a PIN or personal identification number to confirm the user of the debit card is authorized to access the account PRO’S CON’S  Convenient  Can loose track of balance if  Small transactions are not written  Use like a credit card down  Carry less cash  Opens checking account to  Does not allow overspending credit fraud  Others can gain access to the account if the card is lost and the PIN is known 48
  49. 49. Endorsing A Check To deposit a check, it must be endorsed. This means the person who receives the check must sign the back of the check to approve it to be deposited or cashed. Types Of EndorsementsBlank Endorsement – anyone can cash or deposit Endorse here the check after the check has been signed by the receiver of the check. X Sally SmithRestrictive Endorsement – more secure than a blank Endorse here endorsement because the receiver writes ‘for deposit only,’ and the account number where the For Deposit Only – Acct. # 37246810 money will be deposited, above the signature. This allows the check to only be deposited. X Sally Smith Endorse hereSpecial Endorsement – the check can be transferred to second party if the receiver signs the back and Pay to the order of Mike Smith writes ‘pay to the order of (fill in the person’s name). X Sally Smith Directions: Endorse the three checks with your signature. The restrictive endorsement is for account number 987654321 and the special endorsement will be paid to Jonathan Smith Endorse here Endorse here Endorse here X X X Do not write, stamp or sign Do not write, stamp or sign Do not write, stamp or sign below this line below this line below this line Reserved for Financial Reserved for Financial Reserved for Financial Institution only Institution only Institution only 49
  50. 50. Making A Deposit A deposit slip contains the account holder’s account number and allows money (cash or check) to be deposited into the account. Checking account deposit slips are located in the back of the checkbook after the checks. Checks must be listed on the deposit slip individually. If more checks are being deposited than fit on the deposit slip, write the extra checks on the back of the deposit slip and write the total amount of the checks from the back on the front where indicated. Deposits can be made at an ATM or with a bank teller. Cash back may only be received if the deposit is made with a teller. If cash is received it is not deposited into the account. The amount deposited must be recorded in the check register to eep the balance current.  In the example below, Sally received her paycheck, #5678 from Piggly Wiggly for $154.01, and a $20.00 birthday check #601 from Fran Smith. She is completing the following deposit slip for her checking account. She also wants to receive $30.00 cash back from the deposit. Deposit Slip Front Deposit Slip 93-456-9540 Sally Smith Cash Dollars Cents  500 Great Street Yourtown, Tx 55555 Checks  List Singly Date 9/1/06 Deposits may not be available for immediate withdrawal Piggly Wiggly #5678 154 01 Sally Smith Total from other side 20 00  Sign here for cash recieved Guardian Angle Banking Sub Total 174 01  423 South 15th Yourtowm, Tx. 55555 * Less Cash Received 30 00  0123456789 ; 1234567890 Net Deposit 144 01  50
  51. 51. DEPOSIT SLIPP DESCRIPTION DEPOSIT SLIP BACK1. Date: The date the deposit is being made.2. Signature Line: Sign this line to receive cash CHECKS Dollars Cents List Singlyback. 1. Fran Smith #601 20 003. Cash: The total amount of cash beingdeposited. 2.4. Checks: List the checks being depositedindividually. If more checks are being deposited 3.than the number of spaces on the front, use the 4.back of the deposit slip. Identify each check on thedeposit slip by abbreviating the name of each 5.check write and check number.5. Total from other side: The total amount from all 6.checks listed on the back. 7.6. Subtotal: The total amount of cash and checks.7. Less Cash Received: The total amount of cash TOTAL 20 00being received. Enter on Front 8. Net Deposit: The amount being deposited intothe account. To calculate the amount, subtract thecash received from the subtotal. 51
  52. 52. DEPOSIT SLIPS Directions: Complete the deposit slip below with the following checks on September 2, 2006. Withdraw $15.00 from the deposit.  $50.00 from Lonni James – check # 598  $86.00 from Sarah Lanning – check #4459  $15.00 from Roberta Smith – check #692 Deposit Slip Front Deposit Slip 93-456-9540 Sally Smith Cash Dollars Cents 500 Great Street Yourtown, Tx 55555 Checks List SinglyDate Deposits may not be available for immediate withdrawal Sign here for cash recievGuardian Angle Banking Sub Total423 South 15thYourtowm, Tx. 55555 * Less Cash Received 0123456789 ; 1234567890 Net Deposit Why should an individual record all deposits in their check register? DEPOSIT SLIP BACK CHECKS Dollars Cents List Singly 1. 2. 3. 4. 5. 6. 7. TOTAL  Enter on Front 52
  53. 53. Writing A Check To pay for items using a checking account, writing a check is one option that can be given to the pewrson or business as a form of payment. To write the check, the account holder must complete the following items on the check in order for it to be accepted: date, payee (to whom the check was written), amount in numerical form written out, and his / her signature. Immediately record the check into the check register. In the example below, Sally Smith wrote check #301 to Gas ‘N’ Go for $15.78. Sally Smith 93-456-9540  301 500 Great Street 45086244786 Tourtown, Mt. 55555  Date September 2, 2006  Pay to the $15.78 Order of Gas ‘N’ Go   Fifteen and 78/100--------------------------------------------------------------------- Dollars Guarding Angot Banking 423 South 15th Yourtown. Mt. 55555 Memo Gass  Sally Smith  0123456789 : 1234567890 : 301Writing a check description 1. Personal Information – The check holder’s name and address; may include a phone number, but not required. Do Not list a social security number on a printed check for safety reasons. 2. Check number – numbers used to dentify checks. The check numbers are printed chronologically and should be used in this order. 3. Date – The date the check is being written. 4. Pay To The Order Of – The name of the person or business to whom the check is being written. 5. Amount of the Check in Numerals – The amount of the check written numerically; write the cents smaller and underline them. Write the number next o the dollar sign to prevent someone from adding numbers to change the amount of the check. 6. Amount of Check in Words – The amount of the check written in words. Star at the far left of the line. Write down the dollar amount in words first, then write “and” after the words, and finish by writing the amount of cents over the number 100. draw a line from the end of the writing to the end of the line. 7. Memo – Space to identify the reason for writing the check. It is a good place to write information requested by a company when paying a bill, generally the account number 8. Signature – The account holder’s signature agreeing to the transaction. 9. Identification Numbers – The first set of numbers is the routing numbers to identify the account’s financial institution, the second set is the account number, and the third set is the check number. 53
  54. 54. Practice Writing ChecksDirections: Write check #302 below to “Aspen Properties” for rent in the amount of$375.00 on September 3, 2006 Sally Smith 93-456-9540 302 500 Great Street 45086244786 Tourtown, Mt. 55555 Date Pay to the Order of $ Dollars Guarding Angot Banking 423 South 15th Yourtown. Mt. 55555 Memo  0123456789 : 1234567890 : 301Directions: Write check #303 below to “Hungry Man” for food in the amount of $27.32 onSeptember 6, 2006 Sally Smith 93-456-9540 303 500 Great Street 45086244786 Tourtown, Mt. 55555 Date Pay to the Order of $ Dollars Guarding Angot Banking 423 South 15th Yourtown. Mt. 55555 Memo  0123456789 : 1234567890 : 301 54
  55. 55. Why is good penmanship important when writing checks? What color pen should be used when writing checks? Why? CHECK Clearing for the 21st Century Act (Check 21). Prior to Check 21, a customer would writea check to pay for a service or product, and have several days before the money would betransferred from the customer’s bank account to the service provider’s account. Now, becauseof Check 21, the check is sent electronically to the customer’s bank and the money is withdrawnautomatically, therefore, aperson must have the money in his / her account before writing thecheck. Check 21 is similar to the debit card process. Many stores are moving toward using thistechnology to avoid receiving bad checks. 55

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