10 eng104-bai 6-v1.0

MONEY AND BANKING
77
Unit 6: Money and banking
UNIT OBJECTIVES - MỤC TIÊU
DURATION (9 periods) - THỜI LƯỢNG HỌC (9 TIẾT)
• Provide students with the language and knowledge related to money and banking, and the
services provided by banks.
Cung cấp cho sinh viên vốn ngôn ngữ và kiến thức liên quan đến tiền tệ và ngân hàng, sự ra
đời của ngân hàng cùng với một số dịch vụ của ngân hàng cung cấp.
• Provide students the way to write a complaint letter.
Cung cấp cho sinh viên phương pháp viết một bức thư khiếu nại.
• At the end of this unit, students are able to talk and write about relevant issues as introduced
with basic knowledges of banking and banking services.
Sau khi kết thúc bài học này, sinh viên sẽ nắm được những kiến thức cơ bản về ngân hàng và
các dịch vụ ngân hàng, có thể nói và viết về các vấn đề liên quan.
In this unit, we are going to learn language and knowledge
related to money, banks and banking services.
Trong bài học này chúng ta sẽ học ngôn ngữ và kiến thức
cơ bản về tiền tệ, ngân hàng và các dịch vụ ngân hàng.
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78
Match the terms or expressions in column A with their definition in column B.
The suggested time to do this exercise is 10 minutes.
Text A: Read text A do exercices 2.1 and 2.2 below. The suggested time for
reading the text and completing the exercises is 30 minutes
MONEY AND BANKING
A ll values in the economic system are measured in terms of money. Our goods
and services are sold for money, and that money is in turn exchanged for other goods and
services. Coins are adequate for small transactions, while paper notes are used for general
business. There is additionally a wider sense of the word ‘money’, covering anything which
Column A Column B
1 Balance A A sum of money exchanged for goods or services
2 Transaction B To move or change something suddenly
3 Purchase C Specialized knowledge
4 Payment D The cost of sending letters, parcels etc by mail.
5 Option E Amounts of money
6 Free of charge F A document which lists the goods you have bought and
tells you how much you must pay for them
7 Postage G A choice or alternative
8 Invoice H To buy
9 Funds I A movement of money in to or out of an account
10 Interest J To place money in a bank account
11 Switch K An advantage
12 Benefit L Without cost
13 Deposit M The amount of money in a bank account at a particular
time
14 Expertise N Money paid to someone who invests money
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is used as a means of exchange, whatever form it may take.
Originally, a valuable metal (gold, silver or copper) served
as a constant store of value, and even today the American
dollar is technically ‘backed’ by the store of gold which
the US government maintains. As gold has been universally
regarded as a very valuable metal, national currencies were
for many years judged in terms of the so-called ‘gold standard’.
Nowadays, however, national currencies are considered to
be as strong as the national economies which support them.
V aluable metal has generally been replaced by paper notes. These notes are issued by
governments and authorized banks, and are known as ‘legal tender’. Other arrangements
such as cheques and money orders are not legal tender. They perform the function of
substitute money and are known as ‘instruments of credit’. Credit is offered only when
creditors believe that they have a good chance of obtaining legal tender when they present
such instruments at a bank or other authorized institution. If a man’s assets are known to be
considerable, then his credit will be good. If his assets are in doubt, then it may be difficult
for him to obtain large sums of credit or even to pay for goods with a cheque.
T he value of money is basically its value as a medium
of exchange, or, as economists put it, its ‘purchasing
power’. This purchasing power is dependent on supply
and demand. The demand for money is reckonable as the
quantity needed to effect business transactions. An increase
in business requires an increase in the amount of money
coming into general circulation. But the demand for money
is related not only to the quantity of business but also to the rapidity with which the business
is done. The supply of money, on the other hand, is the actual amount in notes and coins
available for business purposes. If too much money is available, its value decreases, and it
does not buy as much as it did, say, five years earlier. This condition is known as ‘inflation’.
Banks are closely concerned with the flow of money into and out of the economy.
They often co-operate with governments in efforts to stabilize economies and to prevent
inflation. They are specialists in providing capital and allocating funds on credit. Banks
originated as places to which people took their valuables for safe-keeping, but today the great
banks of the world have many functions in addition to acting as guardians of valuable private
possessions.
Banks normally receive money from their customers in
two distinct forms: on current account, and on deposit
account. With a current account, a customer can issue
personal cheques. No interest is paid by the bank on this type
of account. With a deposit account, however, the customer
undertakes to leave his money in the bank for a minimum
specified period of time. Interest is paid on this money.
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80
T he bank is turn lends the deposited money to customers who need capital. This activity
earns interest for the bank, and this interest is almost always at a higher rate than any
interest which the bank pays to its depositors. In this way the bank makes its main profits.
We can say that the primary function of a bank today is to
act as an intermediary between depositors who wish to
make interest on their savings, and borrowers who wish to
obtain capital. The bank is a reservoir of loanable money,
with streams of money flowing in and out. For this reason,
economists and financiers often talk of money being ‘liquid’,
or of the ‘liquidity’of money. Many small sums which might
not otherwise be used as capital are rendered useful simply
because the bank acts as a reservoir.
T he system of banking rests upon a basis of trust. Innumerable acts of trust build up the
system of which bankers, depositors and borrowers are parts. They all agree to behave in
certain predictable ways in relation to each other, and in relation to the rapid fluctuations of
credit and debit. Consequently, business can be done and cheques can be written without any
legal tender visibly changing hands.
Source: Tom Mc Arthur, A Rapid Course in English for students of Economics, Oxford University Press, 1973
Answer the following questions
1. How are all values in the economic system measured?
2. What backs the US dollar?
3. How are national currencies judged nowadays?
4. Who can issue paper notes?
5. What name is given to arrangements like cheques?
6. What phrase do economists use for the value of money?
7. What is inflation?
8. In what way do banks co-operate with governments?
9. What does the customer agree to do when he opens a deposit account?
10. How does the bank make its main profit?
11. Why do financiers often talk of the ‘liquidity’ of money?
12. Whose trust for each other maintains the banking system?
13. What does this trust permit?
2.1
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81
According to text A, which of the following sentences are true (T) or false (F).
Correct the false information
Read text B and do exercises 2.3, 2.4, 2.5. The suggested time for reading the
text and completing the exercises is 40 minutes.
HOME AND OFFICE BANKING SYSTEM
2.2
Questions T/F
1. The US dollar is a constant store of value.
2. Instruments of credit are accepted because they can be converted easily into
substitute money.
3. The purchasing power of money depends upon supply and demand.
4. The demand for money is related to the rapidity with which business is done.
5. You can earn interest on a current account.
6. Banks lend money to depositors who need capital.
7. The main profits of a bank come from lending money at a fixed rate of interest.
8. Money is described as ‘liquid’ because it is compared to flowing water.
9. Legal tender must change hangs when we do business and we must see it change .
The banking service for busy
people
Pay bills before breakfast...
invest over lunch... and
check balances at bedtime.
HOBS is the essential banking
service for busy people. It allows
you to carry out transactions
from your home or office when
it suits you. You can check the
balances of all your accounts
with Bank of Scotland whether
they are business accounts or
personal accounts; view your
last 600 transactions on-screen;
transfer between your ac-
counts; pay regular bills and
even keep a record of them;
order a statement or a cheque
book and for business users,
our special Cash Management
Service enables you to see what
your cleared balances are, up to
2 days ahead.
All these services can be easily
accessed using our compact
integral keyboard and screen
which can be purchased for a
single payment of only £95,
with an option of spreading the
cost over ten months. However,
the unit will be supplied free of
charge to customers who un-
dertake to keep a minimum
credit balance of £500 in their
Current Account for at least
two years. As the unit only takes
up approximately the same space
as an A4 sheet of paper, it can
easily be accommodated on a
desk or table. Alternatively,
HOBS can be linked to your
PC. In addition, no matter
where you live in the UK you
can access HOBS for the cost
of a local telephone call.
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Settle bills when it suits you
Regular bills and accounts
can be paid by electronic
transfer without writing cheques,
saving you time and postage.
And our Bank charge for an
electronic payment is much
less than for a cheque.
HOBS even has a memory,
which allows you to instruct
payment of regular household
accounts or invoices up to 30
days in advance, freeing your
money to work for you. You
can pay invoices, utility bills
and many others. Because the
transaction is made on the day
you want it, you can keep the
funds earning interest until the
very last moment.
High interest daily
The special high interest
HOBSInvestmentAccount
is designed for busy people who
want to make the most of their
money. It allows you to organize
your finances so that you
can earn high interest without
locking your money away.
At the touch of a button, you
can switch funds from your
current account into your
HOBS Investment Account.
Interest is calculated daily, so
you always get the benefit of a
healthy balance, even on funds
deposited overnight.
All instructions made before 5
pm on any business day are
carried out that day. After 5
pm, they are effective on the
next business day.
Open 18 hours a day
HOBS opens for business
at 7 am – so much for
banking hours! Now you can
organize your personal finances
before you set off for work and
keep tighter control of your
business bank accounts from
your office at any time
throughout the day.
With HOBS, you can bank
until 1 o’clock in the morning
during the week, and you can
bank all day Saturday and Sun-
day until 11 pm.
Look ahead with HOBS
Old-fashioned banking
deals with what hap-
pened yesterday. HOBS tells
you where you stand today and
helps you plan ahead.
You can also call on Bank of
Scotland’s expertise for advice
on all aspects of finance.
Bank of Scotland offers all the
banking services you need as
an individual or as a business-
man and HOBS is the seven
day link to a full clearing bank
service, wherever you are in
the UK.
82
2.3 According to text B, which of the following sentences are true (T) or false (F)
Questions T/F
1. HOBS can be used by both business people and private individuals.
2. You can only use HOBS if you have a personal computer.
3. £500 is the minimum required to open a HOBS account.
4. HOBS is only available to residents of Scotland.
5. Making a payment with the HOBS system is more expensive than paying by
cheque.
6. HOBS can be programmed to pay your bills automatically.
7. There is more than one type of HOBS account.
8. HOBS is open everyday from 7 a.m. to 1 a.m.
Source: Michael Lannon, Graham Tullis, Tonya Trappe, ‘Insights Into Business’, Longman, 1996.
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Look at the following statements about the HOBS system and put a cross (X)
against those which do not appear in the text.
1. If you use HOBS you will be given an identity number and a password.
2. You can make ten monthly payments to cover the cost of buying HOBS.
3. The Bank of Scotland charges customers £10 a month for using HOBS.
4. If you want to take advantage of the Cash Management Service this will cost you extra.
5. You can arrange for The Bank of Scotland to give you a personal demonstration of how
HOBS works.
6. The HOBS terminal can fit into a small place.
Read through the text again and make a list of the 10 advantages for the cus-
tomer of using the HOBS system
With HOBS the customers can:
1. have instant access to an account.
2. ………………………………..
Listening 1
You are now going to hear part of a lecture, divided into short sections to
help you to understand it. Listen to the lecture TWICE. As you listen, answer the
questions below.
Section 1
1. What topic is the lecturer going to introduce?
………………………………………………………..
2. What is the point of the story?
………………………………………………………..
3. Who were the original bankers?
………………………………………………………...
Section2
1. Note down the first development.
………………………………………………………..
2. What is the modern word for the ‘letter’ the lecturer talks about?
………………………………………………………..
3. Note down the second development.
………………………………………………………..
Section 3
Are these statements correct or incorrect?
1. The goldsmith did not charge the firm interest.
2. The goldsmith expected everyone to want their gold at the same time.
83
2.4
2.5
3.1
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84
Section 4
Table: Goldsmiths as Bankers
Is this statement correct or incorrect?
Once the goldsmith had made his loan, his liabilities were greater than his assets.
Section 5
1. What would we call a deposit today?
2. Is this statement correct or incorrect?
Whether the loan was in gold or as a deposit made no different to the goldsmith.
Section 6
1. Note down what the lecturer means by ‘reserves’.
2. What is the goldsmith’s reserve ratio after making the loan?
Section 7
1. The lecturer says people rushed to the goldsmith to get their gold. What term does he use
to describe this rush?
2. What is the result of a financial panic?
Listening 2
Listening to the first part of the lecture again and fill ONE word in each blank bellow
3.2
ASSETS LIABILITIES
(1) Old-fashioned goldsmith
(2) Gold lender
(3) Deposit lender: Step 1
(4) Step 2
Gold £ 100
Gold £90 + loan £10
Deposits £100
Deposits £100
Deposits £100
Deposits £100
Now two (1)......................... turned these goldsmiths into bankers. The first
was that people (2)......................... it a lot easier to give the seller a letter
than it was to (3)......................... some gold and then physically hand it
over to him. This letter (4)......................... some of the gold they had at the
goldsmith’s to the seller.
This letter we would nowadays call a (5)......................... . And of course
once these letters, or cheques, were easier to carry (6)......................... than
gold, and a lot less dangerous, people started to say that their money
(7)......................... were what they had with them plus their deposits. So a
system of deposits was started. The second (8)........................., and I’m
sure you can see what’s coming, was that goldsmiths realized they had a
great deal of unused gold lying in their (9)......................... doing nothing.
This development was (10)................................ of greater importance than
the first.
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85
4.1
Read the following passage and do the vocabulary exercises below. The sug-
gested time for doing these exercises is 30 minutes
Account opening forms
On the National Bank of Mantra company account opening form the customers are asked to
write whether they are sole traders, partnership or limited companies. This information is
necessary for the banks. In the case of a sole trader, there is no formality but the bank might
want a reference.
The form also request the same details as those found on a personal account opening form but
with many additional items. All this information is useful for the bank. But it is supplied on
a completely voluntary basic by customers.
The banks uses the account opening form to do market
research. For example, they ask prospective account holders
to say why they came to the National Bank of Mantra. They
ask for details of the personal assets and liabilities of the
directors and the names and addresses of their accountants
and solicitors and how long they have been in business. This
information is requested but references on the directors are
sometimes required.
The forms are divided into four sections:
1) Details of the business, which include its address, legal status (whether it is a private
limited company or a public limited company), its activities, connected companies,
number of employees and how they are paid, the addresses of its solicitors, accountants
and present bankers);
2) Personal details of the owners (for non-limited companies, called the proprietors, and for
limited companies called the directors) as for a personal account opening form, including
assets such as house ownership and liabilities such as mortgages.
3) Customer requirements include what services the new business account holder wants. The
bank uses this opportunities to get details of property and valuables so that it can then
offer to insure them. The bank also asks what kind of cherub book the customer wants, the
types of account and frequency of statements of account;
4) A signed declaration by the owners, who agree to be severally and jointly liable for the
debts of the company. This means they are responsible both as individuals and as a group
for any debt to the bank when it lends the company money.
Mark the following with A or L to show whether they are assets or liabilities
1. a house
2. a car
3. a bank loan
4. a mortgage
5. an insurance policy
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86
Look carefully at each paragraph of the reading passage to find words which
mean the opposite of
a) closing (paragraph 1) b) joint c) offer (paragraph 2)
d) different e) assets f) few
g) obligatory h) former i) always (paragraph 3)
j) private (paragraph 3) k) community (paragraph 7) l) borrows
Read the passage about account opening forms again and then, without looking
back, add nouns to the following adjectives to form noun phrases
a) national b) different c) sole d) limited e) the same f) personal
g) additional h) more i) prospective j) legal k) private l) public
Now look back at the passage and see how many of your phrases match those in the reading
passage.
Based on the information in the two texts above, answer the following questions
in your own words
1. Now that you have considered the benefits that HOBS offers its customers, discuss what,
in your opinion, the Bank of Scotland can gain from the introduction of its new system.
2. Are there any similar services to HOBS available in your country? Who provides them
and how do they operate?
Role Play
Inquiring a bank loan
Work in pairs (Student A and Student B). Student A and student B should look at the
information for each of them to understand carefully their role before starting the
role play
Student A
You wish to deposit £30,000 with a bank and have been
advised that the Lombard Bank provides very favorable
conditions to investors. You have obtained a leaflet about their
services, but you require further details before deciding in
which account (s) to invest your money. You have there fore
arranged to meet a representative of the bank (Student B)
who will answer any enquiries that you have. Your saving
requirements are as follows:
You wish to set aside a sum of money for your three children,
to be divided amongst them on their eighteenth birthdays. Their present ages 10, 12, and 14.
You wish also like to set aside an amount for use in emergencies, for example to carry out any
unexpected repairs to your house, to pay medical bills etc.
4.2
4.3
5.1
5.2
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87
Total = £30,000
Study the above leaflet carefully and draw up a list of questions that you will need to ask.
The following guidelines show the sort of information you should obtain.
Minimum/Maximum opening deposits
Interest rates
Dates of interest payments
Restrictions on withdrawing money
Useful language:
Asking for general information
Could you tell me more about …
I’d like some further information on …
Asking for more detailed information
How much interest would I earn if I opened a 3-month notice deposit account?
Would I be able to withdraw funds at short notice from a fixed deposit account?
How often would I be paid interest with a cherub savings account?
When you have finished preparing your questions, you should meet up with student B.
Make notes on the answers you receive and decide how you are going to invest your
money.
Lombard Bank
Information for savers and investors
Note deposit for savers and investors
A flexible account that offers you easy access to
your funds, with deposit periods of 14 days, 3
months and 6 months with no maximum limit to
funds deposited.
Fixed Deposit Accounts
The ideal deposit account for those wishing to invest in the longer term with
deposit periods ranging from 1 to 5 years. Interest is fixed and guaranteed not
to change during the deposit period selected.
Cheque Savings Account
A special kind of deposit account which is particularly suitable for those
customers who want their savings readily available whilst earning a good rate
of interest. A cherub book is supplied and provides the benefits of instant ac-
cess to your funds. Whatever your choice you can be assured that a Lombard
deposit account will be a secure and confidential home for your money.
v1.0

Student B
You work for the Lombard Bank and have an appointment with a
prospective client (Student A) who would like to deposit some
money with your bank. The bank offers three different types of
account, details of which are given below. Study this information
and be prepared to answer Student A’s questions and to give
advice about which account (s) would best suit his or her saving
requirements. In particular you should be ready to answer ques-
tions about the following:
• Minimum/Maximum opening deposits
• Interest rates
• Dates of interest payments
• Restrictions on withdrawing money
88
Type of account
Deposit
Min. Max
Interest rates
per annual
Interest payments
Notice Deposit
3 months
6 months
14 days
1000 -
1000 -
5000 -
8.75 (5.75*)
9.0 (6.0*)
9.25 (6.375*)
every 6 months
every 6 months
every 3 months
Note: *indicates interest rates payable when the balance is less than the minimum deposit.
Type of account
Gross Rate % p.a. – interest paid annually
Amount of deposit
£1,000 - £25,000 - £50,000 -
£24,999 £49,999 £250,000
Fixed deposit
1 year fixed deposit
9.00
9.00
9.25
9.25
9.25
9.125
9.125
9.375
9.375
9.375
9.25
9.25
9.50
9.50
9.50
Type of account
Cheque Savings Account Interest paid
When the balance is £1,000 to £4,999
When the balance is £5,000 and above
3.75
6.00
v1.0

Note Deposit Account
This account exists in three forms (3months, 6 months and 14 days) depending on the period
of notice. The rates of interest payments can be made directly to the client or added to the sum
in his or her notice deposit account to earn further interest. Additional deposits can be made
without restriction.
Fixed Deposit Account
With this type of account funds are deposited for a fixed period of 1 to 5 years and earn
interested at a fixed rate which is guaranteed not to change. The client can choose whether
the interested is paid monthly, every three months, every six months or yearly. Interest can
be paid directly to the client or added to the sum in the fixed term account. The client is not
allowed to make withdrawals before the end of the fixed period of deposit. The minimum
opening deposit is £1000 with a maximum limit of £250,000.
Cheque Savings Account
This is an account for customers who want easy and instant access to their money while
continuing to earn interest. Interest is paid every three months and customers are supplied with
a cheque book which can be used without restriction. Customers may withdraw up to £1000
in cash per day but are not allowed to become overdrawn. Statements are sent every 6 months.
Suggestion:
You should organize your letter in three different parts
1. An introduction, in which you should identify yourself and give the reason(s) for writing.
2. The main body of the letter, where you explain the problem and give a short history of
how it arose.
3. A concluding paragraph, saying what action you are expecting as a result of your letter.
89
Last month you received your bank statement and noticed that your account
was overdrawn. After phoning your bank, they informed you that they had
mistakenly transferred £500 from your main account into your second account,
instead of vice versa. The bank apologized for the error and promised that there
would be no overdraft charges. However, you have just received your latest
bank statement, on which a £30 overdraft charge appears. You have phoned
your bank again to complain and they have advised you to confirm your
complaint in writing. Write a short letter to your branch manager in which you
state what your complaint is and how you want the bank to correct the mistake.
The address of your bank is:
National Savings Bank
509 Wellington Street
London SW1V 9AW
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90
English terms Vietnamese equivalents
A
- A run on the bank (n)
B
- Balance (n)
- (Bank) statement (n)
C
- Cheque book (n)
- Clearing bank service (n)
D
- Debit card (n)
- Deposit (n)
F
- Financial panic(n)
G
- Goldsmith (n)
- Gold bullion (n)
J
- Jewellery (n)
I
- Intermediary (n)
R
- Reserve ratio (n)
- Reservoir (n)
T
- To go bankrupt
V
- Vault (n)
O
- Overdraft (n)
- Đòi rút tiền ồ ạt ở ngân hàng
- Số dư tài khoản
- Sao kê tài khoản
- Sổ séc
- Dịch vụ thanh toán
- Thẻ ghi nợ
- Tiền gửi tại ngân hàng
- Sự hoang mang về tài chính
- Thợ vàng
- Nén vàng, thoi vàng
- Đồ kim hoàn
- Trung gian
- Tỷ lệ dự trữ
- Bể chứa
- Bị phá sản
- Hầm/Rương/Hòm
- Vay thấu chi
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10 eng104-bai 6-v1.0

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