Voeabulaiy Exercises

Find proper definitions:

Definitions

a) the pattern of investments held by a
bank

b) a government or local government se­
curity

c) the actual return from a particular in­
vest in en I

d) a unit of ownership in a company

e) a stock thought to be of highest quality

f) money collected by a government for its
support

g) the speed with which an investment can
be redeemed for cash

h) coins and bills

II

Using the words in brackets, explain the meaning of Ihe following terms:

1. cash-in-banks (as a reserve, risk, withdrawals)

2. general obligation bonds (secured by, the properly of a
city, other unit of government)

3. municipal bonds (for'sale, a city or other unit of govern­
ment, offered by)

4. revenue bonds (revenues, repaid out of)

5. AA rating (a bond, a slock, the value of, a high estimate of)
b'. tax-exempl (lax obligation, free from)

7. working capital (day lo day, slock, cash, needs)

8. fixed capital (machinery, buildings, long term)

9. high yield (good return, risk, long period of lime)

10. overdraft (current account, withdraw, exceed).

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Choose the right answers:

1. "our portfolio" in Ihis dialogue means:

a) a wallet,

b) a lisl of slocks and bonds belonging to the bank,

c) a lisl of bank's fixed assets.

2. "a portfolio well diversified" is: ^J

a) one yielding high interest,

b) entirely made up of blue chip stocks,

c) one made up of a variely of stocks and bonds.

3. "price fluctuation" is:

a) a price stabilily,

b) an increase in prices,

c) a changing back and forth in the price.

4. "speculative" means:

a) risky,

b) disequilibrating,

c) negotiable.

5. "yield 3.5%" means:

a) earn 3.5%,

b) treble the price,

c) rise by 3.5%.

H. "advances" here means:

a) approaches from one person lo another,

b) improvements in a bank's position,

c) loans and overdrafts for customers.

IV

Say what is true and what is false. Correct the. false, sen­tences: \. Bonds are highly liquid investments.

2. Slocks are less speculative than bonds.

3. Blue chip issues show a lot of price fluctuation.

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4.It is desirable to diversify one's portfolio.

5. All municipal bonds are tax-exempt.

6. Bonds yield uncertain incomes and are difficult to resell.

7. Advances are the most liquid of bank's assets.

8. Advances are the most profitable of bank's investments.

Using suffixes -at,-able, -ory, -ive,elc., give adjectives

which are related to the following verbs:

change profits

control sell

desire speculate

negotiate transfer

pay value

VI

For each of the adjectives formed in exercise V, find the noun which could be described by it. Write one noun to each adjective.

VII

Combine the words listed below into meaningful two or three word expressions:

bank fluctuation member

bond general local authority

blue-chip issue obligation

liquid investment price

VIII

For each of the following phrases, find the expression in the text that explains it:

1. a slock of the highest quality

2. a unit of ownership in a company

3. the return actually received from an investment

4. changes in prices

5. a list of slocks and bonds belonging to a company
6". a firm's investment in long term assets

7. loans and overdrafts granted lo customers

8. bought and sold in an atlempl lo make profits from price

fluctuation

9. Ihe amount of cash needed by a firm for day lo day aclivily

10. a protective barrier against the unexpected

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