Đây là giáo trình chuẩn của Đại học kinh tế quốc dân do mình là sinh viên trong ngành đang học. Đây là bản mới nhất được giáo viên gửi cho. Mình bán với giá rất rẻ phù hợp cho việc học onl và có thể in nếu cần khi thi. Chúc mọi người một ngày vui vẻ. Nếu mọi người thấy hay ủng họ mình nha.
FINANCIAL MARKET
This lesson focuses on the essential functions of financial markets, which facilitate the flow of funds between individuals, households, firms, and governments with surplus funds and those in financial need Financial markets not only benefit participants but also enhance overall economic efficiency and societal welfare By studying these functions, students gain foundational knowledge in banking and finance, supported by reading passages, exercises, and translations designed to improve their reading, pronunciation, translation, and writing skills Additionally, students are introduced to new terms and terminologies related to financial markets and their functions.
The financial market plays a crucial role in the economy by facilitating the transfer of surplus funds from households, businesses, and governments that save by spending less than their income to those in need of additional funds who wish to spend beyond their means.
Lender-savers, primarily households, are positioned on the left side of the financial spectrum, while borrower-spenders, who require funds for their expenditures, are on the right In addition to households, business enterprises, state and local governments, and foreign entities occasionally have surplus funds that they lend out to those in need of financing.
Businesses and the federal government are the primary borrower-spenders, while households and foreigners also engage in borrowing to finance purchases such as cars, furniture, and homes Funds flow from lender-savers to borrower-spenders through two distinct routes.
FUNCTIONS OF FINANCIAL MARKET
Reading
The financial market plays a crucial role in the economy by directing surplus funds from households, businesses, and governments—who save by spending less than their income—to those in need of additional funds for spending beyond their income.
Lender-savers, primarily households, are positioned on the left side of the financial spectrum, while borrower-spenders, who require funds for their expenditures, are on the right In addition to households, business enterprises, state and local governments, and foreign entities occasionally have surplus funds that they lend out to those in need of financing.
Businesses and the federal government are the primary borrower-spenders, while households and foreigners also engage in borrowing to finance purchases such as cars, furniture, and homes Funds flow from lender-savers to borrower-spenders through two main channels.
In direct finance, borrowers obtain funds directly from lenders in financial markets by issuing securities, which represent claims on their future income or assets For buyers, these securities are considered assets, while for the issuers, they are liabilities or debts.
The channeling of funds from savers to spenders is crucial for the economy because savers often lack access to profitable investment opportunities, which are typically available to entrepreneurs Without financial markets, these two groups would struggle to connect, hindering the transfer of funds and leaving both parties worse off Therefore, financial markets play an essential role in enhancing economic efficiency by facilitating this vital exchange of resources.
Financial markets play a crucial role even for individuals borrowing for personal reasons, such as newlyweds looking to purchase a home While you may have a stable job and a decent salary, starting your career often means limited savings Although you could eventually save enough to buy your dream house, waiting too long could diminish your ability to fully enjoy it.
A financial market that allows individuals with savings to lend money for home purchases enables young buyers to invest in property while they can still enjoy it In exchange for these loans, borrowers are willing to pay interest, and they can gradually repay the loan over time.
Financial markets play a vital role in the economy by facilitating the transfer of funds from individuals without productive investment opportunities to those who do This efficient allocation of capital is essential for enhancing production and overall economic efficiency.
Efficient financial markets enhance consumer well-being by enabling better timing of purchases They offer young individuals access to funds, allowing them to acquire necessary items without the burden of saving the full amount beforehand Ultimately, well-functioning financial markets contribute to the overall economic welfare of society.
(Source: Federic S Mishkin (2006), The Economics of Money, Banking and Financial Markets, Seventh Edition Update, Addison-Wesley, Longman)
1.1 What is the main function of financial market?
1.2 Who are the participants in financial markets?
1.3 In what ways do funds flow in the economy?
1.4 How does direct finance work?
1.5 How can financial markets benefit individuals with consuming purposes? 1.6 Why is financial market so essential to the economy?
Exercises
2.1 Read the paragraph below and find the right word or phrase from the box to fill each of the gaps
Financial markets play a crucial role in channeling funds from savers with excess funds to borrowers with a shortage of funds This can occur through direct finance, where borrowers obtain funds directly from lenders by selling securities, or through indirect finance, which involves a financial intermediary that facilitates the transfer of funds This process enhances the economic welfare of society by enabling funds to flow from those without productive investment opportunities to those who do, thereby fostering increased efficiency in the economy Moreover, the channeling of funds directly benefits consumers by providing them with access to resources when they need them most.
2.2 Put the words/phrases in order to make sentences
1 If/ prices/ stay/ oil and gas/ impact/ food/ prices/ high/ there/ be/ on/ will
2 The/ every/ information/ financial market/ money/ available/ any/ without/ makes/ type of/ spending
3 The/ financial market/ traded/ is/ currencies/ forex market/ where/ are/ a
4 Mutual fund/ ability/ give/ buy/ to/ once/ a lot of stocks/ at/ investors/ the
5 The/ forces/ any/ the/ demand and supply/ of/ price/ goods or services/ is/ by/ determined/ of
1) Financial markets have the basic function of a) getting people with funds to lend together with people who want to borrow funds b) assuring that the swings in the business cycle are less pronounced c) assuring that governments need never resort to printing money d) providing a risk-free repository of spending power
2) Financial markets improve economic welfare because a) they channel funds from investors to savers b) they allow consumers to time their purchase better c) they weed out inefficient firms d) eliminate the need for indirect finance
3) Well-functioning financial markets a) cause inflation b) eliminate the need for indirect finance c) cause financial crises d) produce an efficient allocation of capital
4) The principal lender-savers are a) governments b) businesses c) households d) foreigners
5) Which of the following can be described as direct finance? a) You take out a mortgage from your local bank b) You borrow $2,500 from a friend c) You buy shares of common stock in the secondary market d) You buy shares in a mutual fund
2.4 Match the words on the left with the phrases on the right
3 Financial crisis 6 Fiscal policy a is a major disruption in the financial markets b is defined as anything that is generally accepted in payment for goods and services or in the repayment of debt c relates changes in the quantity of money to changes in aggregate economic activity and the price level d is a continually rising price level e involves decisions about government spending and taxation f occurs when government expenditures exceed tax revenues for a particular time period
2.5 Put these words and phrases in the appropriate columns
Commercial banks Shares Finance companies Financial market
Financial intermediaries Stock Exchange Savings Associations Financial cooperatives Stocks Bank borrowing Bonds
Translation
Translate the following texts into Vietnamese, paying a special attention to the standard use of terms and clarification of expression
The financial market is a dynamic environment where new securities are consistently introduced to the public, offering a diverse array of financial products and services designed to meet the needs of individuals across all income levels These products are traded in the capital market, which consists of two main segments: the primary market, where new securities are issued, and the secondary market, where existing securities are bought and sold.
The primary market, often referred to as the new issues market, facilitates transactions directly between issuers and buyers This market is essential for creating new securities and making them available to the public.
An Initial Public Offering (IPO) marks a private company's first sale of stocks to the public in the primary market It's essential to understand that in this market, investors buy securities directly from the issuer.
In the secondary market, investors buy and sell securities that were initially issued in the primary market Transactions occur directly between buyers and sellers, with stock exchanges or brokers serving as intermediaries to facilitate these trades.
The secondary market is created by a network of investors who engage with primary market investors to trade financial securities, including bonds, futures, and stocks These transactions occur on the stock exchange, facilitating the buying and selling of various investment instruments.
The National Stock Exchange (NSE) and New York Stock Exchange (NYSE) are prominent stock exchanges where trading primarily occurs among investors, without direct involvement from the companies that issued the securities in the primary market.
(Source: http://www.financewalk.com/primary-market-secondary-market/ )
The bond market serves as a crucial platform for organizations seeking substantial loans, with various types of bonds available, such as Treasury Bonds, corporate bonds, and municipal bonds Typically, there is an inverse relationship between stock prices and bond prices; when stock prices rise, bond prices tend to fall Additionally, bonds play a vital role in providing liquidity, which is essential for the smooth operation of the U.S economy.
Understanding the relationship between Treasury bonds and their yields is crucial; as Treasury bond values decrease, yields increase to compensate This rise in Treasury yields leads to higher mortgage interest rates, and a decline in Treasury values can also weaken the dollar, causing import prices to rise and potentially triggering inflation Additionally, Treasury yields can serve as economic indicators, with an inverted yield curve often signaling an impending recession.
(Source: https://www.thebalance.com/an-introduction-to-the-financial-markets-
Terminology
Bear –Nhà đầu tư bi quan: a name for shareholders who sell because they expect the price to fall
Bull –Nhà đầu tư lạc quan: a name for investors who buy shares because they expect their price to rise
A corporate bond is a debt security issued by a corporation to raise capital from investors, with repayment typically reliant on the company's future earnings In certain instances, the bond may be secured by the company's physical assets, providing additional assurance to investors regarding the bond's backing.
Day trader - Người giao dịch nội nhật: a person who buys and re-sells shares in a very short time, often just a few hours
Direct finance refers to a financing method in which borrowers obtain funds directly from the financial market, bypassing third-party services like financial intermediaries.
Indirect finance involves borrowers obtaining funds from the financial market through intermediaries, rather than directly issuing securities as seen in direct financing This method highlights the crucial role of financial intermediaries in facilitating access to capital for borrowers.
A financial market is a platform where individuals buy and sell financial securities, commodities, and other valuable items, characterized by low transaction costs and pricing that mirrors supply and demand dynamics This market encompasses a range of securities such as stocks and bonds, as well as commodities like precious metals and agricultural products.
The foreign exchange market, commonly known as forex or FX, is a global decentralized platform where currencies are traded It encompasses all activities related to the buying, selling, and exchanging of currencies at both current and predetermined prices.
The futures market is a key financial exchange where traders buy and sell standardized futures contracts, which are agreements to purchase specific amounts of commodities or financial instruments at predetermined prices for future delivery These contracts are classified as derivatives.
A municipal bond, or trái phiếu địa phương, is a debt security issued by a state, municipality, or county to fund capital projects such as highways, bridges, and schools These bonds offer tax exemptions from federal, state, and local taxes, making them particularly appealing to individuals in higher income tax brackets.
A mutual fund is a professionally managed investment vehicle that aggregates capital from numerous investors to buy securities Although there is no formal legal definition for "mutual fund," it typically refers to open-end investment companies, which are regulated entities that offer collective investment opportunities to the public on a daily basis These funds provide an accessible way for individuals to invest in a diversified portfolio.
"investment companies" or "registered investment companies"
The options market is a financial marketplace where options, which are contracts allowing the buyer the right to buy (call) or sell (put) a security at a predetermined price (strike price) within a specified timeframe or on a specific date (exercise date), are traded These contracts are sold by an option writer to an option holder, providing flexibility in trading strategies and investment opportunities.
The primary market is a financial marketplace where new securities, including stocks and bonds, are issued and sold directly to initial investors by corporations or government entities seeking to raise funds.
Secondary market - Thị trường thứ cấp: A secondary market is a financial market in which securities that have been previously issued (and are thus second-hand) can be resold
A securities broker is a regulated professional who operates within a brokerage firm or broker-dealer, facilitating the buying and selling of stocks and other securities for both retail and institutional clients They execute trades through stock exchanges or over-the-counter markets, earning fees or commissions for their services.
Securities dealer – Nhà kinh doanh chứng khoán: is a person or firm in the business of buying and selling securities for their own account, whether through a broker or otherwise
A Treasury bond (T-Bond) is a marketable U.S government debt security that offers a fixed interest rate and has a maturity period exceeding 10 years These bonds provide semi-annual interest payments, with income that is solely subject to federal taxation Known for their low risk of default, Treasury bonds are considered a safe investment option in the market.
References
1 Federic S Mishkin (2006), The Economics of Money, Banking and Financial Markets, Seventh Edition Update, Addison-Wesley, Longman
2 http://www.financewalk.com/primary-market-secondary-market/
3 https://www.thebalance.com/an-introduction-to-the-financial-markets-3306233.
REGULATION OF FINANCIAL SYSTEM
This lesson explores key issues surrounding financial system regulations, which are primarily enforced to enhance investor information and ensure the stability of financial intermediaries The government employs six regulatory types: entry barriers, disclosure requirements, asset and operational restrictions, deposit insurance, competition limits, and interest rate controls The effectiveness of these regulations can either promote sustainable growth or exacerbate issues within the financial system, depending on the degree of deregulation and the nature of the policies implemented To aid in understanding, students will engage with reading materials, exercises, and translations, enhancing their skills in reading, pronunciation, translation, and writing, while also familiarizing themselves with relevant financial terms and concepts.
Regulatory Control in the American Financial System
The American financial system is one of the most regulated sectors of the economy, with government oversight aimed at enhancing investor information and ensuring the stability of the financial system This regulatory framework has evolved to address these two key objectives, shaping the current landscape of financial market regulations.
Increasing Information Available to Investors
Asymmetric information in financial markets can lead to adverse selection and moral hazard, which impede market efficiency Risky companies or fraudulent entities often target unsuspecting investors, exacerbating adverse selection and discouraging participation in financial markets Additionally, after purchasing a security, investors may face moral hazard as borrowers might engage in risky behavior or fraud To mitigate these issues and enhance market efficiency, government regulation plays a crucial role by increasing the availability of information for investors.
Ensuring the Soundness of Financial Intermediaries
Asymmetric information can trigger financial panics, leading to the collapse of financial intermediaries When fund providers doubt the stability of these institutions, they may withdraw their funds indiscriminately, affecting both sound and unsound entities This behavior can result in significant public losses and severe economic damage To mitigate the risk of financial panics and safeguard the economy, the government has established six types of regulations.
Entry into the financial intermediary sector, including banks and insurance companies, is heavily regulated by state banking and insurance commissions To establish such an entity, individuals or groups must secure a charter from either state or federal authorities This charter is granted only to those who demonstrate exemplary character, possess outstanding credentials, and have substantial initial capital.
Disclosure There are stringent reporting requirements for financial intermediaries
Their bookkeeping must follow certain strict principles, their books are subject to periodic inspection, and they must make certain information available to the public
Financial intermediaries face specific restrictions regarding their permitted activities and the assets they can manage It is crucial for individuals to ensure that their funds are secure before depositing them in a bank or similar institution, as this guarantees that the financial intermediary can fulfill its obligations to its clients.
Deposit Insurance The government can insure people’s deposits so that they do not suffer any financial loss if the financial intermediary that holds these deposits should fail
Politicians frequently argue that excessive competition among financial intermediaries can lead to failures detrimental to the public, despite weak evidence supporting this claim Nevertheless, state and federal governments continue to impose numerous restrictive regulations, starting with limitations on the establishment of new branches.
Regulations limiting interest rates on deposits have stifled competition in the banking sector These restrictions were established due to the prevailing belief that unregulated interest-rate competition contributed to bank failures during the Great Depression.
(Source: Federic S Mishkin (2006), The Economics of Money, Banking and Financial Markets, Seventh Edition Update, Addison-Wesley, Longman)
1.1 Why does the government regulate financial markets?
1.2 What problems does asymmetric information bring about?
1.3 What are adverse selection and moral hazard problems?
1.4 What methods does the government use to prevent financial panics?
1.5 How do restrictions on entry work?
1.6 What tool did the American government apply to deal with the Great Depression?
1) Which of the following is not a goal of financial regulation? a) Ensuring the soundness of the financial system b) Reducing moral hazard c) Reducing adverse selection d) Ensuring that investors never suffer losses
Increasing the amount of information available to investors plays a crucial role in minimizing issues of adverse selection and moral hazard in financial markets By enhancing transparency and access to data, investors can make more informed decisions, ultimately leading to a more efficient and trustworthy market environment.
3) Government regulations to reduce the possibility of financial panic include all of the following except a) transactions costs b) restrictions on assets and activities c) disclosure d) deposit insurance
To enhance the safety of financial institutions and mitigate risks, commercial banks and depository institutions are restricted from owning municipal bonds, making real estate loans, issuing personal loans, and holding common stock These measures aim to improve information flow to investors, prevent banking panics, safeguard bank shareholders from losses, and protect bank employees from unemployment.
Asymmetric information is a widespread issue that highlights the shortcomings of financial regulations in industrialized nations, suggesting that these regulations may be largely ineffective Furthermore, it indicates that financial regulatory frameworks vary significantly across different countries, rather than being uniform or unnecessary.
2.2 Read the paragraph below and find the right word or phrase from the box to fill each of the gaps
The government regulates financial markets and institutions primarily to enhance the information available to investors and to ensure the stability of the financial system Regulations encompass requirements for transparency of information to the public, guidelines on who can establish a financial intermediary, limitations on the types of assets that financial intermediaries can hold, the provision of deposit insurance, reserve requirements, and the establishment of maximum interest rates that can be offered on checking accounts and savings deposits.
2.3 Match the words 1-6 to the phrases a-f to make word partnerships
1 compliance a according to law or regulation
2 mandate b authorization given to an organization to carry out specific responsibilities
3 supervision c following rules and regulations
4 counterparties d working with companies and institutions, and not personal or retail customers
5 statutory e other institutions in an agreement, contract or transaction insurance maximum restrictions assets increase (2) disclosure (4) soundness (3) intermediaries (1)
6 wholesale f watching over people or an organization to make sure they are behaving correctly
2.4 Put the words/phrases in order to make the sentences
1 An important trend/ years/ financial markets/ growing/ in/ recent/ internationalization/is/of/the
2 The yield/ climbed/ 10-year Treasury note/ 2.39 percent/ on/ to/ the
3 Citigroup/ a/ capacity/ in/ has/ 180 percent/ forecasted/ by 2020/ increase
4 Trump/ a/ 45 percent/ has/ on/ tariff/ suggested/ from China/ goods/ slapping
5 Financial shares/ three of/ reported results/ American lenders/ climbed/ after/ the largest
In pairs, one student will argue in favor of a statement while the other will argue against it, providing explanations for their positions Afterward, the entire class will share their arguments on the blackboard to evaluate which side presented more convincing points.
1 The current bank regulation in Vietnam is very good
2 Commercial banks in Vietnam need to be regulated more strictly
3 Securities market in Vietnam has not been well-regulated
4 Deposit insurance in Vietnam covers for all depositors
An important trend of the financial markets in recent years is growing internationalization
Citigroup has forecasted a 180 percent increase in capacity by 2020.
Trump has suggested slapping a 45 percent tariff on goods from China
Financial shares climbed after three of the largest American lenders reported results.
The yield on the 10-year Treasury note climbed 2.39 percent.
5 State Bank of Vietnam’s Circulars are more concrete than Prime Minister’s Decisions on similar topic
6 The global financial crisis 2008 is rooted from the de-regulation environment to financial system
7 Optional… (as students may think of more topics)
Translate the following texts into Vietnamese, paying a special attention to the standard use of terms and clarification of expression
The creation of the International Money Market
In many countries, local corporations and governments often require short-term funding to manage their operations and budget deficits Individuals and local institutional investors contribute to this need by placing short-term deposits in commercial banks Additionally, corporations and governments may issue short-term securities that attract local investors Consequently, the domestic money market plays a crucial role in facilitating the transfer of short-term funds, denominated in the local currency, from savers (surplus units) to borrowers (deficit units).
The expansion of international business has led corporations and governments to seek short-term funding in foreign currencies for various reasons They may need to borrow to finance imports priced in another currency or to support local operations while taking advantage of lower interest rates in foreign currencies This approach is particularly beneficial when future receivables are expected in that currency Additionally, borrowing in a currency anticipated to depreciate against their home currency allows for repayment at a more favorable exchange rate, ultimately reducing the effective cost of borrowing below the stated interest rate.
COMMERCIAL BANKING
The banking sector is essential for economic development, serving as a financial intermediary that connects savers (lenders) with borrowers through loans and mortgages By facilitating these transactions, banks enhance the stability and efficiency of the financial system Students learn about key components of a bank's balance sheet, which illustrates how banks generate profits, with non-transaction deposits making up the largest share of liabilities and equity, while loans dominate the asset side This structure highlights the primary source of income for banks.
Main Items of Commercial Bank’s Balance Sheet
Banks are essential to the economy as they facilitate the flow of funds from surplus units to deficit units They effectively bridge the gap between borrowers and lenders by converting small, low-risk, and highly liquid deposits into larger, higher-risk, and illiquid loans This transformation function highlights the advantages banks possess in the intermediation process, ensuring that the needs of depositors and borrowers are efficiently matched.
There are some main items of bank’s assets and liabilities:
Checkable deposits are bank accounts that enable account holders to write checks to third parties and include various types such as non-interest-bearing checking accounts, interest-bearing NOW accounts, and money market deposit accounts (MMDAs) These deposits are payable on demand, meaning that when a depositor requests a withdrawal, the bank must provide immediate payment As a liability for the bank, checkable deposits represent a low-cost source of funds, as depositors often accept lower interest rates in exchange for the liquidity and convenience of accessing their money for purchases.
Non-transaction deposits serve as the main source of funds for banks, offering higher interest rates compared to checkable deposits These deposits do not allow owners to write checks and are primarily categorized into two types: savings accounts and time deposits, commonly known as certificates of deposit (CDs) Savings accounts provide easy access to funds, while time deposits lock in money for a specified term, often yielding better returns.
AN OVERVIEW OF COMMERCIAL BANKING
Reference
1 Barbara Casu, Chaudia Giradone, Philip Molyneux (2006), Introduction to
Banking, Pearson Education Canada Publishing House
2 Frederic S Mishkin (2015), The Economics of Money, Banking and
Financial Markets, Pearson Education Limited Publishing House
3 Capital one, Introduction to credit, retrieved at http://www.capitalone.co.uk/creditmadeclearer/credit-intro.jsf#what-is- credit
4 Justin Prichard (2014), What is credit and How is it used?, Retrieved at http://banking.about.com/od/creditscoresandreporting/a/whatiscredit.htm
5 How to use an ATM to deposit money, Retrieved at: http://www.wikihow.com/Use-an-ATM-to-Deposit-Money
6 National Assembly (2010), Law on Credit Institutions No 47/2010/QH12 approved by the Vietnam National Assembly on June 16, 2010
7 National Assembly (2010), Law on The State bank of Vietnam No
46/2010/QH12 approved by the Vietnam National Assembly on June 16,
INTERNET BANKING
The "4.0 Age" marks a technological revolution that will significantly transform our lives, work, and interactions, with the banking sector being no exception Internet banking has emerged as a vital self-service platform, enabling customers to conduct financial transactions online This article explores the various banking services available through internet banking, as well as the challenges faced by both banks and their clients Additionally, it introduces the technological advancements in internet banking, preparing students for the evolving landscape of the financial sector.
Internet banking is the latest delivery channel for financial services Internet banking is a self-service that allows customers to perform financial activities over the Internet
Internet banking is a self-service platform that allows bank customers to access their accounts and obtain the latest information on banking products and services anytime, anywhere via the bank's website With internet banking, customers can verify real-time account balances, transfer funds instantly between accounts, confirm deposits and cleared checks, view and print check images, order new checks, apply for loans and credit cards, and manage online bill payments.
Internet banking offers significant cost savings for banks by reducing expenses related to tellers and branch management, as online transactions are more economical This digital platform enables banks to tap into new, affluent markets without geographical limitations, providing small banks with opportunities to expand their customer base By facilitating efficient, paperless operations, Internet banking enhances overall efficiency for financial institutions Additionally, it improves customer service and satisfaction by offering a comprehensive range of services that may not be available at local branches, fostering better customer relations As a result, many experts believe that the rise of Internet banking could lead to the decline of traditional brick-and-mortar branches, which require substantial resources to operate.
Challenges in providing Internet services
Despite the advantages of virtual banking, current technology imposes limitations on its functionality Customers often find themselves needing to mail deposits or visit specific ATMs for cash access Additionally, many express frustration over the lack of direct communication with live service representatives to resolve issues To offset the absence of local branch offices, online banks frequently offer higher interest rates on electronic accounts to attract and retain customers.
The Net and customer privacy and security
The primary challenge for Internet services is ensuring customer safety and security amidst rising fraud and identity theft, where sensitive information is stolen and misused This vulnerability not only leads to significant financial losses for individuals and businesses but also facilitates the movement of funds for illegal activities, including terrorism To address these threats, regulated financial firms are urged to evaluate the risks associated with account fraud and implement more robust security measures Moving from single-factor authentication, such as passwords and PINs, to multi-factor authentication—incorporating tokens, biometric tests, and other verification methods—will enhance account security Ultimately, protecting customer privacy and securing accounts will be crucial for the future growth of Internet-based financial services.
(Source: Vishesh Srivastav (2014), “E-banking and its overview”, Institute of Research Engineers and Doctors
Peter S Rose and Sylvia C Hudgins (2010), “Bank Management and Financial
Services”, McGraw-Hill Irwin Press, Eighth Edition.)
1.1 What is Internet banking? How is it different from traditional banking services? 1.2 What are financial services currently available on the Internet?
1.3 What have problems been encountered in trying to offer Internet services?
1.4 List some solutions for online banks to make their services more approachable to customers
Internet banking presents several risks to customers, including potential exposure to cyberattacks, identity theft, and phishing scams These threats can compromise personal and financial information, leading to significant financial losses While many financial institutions are aware of these risks, the extent of their commitment to security and privacy varies Some have implemented robust measures such as advanced encryption, multi-factor authentication, and continuous monitoring to safeguard customer data However, the effectiveness of these protections often hinges on the institution's overall security culture and the ongoing education of customers about safe online practices.
1.7 What should you do if suspect yourself become the victim of Internet fraud? 1.8 Make a list of the advantages and disadvantages of Internet banking Discuss it with a partner
2.1 Match the verbs 1-8 with the nouns a-h
4 to enter/input/key in/type in d an electronic payment
5 to fall into e an icon
8 to transfer h the wrong hands
In the realm of financial transactions, various terms play a crucial role Retailers utilize POS devices to facilitate payments, while service providers offer smart cards for convenience and security Customers can withdraw or deposit money at banks, ensuring flexibility in managing their finances Additionally, cost-savings can be achieved through efficient payment methods, allowing for easy transfer of money.
Retailer purse convenience make a payment
2.3 Use the words and phrases given in Excersise 2.2 to complete the sentences
1 Electronic money provides more than cash because the lock function makes it difficult to steal
2 The _ is used by the retailer to receive payment from customers
3 A company that offers a service is called a
4 When you put money in your bank account, we say that you have made a (n) _
5 Recently, commercial banks and retailers have offered more _ with Internet banking services
2.4 Match the words 1-6 to the words/phrases a-f to make word partnerships
3 an Internet only c interest rates
4 offers higher than average d level of security
2.5 Put the words/phrases in order to make sentences
1 Banks / an essential element /which / transforms / idle capital / in the form of deposits / into / working capital/ in a free enterprise system / in the form of loans / for a fee/ are
2 Consumers / from / for financial products and services / offered online and their availability 24/7/ have benefitted/ lowering of transactional costs
3 Use of the internet / banks / to deliver/ a lower cost / standard and expanded banking services / at / than / through bricks-and-mortar branches / allowed / to more customers
4 Technology / has permitted / many financial management transactions / that / previously were / considered disparate/ the convergence of
5 Banks / are / in a free enterprise system / which / idle capital / in the form of deposits/ an essential element / in the form of loans/ for a fee/ transforms/ into working capital
1 How much is your ? = How much money did you borrow? a) Interest b) Origination fee c) Principal
2 The bank hasn't our loan yet a) Processed b) Provided c) Answered
3 interest is basically accumulated interest a) Accredited b) Accrued c) Acclimated
4 of the loan amount = No matter how much the loan amount is a) Apart b) Instead c) Regardless
5 He couldn't pay his loan = He is _ in repaying his loan a) Delinquent b) Devious c) Deprived
Translate the following texts into Vietnamese paying special attention to the standard use of terms and clarification of expressions
ACHs and Checks: the Tide is Turning, but Slowly
Every day, billions of dollars move across the United States as businesses, households, and governments settle their bills, with depository institutions managing the flow of funds into the appropriate accounts While checks remain a common payment method, they now represent less than half of all payment values in the country Other payment methods include cash, coins, money orders, and credit and debit cards Additionally, electronic direct deposits have become a significant route for transferring funds A nationwide network of automated clearinghouses (ACHs) efficiently routes these "electronic dollars" to their rightful owners' accounts.
ACHs enable businesses to electronically deposit employee paychecks and facilitate regular payments for mortgages, utility bills, and other recurring expenses, streamlining the payment process and reducing reliance on checks Despite the convenience of electronic transactions, they have not fully replaced traditional payment methods in the American payment system.
In Europe they nearly have (with some countries reporting that at least two-thirds of their payments move electronically)
(Source: Peter S Rose and Sylvia C Hudgins (2010), Bank Management and Financial
Services, McGraw-Hill Irwin Press, Eighth Edition)
Financial Service Facilities of the Future
Despite advancements in technology, experts predict that the overall number of financial service outlets will not significantly decline and may even increase as the demand for these services grows However, the design and functionality of these facilities are expected to evolve, incorporating more automated options and enhanced self-service capabilities Future financial service outlets will likely be located near other retail establishments and will feature portable information access tools, allowing services to accompany customers wherever they go, rather than requiring them to visit the outlets.
The introduction of digital cash enables customers to act as their own financial service branches, using pocket-sized computer terminals or smart cards to make payments and transfer funds Smart cards function as electronic purses that can be refilled with digital cash once the initial balance is spent, facilitating future purchases Despite these advancements in digital transactions, traditional full-service branch offices will continue to play a vital role in addressing the unique service needs of local communities, providing expert financial advice and a comprehensive range of services to help customers plan for their financial futures.
(Source: Peter S Rose and Sylvia C Hudgins (2010), Bank Management and Financial
Services, McGraw-Hill Irwin Press, Eighth Edition)
An ATM, or Automatic Teller Machine, is a self-service banking device that integrates a computer, recordkeeping system, and cash vault, allowing customers to access their financial institution's services using a plastic card.
Authentication - Xác thực: (1) an action of checking that something is true, such as an instruction sent to a bank by email; (2) a method of proving the identity of a person or company
Công nghệ sinh trắc học, hay còn gọi là biometric, sử dụng các đặc điểm sinh học và hành vi độc đáo như vân tay, võng mạc mắt, giọng nói, khuôn mặt và dáng đi để nhận diện cá nhân Những thuộc tính này giúp xác định mỗi người một cách duy nhất trong cơ sở dữ liệu.
CHAPS (Clearing House Automated Payments System) - Hệ thống thanh toán bù trừ tự động:a computerized system for clearing cheques organized by the banks
A depository institution is a financial entity that primarily acquires its funds through public deposits This category encompasses various types of organizations, including commercial banks, savings and loan associations, savings banks, and credit unions.
Digital Cash (E-Cash) - Tiền điện tử: a European Commission describes digital cash
(e-cash) as a digital equivalent of cash, stored on an electrolic devide or remotely at a server
Direct debit is an automated payment system that enables customers to authorize companies to withdraw funds directly from their bank accounts This arrangement allows for flexible adjustments to the charged amount, contingent upon the customer's consent.
Electronic Banking - Ngân hàng điện tử: the use of computers to carry banking transactions, such as withdrawals through cash dispensers or transfer of funds at point of sale
E-business - Kinh doanh điện tử: general term that refers to any type of business activities on the Internet, including Marketing, branding, and research
E-commerce - Thương mại điện tử: a general term that is normally used to refered to the process of buying and selling goods or services over the Internet
Electronic Fund Trasfer - Thanh toán điện tử: a system for transferring money from one account to another electronically (as when using a smart card)
CORPORATE FINANCE
Corporate finance focuses on maximizing shareholder value through effective long-term and short-term financial planning and strategy implementation Financial managers are tasked with managing funding sources, capital structure, and the allocation of financial resources to enhance the firm's asset portfolio This unit serves as an introduction to the essentials of corporate finance, equipping students with a diverse range of real-world terms and concepts, such as liabilities, equity, dividends, and shareholders By familiarizing students with these key English terms, this introduction aims to prepare them for successful careers in finance and banking.
How do corporations raise capital?
Large corporations have achieved significant growth by employing innovative strategies to raise capital for expansion They utilize five primary methods to secure the necessary funds for their development.
Bonds are formal agreements to repay a predetermined sum of money on a specified future date, while bondholders earn fixed interest payments at regular intervals Additionally, bondholders have the option to sell their bonds to other investors before the maturity date.
Corporations gain advantages by issuing bonds, as the interest rates are typically lower than those for other borrowing methods, and the interest payments are tax-deductible However, they are obligated to make these interest payments regardless of profitability If investors are concerned about a company's ability to fulfill its interest commitments, they may either decline to purchase its bonds or seek higher interest rates to offset their perceived risk Consequently, smaller corporations often struggle to raise significant capital through bond issuance.
A company may opt to issue preferred stock as a means of raising capital, granting shareholders a unique advantage during financial difficulties In such scenarios, preferred stockholders receive their dividends after bondholders are paid their guaranteed interest but before any dividends are distributed to common stockholders.
Selling common stock If a company is in good financial health, it can raise capital by issuing common stock Typically, investment banks help companies issue stock,
FUNDAMENTALS OF CORPORATE FINANCE
Corporate finance focuses on maximizing shareholder value through effective long-term and short-term financial planning and strategy implementation Financial managers are tasked with managing funding sources, capital structure, and allocating resources to enhance the firm's asset portfolio This unit serves as an introduction to corporate finance fundamentals, equipping students with essential real-world terminology and concepts such as liabilities, equity, dividends, and shareholders By familiarizing students with key financial terms, this introduction prepares them for successful careers in finance and banking.
How do corporations raise capital?
Large corporations have achieved significant growth by discovering innovative methods to raise capital for expansion They primarily utilize five key strategies to secure the necessary funding.
Bonds are financial instruments that represent a written commitment to repay a designated sum of money on a predetermined future date Throughout the bond's term, bondholders earn fixed interest payments on scheduled dates Additionally, bondholders have the option to sell their bonds to other investors before the maturity date.
Corporations benefit from issuing bonds due to lower interest rates compared to other borrowing methods, and the tax-deductibility of interest payments However, they are obligated to make these payments regardless of profitability If investors question a company's ability to meet interest obligations, they may either avoid purchasing the bonds or demand higher interest rates to offset perceived risks Consequently, smaller corporations often struggle to raise significant capital through bond issuance.
A company may opt to issue new preferred stock to raise capital, granting buyers a special status during financial difficulties In situations where profits are constrained, preferred stockholders receive their dividends after bondholders but before common stockholders, ensuring a prioritized payout structure.
Issuing common stock is a viable method for financially healthy companies to raise capital, often facilitated by investment banks that guarantee the purchase of new shares at a predetermined price if public demand falls short While common shareholders possess the unique privilege of electing the board of directors, they are subordinate to bondholders and preferred stockholders when it comes to profit distribution.
Investors are drawn to stocks primarily through dividends or potential share value appreciation Some companies provide substantial dividends, offering a reliable income stream, while others focus on enhancing profitability to boost share prices As expectations for rising corporate earnings grow, share values typically increase Companies often implement stock splits, such as a two-for-one split, where shareholders receive an additional share for each held, effectively halving the stock price This strategy does not generate new capital but makes shares more accessible for trading, thereby attracting more investors.
Companies can obtain short-term capital to finance inventories by borrowing from financial institutions like banks These loans can be categorized as secured or unsecured; secured loans require the borrower to pledge an asset, such as equipment or property, as collateral In the event of a default, the bank has the legal right to repossess and sell the collateral to recover the owed amounts.
Interest rates for unsecured loans are typically higher than those for secured loans due to the limited recourse options available to unsecured lenders in case of borrower default If a borrower defaults, an unsecured lender must initiate legal action to obtain a money judgment and then attempt to collect from the borrower's unencumbered assets In insolvency situations, secured lenders hold priority over unsecured lenders when assets are distributed by the court Consequently, the elevated interest rates for unsecured loans reflect the increased risk of potential uncollectibility in the event of insolvency.
Companies can finance their operations by retaining earnings, and strategies for this vary widely Utility corporations often distribute the majority of their profits as dividends to stockholders, while others may allocate around 50% for dividends and retain the rest for operational needs Smaller firms frequently choose to reinvest most or all of their net income into research and expansion, aiming to enhance shareholder value through increased stock prices.
1.1 What are bond, preferred stock and common stock?
1.2 When do the preferred stockholders receive dividend?
1.3 How do companies borrowing from financial institutions?
1.5 Which financing sources are liabilities of companies?
1.6 What are the differences between preferred stock and common stock?
1.7 What are the rights of a common stockholder?
1.8 Is there a payout ratio pursued by all companies?
1.9 What is the rationality of retaining earnings rather than paying out as dividend?
1 audited a reduction in value of an asset over time
2 fixed asset b money paid to shareholders
3 depreciation c asset purchased for long-term use, such as land, buildings and equipment
5 shareholder e accounts checked by an independent examiner
6 dividend f an expense that has been incurred but has not yet been paid
7 current liabilities g money which must be paid out within one year
8 share capital h money which must be paid out after one year
9 long-term liabilities i money raised by issuing shares in the company
10 accrued expense j a person who has invested in the company through buying shares
The company, founded in its own right, has outstanding trading performance with cash flow that is significantly positive Its subsidiary went public, generating substantial pounds' worth of revenue However, the firm also faces certain liabilities that are tied up in various investments, which need to be managed effectively to ensure continued success The option for a sale or return strategy could further enhance its financial position.
Parker Publishing was founded in 1872 by Hieronymous Parker as the publisher of the religious periodical The Preacher Today, it specializes in lifestyle magazines and, through its subsidiary Tekpress, publishes several successful periodicals on consumer interest topics like computing and hi-fi The distribution network also handles magazines from other publishers, contributing to its significant profitability.
The company (5) _ in 1987 The shares, originally priced at 50p, are (6) _ at the time of writing for around £3.20
Parker, like many magazine publishers, faces significant financial challenges With their magazines being on consignment, they often have millions of pounds owed from retailers and substantial printer bills amounting to several million more Additionally, they must maintain large sums of money tied up in stock, as their warehouses in London and Manchester typically hold around five million copies of magazines.
1 The fiscal year to March 31st can also be called the year March 31st a finishing b ending c terminating
2 Another term for "main business" is business a central b first c core
3 A company which makes a profit can be described as profitable or a profit-getting b profit-making c profit-having
4 A company which makes a loss can be described as a loss-getting b loss-making c loss-having
5 "Profit before tax" can also be called a pre-tax profit b without-tax profit c non-tax profit
6 Another word for shareholders (especially in American English) is a ticket-holders b stockholders c paper-holder
7 Another word for "operating costs" is a overheads b headings c heads
8 A company which makes neither a profit nor a loss is said to a fall even b drop even c break even
exists.
1 Before deciding to invest in a new computer system, we need to do a (1)
_to see if it's going to be worth it
2 The new machinery cost a lot, but we'll (2) _the investment in just a few months
3 You can read about the company's finances, performance and plans for the future in its (3)
4 We don't actually own our delivery lorries We (4) them
5 We'd like to launch a new airline, but the (5) are very high
6 Airlines are a very (6) _form of business, as aeroplanes are extremely expensive
7 Jewellery retailers need a lot of (7) _, as the cost of their stock is high
8 Petrol filling stations operate on a very narrow (8) _ They only make about 1p a litre
9 All business is subject to the laws of (9) _
10 The new mobile phone banking service is a (10) between ĩberBank and Telkom
11 ĩberBank and Telkom have gone (11) with each other
12 In Italy, Telecom Italia used to have a (12) _on telecommunications
Money TV, the financial news cable TV station, initially faced challenges but eventually turned a profit after three years To support its launch, a consortium formed by JYP Entertainment, YG Media, and SM Communications raised capital from a merchant bank, allowing them to purchase equipment, rent premises, and hire staff However, as competition increased with the launch of The Money Channel by CUBE Media Group, viewing figures for Money TV dropped sharply, leading to a dramatic decline in advertising revenue Consequently, Money TV began incurring heavy losses and ultimately went into liquidation.
Translate the following texts into Vietnamese paying special attention to the standard use of terms and clarification of expressions
A Part of the Balance Sheet