Tiếng anh chuyên ngành 1 unit 5 to unit 14 english for finance

`ENGLISH FOR FINANCEUNIT 5: DEMAND AND SUPPLY 4 MAIN IDEAS Idea 1: Difference between demand and quantity demanded; supply and quantity supplied?. ● Supply is the quantity of goods and s

`ENGLISH FOR FINANCE

UNIT 5: DEMAND AND SUPPLY

4 MAIN IDEAS

Idea 1: Difference between demand and quantity demanded; supply and quantity supplied?

● Demand is the quantity of goods and services that buyers are willing and afford to buy at various prices.

Quantity demand is the quantity of goods and services that

buyers are willing and afford to buy at certain price.

● Supply is the quantity of goods and services that sellers are

willing and afford to sell at various prices.

Quantity supply is the quantity of goods and services that sellers are willing and afford to sell at certain price.

Idea 2: Relation between prices and quantity demanded/quantity supplied?

● If the prices increase, the quantity demanded will decrease.

The prices couldn’t affect demand but affect the quantity demanded.

● If the price increase, the quantity supplied will increase The prices could affect supply but affect the quantity

supplied.

Idea 3: The shift factors of demand curve and supply curve?

Example.

● The main factors of demand are: society’s income, prices of

other goods, expectation and tastes

Example: If the income increases, the demand will increase, demand curve will shift to the right.

● The main factors of supply are: the prices of input, technology,

taxes, supplies’s expectation

Example: If the prices of input increases, the supply will

decrease, supply curve will shift to the left.

Idea 4: Demand curve and Supply curves? Equilibrium?

● Demand curve is the downward curve in the chart which

describe the inverse relationship between the price and

quantity demanded.

● Supply curve is the upward curve in the chart which describe the direct relationship between the price and quantity

supplied.

● Equilibrium: When demand curve and supply curve intersect,

we have equilibrium.

⇨ Equilibrium is a situation of the market in which the quantity demanded is equal to quantity supplied.

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-UNIT 6: PUBLIC FINANCE

Some question

1 Who does the government owe money to?

There are domestic investors and foreign investors

● The domestic investors include: the general public, the general account

● The foreign investors include: foreign individual, the governments of foreign countries

2 What is public finance use for?

It is uses to:

+ to ensure the government existence and operation

+ to fufill macro objectives and encourage micro growth + to redistribute incomes and ensure social equality

3 What are trust funds used for/ spent on?

Specific programs such as social security and medicare

4 Examples for social security?

Social security programs can be paying pensions to retired people, subsidizing social families

5 What are federal funds used for/ spent on?

For building infrastructure, paying salaries for state employees and running the government body

[6.] What can the government do when it needs to spend more money than it can get from taxation?

The government can issue bonds/ print more money

6.[7.] How can the federal government sell its bonds or other securities?

It can sell bonds directly through the website, or indirectly via banks or brokers

7.[8.] What is individual income tax?

Individual income tax is the tax imposed on individual incomes

8.[9.] What is corporate income tax?

Corporate income tax is the tax imposed on business incomes

9.[10.] What is customs duty?

Customs duty is the tax imposed on imports

10.[11.] What is excise tax?

Excise tax is the tax imposed on some specific goods and services such as alcohol, beer, hotels, restaurants, and so on

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-UNIT 7: FISCAL POLICY

1 When is deficit spending helpful? And why?

- When the economic growth is low; or the unemployment is high

- Example: the government borrows money to build a new highway, the construction creates more jobs, so the unemployment will

decrease

2 What are objectives of deficit spending?

To promote economic growth and to reduce unemployment

3 When is deficit spending harmful? And why?

- When unemployment is low, deficit spending leads to more

competition for limited/ scarce workers and resources, this inflates wages and prices

4 Factors should be considered when making decisions on fiscal policy?

- Inside factors: economic growth, (un)employment, inflation, political considerations

-Outside factors:

+ fiscal policies of other countries

+ requirements of international financial institutions (such as International Monetary Fund or World Bank)

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-UNIT 8: TAXATION

1 Different taxes?

- Payroll tax refers to national (social) insurance and compulsory

health insurance which are computed based on payrolls.

- Personal income tax is the tax imposed on individual incomes

- Corporate income tax is the tax imposed on business incomes.

- Customs duty is the tax imposed on imports.

- Excise tax is the tax imposed on specific goods or services such

as beer, wine, restaurants, hotels and so on.

- Sales tax is the tax imposed on sales of goods and services.

- VAT (value-added-tax) is the tax collected at each stage of

production, excluding the already-taxed costs from previous

stage.

2 What are tax havens?

Tax havens are countries where taxes are low

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-UNIT 10: INSURANCE

1 In what way, losses can be predicted before they occur?

Losses can be predicted in advance through the operation of

insurance system

2 What does the insured receive when a loss occur?

The insured is compensated by the insurer when a loss occur

3 Why are people willing to pay insurance premium?

Because, if the loss occurs, they will be compensated by insurer Even if no loss occurs people have still certain benefit such as:

eliminated unpleasant mental state and the anxiety

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-UNIT 11: MONEY AND ITS FUNCTION

1 What determine the value of commodity money?

The value of material contained in it

2 Which national currency is the most strongest currency?

This is USD Because it is used widely in international transaction and it is one of the major reserve currencies in the world

3 Which function of money is the most important?

This is medium of exchange Because it helps all transactions would

be easy and save time If without this function other functions would not be done

4 Why is … buying more and more popular?

Because:

● Helps buyer meet their needs when they lack money

● Supplier can promote their trade

● Helps reduce inflation rate when there is less money in

circulation

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-UNIT 12: MONEYTARY POLICY

2 MAIN IDEAS

Idea 1: The quantity tools of moneytary policy

- Reserve requirement:

● Definition: Reserve requirement is the percentage the fed sets as the minimum amount of reserves bank must have

● Effect: By changing the reserve requirements, the fed can

increase and decrease the money supply If the fed increase the reserve requirement it contracts money supply, banks have less money to lend out

- Discount rate:

● Definition: The discount rate is the rate of interest the fed charges for those loans

● Effect:

✰ An increase in the discount rate makes it more expensive for bank to borrow from the Fed

✰ An decrease in the discount rate makes it less expensive for bank to borrow from the Fed

- Open market operation

● Definition: It is the fed’s buying and selling government security

● Effect the money supply: To expand the money supply the fed buys bonds

To contract the money supply the fed sells bonds

Idea 2: 2 moneytary policies

What

?

Means the central bank decrease reserve

requirement, discount rate

or buying more bonds It can increase bank lending capacity

Means the central bank increase reserve

requirement, discount rate,

or selling more bonds It can reduce investment, consumption or even government expenditure When

?

When the economy slows down

When the economy is overheating

What Use to increase the money Use to decrease the money

for? supply and to promote

economic growth

supply and to cool an overheating economy

Effect

?

It causes the demand curve shift to the right

It causes the demand curve shift to the left

=> They are interdependent and complement one another because there are many overlapping issues between two policies

Some question:

1 How does the fed control the percentage of deposits bank keep in reserve?

The fed controls the percentage of deposits bank keep in reserve by controlling the reserve requirement of all us banks

2 What is primary tools of monetary policy?

This is open market operation Because changes in discount rate and reserve requirement are not used in day do day fed operation They are used mainly for major changes So the fed uses open market operation

3 How can the banks encourage people to borrow and spend more money?

By offering lower interest rate or easier approvals

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-UNIT 14: FOREIGN EXCHANGE MARKET

1 Why is London the world’s largest foreign exchange center?

London is the world’s largest foreign exchange center because of 2 reasons

● Firstly, the large volume of international financial business is generated in London such as insurance, Eurobonds, banking and

so on

● Secondly, London benefits from its geographical location which enables it to trade with many cities in the whole world, not only

in Europe, but also in Asia, America and so on