HOMEWORK

B/51. 1. CASH- Bank savings account or money market funds

2. FIXED- INTEREST SECURITIES- Lending to a government (e.g., treasury bonds) or a company's bonds

3. INDEX-LINKED SECURITIES-Securities linked to inflation, providing a hedge against rising prices

4. EQUITIES- Shares of a company (stock) or a stock market index fund

5. INVESTMENT NOT LINKED TO EQUITY RETURNS -Various options such as mutual funds or bonds not
directly tied to stock performance returns

6. PROPERTY- Real estate investments, such as commercial properties or residential real estate

7. PRECIOUS METALS- Investments in gold, platinum, or other valuable metals

8. (AN INTERESTING AREA OF DEVELOPMENT OVER LAST 20 YEARS)- Investments in innovative areas or
sectors that have developed over the last 20 years

9. ALTERNATIVE INVESTMENTS- Funds that invest in diverse areas beyond traditional asset classes (e.g.,
hedge funds)

10. FUNDS- Various funds, including those investing in specific sectors or strategies (e.g., technology
funds, growth funds)

A. 1. someone who does a lot of complicated business transactions

 Idiomatic expression: "whizz-kid wheeler dealer"

2. a young person who is very skilled or successful at something.

 Idiomatic expression: "whizz-kid"

B/52
Name: Kieran Prior
Age: 29
Job: Financial Analyst and Trader at Goldman Sachs
Duties: Managing a $50m group of European equities and derivatives, making investment
decisions, navigating the challenging trading environment
Company: Goldman Sachs
Work location: London offices on Fleet Street IQ: 238 (top 1% of the world's population)
Personality Strengths: Determination, intelligence, perseverance
Current area of specialization: European equities and derivatives

C. Kieran's story is inspiring. Overcoming physical limitations to excel in a demanding and competitive
field like finance demonstrates remarkable determination and intelligence. His achievements at Goldman
Sachs are a testament to his capabilities and the value of inclusivity in the workplace.
D. 1. a financial market in which prices are falling

 bear market

2. people who deal in shares and bonds

 traders

3. someone who carefully examines the financial state of a company

 financial analyst

4. sudden and quick change

 volatility

5. the area of a financial market where a particular company does business

 business sector

6. the capital that a company has from shares rather than from loans

 equity

7. the careful examination of the performance of companies and stocks

 research analysis

8. the part of the economy made up by companies

 business sector

9. the profit that a company makes in a particular period of time

 earnings

10. things such as options or futures based on underlying assets such as shares, bonds, and
currencies

 derivatives

UNIT 3

1.1. STOP AND THINK

1 Central: fix the exchange rate of a national currency.

2 Microcredit: give loans to people who have very limited resources.

3 Commercial: issue chequebooks and credit cards.

4 Investment: advise companies who want to go public.

Frank: Advisory/Research

Matt: Venture capital

Claudia: Business risk

As for the department that each employee works in:

Frank specializes in advising and managing transactions for corporate customers, involving activities like
arranging for a company to go public, acquiring another company, and working on re-organization plans.
This aligns with the Advisory/Research and Portfolio management departments.

Claudia mentions dealing with customers who are thinking of expanding their businesses or setting up in
new markets. Her role involves estimating the chances of success, providing information on market
trends, competition, and strategic planning. This corresponds to the Business risk, Market information,
and Strategy and management departments.

Matt specializes in emerging businesses, identifying companies with development potential, arranging
investments, and assisting in various aspects of their growth, including marketing solutions and
preparation for a public offering. This is associated with the Venture capital, Start-up companies, and
IPOs departments.

1.3. READING

A. Read the text. What is the main difference between Mr de Lesseps’ investment bank and the one
described in Listening 1?

The text doesn't provide information about another investment bank from Listening 1, so it's not
possible to determine the main difference.

B. Read the text again. Are the following statements true or false?

1. Microcredit institutions generally make loans up to a maximum of $1,000.

 True. The text mentions that microfinance institutions typically make loans in amounts
of $1,000 or less.

2. Microcredit loans are less likely to be repaid than other high-risk loans.

 False. The text mentions that leading microcredit institutions claim that only five per
cent of the loans they make are never repaid.

3. Over $3 billion is currently on loan under microfinancing schemes.

4. Microcredit loan interest rates are based on risk assessments.

 True. The text mentions that local microcredit institutions charge rates to their
borrowers based on assessments of risk factors.

5. 20% of the potential for microfinancing is currently being exploited.

 False. Mr de Lesseps believes that 80 per cent of the potential for microfinancing
worldwide remains untapped.

1.4. VOCABULARY

A.

1. Make a return on (from)

2. Make a profit on (from)

3. Make a positive contribution to

B.

1. make allowances for

2. make a habit of

3. make a deal with

4. make an impression on

5. make a mistake with

B.
1. Borrow money
2. Lend money
3. Secure their loans
4. A positive contribution to
5. Repay
6. Make a profit
7. Deposit
8. Negotiate for

1. Cazenove provides corporate finance advice, manages funds on behalf of its clients worldwide,
acts as a financial adviser in merger and acquisitions transactions, and offers an extensive
shareholder analysis service.
 2. Major investment banks wanted to buy Cazenove because it serves as the banker for 43 of the
UK’s top 100 companies, manages the finances of many members of the British Royal Family, and
provides valuable corporate finance and advisory services.

1.5. LISTENING

A.

1- C

2- B

3- B

4- C

5- B

B.

A. What is Vincent planning to do?

Vincent is setting up a business after recently moving into the area from France. He mentions that he has
an excellent idea, has signed the lease, and will be opening the business in two months. He also indicates
that he'll need a loan for the business.

B. Does the bank have a suitable product for him?

Yes, the bank representative discusses business accounts, business equipment (which allows for re-
borrowing to manage fluctuations in cash flow), and an overdraft facility. They also mention a credit card
and inquire about the need for property insurance. The bank representative provides information about
the fees and the process of completing a form to discuss details with the business team. It seems that
the bank has suitable products and services for Vincent's business needs.

C. A, B, C & D

The other services (E. Overnight payment clearance, F. Revolving credit, G. Property insurance) are not
explicitly mentioned in the conversation.