Financial English Answer Key Financial English
Answer Key
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1.2 Saying Numbers
Section one: 1 nought point oh oh two; 2 oh one two four four, two four nine, oh seven one; 3 room
eight oh four; 4 thirty degrees below zero; 5 two-nil to Juventus
Section two: 1 three point four eight eight and three point four nine one; 2 zero point oh oh oh one;
3 thirteen pounds sixty; 4 fourteen fifty; 5 oh point two two five or oh point two two nine;
6 one ninety five; 7 fifteen point oh oh five not fifteen thousand and five.
Section three: 1 thirty percent of two hundred (and) sixty; 2 a half of one percent; 3 three-quarters
of a percentage point.
Section four: 1 one hundred and seventy five, a hundred seventy five; 2 a thousand and one;
3 the year two thousand; 4 one in a million; 5 two billion not two million.
Section ten: 1 two hundred (and) fifty thousand pound loan; 2 two hundred year old house;
3 fifty thousand dollar loss; 4 fifteen pound salmon.
Section eleven: 1 two hundred (and) thirty-four thousand, five hundred (and) sixty-seven; 2 one
billion, two hundred (and) thirty-four million, five hundred (and) sixty-seven thousand, eight hundred
(and) ninety; 3 one point two three four; 4 zero point oh oh two three four per cent; 5 three point
one four one five nine; 6 nineteen dollars fifty; 7 seven pounds ninety-five; 8 nineteen thousand nine
hundred (and) ninety-nine; 9 one thousand nine hundred (and) ninety-nine years; 10 nineteen
ninety-nine; 11 oh one two two seven, seven six four oh oh oh; 12 oh oh, three three, five six seven,
three two, four nine; 13 Gee four, seven four four, four four oh; 14 nineteen oh five, nineteen eighty-
seven; 15 MI two three four six six two, two hundred and twenty-five; 16 thirty times twenty-five
equals/is seven hundred (and) fifty; 17 thirty divided by twenty-five equals/is one and a fifth or one
point two; 18 x squared plus y cubed equals z (GB: zed; US: zee ).
2.1 Company Law
1 sole trader; 2 partnership; 3 losses; 4 liability; 5 bankruptcy; 6 corporations; 7 creditors; 8 shares;
9 prospectus; 10 registered; 11 capital; 12 premises; 13 issue; 14 financial; 15 files.
2.2 Bookkeeping
Exercise 1: 1 journals; 2 posted; 3 ledger; 4 transferred; 5 double-entry; 6 corporations; 7 credits; 8 trial
balance; 9 transactions; 10 invoice; 11 receipt; 12 vouchers.
Exercise 2: 1 record; 2 made; 3 received; 4 entered; 5 balance or check; 6 retain; 7 check: 8 analyse
(US: analyze).
2.3 Accounting
1f; 2g; 3c; 4b; 5d; 6e; 7a.
2.4 Accounting Principles 1
Exercise 1: 1b; 2e; 3a; 4c; 5f; 6d.
Exercise 2: 1 seperate-entity; 2 continuity; 3 historical cost; 4 time-period; 5 unit-of-measure;
6 revenue or realization.
2.5 Accounting principles 2
Exercise 1: 1c; 2a; 3d; 4b; 5e.
Exercise 2: 1 conservatism; 2 objectivity; 3 matching (and time-period); 4 full-disclosure;
5 consistency.
2.6 Types of Assets
Liquid assets; 2 net current assets; 3 wasting assets; 4 current assets; 5 intangible assets; 6 net assets;
7 fixed assets; 8 current assets; 9 wasting assets; 10 fixed assets; 11 intangible assets; 12 liquid assets.
2.7 Depreciation
Exercise 1: 1 lose; 2 wear out; 3 deducted; 4 converting; 5 exist; 6 involve; 7 writes off; 8 increase;
9 spreads; 10 charges; 11 allow; 12 encourage.
Exercise 2: 1 replaced; 2 gains; 3 estimate; 4 scrap; 5 charged, deducted; 6 reducing; 7 maintenance; 8 tax.
2.8 Cash flow
Exercise 1: 1 net; 2 reserves; 3 working; 4 reputation; 5 suppliers; 6 liquidity; 7 positive;
8 insolvent.
Exercise 2: 1 d; 2 a; 3 e; 4 b; 5 c; I cash received; II working capital; III extended credit; IV liquidity
crisis; V net profit.
2.9 Financial Statements
Exercise 1: The most probable words are balance, bookkeeping, capital, equilibrium, flow, liabilities,
overheads, reserves, turnover.
Exercise 2: 1 True; 2 False; 3 True; 4 True; 5 False ( if you don’t have debtors total, for example,
you probably aren’t doing any business); 6 False; 7 True (this means the market price, of course, rather
than the book price); 8 False; 9 True; 10 False.
Exercise 3: 1a; 2b; 3d; 4c; 5f; 6e.
2.10 Liquid Metaphors
Exercise 1: 1 pool; 2 pouring or flooding; 3 source, run out of; 4 dry up; 5 tickle down 6; awash;
7 ebb and flow; 8 pouring or channelling; 9 drain; 10 pouring or channelling; 11 flowing; 12
swimming.
Exercise 2: 1 sank (to sink without trace); 2 fluid (to be fluid); 3 crest (to ride on the crest of a wave);
4 under ( to go under); 5 plug (to pull the plug); 6 depth (to be out of one’s depth).
2.11 Bankruptcy
Exercise 1: 1 c; 2 c; 3 b; 4 a; 5 a; 6 a.
Exercise 2: 1 bankrupt; 2 bankruptcy; 3 bankrupt; 4 bankruptcy; 5 bankrupt; 6 bankrupt.
2.12 Phrasal Verbs: Bad Debts
Exercise 1: 1 c; 2 b; 3 e; 4 f; 5 I; 6 h; 7 g; 8 d; 9 a. The two regular verbs are “plough” and “wipe”.
Exercise 2: 1 write off; 2 wound up; 3put up; 4 wiped out; 5 go under; 6 ploughed back; 7 built
up; 8 deal with; 9 bringing about.
2.13 Auditing
Exercise 1: 1 accuracy; 2 deviations; 3 standard operating procedures; 4 external; 5 determine;
6 board of directors; 7 ratified; 8 shareholders/stockholders; 9 Annual General Meeting (AGM);
10 deficiencies; 11 a synonym; 12 transnational corporations; 13 checking; 14 directives;
15 implemented; 16 subsidiaries.
Exercise 2: 1 review/check/evaluate/control; 2 give/present; 3 report; 4 appoint; 5 recommend;
6 legal.
2.14 Annual general Meetings
Exercise 1: 1 Who is eligible to attend Annual general Meetings? 2. Are all the shareholders entitled
to vote? 3 What is the purpose of an AGM? 4 What information do the shareholders receive
beforehand? 5 What happens if shareholders cannot attend the meeting? 6 How many shareholders
have been to be represented for an AGM to take decisions?
Exercise 2: 1 shareholders, annual report; 2 approve; 3 elect, auditors; 4 dividend; 5 a proxy.
2.15 Cost Accounting
Exercise 1: 1 d; 2 g; 3 c; 4 a; 5 f; 6 i; 7 e; 8 h; 9 b.
Exercise 2: 1 allocating, variable; 2 overheads, costs or expenses; 3 raw materials.
2.16 Word Partnerships – account
Exercise 1: 1 account holder; 2 accounting methods; 3 account day; 4 accounting equation;
5 accounts payable; 6 accounting principles; 7 accounting period; 8 accounting procedures;
9 accounts receivable; 10 accounting standards; 11 account book; 12 bank account; 13 current
account; 14 deposit account; 15 cost accounting; 16 managerial accounting; 17 numbered account;
18 profit and loss account; 19 saving account; 20 tax accounting.
Exercise 2: 1 account procedures; 2 accounting methods; 3 numbered account; 4 accounting equation; 5 accounting period, account day; 6 profit and loss account; 7 accounts receivable,
accounts payable; 8 managerial accounting.
2.17 Review – Accounting 1
Exercise 1: Bookkeeping: double-entry, journal, ledger, posting, trial balance, voucher.
Accounting principles: consistency, going-concern, matching, prudence, separate-entity, unit –of-
measure.
Depreciation: amortization, annuity system, reducing balance, scrap value, straight line method,
writing off.
Financial statements: accounts payable, below the line , deferred liabilities, income statement, net
profit, reserves.
Exercise 2: 1 below the line; 2 straight line method; 3 deferred liabilities; 4 unit-of-measure;
5 going-concern; 6 accounts payable; 7 income statement; 8 reserves.
2.18 Review – Accounting 2
Exercise 1: credit, fair, owe, fund, and, value, view, audit, defer, data, debit, tax, account, true, loss,
flow, cash, accrue, income, revenue, debt, asset, budget, cost, balance
Exercise 2: 1 true and fair view; 2 debit; 3 accrue; 4 defer; 5 account; 6 balance; 7 audit; 8 budget.
5.1 Stocks and Shares 1
Exercise 1: 1 True; 2 False; 3 True; 4 False; 5 False; 6 True; 7 False; 8 True; 9 True; 10 True.
Exercise 2: 1 floating; 2 underwrite; 3 quoted; 4 settled; 5 nominal, face or par value; 6 market
price.
5.2 Stocks and Shares 2
1 shareholders; 2 bulls; 3 bears; 4 stags; 5 stockbrokers; 6 market-makers; 7 insiders; 8 arbitrageurs.
5.3 Types of shares
1 equities; 2 ordinary shares; 3 participation certificates; 4 preference shares; 5 deferred shares;
6 blue chips; 7 barometer stocks; 8 growth stock; 9 defensive stock; 10 mutual fund.
5.4 Market price Idioms
1 a; 2 d; 3 c; 4 b; 5 c; 6 d; 7 d; 8 c; 9 c or d; 10 c or d; 11 c; 12 c or e; 13 c or e; 14 d; 15 a;
16 d; 17 b; 18 d; 19 a; 20 c; 21 d; 22 d; 23 e; 24 b; 25a; 26 b; 27 a; 28 a; 29 d; 30 a or b.
5.5 Rise and Fall
Exercise 1: Rise = advance, be firm, be strong, jump, leap, rally, rebound, recover, revive, and rocket.
Fall = be weak, dip drift, drop, ease, plummet, plunge, sink, slip, slump, tumble.
To rise after falling: rally, rebound, recover, revive.
Exercise 2: 1 arisen; 2 raised; 3 risen, rise; 4 rose; 5 raised; 6 raise; 7 arose or arises; 8 arise.
5.6 Bonds
Exercise 1: 1 h; 2 j; 3 d; 4 a; 5 b; 6 e; 7 i; 8 k; 9 g; 10 f; 11 c.
Exercise 2: 1 issue; 2 secondary; 3 coupon; 4 fixed; 5 yield; 6 above par; 7 maturity; 8 investment grade.
5.7 Financial Instruments
1 commercial paper; 2 zero coupon bonds; 3 detachable warrants; 4 securitization; 5 junk bonds;
6 interest – rate swap; 7 futures contract; 8 certificates of deposit; 9 of-balance-sheet transactions;
10 forward contract; 11 participation certificates; 12 currency swap.
5.8 Futures and Options
Exercise 1: 1 True; 2 False; 3 False; 4 True; 5 False; 6 True; 7 True; 8 False; 9 True; 10 False.
Exercise 2: call option, financial market, financial instrument, forward contract, forward market,
futures market, market price, primary market, raw materials, spot market, spot price, strike price, etc
Exercise 3: call option – put option; discount – premium; drought – flood; exercise price – market
price; futures market – spot market; hedging – speculation; in-the-money – out-of-the-money;
obligation – right.
5.9 Bonds and Shares
Bonds: above par, coupon, debt, floating rate, interest, investment grade, junk, maturity, redeem,
zero coupon. Shares: accounting period, blue chip, broker, bull, crash, dividend, Dow- Jones, equity,
hedge, issue, sell; 4 dividend, return, interest, yield.
5.10 Review – Securities
1 bull, bear, stag; 2 gilt, option, future, stock, share, bond; 3 trade, deal, write, put, invest, call, buy,
5.11 Review – Financial Instruments
1 preference share; 2 unlisted security; 3 bonus issue; 4 warrant; 5 junk bond; 6 zero coupon bond;
7 option; 8 swap; 9 gilt; 10 treasury bill; 11 ordinary share; 12 bearer share; 13 growth stock;
14 mortgage; 15 blue chip; 16 common stock; 17 deferred share; 18 debenture; 19 future; 20 rights
issue.
5.12 Financial Ratios
1 dividend cover; 2 current ratio; 3 earning per share; 4 quick ratio or acid-test ratio; 5 debt/ equity
ratio; 6 PER; 7 market book ratio; 8 interest cover; 9 return on equity; 10 profit margin or return on
sales; 11 return on total assets; 12 productivity.
5.13 Takeovers
1 reinforcing; 2 reducing; 3 Rationalizing; 4 optimizing; 5 diversifying; 6 searching; 7 grow; 8 launch;
9 buy; 10 increase; 11 persuade; 12 sell; 13 friendly; 14 hostile; 15 board; 16 poison pill; 17 white
knight.
5.14 Phrasal Verbs – Takeovers
Exercise 1 : 1 h; 2 m; 3 g; 4 b; 5 k; 6 j; 7 e; 8 f; 9 n; 10 l; 11 d; 12 I; 13 o; 14c; 15 a.
Exercise 2 : 1 take over; 2 looking forward to; 3 cash in on; 4 fight off; 5 made up; 6 adhered to;
7 got away with; 8 rely on; 9 look after; 10 built up; 11 acted on; 12 take up; 13 fell through;
14 drawing up; 15 branch out.
5.15 Word Partnerships – Capital
Exercise 1: 1 capital asset; 2 capital expenditure; 3 capital formation; 4 capital gains; 5 capital good;
6 human capital; 7 capital-intensive; 8 capital investment; 9 issued capital; 10 capital market;
………………………………………………………………………………........
11 nominal capital; 12 capital ratio; 13 share capital; 14 capital sum; 15 capital transfer; 16 capital
turnover; 17 uncalled capital; 18 unissued capital; 19 venture capital; 20 working capital.
Exercise 2: 1 capital goods; 2 capital intensive; 3 uncalled capital; 4 capital transfers; 5 capital
gains; 6 human capital; 7 unissued capital; 8 venture capital; 9 working capital; 10 capital asset.
5.16 Leveraged Buyouts
Exercise 1: 1 b; 2 g; 3 d; 4 h; 5 f; 6 a; 7 e; 8 c.
Exercise 2: 1 borrowed; 2 financed; 3 stock market value; 4 asset-stripping; 5 conglomerates
5.17 Insider Dealing Puzzle
The British banker flies a helicopter; the Swiss banker finances international trade.
5.18 Business People
1 entrepreneur; 2 broker; 3 arbitrageur; 4 auditor; 5 cambist; 6 accountant; 7 economist; 8 market-
maker; 9 sole trader; 10 liquidator; 11 actuary; 12 raider.
6.1 Basic Economic Terms 1
1 factor of production; 2 externalities; 3 microeconomics; 4 equilibrium; 5 econometrics; 6
macroeconomics; 7 aggregate demand; 8 gross national product (GNP); 9 endogenous; 10
exogenous.
6.2 Basic Economic Terms 2
1 economic; 2 fiscal; 3 economical; 4 inflation; 5 scarcity; 6 capital; 7 cost of living; 8 standard of
living; 9 balance of payments; 10 protectionism; 11 fluctuate; 12 economize.
6.3 Describing Graphs
Graph 1: Answers marked with an asterisk (*) are only one of several possibilities: 1* significant
improvement; 2 a peak; 3* substantial decline; 4 downward; 5* fall sharply; 6* improved
dramatically; 7* falling of.
Graph 2: Answers marked with an asterisk (*) are only of several possibilities: 1* fell
dramatically; 2 by; 3* slipped; 4* levelled of; 5* went down; 6* rapid: 7 from; 8 to; 9 of.
6.4 The business Cycle
Exercise 1: 1 depression; 2 expanded; 3 upturns; 4 downturns; 5 boom; 6 peak; 7 recession;
8 contracted; 9 recovery.
Exercise 2: Possible answers include: 1 fell dramatically . . . as a result of; 2 declined . . . because;
3 rapid growth. . . owing to; 4 fell. . . as a consequence of.
6.5 The Three Sectors of the Economy
Exercise 1: 1 c; 2 h; 3 e; 4 g; 5 d; 6 a; 7 b; 8 f;
Exercise 2: 1 extracted, consumed, transformed. 2. Various answers are possible, including distributed,
transported, insured, warehoused and advertised.
6.6 Phrasal Verbs – Recession
Exercise 1: 1 j; 2 h; 3 b; 4 q; 5 n; 6 f; 7 l; 8 c; 9 d; 10 o; 11 k; 12 p; 13 g; 14 r; 15 i; 16 m;
17 e; 18 a.
Exercise 2: 1 level off; 2 fell off; 3 close sown; 4 lay off; 5 looking for; 6 looked through; 7 take
on; 8 cut back on; 9 set up; 10 pull out of; 11 scale down; 12 carried out; 13 put off; 14 bringing
out; 15 carry on; 16 mark up; 17 count on; 18 bottomed out.
6.7 Political Economy
1 mixed economy; 2 austerity; 3 public sector; 4 market failures; 5 laissez-faire; 6 deregulation;
7 demand management; 8 intervention; 9 infrastructure; 10 crowd out.
6.8 Competition
1 c; 2 c; 3 b; 4 c; 5 a; 6 a; 7 a; 8 c; 9 b; 10 b.
6.9 Government Spending
1 g, l; 2 f, k; 3 d, t; 4 e, q; 5 a, n; 6 i, r; 7 b, o; 8 c, p; 9 j, s; 10 h, m.
6.10 Inflation
1 excess; 2 supply; 3 hyperinflation; 4 employment; 5 unemployment; 6 producers; 7 deflation;
8 spending; 9 restrictions; 10 consumer; 11 weighted; 12 interest; 13 debts; 14 assets.
6.11 Unemployment
1 seasonal; 2 voluntary; 3 frictional 4 classical; 5 cyclical; 6 structural.
1 structural; 2 seasonal; 3 classical; 4 voluntary; 5 cyclical; 6 frictional
6.12 Taxation
1 b; 2 a; 3 b; 4 b; 5 b; 6 a; 7 b; 8 b; 9 c; 10 c; 11 a; 12 b.
6.13 Words Partnerships – Tax
Exercise 1: 1 tax accounting; 2 tax allowance; 3 tax authority; 4 tax avoidance; 5 tax consultant;
6 corporation tax; 7 tax deductible; 8 direct tax/taxation; 9 tax evasion, 10 tax free; 11 tax haven;
12 income tax; 13 indirect tax/taxation; 14 tax inspector; 15 tax loophole; 16 tax loss; 17 taxpayer;
18 progressive tax/taxation; 19 tax rates; 20 tax rebate; 21 regressive tax/taxation; 22 tax return;
23 sales tax; 24 tax shelter; 25 withholding tax; 26 tax year.
6.14 Economic Theories
Exercise 1: 1 Keynes; 2 Friedman; 3 Lucas; 4 Smith.
Exercise 2: 1 f; 2 d; 3 g; 4 a; 5 i; 6 h; 7 j; 8 b; 9 e; 10 c.
Exercise 3: 1 classical; 2 flexible; 3 market; 4 consume; 5 counter; 6 taxation; 7 stabilize; 8 inflationary;
9 anticipate; 10 aggregate.
Exercise 4: 1 e; 2 d; 3 b; 4 i; 5 a; 6 h; 7 g; 8 j; 9 c; 10 f.
Exercise 5: 1 decelerating; 2 unintended; disprove; 4 undesirable; 5 unnatural; 6 destabilize;
7 ineffective; 8 imperfect; 9 unstable; 10 inefficiency; 11 unpredictable; 12 involuntary
6.15 Income
1 salary; 2 purchasing; 3 differentials; 4 earn; 5 income; 6 standard; 7 cost; 8 distribution; 9 rent;
10 profits; 11 Progressive; 12 inequality.
6.16 Pay
1 pay-roll; 2 remuneration; 3 bonus; 4 incentive; 5 golden handshake; 6 salary; 7 pension; 8 pay
scales; 9 minimum wage; 10 pay differentials; 11 wages; 12 overtime; 13 time and a half; 14 double
time.
6.17 Review – Opposites
1 debited; 2 withdraw; 3 nationalized; 4 loss; 5 peak; 6 exogenous; 7 fixed; 8 appreciated;
9 wholesale; 10 liability.
6.18 Review – Economics 1
Business cycles: boom, depression, downturn, peak, recession, slowdown, slump, trough.
Competitive theory: barriers to entry, cartel, economies of sale, imperfect competition, monopsony,
natural monopoly, oligopoly, spillovers.
Inflation: cost-push, demand-pull, excessive demand, index-linked, money supply, price level, real
GNP, wage/price spiral.
International trade: autarky, balance of payments, barter, comparative, advantage, exports,
protectionism, quotas, tariffs.
6.19 Review – economics 2
stagflation, recession, crowd out, GNP, employ, fiscal, trough, tax, market, economist, scarce,
Keynesian, stimulate, peak, shock, economic, demand, downtown, money, index, marginal, supply,
tight, boom, cycle, growth
6.20 Growth Metaphors
Exercise 1: 1 green; 2 blossoming (or flourishing); 3 fertile; 4 flourishing; 5 fruit; 6 sprouted;
7 grew; 8 sowing; 9 reap; 10 weed out; 11 branches; 12 GB: ploughing, US: Plowing; 13 roots;
14 spreading; 15 branching out.
Exercise 2: 1 +ve; 2 –ve; 3 –ve; 4 +ve; 5- ve; 6 =ve; 7 –ve; 8 +ve ; 9 –ve; 10+ ve; 11 –ve; 12 +ve.
6.21 Word Chains
1. net profit – profit opportunity – opportunity cost – cost accounting
2. marginal cost- cost price – price maintenance – maintenance department
3. risk capital – capital market – market price – price index
4. limited corporation – corporation tax – tax loss – loss leader
5. retail sales – sales tax – tax accounting – accounting procedures
6. bull market – market share – share index – index linked
7. unearned income – income tax – tax free – free enterprise
8. merchant bank – bank account – account book – book value
