Virginia Evans Ken Gilmore,MBA ~ Express Publishing Pub li shed by Express Publishing Lib erty House, Greenham Business Park, Newbury, Berkshire RG19 6HW Tel.: (0044) 1635 817 363 Fax: (0044) 1635 817 463 e-mail: inquiries@expresspublishing.co.uk http://www.expresspubl ishing.co.uk © Express Publishing, 2011 Design © Express Publishing, 2011 First published 2011 Made in EU All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form, or by any means, electronic, photocopying, or otherwise, without the prior written permission of the publishers This book is not meant to be changed in any way ISBN 978-1-78098-356-1 Table of Contents Answer Key Audioscripts 12 ~ Answer Key 14 Audioscripts 23 Answer Key 27 Audioscripts 37 Book Answer Key Unit Unit Suggested Answers Suggested Answers In my country most people use credit and debit cards to make purchases However, most people also carry cash and loose change in order to buy smaller items Checks are sometimes used to pay bills Bills are more common in my country than coins I prefer them because they are not heavy and they can be used to pay for almost anything Coins can only be used to purchase small items because it is difficult to carry large amounts of them around, and most shops will not allow you to buy expensive items with them F T F c E D change Exchange B A A bank teller needs a variety of supplies, including pens, stamps and ink, a cash drawer and holders for bills and coins When my bank runs low on supplies it orders new ones from our supplier A 2 c B fingerprint pad inventory counterfeit pen bill strap Things to Mark Paper: ink, stamp, pen Containers for Money: cash drawer, coin wrapper, deposit bag Suggested Answer Ink is contained in a bottle currency cash check T Suggested Answer T supplies To buy one British pound you need just over one and a half dollars low on F run out out of bills what about Suggested Answer B A exchange how much A: Hi, Alan I got your email about the supplies total dollars lt comes to service fee Suggested Answer B: Hello, sir Welcome to First Regional Bank How can I help you? A: Hi I need to exchange these British pounds for American dollars B: All right Let's see how much you have there A: Here you go B: Twenty, forty, sixty The total comes to one hundred and seventy pounds A: How much is that in dollars? B: I'll calculate that now lt comes to two hundred and seventy-fiv e dollars and seventy seven cents A: Great Can I make the exchange? B: Of course But there is a one percent service fee Suggested Answer Currency presented: British pounds Currency requested: American ollars Amount presented: 170 pounds Exchange rate: 1.62219 Amount returned: two hundred and seventy-five dollars and seventy seven cents Answer Key inventory Thanks for doing that B: Oh No problem We're pretty low on those deposit bags A: I saw that If we run out, use the old ones B: Got it We're also out of counterfeit pens A: Well, we can check the bills by hand until Monday B: Okay What about the date stamps and fingerprint pad? A: I picked up one of each at the store Here you go B: Oh, good Thanks Suggested Answer Quantity cases Supplies needed date stamp fingerprint pad deposit bags counterfeit pens Unit Suggested Answers Items of furniture that you find in a bank include chairs and desks for the staff, couches and chairs for customers, and conference tables to allow business meetings to take place Book Answer If I were a bank manager I would furnish my bank with modern furniture as well as more classic items like a mahogany or oak desk T T used when someone wishes to open a new account, change of address forms are used when a customer wishes to notify a bank that they are moving house and so on F A teller pedestal A mat A rope B armchair B filing cabinet B conference table B B D D E c account statement desk chair desks couch posts Suggested Answer c tellers what if we B balance sheet change of address Suggested Answer Every time a customer performs a transaction at a bank they are given a teller receipt F B We could A withdrawal form teller receipt A free set of carpet floor mats are given with large orders Key line We could even Good idea Suggested Answer A: We need to reorganize the lobby B: I know what you mean Customers don't know where the line starts A: Let's see We could move these desks and chairs away from the door B: Yeah Then people could walk straight to the tellers A: Right And what if we shift the post and rope setup back a bit? B: Then there won't be any confusion about the line A: Exactly We could even get some floor mats B: Good idea Red ones to match the chairs Suggested Answer Move the desks and chairs away from the door Shift the post and rope setup back a bit Place the new mats near the door Unit4 Suggested Answers To open a bank account in my country you need a Social Security Number (SSN), an acceptable form of identification with your picture on it (such as a passport or driving license), and some proof of where you live such as a utility bill (e.g water or electricity) Tellers use a variety of documents in transactions Withdrawal forms are used when customers withdraw money, account application forms are T T Hello sir open account application filling that out deposit slip balance Suggested Answer A: Hello, sir How can I help you today? B: Hi I'd like to open a savings account A: OK Here's an account application and a pen B: Okay Thanks A: While you are filling that out, can I see some identification? B: Sure Here you go A: Thank you You'll also have to fill out this deposit slip B: Oh Thanks Is there a minimum starting balance? A: Yes, it's just fifty dollars Suggested Answer Type of Account: Checking: Savings x Name: James Garcia Date: November 15 Address: 355 38th Street Phone: 682 547 2430 Starting balance: $50 Reason for opening account: Saving for a home deposit Unit Suggested Answers Banks use a variety of machines to make them more efficient and secure Currency counters are used when customers make withdrawals or deposits Answer Key Book Answer Key and counterfeit detectors are used to check that bills presented are genuine Various other standard pieces of office equipment are also used, for example computers and printers Banks employ a large number of security measures in my country Security guards and cameras are always present and tellers are protected by bulletproof screens Paper shredders are also used to protect sensitive customer and bank information F F T A c E shredder counterfeit detector security camera D B printer coin machine calculator Suggested Answer Banks might wish to dispose of paperwork such as former customers' bank account and personal details as well as details of old transactions that they no longer need to keep for their records A B What can I currency counter paper money lt has to expensive a lot of time B: Thanks for calling Right Place Supply How can I help you? A: Hi, this is Alice Mindy with B & S Bank B: Hello, Ms Mindy What can I for you today? A: I want to buy a calculator B: All right Do you want an adding machine that has a print out function? A: Yes B: Okay lt will be more expensive than a normal one Is that all right? A: That's fine I'm sure it will be better for our customers Suggested Answer Name of caller: Alice Mindy Bank where he/she works: B & S Bank Product of interest: adding machine Desired product functions: Calculation with printout function Price: $45 Answer Key Suggested Answers A bank is usually divided up into a number of areas Customers enter the bank via the foyer and then go into the lobby where the teller stations are situated Away from these areas there is a staff room as well as the manager's office Some structures that increase security in a bank are safe deposit boxes and vaults, both of which are used to store money and important documents safely 2 computers deposit Turn on main lights I sweep Customer Service Desk I Lobby Breakroom F D B E vault foyer A c breakroom customer service desk Suggested Answer Suggested Answer Unit In a breakroom you will find items such as a coffee maker, a water cooler, and cups, plates etc T F T opening had trouble teller station take a look tech services don't worry Suggested Answer A: How did opening go this morning, Mr Garland? B: Everything went pretty well A couple of lights in the foyer are out A: 'vVhere? B: Right next to the door A: I see We'll have to call maintenance B: Do you want me to call now? A: No, don't worry about it There's enough light coming in the doors for now Suggested Answer Foyer: Sweep, turn on lights Teller stations: Turn on computers Breakroom: Start coffee and restock plates, cups and napkins Manager's offices: Turn on lights Answer Unit Unit Suggested Answers Suggested Answers For the symbol = we says equals and for the symbol ;- we say divided by Large numbers can be expressed in hundreds or thousands For instance, the number 2700 could be said as two thousand seven hundred or twenty seven hundred T F times comes to plus less subtract High interest rates and a good return on investment encourage people to open savings accounts Many savings accounts, particularly those with good rates of interest, require that a minimum balance is kept Sometimes the number of possible withdrawals in a particular time period may also be limited T less hundred add plus multiplied by over divided by equals T T F E D c minimum balance limit savings account If something is said to come to something else, this means that two numbers are equal c c What's up added Let me see B A earn interest rate Suggested Answer Suggested Answer Key lt is not possible to keep a savings account open at Drury Savings Bank without any money in it thirteen hundred There's your problem multiplied by Suggested Answer A c savings account limited pulled out fee How much have a choice Suggested Answer A: Martin, can you help me for a second? A: Is this correct, Ms Simpson? You want to take B: Sure, Anna What's up? A: There's something wrong with this deposit slip I added it all twice, but the total is still wrong B: Let me see There are four checks Three checks for two hundred dollars And one for one thousand, five hundred A: Yeah I multiplied the two hundred dollar checks by four and added fifteen hundred B: There's your problem A: What you mean? B: You multiplied by the wrong number A: Oh, what a simple mistake! Thanks four hundred out of your savings account? B: That's right Why, is there is a problem? A: A small one Your account is limited to one withdrawal a month B: Oh, and I pulled money out last week to pay a bill Well, I really need the money A: Are you sure? There will be a fee B: How much is it? A: it's fifteen dollars B: I don't have a choice I'll just pay the fee Suggested Answer Account holder: Hannah Coulton Account number: 2352346289 Original Deposit Amount: $2300 New Deposit Account: $2100 Explanation of change: Teller error Manager's Approval: y_ I N Suggested Answer Customer Name: Ms Simpson Account number: 2463578498 Type of Transaction: Withdrawal Fee: Y IN If yes, reason for fee: Customer has already made one withdrawal this month Fee amount: $15 Total Transaction Amount: $415 Answer Key Book Answer Key Unit9 Unit 10 Suggested Answers Suggested Answers The advantages of storing money in a bank are that it is kept safe and you can earn interest on it In addition, having a bank account gives you access to a wide range of banking services People can use a number of different ways to pay for purchases Checks and debit cards, as well as cash, are common ways to pay for purchases People are also increasingly paying for things, such as large items or bills, using online banking payment systems T T direct deposit checkbook People use credit cards instead of cash when they don't have the money to pay for an item They also use them because it is safer to pay for things this way rather than to carry large amounts of cash The risks of using credit cards are that people buy more things than they can really afford and end up in debt Also credit cards are sometimes copied and used fraudulently approved available Payment F returned check debited average balance checking account debit cards maintenance fee overdraft liquid D E B F c A B B If Mr Perez made a balance transfer during his first year he would have to pay 1% interest on this A customer can take money out of their account using two methods: check or debit card c B can I checking account the right place B Suggested Answer Suggested Answer introductory balance transfers overdraft charges Do you have Take a seat F F T interest rate seems to be started at help out goes up I see now Suggested Answer A: Finances Plus, Jamil speaking How can I help Suggested Answer A: What can I for you today, ma'am? B: I'm thinking about opening a checking account A: Well, you came to the right place Can I interest you in our Premium Checking? B: What does that include? A: For a low monthly fee, you get protection against overdraft charges B: I'm not sure if I need that Do you have anything without a fee? A: Certainly Our Basic Checking is available at no cost Of course, there's no overdraft protection either Take a seat and we'll get started with the paperwork Suggested Answer Name: Rita Pate! Account type: Basic List any additional services you are looking for in a checking account: No additional services required Answer Key you? B: Hi, I just got a card and I'm confused about my interest rate A: What seems to be the problem? B: Well, I thought the interest started at zero This letter says it's twelve percent A: Okay, I can help out Your introductory rate is zeio percent B: Oh, wonderful A: But next October, your rate goes up to twelve percent B: Oh, I see now Thank you for your help Suggested Answer Customer name: Mr Perez Introductory rate: 0% Credit limit: $1500.00 Other fees and restrictions: 1% interest on balance transfers Book Answer Unit 12 Unit 11 Suggested Answers Suggested Answers Bank customers can access their money by using an ATM or going into a branch of their bank to withdraw money The easiest way to access a bank account in my country is usually to use an ATM However, some banks operate drive-up windows which are also very convenient And more and more people are now using telephone banking and online banking to access their accounts T F Online banking has many benefits lt allows you to perform transactions wherever you are (as long as you have Internet access) This means you don't actually have to go to a bank, and probably queue up, to what you need You can also things at any time of day, so you don't have to wait for the bank to open More generally, you can keep a much closer eye on your finances which allows you to manage theRl better The risks of online banking are that someone will discover your password and use it to take money out of your account If someone uses an important piece of information as their password (such as their Social Security Number) they may also fall victim to identity theft T A call center A online banking A ATM fee drive-up PIN brick-and-mortar B ATM B mobile banking B deposit branch funds withdraw A E c D A log in lock out security measures Suggested Answer B you were closed debit card next business day electronic statements SSL Ferdinand's Bank has ATMs in many different countries around the world c c phishing Suggested Answer Key That's nice call center next time Suggested Answer A: Finally! I tried to make this deposit twice this week, but you were closed B: I'm sorry for the inconvenience, miss Maybe I can help Do you have a debit card? A: I B: Well, we offer a 24-hour ATM to make deposits it's right outside The transaction goes through on the next business day A: That's nice But I travel a lot 8: You can call our call center They'll direct you to the closest ATM A: Okay I'll try that next time Suggested Answer The different ways to make deposits are to go to a branch or a drive-up window and put the money in there, or to put it into an envelope and deposit it into an ATM To use an ATM, I need my debit card and my PIN When traveling, I can find an ATM by calling the bank's 24-hour call centre The bank's customers should never give out sensitive information in response to an email F F locked out First I'll need T And the Let's see password unlocked Suggested Answer A: Forestwood Bank, Xavier speaking How may I help you? 8: Hi I'm locked out of my online account I typed my password wrong a few times A: Okay, I can unlock that What is your name and date of birth? B: My name is Elena Papp I was born June 4th, 1990 A: And the last four digits of your account? B: Let's see it's 9463 A: Thank you, Ms Papp Now, what is your password? 8: it's Papp three seven five All one word A: Okay Your account is unlocked Suggested Answer Customer: Ms Papp Date of Birth: June 4th, 1990 Account: 9465 Answer Key Answer Key Unit Suggested Answer Dear Mr Johnston, We are delighted to welcome you to Pinnacle Bank's private banking program Your $1m of investable assets means that you qualify for all the services we offer We offer a wealth management program that includes tax planning and inheritance planning, alongside our hedge funds There is a flat fee of $100 per month Yours sincerely Brian Peters Branch Manager Pinnacle Bank Suggested Answers Private banking is very different from other accounts lt is only available to people who have high net worth and is tailored specifically to their needs This means that money is invested in a variety of financial instruments that are not usually available to normal bank customers Hedge funds are investment vehicles for high net worth individuals that invest in a wide range of financial instruments, and employ a number of strategies, in order to maximize returns to their investors F F F D A E F B Unit Suggested Answers Some alternatives to commercial banking are credit unions, savings and loan associations, building societies and mutual savings banks Often, though not always, these institutions are focused on accepting deposits to help finance their members' purchases of homes Most people in the US purchase homes by borrowing money in the form of a mortgage: either from a commercial bank or from a mutually held institution This is then paid back over a number of years, often fifteen or twenty five years c wealth management flat-fee hedge fund real estate yearly percentage Suggested Answer The bank's estate planners deal with passing on wealth to investors' children X / X Hedge funds make them work can I expect low risk / / tax planning its all part flat-fee Suggested Answer A: Well, you have the investable assets we require for enrollment Are you aware of our wealth management options? B: I read about them on your website But what makes your hedge funds better than others? A: Hedge funds are highly individualized approaches to investing it's the adaptable strategies of our expert investors that make them work B: What kind of returns can I expect? A: That depends on a number of factors But they will be significant, and low risk B: What about tax planning? A: Tax planning, inheritance planning, it's all part of the wealth management program B: it sounds appealing A: How you feel about the flat-fee payment? B: I think it's reasonable A B B Home financing institutions: savings and loan, building society, mutual savings bank, thrifts Investing styles: conservative, risky A mortgage loan A home financing institution B security B mutually held Suggested Answer Having a deposit in an S&L is equivalent to making a long-term investment in a local mortgage market F T T voting rights you offer better higher rates mortgage loans lending Compared to Suggested Answer B: Hi What can you tell me about your deposit accounts? A: Well, our investment philosophy is based on the financial interests and security of our members B: How you determine your members' interests? A: Our members have voting rights to address issues regarding the institution's financial policies Answer Key 27 Book Answer Key B: Interesting I've heard you offer better interest rates than commercial banks A: We To strengthen funds in the mortgage market the government allows us to offer slightly higher rates to our depositors B: So, you use the money of your depositors to make mortgage loans? A: Yes Seventy percent of our lending is for mortgages on homes right here in Highwood B: Wow So the money I invest would help the community A: Essentially yes Your deposits would be like investments in the community B: I see Are the investments safe? A: Compared to other types of investing ours is very secure Suggested Answer Here at Friendly S & L, our aim is to provide excellent services for all of our members This means offering excellent rates on deposits and using those to offer mortgages to people in our local community This means that depositing with us is very safe, as you are making a long-term investment in your local mortgage market All our members are encouraged to use their voting rights to address issues of the institution's financial policies Unit Suggested Answers Islamic banking emphasizes the principle of profit sharing: the risks and rewards associated with investments are shared between the borrower and the lender Interest is not charged on Islamic loans as this is prohibited by Islamic law I think charging interest is unfair The lender doesn't any work and gets a reward for this, while the borrower must work hard to repay a loan and receives no reward OR 28 Answer Key E F loss D B joint venture Usury bear prohibits collateral Suggested Answer Businesses that violate Islamic values, for instance the pork and alcohol industries, may not invest in Islamic countries D D Getting ready for a different ball game Correct me if I'm wrong How so differently than we In what way Instead of profit sharing Suggested Answer B: Hi Bill Getting ready for your Middle East trip? A: Yeah I've been reading up on Islamic banking it's going to be a different ball game over there B: Sounds like it Correct me if I'm wrong, but interest is forbidden, right? A: Yeah But you can still make a profit in banking B: How so? A: Well, for one thing, they deal with mortgages differently than we here B: Oh yeah? In what way? A: Instead of lending money for interest, a bank just buys the property Then it sells it to the buyer for a higher price B: I see I've also heard there's a lot of profit sharing A: Yep That's the typical arrangement, profit sharing, and loss sharing Suggested Answer I don't think that charging interest is unfair Anyone who loans out their money to someone else risks not getting some or all of it back, and so interest is a fair compensation for this risk In addition, by lending money to someone a person is unable to make a profit from some other investment that they might have otherwise undertaken (even just putting the money into a savings account) and so, again, deserves to be compensated for this F c A T F Islamic banking is considerably different to banking in other cultures For starters it is prohibited to charge interest on loans Certain types of businesses, whose activities are in violation of Islamic values, are also prohibited from investing in Islamic countries Instead the focus is on profit sharing and joint ventures are common With mortgages the bank simply buys the property then it sells it to the buyer at a higher price Leasing and cost plus contracts are also acceptable business arrangements Answer Key Unit4 B: That I can agree with Hopefully they'll get it under control in few weeks A: A few weeks? I doubt it I think it will take at least a year Suggested Answers A central bank performs a number of roles lt is responsible for providing a country's money supply and enacting a government's monetary policy, including the setting of interest rates lt also acts as a government's banker and as lender of last resort to the banking system In many cases central banks are also responsible for regulatory oversight of the banking system The Federal Reserve creates money in the US lt does this by buying up assets from banks This increases the amount of money that they are then able to lend to businesses and consumers taken inflation central bank currency B money supply B interest rate B monetary authority A central bank A contractionary A legal tender Fiat money monopoly reserve bank removed extreme Exchange rates price stability inflation Suggested Answer The central bank has been operating a contractionary monetary policy in recent weeks Inflation was starting to get out of control as a result of significant additions to the country's money supply in recent years The central bank has been selling bonds to reduce the amount of money in circulation, as well as banks' ability to lend money So far these efforts appear to have had little effect as it often takes a long time for prices to stabilize Unit Suggested Answers Forgery is a common kind of check fraud Here a person's signature is forged, or a legitimate check is altered to a larger amount or to be paid to a different person In some cases counterfeit checks are produced Check kiting is another form of check fraud Check forgery can be detected by looking out for stains on checks or changes in handwriting or signatures The check number can also be verified: the same number indicates that a check is counterfeit bond Suggested Answer A central bank can reduce the money supply by increasing bond sales T F F interest rates That's true why I think one thing is for sure agree with I doubt it T T F c E D forged float time Suggested Answer A: Exactly They're selling a lot of bonds I think it's a B: A: B: A: B: A: B: A: terrible idea Oh, really? I couldn't disagree with you more I mean, this inflation is out of control They have to something I just think there are better ways to slow inflation Well, what would you suggest? For one, they could adjust the interest rates That's what they've done in the past Sure, changing interest rates has worked in the past But inflation has never been this high before That's true it's the worst we've ever had That's why I think the bonds are a good idea They'll reduce the amount of money out there Well, one thing is for sure They need to lower inflation soon B combat forgery A circular kiting alter Suggested Answer To detect check kiting bank staff should keep all their transaction records up to date and watch for large withdrawals of funds shortly after a deposit A c suspicious activity what's going on moving funds committing fraud during the float time brought this to my attention it's very low held an account Answer Key 29 Book Answer Key Suggested Answer A: Well, I noticed some suspicious activity going on with a customer's account I thought I should tell you B: I see So what's going on? A: The customer is moving funds back and forth between our bank and a couple of others B: So, you think he might be committing fraud? A: Circular kiting is what I was thinking He writes checks for more than he has in his account with us Then during the float time he makes a deposit from another bank B: I'm glad you brought this to my attention Do you know his average balance? A: it's very low B: And you know how long the man has held an account with us? A: Yeah, I reviewed his account history His checking account has been open for about five months D c F E B A overdraft deposit envelope Debit card fraud intentional stolen copying Suggested Answer lt is OK to give your account information to wellknown companies over the phone F T T My password is mother's maiden name That would be some strange activity credit card it's possible that copied or skimmed Suggested Answer Suggested Answer To: All tellers From: Head office Date: February 11 Subject: Check fraud Check fraud is a major problem for our bank Warning signs include stained or discolored checks as well as changes in signatures In the case of check kiting low average balances are a warning sign, as well as large withdrawals shortly after a deposit In the event of this happening you should inform your manager immediately, who will then inform the police Unit Suggested Answers Criminals commit credit card fraud in a variety of ways Sometimes they copy the information on a credit card when it is used in a business and then put this information onto a duplicate card This is known as skimming Alternatively, criminals might just copy the details on the card and use it to buy items over the phone or on the Internet People can avoid credit card fraud by keeping their credit card in sight when they use it and only giving out their card information over the phone when they are sure they are dealing with a well-known company People should also keep track of their transactions to check for suspicious activity and report anything unusual to their bank immediately D 30 Answer Key c B A: Okay My password is Mike348 B: That matches what we have here And the security question asks for your mother's maiden name A: That would be Julia Clark B: Thank you, Mr Hontos Yes, I can see here that there is some strange activity going on with your account A: Yeah I still have my credit card though it's not like it was stolen Still, someone is using it in another State B: Well, it's possible that some of the information on the card was copied or skimmed from a card reader So that information can be used from anywhere A: What can I do? B: Well, we'll cancel the card immediately Then I'll connect you to our fraud prevention division to talk about the charges Suggested Answer Credit card fraud report One of our customers was recently a victim of credit card fraud He noticed the fraud as someone was using a copy of his card in another state I took his details over the phone and cancelled the card I then connected the victim to our fraud prevention division Unit Suggested Answers A bank might alter their records as a result of accounting errors or fraud They may also be altered to hide the fact that a fraud is taking place Accounting fraud may be carried out by collecting deposits when an organization is not insured to Answer Key so, or by committing demand draft fraud, whereby a person gives permission for a small sum of money to be taken from their account and a much larger amount is withdrawn F F T c E A cooking the books arrested cover up D B ring fraudulent without permission A considerable number of people are thought to have been affected and may lose all their money This is a cautionary tale for us all Be sure who you are giving your money to, and keep a close eye on all your paperwork when dealing with banks UnitS Suggested Answers Suggested Answer This information is then used to stea! money from The thiee manageis used the details of false loans to cover up their fraudulent gains c people's accounts Pharming also seeks to capture information such as passwords, by redirecting users to fake websites lt is not possible to ensure that a website is 100% safe However, it is good to use those sites that use a form of protection such as SSL, and whose address starts with https, and have a valid security certificate You should also look for websites that feature a padlock symbol on them A how did you become involved Criminals deceive people online with two main types of seams: phishing ~nd pharming Phishing is when criminals send fake emails pretending to be from a bank asking for personal information soliciting customers opened an account anything suspicious seem important the paperwork looked strange c D c D A B F c Suggested Answer A: Do you mind if I ask you a few questions about your knowledge of the Price Associated fraud? B: Of course not A: Thank you, Ma'am First, how did you become involved with Price Associated Bank? B: Well, about a year ago I moved to Georgetown Price Associated was soliciting customers to open new accounts A: And you opened an account with them? B: That's right A: Now, when you opened the account, did you notice anything suspicious? B: Little things But at the time it didn't seem important A: What did you notice? B: Well, the paperwork looked strange Like the printing was smeared and numbers had been changed A: Well, Ms, Johanson, you couldn't have known it at the time But this forged paperwork was used to set up uninsured accounts Suggested Answer A fraudulent banking scheme was discovered last week, according to the police Several managers at Price Associated Bank were acting as a ring, collecting uninsured deposits from unsuspecting customers They were using forged paperwork to set up the accounts G SSL connection E spyware hacker phishing link Internet fraud Suggested Answer You need to be particularly careful when using unfamiliar websites to avoid Internet fraud F T T can I bank statement personal information that was all online password I'm sorry to tell you Suggested Answer A: What can I for you, Mr Smythe? B: There's a mistake on my bank statement lt says I made an electronic check purchase online on September 9th I've never used an electronic check A: Did you recently give out any personal information over the Internet? B: I don't think so Well, I did send some details to your bank, but that was all A: What kind of details? Answer Key 31 Book Answer Key B: The bank sent me an email asking for my account number and online password lt said the information was necessary to keep my account open A: Well, I'm sorry to tell you this, Mr Smythe, but that wasn't really an email from our bank B: I don't understand Who sent it? A: lt must have been a phishing seam to access your bank account Once you sent them your account information, they were able to make that purchase · Suggested Answer A customer, Mr Smythe, has been the victim of Internet fraud An electronic check was used to purchase an item online even though Mr Smythe says he has never used one lt appears to have been a phishing seam, as the victim was sent an email from someone pretending to be our bank, asking for account information Unit9 Suggested Answers People try to steal money from banks by robbing them Usually this involves armed criminals demanding money from bank tellers Once they get money they attempt to escape, usually in a getaway car driven by an accomplice Banks stop people from stealing money using a variety of methods Silent alarms can be triggered by tellers to inform police and security that there is a robbery Dye packs may be used to mark any money handed over to the robbers, making it unusable bank teller gun paper bag silent alarm security guard officers reported robbery security guard unarmed getaway car A dye pack A stole A camera A apprehend B B B B demands armed silent alarm threatened note comply as possible jacket pocket did you silent alarm hurt you never touched me Suggested Answer B: Mr O'Brien, I'm sure you're upset A robbery is a terrifying thing to go through But you think you could tell me what happened today? A: Sure A man came into the bank and gave me a note lt said he would shoot me if I didn't fill his bag with as much cash as possible B: Did you see the gun? A: No He had his hand in his jacket pocket like there was a gun in there B: What did you then? A: I started putting money in his bag, but I also pressed the button for the silent alarm with my foot B: Did he hurt you in any way? A: No, he never touched me He just threatened me B: Can you describe him for me? A: Sure He had long, dark hair, brown eyes, and a mustache He was wearing baggy jeans and a big jacket Suggested Answer There was a robbery at Conklin Bank this morning A man entered the bank and demanded that the teller fill a bag with money He handed over a note which said he was armed and that he would shoot the teller if he didn't fill the bag The suspect is described as having long dark hair, brown eyes, and a mustache He was wearing baggy jeans and a big jacket Unit 10 Suggested Answers Banks use a variety of strategies to attract customers They offer a wide variety of accounts, with different features and interest rates, to attract different customers Extensive advertising campaigns are also used to bring in customers Different types of accounts address different customer needs by tailoring their features to them For instance, NOW accounts may be offered which are more flexible than some other types of accounts, and also pay interest Notice accounts may be offered to savers who are prepared to lock away their savings for longer and receive better interest rates in return Suggested Answer The police found out about the robbery as the bank teller activated a silent alarm T F T c B E F 32 Answer Key F F D A Answer Key compete club account Loanable funds variety Money market accounts There are a variety of financial risks associated with making investments Someone who lends money faces credit risk, the chance that the borrower may not pay back some or all of the money they owe At certain times it may be difficult or impossible to sell certain financial instruments: this is known as liquidity risk More generally, all investments are subject to market risk: the fact that a portfolio of investments may fall in value as a result of market conditions Suggested Answer & G should have focused more energy on individualizing their services D B 7 if you open a NOW account other bank I visited maybe a money market account a particular purchase anything in mind There's a minimum I'm hoping to deposit F F T c D G A E B security default Suggested Answer B: Well, I'm considering opening another bank account I'm looking for something with a good interest rate A: All right Well, if you open a NOW account today, you'll receive one percent yearly interest B: I see The other bank I visited offered a much better rate A: Okay Well, maybe a money market account would be better for you? Or a club account? B: Which would you suggest? A: If you're saving for a particular purchase, the club accounts are a good option B: No I don't have anything in mind that I'm saving for besides retirement A: Okay Well, our money market accounts typically offer good rates There's a minimum though B: I'm hoping to deposit around $20,000 A: Oh, that more than meets the minimum Suggested Answer Come and bank with us! & G bank offers a wide variety of accounts with outstanding interest rates For instance, our NOW account offers 1.0% interest and our money market account offers 2.25% interest We also offer Club accounts to help you save for a particular purpose: maybe a new car or that dream holiday you've always promised yourself! Join us and experience our great products and customer service Unit 11 Suggested Answers Investors make money in my country by putting their money into different types of financial instruments, such as shares or bonds Other people invest their money in real estate F portfolio prevent operational risks traded Suggested Answer The book extract talks about four different types of risk: operational risk, credit risk, liquidity risk and market risk B 7 What are the concepts market risk and liquidity risk securities may decrease market risk relates to decrease in value an individual security stock would go down traded quickly enough D Suggested Answer A: Okay What are the concepts that you're having trouble with? B: The different types of risks Like market risk and liquidity risk A: They have things in common Maybe that's why you're confused B: Both mean that securities may decrease in value, right? A: Yes The main thing to remember is that a market risk relates to a portfolio B: Okay So that's saying a group of investments will decrease in value? A: Yes And a liquidity risk refers to the risk taken with an individual security B: So, that would be the risk that a stock would go down in value? A: That's one example it's saying that any individual security might not get traded quickly enough to prevent loss or to gain profit Answer Key 33 Book Answer Key B: I see So they're just two different types of financial risk? A: Right The term financial risk includes operational, market, liquidity, and credit risks Suggested Answer This is a summary of financial risks and who they affect Market risk means that the value of investments can go down as a result of conditions in the market and relates to a portfolio of investments Liquidity risk is the risk that it will not be possible to sell a particular financial instrument at a given point in time This affects anyone holding financial investments Credit risk is the risk that a borrower will not make their repayments on time or in full This risk is borne by lenders, such as holders of interestbearing bonds Finally, operational risk is the risk stemming from business functions Unit 12 Suggested Answers Liquid assets can be accessed quickly These include anything that has short maturity dates and/or that can be sold easily to other investors Treasury bills are perhaps the best known example as they have short maturities and many investors are willing to hold them High quality assets are those financial instruments that are very likely to be repaid Again, treasury bills are a good example of a high quality asset, as are other forms of government borrowing Low quality assets are those where there is a considerable likelihood that some or all payments will not be paid Securities backed by low-quality (or sub-prime) mortgages fall into this category F F T c B D A tie up A non-performing loan A Cash equivalents A safe A B B B B E Shield loan quality Hard assets short term afraid of that did you see What's your recommendation loan quality I'd say we should I see your point what were your thoughts Just that Suggested Answer B: I was afraid of that Let's start with the loans What problems did you see? A: Well, I noticed there are a few non-performing loans If more of these come along, we're in serious trouble B: Okay What's your recommendation? A: I'd recommend two things First, we need to take more time assessing loan quality B: That's been taken care of, actually Our loan officers are being much more thorough now A: Great Secondly, I'd say we should increase our cash and cash equivalents until the non-performing loans are taken care of B: I see your point That would give us plenty of cash to work with in the short term A: Precisely B: And what were your thoughts on securities? A: Just that we need a higher percentage of them You know, treasury bills that we can convert into cash within a year Things like that B: Okay, good, I completely agree with you Suggested Answer Dear Karl, We need to improve our asset quality to cover the risks from non-performing loans I suggest we increase our cash holdings and cash-equivalents from 1% to 8% We should also increase our securities holdings from 12% to 20% by buying more treasury bills This means we will need to reduce our loans by 15%, either by selling some of them or not rolling over any that mature within the next few months Unit 13 Suggested Answers Suggested Answer The main problem with Branson Bank's asset holdings is that they not provide adequate liquidity in the event of a crisis 34 c Answer Key B Banking crises happen when customers are afraid that they will not be able to get their money back from a bank They then start to withdraw their money, making it difficult for others to get their money and so on If this fear spreads to other banks then this is likely to cause a banking crisis Answer Key The US has experienced a number of banking customers holding demand deposits would still get their money back We are able to suspend convertibility on some accounts, which makes a bank run much less likely in the first place Finally, the central bank acts as a lender of last resort and will bail out the entire industry if necessary crises There was the Great Depression of the 1930s (which was experienced worldwide) and more recently, the Savings and Loans crisis, the collapse of LTCM and the ongoing sub-prime mortgage crisis F T F D F A B c E Unit 14 Suggested Answers suspension of convertibility Systemic prevention lender of last resort Banks are governed by a vvide variety of lavvs in financial crisis my country They may be subject to both state and federal banking regulations In any case, they will be subject to minimum capital requirements as well as a wide range of other requirements Suggested Answer Governments have given banks permission to suspend convertibility to help avoid bank runs c B suspension of convertibility accessible financial crisis lender of last resort bail out don't need to worry Banking rules and restrictions are important to ensure that people's money is kept safe and confidence is maintained in the financial system so that an economy can function properly c A A F A G B 2 c D minimum requirements full reserve banking E compliance regulations Suggested Answer Suggested Answer The DFO does not impose full reserve banking as this is not seen as practical in today's banking world A: First of all, the FDIC insures all our deposit accounts, including yours B: So if the bank runs out of money, I won't lose all my savings A: Exactly But the bank won't run out of money We have protections against that too B: But will I have access to my money? I heard something about suspension of convertibility clauses A: We cannot suspend convertibility on demand deposit accounts Your funds are always accessible B: Even in a nationwide financial crisis? A: Well, yes In that event the central bank is there as lender of last resort B: You mean to bail out the entire industry A: Right You don't need to worry about your checking account it's safe B: Well, I guess I'll keep it open Suggested Answer There have been lots of stories in the news recently about financial crises, but there is no need to worry All deposits with our bank are perfectly safe We have federal deposit insurance (FDIC), so that even in the very unlikely event that the bank ran out of money, T F annual reports informed decisions What about legitimate concern minimum reserve requirements improve the safety T Suggested Answer A: Mr Garcia, I'm writing an article about financial security in today's banks How does your organization protect bank customers? B: The Department of Financial Oversight has many regulations that keep depositors safe For one, we require banks to disclose annual reports on capital ratio A: How does this help customers? B: The report tells customers which banks have the strongest assets and which have the highest debt Then customers can make informed decisions about where to store their money Answer Key 35 Book Answer Key A: What about the effects of the recent economic B: A: B: A: B: downturn? Many people are worried that even the strongest banks don't have enough money to cover their customers' funds Well, that's certainly a legitimate concern In response to the economic climate, the DFO recently increased minimum reserve requirements Does that improve the safety of customers' money? Absolutely If banks have more cash on hand, they will be better prepared for sudden economic changes So customers' money is more likely to be there when they need it? That's right Minimum requirements allow the bank to accommodate dramatic increases in withdrawal requests Suggested Answer Unit 15 Suggested Answers The purpose of financial regulations is to ensure that financial institutions work efficiently and effectively, to minimize criminal activity and to safeguard people's money All of this will encourage saving and investment and lead to better performing economies Standard financial regulations in my country include minimum reserve requirements for banks That is, they must have a certain amount of cash either in their safes or deposited with the appropriate regulator Some states require that banks retain a minimum credit rating from an approved ratings agency Finally, there is a capital requirement which sets out what assets banks must hold reserves adequacy recommend disclosure corporate governance capital requirement 36 Answer Key regulates credit rating requirement minimum reserve ratio manages Suggested Answer Ferndale Savings has higher capital adequacy than any other bank in the region T F F reserve requirements Last time I checked review the numbers walk in there financial reporting in good order Suggested Answer Banks are required to disclose annual reports on capital ratio: this enables customers to see which banks are safest for their money Banks are also required to keep minimum reserve requirements This allows them to be better prepared for sudden economic changes Banks' capital ratios are carefully monitored to ensure that they can limit financial risk comply capital adequacy information financial reporting reserve requirement B: The regulators want to check on our reserve requirements A: Well, I don't think that'll be a problem Everything's current, isn't it? B: I'm not sure The State Regulatory Committee raised the requirements at the beginning of the year Last time I checked, we were getting very close to the new limit A: Really? Well, get someone to review the numbers before the meeting We have to know whether we're in compliance before we walk in there What else are they looking at? B: I'm sure they'll want to verify the accuracy of our financial reporting A: Didn't they that just recently? B: They reviewed last year's information, which was in good order They probably just want to see this year's Suggested Answer The State Regulatory Committee is coming in tomorrow to check on our compliance with reserve requirements Although these were raised at the beginning of the year, we are still in full compliance with the requirements They are also looking to verify the accuracy of our financial reporting This is also up to date, and we are in full compliance with the relevant regulations Audioscripts Unit Banker (F): Good morning, Mr Johnston Please have a seat Client (M): Thank you Banker: I understand you're interested in enrolling in our Customer: it sounds like a good way to go How I apply? Representative: Just come into our office on Main Street We'll get you started Customer: I'll that Thank you private banking program Client: That's right I've looked into several programs And yours seems like the best Banker: Well, you have the investable assets we require for enrollment Are you aware of our wealth management options? Client: read about them on your website But what makes your hedge funds better than others? Banker: Hedge funds are highly individualized approaches to investing it's the adaptable strategies of our expert investors that make them work Client: What kind of returns can I expect? Banker: That depends on a number of factors But they will be significant and low risk Client: What about tax planning? Banker: Tax planning, inheritance planning, it's all part of the wealth management program Client: it sounds appealing Banker: How you feel about the flat-fee payment? Client: think it's reasonable If your investments will perform as you say Banker: Our investors are the best in the business I th1nk you'll be quite pleased Unit Representative (M): Welcome to Highwood Savings and Loan How can I help you? Unit Banker (F): Hi Frank Getting ready for your Middle East trip? Banker (M): Yeah I've been reading up on Islamic banking it's going to be a di~erent ball game over there Banker 1: Sounds like it Correct me if I'm wrong, but interest is forbidden, right? Banker 2: Yeah But you can still make a profit in banking Banker 1: How so? Banker 2: Well, for one thing, they deal with mortgages differently than we here Banker 1: Oh yeah? In what way? Banker 2: Instead of lending money for interest, a bank just buys the property Then it sells it to the buyer for a higher price Banker 1: I see I've also heard there's a lot of profit sharing Banker 2: Yep That's the typical arrangement, profit sharing, and loss sharing Banker 1: Will you be looking into a joint venture then? Banker 2: Probably There will be a lot of things to work out first Banker 1: I can imagine Do you know how long it will last? Banker 2: Well, most are temporary But a strong enterprise could go on for years Banker 1: Wow I hope it works out well for you Customer (F): Hi What can you tell me about your deposit accounts? Representative: Well, our investment philosophy is based on the financial interests and security of our members Customer: How you determine your members' interests? Representative: Our members have voting rights to address issues of the institution's financial policies Customer: Interesting I've heard you offer better interest rates than commercial banks Representative: We To strengthen funds in the mortgage market the government allows us to offer slightly higher rates to our depositors Customer: So, you use the money of your depositors to make mortgage loans? Representative: Yes Seventy percent of our lend1ng IS for mortgages on homes right here in Highwood Customer: Wow So the money I invest would help the community Representative: Essentially yes Your deposits would be like investments in the community Customer: I see Are the investments safe? Representative: Compared to other types of investing ours is very secure Unit4 Banker (M): Hi Karen Did you hear what the Central Bank is doing? Banker (F): I did They're starting some big contractionary measures, right? Banker 1: Exactly They're selling a lot of bonds I think it's a terrible idea Banker 2: Oh, really? I couldn't disagree with you more I mean, this inflation is out of control They have to something Banker 1: I just think there are better ways to slow inflation Banker 2: Well, what would you suggest? Banker 1: For one, they could adjust interest rates That's what they've done in the past Banker 2: Sure, changing interest rates has worked in the past But inflation has never been this high before Banker 1: That's true it's the worst we've ever had Banker 2: That's why I think the bonds are a good idea They'll reduce the amount of money out there Banker 1: Well, one thing is for sure They need to lower inflation soon Answer Key 37 Audioscripts Banker 2: That I can agree with Hopefully they'll get it under control in a few weeks Banker 1: A few weeks? I doubt it I think it will take at least a year Unit Manager (F): What can I help you with, Mr Bradley? Teller (M): Well, I noticed some suspicious activity going on with a customer's account I thought I should tell you Manager: I see So what's going on? Teller: The customer is moving funds back and forth between our bank and a couple of others Manager: So, you think he might be committing fraud? Teller: Circular kiting is what I was thinking He writes checks for more than he has in his account with us Then during the float time he makes a deposit from another bank Manager: I'm glad you brought this to my attention Do you know his average balance? Teller: it's very low Manager: And you know how long the man has held an account with us? Teller: Yeah, I reviewed his account history His checking account has been open for about five months Manager: Hm Yes, we certainly need to look into this further Teller: What will we if he's committing fraud? Manager: We'll inform the police Hopefully, they'll help us recover any lost funds Unit Representative (F): Michaelson's Associated Bank How may I help you? Customer (M): Hi, I think I've been the victim of credit card fraud Representative: I'm sorry to hear that Can I have your name, address, and card number please? Customer: My name is Jim Harris, I live at 134 Sycamore Road The card number is 5839 3852 3448 1921 Representative: Thanks, Mr Harris Please give me your password and then I'll have you answer your account question Customer: Okay My password is cherrytomato746 Representative: That matches what we have here And the security question asks for your mother's maiden name Customer: That would be Linda Tierney Representative: Thank you, Mr Harris Yes, I can see here that there is some strange activity going on with your account Customer: Yeah I still have my credit card though it's not like it was stolen Still, someone is using it in another state Representative: Well, it's possible that some of the information on the card was copied or skimmed from 38 Answer Key a card reader So that information can be used from anywhere Customer: What can I do? Representative: Well, we'll cancel the card immediately Then I'll connect you to our fraud prevention division to talk about the charges Unit Investigator (F): Hi, I'm Investigator Liz Driver How are you, Mr Paulson? Victim (M): Oh, I'm all right As well as can be expected Investigator: Do you mind if I ask you a few questions about your knowledge of the Walton Associated fraud? Victim: Of course not Investigator: Thank you, Sir First, how did you become involved with Walton Associated Bank? Victim: Well, about a year ago I moved to Springfield Walton Associated was soliciting customers to open new accounts Investigator: And you opened an account with them? Victim: That's right Investigator: Now, when you opened the account, did you notice anything suspicious? Victim: Little things But at the time it didn't seem important Investigator: What did you notice? Victim: Well, the paperwork looked strange Like the printing was smeared and numbers had been changed Investigator: Well, Mr Paulson, you couldn't have known it at the time But this forged paperwork was used to set up uninsured accounts Victim: So all my money in that account, can I get it back? Investigator: Well, because these accounts were uninsured, it's hard to say if anyone will be reimbursed it's up to the courts now Victim: What a mess I can't wait until all this is over with UnitS Representative (M): What can I for you, Ms McDonald? Customer (F): There's a mistake on my bank statement lt says I made an electronic check purchase online on December 5th I've never used an electronic check Representative: Did you recently give out any personal information over the Internet? Customer: I don't think so Well, I did send some details to your bank, but that was all Representative: What kind of details? Customer: The bank sent me an email asking for my account number and online password lt said the information was necessary to keep my account open Representative: Well, I'm sorry to tell you this, Ms McDonald, but that wasn't really an email from our bank Customer: I don't understand Who sent it? Audioscripts Representative: it must have been a phishing seam to access your bank account Once you sent them your account information, they were able to make that purchase Customer: Oh no! How was I supposed to know? Representative: The bank never asks for any personal information by email If you're ever unsure whether an email is legitimate, call us before you respond Unit9 Officer (M): Ms Jameson, I'm sure you're upset A robbery is a terrifying thing to go through But you think you could tell me what happened today? Teller (F): Sure A man came into the bank and gave me a note it said he would shoot me if I didn't fill his bag with as much cash as possible Officer: Did you see the gun? Teller: No He had his hand in his jacket pocket like there was a gun in there Officer: What did you then? Teller: I started putting money in his bag, but I also pressed the button for the silent alarm with my foot Officer: Did he hurt you in any way? Teller: No, he never touched me He just threatened me Officer: Can you describe him for me? Teller: Sure He had long, dark hair, brown eyes, and a mustache He was wearing baggy jeans and a big jacket Officer: Great Later, we'll want you to identify him at the station Unit 10 Teller (F): Hello, Mr Taylor What can I help you with today? Customer (M): Well, I'm considering opening another bank account I'm looking for something with a good interest rate Teller: All right Well, if you open a NOW account today, you'll receive point five percent yearly interest Customer: I see The other bank I visited offered a much better rate Teller: Okay Well, maybe a money market account would be better for you? Or a club account? Customer: Which would you suggest? Teller: If you're saving for a particular purchase, the club accounts are a good option Customer: No I don't have anything in mind that I'm saving for besides retirement Teller: Okay Well, our money market accounts typically offer good rates There's a minimum though Customer: I'm hoping to deposit around $16,000 Teller: Oh, that more than meets the minimum Customer: Good And what is the interest rate on your money market accounts? Teller: Currently, you're looking at one point two five percent Customer: One and a quarter percent That's a lot better than what the other bank offered me Teller: Oh, good I'm happy to get your account set up today if you would like Customer: Let's that Unit 11 Student (M): Professor Mays, I'm not sure that I understood your lecture today Professor (F): Okay What are the concepts that you're having trouble with? Student: The different types of risk Like market risk and liquidity risk Professor: They have things in common Maybe that's why you're confused Student: Both mean that securities may decrease in value, right? Professor: Yes The main thing to remember is that a market risk relates to a portfolio Student: Okay So that's saying a group of investments will decrease in value? Professor: Yes And a liquidity risk refers to the risk taken with an individual security Student: So, that would be the risk that a stock would go down in value? Professor: That's one example it's saying that any individual security might not get traded quickly enough to prevent loss or to gain profit Student: I see So they're just two different types of financial risk? Professor: Right The term financial risk includes operational, market, liquidity, and credit risks Student: All right So I just have to remember: market risk is a whole portfolio Liquidity risk is one security Professor: Exactly Unit 12 CPA (M): Hello, Ms Watson I've been looking at the balance sheet you taxed to me Officer (F): Oh, good, James Thanks I'd really like to hear your opinion on it Honestly, I'm a little worried about our asset quality CPA: Unfortunately, I have to agree with you I'm concerned with our loans and securities in particular But there are ways to improve their quality Officer: I was afraid of that Let's start with the loans What problems did you see? CPA: Well, I noticed there are a few non-performing loans If more of these come along, we're in serious trouble Officer: Okay What's your recommendation? CPA: I'd recommend two things First, we need to take more time assessing loan quality Answer Key 39 Audioscripts Officer: That's been taken care of, actually Our loan Regulator: The report tells customers which banks have officers are being much more thorough now CPA: Great Secondly, I'd say we should increase our cash and cash equivalents until the non-performing loans are taken care of Officer: I see your point That would give us plenty of cash to work with in the short term CPA: Precisely Officer: And what were your thoughts on securities? CPA: Just that we need a higher percentage of them You know, treasury bills that we can convert into cash within a year Things like that Officer: Okay, good, I completely agree with you the strongest assets and which have the highest debt Then customers can make informed decisions aoout where to store their money Reporter: What about the effects of the recent economic downturn? Many people are worried that even the strongest banks don't have enough money to cover their customers' funds Regulator: Well, that's certainly a legitimate concern In response to the economic climate, the DFO recently increased minimum reserve requirements Reporter: Does that improve the safety of customers' money? Regulator: Absolutely If banks have more cash on hand, they will be better prepared for sudden economic changes Reporter: So customers' money is more likely to be there when they need it? Regulator: That's right Minimum requirements allow the banks to accommodate dramatic increases in withdrawal requests Reporter: Well, Mr Larson, thank you so much for talking with me today Unit 13 Teller (F): Hello, Sir How can I help you? Customer (M): Hi I'm considering closing my checking account Teller: I'm sorry to hear that How come? Customer: Well, I heard on the news that Caldwell banks are suffering losses from interest rate hikes That you might go bankrupt Teller: This is partly true But we won't go bankrupt There are measures in place that protect this bank from just that sort of problem Customer: Like what? Teller: First of all, the FDIC insures all our deposit accounts, including yours Customer: So if the bank runs out of money, I won't lose all my savings Teller: Exactly But the bank won't run out of money We have protections against that too Customer: But will I have access to my money? I heard something about suspension of convertibility clauses Teller: We cannot suspend convertibility on demand deposit accounts Your funds are always accessible Customer: Even in a nationwide financial crisis? Teller: Well, yes In that event the central bank is there as lender of last resort Customer: You mean to bail out the entire industry Teller: Right You don't need to worry about your checking account it's safe Customer: Well, I guess I'll keep it open Unit 14 Reporter (F): Mr Larson, I'm writing an article about financial security in today's banks How does your organization protect bank customers? Regulator (M): The Department of Financial Oversight has many regulations that keep depositors safe For one, we require banks to disclose annual reports on capital ratio Reporter: How does this help customers? 40 Answer Key Unit 15 Chairperson (F): Mr Alien, what's this regulatory meeting about tomorrow? Board member (M): The regulators want to check on our reserve requirements Chairperson: Well, I don't think that'll be a problem Everything's current, isn't it? Board member: I'm not sure The State Regulatory Committee raised the requirements at the beginning of the year Last time I checked, we were getting very close to the new limit Chairperson: Really? Well, get someone to review the numbers before the meeting We have to know whether we're in compliance before we walk in there What else are they looking at? Board member: I'm sure they'll want to verify the accuracy of our financial reporting Chairperson: Didn't they that just recently? Board member: They reviewed last year's information, which was in good order They probably just want to see this year's Chairperson: What will they find? Board member: I'm pretty sure this year's data is all up to date Chairperson: You should take another look before they get here Anything else? Board member: As far as I know, that's all the regulators plan to look at Chairperson: Good I'll see you at the meeting tomorrow ~ ' < lĐ[JJJ~f"23 00đ~ Career Paths English:Banking is a new educational resource for banking professionals who want to improve their English communication in a work environment Incorporating career-specific vocabulary and contexts, each unit offers step-by-step instruction that immerses students in the four key language components : reading, listening, speaking, and writing Career Paths English: Banking addresses topics including bank accounts, careers, online banking, types of banks, and regulation The series is organized into three levels of difficulty and offers over 400 vocabulary terms and phrases Every unit includes a test of reading comprehension, vocabulary, and listening skills, and leads students through written and oral production Included Features: • A variety of realistic reading passages • Career-specific dialogues • 45 reading and listening comprehension checks • Over 400 vocabulary terms and phrases • Guided speaking and writing exercises • Complete glossary of terms and phrases The Teacher's book contains a full answer key and audio scripts The audio CDs contain all recorded material in American English and British English Books 1-3 of Career Paths English: Banking are rated for the Common European Framework of Reference for Languages at A1, A2 and B1 respectively ~w~ Express Publishing ISBN 978-1 · 78098·356·1 111111111111111111111111 911781780 983561 ... very convenient And more and more people are now using telephone banking and online banking to access their accounts T F Online banking has many benefits lt allows you to perform transactions... may also fall victim to identity theft T A call center A online banking A ATM fee drive-up PIN brick-and-mortar B ATM B mobile banking B deposit branch funds withdraw A E c D A log in lock out... Greet E c B A People choose to use telephone banking because they prefer to speak to another person rather than deal with a computer as with online banking it also allows people to avoid queues