MONEY AND FINANCE
Use a dictionary to find the differences between the words and expressions in bold in the following groups.
make a profit & make a loss
extravagant & frugal/economical
a current account & a deposit account
a loan & a mortgage
to deposit money & to withdraw money
a wage & a salary
broke & bankrupt
shares, stocks, and dividends
income tax & excise duty
to credit & to debit
a bank & a building society
a discount & a refund
something which was a bargain, something which was overpriced and something which was exorbitant
worthless & priceless
save money & invest money
inflation & deflation
income & expenditure
to lend & to borrow
Match the sentences in box A with the sentences in box B. Use the words in bold to help you.
Box A
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The managing director believes the company should start producing pocket computers
I always put my money in a building society not in a bank.
I can’t afford to buy a new car right now. I don’t have enough money.
I find Christmas a very expensive time.
I came into a lot of money recently when my uncle died.
Look at this cheque that came in the post this morning from the Inland Revenue.
I’ve been spending too much recently.
In my country, there are a lot of very poor people and only a few rich ones.
I lost my job last month.
I retire next month.
Prices are rising quickly everywhere.
The January sales start tomorrow.
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Box B
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I’m really looking forward to spending my pension.
The cost of living seems to go up every day.
Of course, it’s always so difficult to economise.
Shops all over the country are making huge reductions on just about everything.
I always seem to run up a huge overdraft at the bank.
Of course, the potential global market for them is enormous.
Fortunately I receive unemployment benefit.
There is a very uneven distribution of wealth.
The interest they pay me is much higher.
It’s the first time I’ve inherited something.
It seems to be some kind of tax rebate.
Maybe I should consider getting one on credit.
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Read this passage and complete the gaps with one of the words or expressions from Task A and B. You may need to change the form of some of the words.
“Financial advice from a farther to a son”
In the play “Hamlet” by William Shakespeare, a farther gives his son some financial advice. “Neither a borrower nor a lender be”, he says. He is trying to tell his son that he should never 1___________ money from anyone because it will make it difficult for him to manage his finances. Likewise he should never give a financial 2_______________ to a friend because he will probably never see the money again, and will probably lose his friend as well.
The play was written over four hundred years ago, but today many parents would give similar advice to their children. Imagine the conversation they would have now:
Son: Right dad, I’m off to university now.
Father: All right son, but let me give you some sound financial advice before you go.
Son: Oh, come on dad…
Father: Now listen, this is important. The first thing you should do is to make sure you balance your 3______________- the money you receive from me – and your 4______________- the money you spend. If you spend too much, you will end up with an 5_____________ at the bank. Don’t expect me to pay it for you.
Son: But it’s difficult. Things are so expensive, and the 6___________ goes up all the time. 7_____________ is running at about 10%.
Father: I know, but you should try to 8____________. Avoid expensive shops and restaurants. Also, put your money in a good 9______________ They offer a much higher rate of 10___________than banks. Also, avoid buying things 11____________.
Son: Why?
Father: Because shops charge you an 12____________ amount of money to buy things over a period of time. It’s much better to 13_________________ a little bit of money each week so that you see something you want, you can buy it outright. Try to wait for the sales, when shops offer huge 14_________ and you can pick up a 15______________. And try to get a 16____________.
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