26. Banking and financial problems CHECK YOUR ENGLISH VOCABULARY FOR BANKING AND FINANCE

CHECK YOUR ENGLISH VOCABULARY FOR BANKING AND FINANCE

26. Banking and financial problems

A. Write the problem in the correct box. capital fight conflict of interests credit card cloning embezzlement foreclosure forgery fraud identity theft insider dealing/ trading insolvency money laundering undercapitalisation Lemon Industries borrowed money to buy a new factory. They have been unable to repay the loan. The factory was the security for the loan, and the bank is now going to take possession of it and sell it to recover the debt. Susan Green is a scientist. She has been appointed by the government to investigate any health risks connected with fizzy drinks. However, she also regularly works as a consultant for ColaCo, a major fizzy drinks manufacturer. Shootemup is a developer of computer games. Producing new computer games is expensive, and they don't have enough money to bring out new games as often as their competitors. Jane Jackson looked at her bank statement, and found that somebody had used her bank details to pay for 1,000 litres of diesel fuel in Moscow. She has never been to Russia. A criminal gang used money from drug-dealing to buy antiques for cash, which they then sold at public auction. Greg Davis knew that his company was secretly planning to buy a profitable subsidiary. He bought a lot of shares in his own company. When the acquisition was announced, the share price went up, and he made a lot of money. The democratically elected president of the country was deposed in a military coup. Many investors withdrew their capital in order to deposit it in other countries. Until she was discovered, Tina Edwards managed to steal £100,000 from the pension fund she was managing. When Ian Barlow paid for a restaurant meal, the waiter took his credit card away for several minutes. A month later, Ian found that a copy of his card had been used to buy some diamonds in Colombia. Geoff Parker persuaded several people to invest substantial sums of money in a company which didn't exist. He then took the money and disappeared. Turkey Trading owe large sums of money to several creditors. There is virtually no chance that they will be able to repay these debts, and the company will probably go into liquidation. Using some special paper and a colour photocopier, Henry Black has been making counterfeit 100 euro notes in his garden shed. B. Choose the best words to go into each space. 1 An insolvent company often goes into liquidation. A private individual who cannot pay his/her debts may be declared __________ by a court. A bankrupt B indebted C penniless 2 A bankrupt person's __________ can be taken and used to repay his/her debts. A things B items C property 3 A person who has not yet completed this process is called an ___________ bankrupt A unfinished B incomplete C undischarged 4 The technical meaning of insolvency is that a person or company's __________ exceed their assets. A payments B liabilities C expenses 5 When a limited company* becomes insolvent, it is likely to go into __________. A liquid B liquidity C liquidation 6 The person responsible for winding up a company which has gone into liquidation is called the __________. A liquid B liquidator C liquidiser 7 When all the assets of a company have been used as security for a loan, and the company defaults on repayments, the lender may force the company to go into ___________. A receivership B reception C reciprocation 8 In this case, a receiver will be appointed to __________ the assets of the company in order to repay the debt. A sell B trade C realise 9 A mistake in an account is often called a _________. A disturbance B distraction C discrepancy 10 Supermarket chains have a __________ interest in keeping agricultural subsidies high, as they make food cheaper to buy from farmers. A invested B vested C vestal 11 A force majeure is an __________ event such as strike, riot or natural disaster which prevents a contract from being __________. A unforeseen / fulfilled B unseen / fulfilled C unforeseen / filled 12 Many contracts contain a force majeure __________ to cover this situation. A sentence B phrase C clause * A limited company is a company whose members have only limited liability for that company's debts. In other words, if the company cannot pay its debts, the members of the company don't have to pay the debts out of their own pockets.

ANSWER KEY

B: 1 a, 2 c, 3 c, 4 b, 5 c, 6 b, 7 a, 8 c, 9 c, 10 b, 11 a, 12 c