MONEY AND BANKING
77
Unit 6: Money and banking
UNIT OBJECTIVES - MỤC TIÊU
DURATION (9 periods) - THỜI LƯỢNG HỌC (9 TIẾT)
• Provide students with the language and knowledge related to money and banking, and the
services provided by banks.
Cung cấp cho sinh viên vốn ngôn ngữ và kiến thức liên quan đến tiền tệ và ngân hàng, sự ra
đời của ngân hàng cùng với một số dịch vụ của ngân hàng cung cấp.
• Provide students the way to write a complaint letter.
Cung cấp cho sinh viên phương pháp viết một bức thư khiếu nại.
• At the end of this unit, students are able to talk and write about relevant issues as introduced
with basic knowledges of banking and banking services.
Sau khi kết thúc bài học này, sinh viên sẽ nắm được những kiến thức cơ bản về ngân hàng và
các dịch vụ ngân hàng, có thể nói và viết về các vấn đề liên quan.
In this unit, we are going to learn language and knowledge
related to money, banks and banking services.
Trong bài học này chúng ta sẽ học ngôn ngữ và kiến thức
cơ bản về tiền tệ, ngân hàng và các dịch vụ ngân hàng.
78
Unit 6: Money and banking
Match the terms or expressions in column A with their definition in column B.
The suggested time to do this exercise is 10 minutes.
Text A: Read text A do exercices 2.1 and 2.2 below. The suggested time for
reading the text and completing the exercises is 30 minutes
MONEY AND BANKING
A
ll values in the economic system are measured in terms of money. Our goods
and services are sold for money, and that money is in turn exchanged for other goods and
services. Coins are adequate for small transactions, while paper notes are used for general
business. There is additionally a wider sense of the word ‘money’, covering anything which

Nowadays, however, national currencies are considered to
be as strong as the national economies which support them.
V
aluable metal has generally been replaced by paper notes. These notes are issued by
governments and authorized banks, and are known as ‘legal tender’. Other arrangements
such as cheques and money orders are not legal tender. They perform the function of
substitute money and are known as ‘instruments of credit’. Credit is offered only when
creditors believe that they have a good chance of obtaining legal tender when they present
such instruments at a bank or other authorized institution. If a man’s assets are known to be
considerable, then his credit will be good. If his assets are in doubt, then it may be difficult
for him to obtain large sums of credit or even to pay for goods with a cheque.
T
he value of money is basically its value as a medium
of exchange, or, as economists put it, its ‘purchasing
power’. This purchasing power is dependent on supply
and demand. The demand for money is reckonable as the
quantity needed to effect business transactions. An increase
in business requires an increase in the amount of money
coming into general circulation. But the demand for money
is related not only to the quantity of business but also to the rapidity with which the business
is done. The supply of money, on the other hand, is the actual amount in notes and coins
available for business purposes. If too much money is available, its value decreases, and it
does not buy as much as it did, say, five years earlier. This condition is known as ‘inflation’.
B
anks are closely concerned with the flow of money into and out of the economy.
They often co-operate with governments in efforts to stabilize economies and to prevent
inflation. They are specialists in providing capital and allocating funds on credit. Banks
originated as places to which people took their valuables for safe-keeping, but today the great
banks of the world have many functions in addition to acting as guardians of valuable private
possessions.

Source: Tom Mc Arthur, A Rapid Course in English for students of Economics, Oxford University Press, 1973
Answer the following questions
1. How are all values in the economic system measured?
2. What backs the US dollar?
3. How are national currencies judged nowadays?
4. Who can issue paper notes?
5. What name is given to arrangements like cheques?
6. What phrase do economists use for the value of money?
7. What is inflation?
8. In what way do banks co-operate with governments?
9. What does the customer agree to do when he opens a deposit account?
10. How does the bank make its main profit?
11. Why do financiers often talk of the ‘liquidity’ of money?
12. Whose trust for each other maintains the banking system?
13. What does this trust permit?
2.1
81
Unit 6: Money and banking
According to text A, which of the following sentences are true (T) or false (F).
Correct the false information
Read text B and do exercises 2.3, 2.4, 2.5. The suggested time for reading the
text and completing the exercises is 40 minutes.
HOME AND OFFICE BANKING SYSTEM
2.2
Questions T/F
1. The US dollar is a constant store of value.
2. Instruments of credit are accepted because they can be converted easily into
substitute money.
3. The purchasing power of money depends upon supply and demand.
4. The demand for money is related to the rapidity with which business is done.

All these services can be easily
accessed using our compact
integral keyboard and screen
which can be purchased for a
single payment of only £95,
with an option of spreading the
cost over ten months. However,
the unit will be supplied free of
charge to customers who un-
dertake to keep a minimum
credit balance of £500 in their
Current Account for at least
two years. As the unit only takes
up approximately the same space
as an A4 sheet of paper, it can
easily be accommodated on a
desk or table. Alternatively,
HOBS can be linked to your
PC. In addition, no matter
where you live in the UK you
can access HOBS for the cost
of a local telephone call.
Settle bills when it suits you
R
egular bills and accounts
can be paid by electronic
transfer without writing cheques,
saving you time and postage.
And our Bank charge for an
electronic payment is much

deposited overnight.
All instructions made before 5
pm on any business day are
carried out that day. After 5
pm, they are effective on the
next business day.
Open 18 hours a day
H
OBS opens for business
at 7 am – so much for
banking hours! Now you can
organize your personal finances
before you set off for work and
keep tighter control of your
business bank accounts from
your office at any time
throughout the day.
With HOBS, you can bank
until 1 o’clock in the morning
during the week, and you can
bank all day Saturday and Sun-
day until 11 pm.
Look ahead with HOBS
O
ld-fashioned banking
deals with what hap-
pened yesterday. HOBS tells
you where you stand today and
helps you plan ahead.
You can also call on Bank of

5. You can arrange for The Bank of Scotland to give you a personal demonstration of how
HOBS works.
6. The HOBS terminal can fit into a small place.
Read through the text again and make a list of the 10 advantages for the cus-
tomer of using the HOBS system
With HOBS the customers can:
1. have instant access to an account.
2. ………………………………
Listening 1
You are now going to hear part of a lecture, divided into short sections to
help you to understand it. Listen to the lecture TWICE. As you listen, answer the
questions below.
Section 1
1. What topic is the lecturer going to introduce?
………………………………………………………
2. What is the point of the story?
………………………………………………………
3. Who were the original bankers?
………………………………………………………
Section2
1. Note down the first development.
………………………………………………………
2. What is the modern word for the ‘letter’ the lecturer talks about?
………………………………………………………
3. Note down the second development.
………………………………………………………
Section 3
Are these statements correct or incorrect?
1. The goldsmith did not charge the firm interest.
2. The goldsmith expected everyone to want their gold at the same time.

Gold £ 100
Gold £90 + loan £10
Gold £100 + loan £10
Gold £90 + loan £10
Deposits £100
Deposits £100
Deposits £100
Deposits £100
Now two (1) turned these goldsmiths into bankers. The first
was that people (2) it a lot easier to give the seller a letter
than it was to (3) some gold and then physically hand it
over to him. This letter (4) some of the gold they had at the
goldsmith’s to the seller.
This letter we would nowadays call a (5) . And of course
once these letters, or cheques, were easier to carry (6) than
gold, and a lot less dangerous, people started to say that their money
(7) were what they had with them plus their deposits. So a
system of deposits was started. The second (8) , and I’m
sure you can see what’s coming, was that goldsmiths realized they had a
great deal of unused gold lying in their (9) doing nothing.
This development was (10) of greater importance than
the first.
85
Unit 6: Money and banking
4.1
Read the following passage and do the vocabulary exercises below. The sug-
gested time for doing these exercises is 30 minutes
Account opening forms
On the National Bank of Mantra company account opening form the customers are asked to
write whether they are sole traders, partnership or limited companies. This information is

2. a car
3. a bank loan
4. a mortgage
5. an insurance policy
86
Unit 6: Money and banking
Look carefully at each paragraph of the reading passage to find words which
mean the opposite of
a) closing (paragraph 1) b) joint c) offer (paragraph 2)
d) different e) assets f) few
g) obligatory h) former i) always (paragraph 3)
j) private (paragraph 3) k) community (paragraph 7) l) borrows
Read the passage about account opening forms again and then, without looking
back, add nouns to the following adjectives to form noun phrases
a) national b) different c) sole d) limited e) the same f) personal
g) additional h) more i) prospective j) legal k) private l) public
Now look back at the passage and see how many of your phrases match those in the reading
passage.
Based on the information in the two texts above, answer the following questions
in your own words
1. Now that you have considered the benefits that HOBS offers its customers, discuss what,
in your opinion, the Bank of Scotland can gain from the introduction of its new system.
2. Are there any similar services to HOBS available in your country? Who provides them
and how do they operate?
Role Play
Inquiring a bank loan
Work in pairs (Student A and Student B). Student A and student B should look at the
information for each of them to understand carefully their role before starting the
role play
Student A

Would I be able to withdraw funds at short notice from a fixed deposit account?
How often would I be paid interest with a cherub savings account?
When you have finished preparing your questions, you should meet up with student B.
Make notes on the answers you receive and decide how you are going to invest your
money.
Unit 6: Money and banking
Lombard Bank
Information for savers and investors
Note deposit for savers and investors
A flexible account that offers you easy access to
your funds, with deposit periods of 14 days, 3
months and 6 months with no maximum limit to
funds deposited.
Fixed Deposit Accounts
The ideal deposit account for those wishing to invest in the longer term with
deposit periods ranging from 1 to 5 years. Interest is fixed and guaranteed not
to change during the deposit period selected.
Cheque Savings Account
A special kind of deposit account which is particularly suitable for those
customers who want their savings readily available whilst earning a good rate
of interest. A cherub book is supplied and provides the benefits of instant ac-
cess to your funds. Whatever your choice you can be assured that a Lombard
deposit account will be a secure and confidential home for your money.
Student B
You work for the Lombard Bank and have an appointment with a
prospective client (Student A) who would like to deposit some
money with your bank. The bank offers three different types of
account, details of which are given below. Study this information
and be prepared to answer Student A’s questions and to give
advice about which account (s) would best suit his or her saving

Amount of deposit
£1,000 - £25,000 - £50,000 -
£24,999 £49,999 £250,000
Fixed deposit
1 year fixed deposit
2 year fixed deposit
3 year fixed deposit
4 year fixed deposit
5 year fixed deposit
9.00
9.00
9.25
9.25
9.25
9.125
9.125
9.375
9.375
9.375
9.25
9.25
9.50
9.50
9.50
Type of account
Cheque Savings Account Interest paid
When the balance is £1,000 to £4,999
When the balance is £5,000 and above
3.75
6.00

bank statement, on which a £30 overdraft charge appears. You have phoned
your bank again to complain and they have advised you to confirm your
complaint in writing. Write a short letter to your branch manager in which you
state what your complaint is and how you want the bank to correct the mistake.
The address of your bank is:
National Savings Bank
509 Wellington Street
London SW1V 9AW
90
Unit 6: Money and banking
English terms Vietnamese equivalents
A
- A run on the bank (n)
B
- Balance (n)
- (Bank) statement (n)
C
- Cheque book (n)
- Clearing bank service (n)
D
- Debit card (n)
- Deposit (n)
F
- Financial panic(n)
G
- Goldsmith (n)
- Gold bullion (n)
J
- Jewellery (n)
I