English Vocabulary in Use Pre-intermediate and Intermediate » Unit 40: Business and finance

Word List
  • by [how much]
  • charge v
  • decrease n, v
  • economy
  • fall n, v
  • fear n
  • figures (number)
  • go down
  • go up
  • gradual(ly)
  • growing
  • in a row
  • increase n, v
  • inflation
  • interest n
  • interest rate
  • loan
  • loss
  • make a profit/loss
  • pay back
  • per cent
  • percentage
  • profit
  • raise
  • recession
  • rise n, v
  • sharp (ly)
  • sign (of sth happening)
  • slight
  • slightly
  • stay the same
  • trade
  • trend
  • value
Exercises

40.1 ‣ Choose the correct word to complete the sentences.

  1. We made a profit _____ six million euros.
    • of
    • for
  2. Sales rose _____ 10% last year.
    • to
    • by
  3. The value of the shares fell _____ 240 pence to 225 pence.
    • from
    • for
  4. There was a fall _____ 5% in the value of the shares.
    • of
    • from
  5. There has been a gradual rise _____ profits.
    • with
    • in
  6. The company made a loss two years _____ a row.
    • on
    • in
  7. What’s the current value _____the euro?
    • of
    • in

40.2 ‣ Which words or phrases are being defined?

  1. The amount of money that something can be sold for.
  2. Money you borrow from a bank for your business. _____
  3. What the bank charges you when you borrow money. _____
  4. The rate at which prices increase. _____
  5. The money that a company receives for its goods after paying all the costs. _____
  6. Buying and selling goods and services between countries. _____
  7. A movement in sales, prices, etc. over a period of time. _____

40.3 ‣ Complete the two short texts, then answer each of the two questions.

  1. If you get a bank _____ of €500 for one year and the bank _____ you 20% _____, how much will you have to _____ to the bank at the end of the year? _____
  2. If you take out a similar amount from another bank, and the interest _____ is 15 _____, how much will you _____ at the end of the year? _____

40.4 ‣ Look at the graph and complete the text.

The 1 shows sales 2_____ for the last three and a half years. Three years ago sales 3_____ slightly and reached 100,000 units by the end of the year. The company 4_____ a profit of almost £500,000 and decided to 5_____ the price from £8.95 to £10.25. It had an immediate effect: there was a 6_____ 7_____ in sales over the year. It was bad news, and the company made a 8_____. And in the next year sales 9_____ the same. However, in the first two 10_____ of this year, they have 11_____ 12_____ for the first time in many years.

40.5 ‣

Over to you

Can you answer these questions about your own country?

  1. What is the inflation rate at the moment?
    _____
  2. If you borrow money from the bank, what is the approximate interest rate you will be charged?
    _____
  3. Do you think the economy is doing well or badly?
    _____
  4. When was the last time your country was in recession?
    _____
  5. What is the value of your currency against the dollar?
    _____
Answer Key
A ‣ Rise and fall

These verbs describe trends [movements] in sales [how much you sell], prices, etc.

When sales or prices rise / go up / increase, they can do it in different ways:
They can rise slightly [a bit].
They can rise gradually [slowly over a long period].
They can rise sharply [quickly and by a large amount].

The opposite can also happen. Prices or sales can fall / go down / decrease slightly, gradually or sharply. If prices don’t rise or fall, they stay the same.

We use certain prepositions to say by how much something rises or falls.
The price has risen by 10 pence.
Sales fell from 8,000 units to 6,500 units.

Rise/increase and fall/decrease can also be used as nouns, with certain prepositions.
There’s been a gradual rise in prices.
There’s been a sharp fall in sales.
We’ve seen a slight increase in profit.
Profits were £5 million, which is a decrease of 10%.

Language help

Profit is the money you receive from your business after you have paid all your costs (opp loss). Last year the company made a profit of €2 million but this year they could make a loss.

B ‣ Financial language

With the economy1 now improving, banks are reporting positive signs2 that the number of loans3 is increasing.

Within flation4 expected to rise, there are growing fears5 that interest rates6 could go up by as much as 2%7 next year.


Figures8 published yesterday show that trade9 between the two countries has now risen for the fifth year in a row10.

CURRENCY
Although the value11 of the pound fell slightly against the dollar yesterday, the news that sales rose in the last quarter12 has raised13 hopes that we may be coming out of recession14.

1 the system by which a country’s trade, industry
2 something which shows something is happening
3 money that you borrow
4 the rate at which prices increase
5 increasing worries
6 (see language help below)
7 this is spoken as two per cent
8 an amount shown in numbers, e.g. 500 and money are organised
9 buying and selling between countries
10 one after another with no break
11 the money that something can be sold for
12 (in business) a period of three months
13 increased; you can also raise prices
14 a time when the economy is not successful

Language help

Interest is what the bank charges you [asks you to pay] when you borrow money from them, and the interest rate is how much you must pay as a percentage, e.g. 5%, 8%, etc. So, if you borrow £100 for a year and the interest rate is 15% a year, you’ll have to pay back £115.

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