English Vocabulary in Use Upper-intermediate » Unit 40: Money

Word List
  • cash machine
  • charge (interest)
  • competitive
  • consolidate
  • corporation tax
  • credit limit
  • credit rating
  • current account
  • customs
  • debt
  • deposit
  • direct debit
  • duty
  • duty-free
  • excise
  • expenses
  • facility
  • finance
  • in credit
  • in the red
  • income
  • income tax
  • inheritance tax
  • interest
  • interest rate
  • limit
  • money
  • mortgage
  • online banking
  • open
  • outgoings
  • overdraft
  • overdrawn
  • payment
  • raise money
  • savings account
  • steady
  • transfer v
  • VAT
Exercises

40.1 ‣ Match the words on the left with the definitions on the right.

  1. interest
  2. mortgage _____
  3. overdraft _____
  4. savings account _____
  5. current account _____
  6. direct debit _____
  1. a) an account for money you don't need immediately
  2. b) payment taken automatically from an account
  3. c) an account for day-to-day use
  4. d) a loan to buy a house or flat
  5. e) money that is charged on a loan
  6. f) an account with a negative sum of money in it

40.2 ‣ Use words from A opposite to complete the sentences.

  1. Nico owes his brother 5,000 euros and he borrowed 10,000 euros to buy a car. Nico has totalling 15,000 euros.
  2. Misha spent 6,000 euros on her credit card; the bank said she'd spent 1,000 euros too much. Her c_____ l_____ was 5,000 euros.
  3. Newbank offers interest rates on loans that are similar to the rates other banks offer and are sometimes better. Newbank's rates are c_____.
  4. Before she bought her new car, Alice paid £500 to the dealer. She paid a d_____ of £500.
  5. If a customer needs more money than is in their account, they can get permission to go on using the account. The bank offers an o_____ f_____.
  6. Harry sold his car, got a part-time job and offered to clean people's windows. He was trying to r_____ money to f_____ his trip to Africa.
  7. You only need one credit card. You can c_____ all the sums you owe into one p_____.
  8. If you want to buy a house, the bank offers loans where you can pay the money back over 30 years. The bank offers m_____ with r_____ over 30 years.

40.3 ‣ What do we call ...

  1. the tax you pay on imported goods?
  2. a shop at an airport where you don't pay tax? _____
  3. a tax which is added to most goods and services? _____
  4. a tax on money paid if someone dies? _____
  5. the tax that companies pay on their profits? _____
  6. the tax that the government takes out of your salary? _____

40.4 ‣ Answer the questions. Give reasons for your answers.

  1. If you were overdrawn, would you be in a good situation or a bad one?
  2. Why might a person open a savings account as well as a current account?
    _____
  3. Joel's account is in the red. Why is his bank manager unhappy?
    _____
  4. Why might someone transfer money from a savings account to a current account?
    _____
  5. Why is online banking easier than visiting your branch?
    _____
  6. Why are cash machines so convenient? Are there any risks in using them?
    _____
  7. Zara's account is in credit. Is she probably happy or unhappy?
    _____
  8. Bob doesn't have a steady income and his outgoings are very high. Do you think he feels secure or insecure?
    _____
  9. If your bank debited your account for 500 euros, would you feel you had more or less money as a result?
    _____
  10. If you have a good credit rating, what will you find it easier to do?
    _____
Answer Key
A ‣ Personal finance

Read these advertisements about personal finance.

Newbank - Your Bank
Need a good current account1 with the best interest rates2 and a guaranteed overdraft facility3? Pop into one of our branches.

TOO MANY CREDIT CARDS?
Consolidate4 all your cards and debts5 into one convenient payment6. Discuss your credit limit7 with us today. Call 01677 442319.

Short of cash? Need a loan?
Need to raise money for that round-the-world trip? For a loan with competitive8 interest rates visit our website at www.cashforyou.com

Looking for a mortgage9? Act now! For mortgages with low deposits10 and flexible repayments11 call 01569 87623.

1 account you use for most everyday business
2 percentage which the bank pays you based on how much you have in your account
3 permission to have a negative amount of money in your account
4 join together to make one
5 money you owe someone
6 the act of paying something
7 the maximum amount of money you may spend on your card
8 as good as or better than other banks
9 a loan used usually to buy a house
10 money you pay before buying something to show you really want to buy it
11 payments to reduce the amount you owe

B ‣ Bank accounts and services

I have a steady income1 now, which is great, and my outgoings2 are quite low. I don’t have any major expenses3.

I pay all my bills by direct debit4, so I don’t have to worry about them. It also means I have a good credit rating5, so I can borrow money if I need to.

I need to buy a car, but I’m not sure how I’m going to finance6 it.

I’ve just opened a savings account7, and I transfer8 money into it regularly.

My account is usually in credit9 at the beginning of the month, but by the end of the month it’s always overdrawn10. I hate being in the red11 and the banks all charge interest12 on over drafts! I try not to go over my overdraft limit, though.

I use online banking most of the time.I only go to the bank occasionally, to use the cash machine.

1 money coming in regularly, in a way that does not change much
2 money you pay each month, e.g. rent, cost of running a car, etc.
3 money you spend on things
4 money taken automatically from your account, e.g. to pay bills, a mortgage, etc.; the bank debits (verb) your account for the necessary sums of money
5 judgement made by a bank about how likely someone is to pay back money that they borrow
6 find the money needed to pay for it
7 account where you put money you do not immediately need
8 move from one account to another
9 has a positive amount of money in it
10 has a negative amount of money in it
11 infml have a negative amount of money in your account
12 make you pay a percentage of the amount

C ‣ Public finance

The government collects money through taxes. Income tax is the tax collected on wages and salaries. Inheritance tax is collected on money people get from people who have died. Customs (or excise) duty is paid on goods imported from other countries; airports usually have duty-free shops. VAT (value added tax) is a tax paid on most goods and services. Companies pay corporation tax on their profits.

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