TOEFL Topic: Money and finance Go Back
Exercise 1 - Complete sentences and paragraphs 1 – 20 with a word or phrase from the box. In each case, the word / phrase you need is connected in some way with the word in bold in the same sentence / paragraph (for example, it might have a similar meaning, it might be an opposite, or it might be a word that is sometimes confused with that word). In some cases you might need to change the form of the word in the box.
- Income is the money you receive (your wage or salary is part of your income), and _____________ refers to the money you spend.
- If you lend money, you let someone use your money for a certain period of time. If you _____________ money, you take someone's money for a short time, and then you pay it back.
- Adiscount is the percentage by which a full price is reduced in a store. A _____________ is money paid back to a customer when, for example, they return something to a store.
- If a person or company is insolvent, they have lost all their money. If a person or company is _____________, they have lost all their money, have then borrowed a lot, and cannot pay it back.
- A bank statement is a detailed written document from a bank showing how much money has gone into and come out of a bank account. A _____________ is the amount of money you have in your bank account.
- If your bank account is in the red, the amount of money you have spent is greater than the money you have made, and so you have less than $0 in your bank account. If your account is _____________, you have some money in your bank account.
- An invoice is a note, or bill, sent to you to ask for payment for goods or services, and a _____________ is a note (from a store, for example) which shows how much you have paid for something.
- When you make a profit, you gain money from selling something which is more than the money you paid for it. When you make a _____________, you have spent money which you have not gotten back.
- Something which is overpriced is too expensive. Something which is _____________ costs much more than its true value.
- If you save money, you keep it so that you can use it later. If you _____________ money, you put it into property, stocks, etc., so that it will increase in value.
- A wage and a _____________ are both money you receive for doing a job, but the first is usually paid daily or weekly and the second is usually paid monthly.
- A worthless object is something which has no value. A _____________ object is an extremely valuable object.
- If you deposit money in a bank account, you put money into your account. If you _____________ money, you take it out of your account.
- If you have been undercharged, you have paid less than you should have for goods or services. If you have been _____________, you have paid too much.
- Extravagant describes someone who spends a lot of money. _____________ describes someone who is careful with money.
- A bill is a piece of paper showing the amount of money that you have to pay for goods or services. A _____________ is the same thing, but shows what you have to pay after a meal in a restaurant.
- When a bank account is credited with money, money is put into the account. When a bank account is _____________, money is taken out.
- A bank is a business which holds money for its clients, and deals with money generally. A _____________ is similar, but is usually used by people who want to save money, or to borrow money to buy a house.
- A loan is money that you borrow from a bank to buy something. A _____________ is similar, but in this case the money is only used to buy property.
- A loan is money that you borrow from a bank, where a formal arrangement has been made with the bank to borrow it. An _____________ is the amount of money that you take out of your bank account, which is more than there is in your account. It is usually done without making a formal arrangement with your bank.
- Income is the money you receive (your wage or salary is part of your income), and expenditure refers to the money you spend.
- If you lend money, you let someone use your money for a certain period of time. If you borrow money, you take someone's money for a short time, and then you pay it back.
- Adiscount is the percentage by which a full price is reduced in a store. A refund is money paid back to a customer when, for example, they return something to a store.
- If a person or company is insolvent, they have lost all their money. If a person or company is bankrupt, they have lost all their money, have then borrowed a lot, and cannot pay it back.
- A bank statement is a detailed written document from a bank showing how much money has gone into and come out of a bank account. A balance is the amount of money you have in your bank account.
- If your bank account is in the red, the amount of money you have spent is greater than the money you have made, and so you have less than $0 in your bank account. If your account is in the black, you have some money in your bank account.
- An invoice is a note, or bill, sent to you to ask for payment for goods or services, and a receipt is a note (from a store, for example) which shows how much you have paid for something.
- When you make a profit, you gain money from selling something which is more than the money you paid for it. When you make a loss, you have spent money which you have not gotten back.
- Something which is overpriced is too expensive. Something which is exorbitant costs much more than its true value.
- If you save money, you keep it so that you can use it later. If you invest money, you put it into property, stocks, etc., so that it will increase in value.
- A wage and a salary are both money you receive for doing a job, but the first is usually paid daily or weekly and the second is usually paid monthly.
- A worthless object is something which has no value. A priceless object is an extremely valuable object.
- If you deposit money in a bank account, you put money into your account. If you withdraw money, you take it out of your account.
- If you have been undercharged, you have paid less than you should have for goods or services. If you have been overcharged, you have paid too much.
- Extravagant describes someone who spends a lot of money. Frugal or Economical describes someone who is careful with money.
- A bill is a piece of paper showing the amount of money that you have to pay for goods or services. A check is the same thing, but shows what you have to pay after a meal in a restaurant.
- When a bank account is credited with money, money is put into the account. When a bank account is debited, money is taken out.
- A bank is a business which holds money for its clients, and deals with money generally. A savings and loan association is similar, but is usually used by people who want to save money, or to borrow money to buy a house.
- A loan is money that you borrow from a bank to buy something. A mortgage is similar, but in this case the money is only used to buy property.
- A loan is money that you borrow from a bank, where a formal arrangement has been made with the bank to borrow it. An overdraft is the amount of money that you take out of your bank account, which is more than there is in your account. It is usually done without making a formal arrangement with your bank.
Exercise 2 - Complete this conversation with appropriate words and phrases from the box in Exercise 1. You may need to change the form of some of the words.
Financial advice from a father to a son
In the play Hamlet by William Shakespeare, a father 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:
Jim: Right, Dad, I'm off to college now.
Dad: All right, son, but let me give you some sound financial advice before you go.
Jim: Oh come on, Dad…
Dad: 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 Mom – 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.
Jim: But it's so difficult. Things are so expensive, and the (6) _____________ goes up all the time. (7) _____________ is running at about 8%.
Dad: 8.2% to be exact. But you should try to (8) _____________. Avoid expensive stores and restaurants. Also, put your money in a good local (9) _____________ account . They offer a much higher rate of (10) _____________ than banks. Also, avoid buying things (11) _____________.
Jim: Why?
Dad: Because some stores 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 when you see something you want, you can buy it outright. Try to wait for the sales, when stores offer huge (14) _____________ and you can pick up a (15) _____________. And try to get a (16) _____________.
Jim: How do I do that?
Dad: Easy. When you buy something, ask the shop if they'll lower the price by, say, 5 or 10%. You'd be surprised how many will say, 'Sure, ok'.
Jim: I can't imagine that working in Macy's, but I'll give it a go. Anything else you think I should know?
Dad: Yes. When you eventually get a job and are earning a good salary, try to (17) _____________ the money in a good company. Buy (18) _____________ in government organizations or (19) _____________ in private companies. I know an accountant who can give you some good advice, if you like.
Jim: OK, Dad, I've heard enough. Thanks for the advice. It's been (20) _____________.
Dad: Well, it's true what they say: there are some things that money just can't buy.
In the play Hamlet by William Shakespeare, a father 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) borrow money from anyone because it will make it difficult for him to manage his finances. Likewise he should never give a financial (2) loan 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:
Jim: Right, Dad, I'm off to college now.
Dad: All right, son, but let me give you some sound financial advice before you go.
Jim: Oh come on, Dad…
Dad: Now listen, this is important. The first thing you should do is to make sure you balance your (3) income – the money you receive from me and Mom – and your (4) expenditure – the money you spend. If you spend too much, you will end up with an (5) overdraft at the bank. Don't expect me to pay it for you.
Jim: But it's so difficult. Things are so expensive, and the (6) cost of living goes up all the time. (7) Inflation is running at about 8%.
Dad: 8.2% to be exact. But you should try to (8) economize. Avoid expensive stores and restaurants. Also, put your money in a good local (9) savings and loan association account . They offer a much higher rate of (10) interest than banks. Also, avoid buying things (11) on credit.
Jim: Why?
Dad: Because some stores charge you an (12) exorbitant amount of money to buy things over a period of time. It's much better to (13) save a little bit of money each week so that when you see something you want, you can buy it outright. Try to wait for the sales, when stores offer huge (14) reductions and you can pick up a (15) bargain. And try to get a (16) discount.
Jim: How do I do that?
Dad: Easy. When you buy something, ask the shop if they'll lower the price by, say, 5 or 10%. You'd be surprised how many will say, 'Sure, ok'.
Jim: I can't imagine that working in Macy's, but I'll give it a go. Anything else you think I should know?
Dad: Yes. When you eventually get a job and are earning a good salary, try to (17) invest the money in a good company. Buy (18) stocks in government organizations or (19) shares in private companies. I know an accountant who can give you some good advice, if you like.
Jim: OK, Dad, I've heard enough. Thanks for the advice. It's been (20) priceless.
Dad: Well, it's true what they say: there are some things that money just can't buy.