INTEREST RATE, MONEY MARKET

Part I
1. Mortgage-a loan to buy a property (house, flat)
2. Leasing- Borrowing money to buy something like a car, spreading payment
over 36 month
3. Base rate- Commercial banks lending rate for their most secure customers
4. Loan- Occasionally borrowing money by spending more than you have in the
bank
5. Discount rate- The rate at which central banks make secured loans to
commercial banks
Part II
1. Interest rate- the cost of borrowing money, expressed as a percentage of the
loan
2. Solvency- Having sufficient cash available when debts have to be paid
3. Labour Paid work that provides goods and services
4. Floating rate- A borrowing rate that isnt fixed
5. Creditworthy- Safe to lend money to
6. Spread- the difference between borrowing and lending rates
7. Output- The quantity of goods and services produced in an economy
8. Invest- To spend money in order to produce income or profits
9. Discount- A price below the usual or advertised price
10. Competitive- Adjective describing a good price, compared to others on the
market
11. Liquidity - The ability to sell an asset quickly for cash
12. Unsecured- Adjective meaning with no guarantee or collateral
13. Redeemed- Repaid
14. Maturity- The length of time before a bond has to be repaid
15. Cash flow- The movement of money in and out of an organization
16. Par value- The price written on a security
17. Entrepreneurs- People who have ideas for setting up new businesses
18. Angels- Individuals who lend money to new companies are sometimes called
that
19. Mezzanine- Money invested in a company just before it joins a stock
exchange
20. Preference Shares- Shares that receive a fixed dividend but without right to
value
Part IV
1. What is the main cause of inflation? (gwna przyczyna inflacji)
The main causes of inflation are either excess aggregate demand (economic
growth too fast) or cost push factors (supply side factors).
2.What does narrow money mean?
Currency money + short term deposit
3. What is broad money?
time deposit, repos, market money
4. How can the monetary authorities control the amount of money in circulation?
change demand of money, control inflation

*5. What are the aims of money market instrument for borrowers?
6. What are convertible bonds?
Bank may be convertibled to a shares
7. What are the most common money market instruments?
a) stock, bonds, short-term loans and terms
b) Treasury bills
c) Commercial paper
d) Certificates of deposit
Part V
a) Spread = margin
b) Base rate = prime rate
c) Par value = nominal/ face value
d) Creditworthy = credit rating
e) Leasing = cure purchase
f) Preference shares = Prefered stock
g) Start-up capital- venture capital
h) Resume = CV
Part VI
1. Break-even point when company spend all income, pro=cons, bilans na zero
*2. Revenue 3. Competitive advantage- when company do better than its competitive
4. Sales forecast- sales in a period of time; prognoza sprzeday
*5. Exit strategy- stategia wyjciowa;
Part VII
Name the most important parts of a business plan
1. Executive summary:
a. type of company
b. when or what we produce
c. how much we need
d. on what and how we spend money
2. Describes the company today and plans for the future
3. What makes you unique, focus on benefits for cutomers
4. Chapter on the market
a. market segment
b. project trends and technological opportunities
c. market strategy-sales tactics
5. Chapter on management team
6. Chapter on strategy
7. Financial analyst
8. Appendices
Part VIII
1. A treasury bills is safe because it is guaranteed by the government
2. Certificates of deposit are short-term, liquid, safe and sold at a discount
3. Most money market securities are short-term exchanges of cash for securities
4. The central bank will sometimes lend money if there is a run on a commercial
bank

5. There will be low and stable inflation if monetary policy is successful

------------------------------------------------------------------------------------------------------------------------------------Test I
Part I
Ultra vires
Balance sheet
Preclude
Preparate
Capitalization issue
Insulate
Suffrage
Lawmaker
Free enterprise
Civil disobedience

Dziaanie w sposb nieprawidowy

bilans
zawiera
Dopuci si
Emisja kapitalizacyjna
chroni
Prawo wyborcze
prawodawca
Firma prywatna
Nieposuszestwo obywatelskie

Part II
1. Ltd written In full Limited Liability Enterprise
2. R&D- Research and Development
3. SME- Small And Medium Enterprise
4. CEO- Chef Executive Officer
5. PLC- Public Limited Company
6. AGM- Annual General Meetings
7. HR- Human Resources
Part III
1. A company is formed upon the issuance of a certificate of incorporation
2. The management of company is carried out by its officers
3. Employees owe a duty of confidentiality to the company
4. A secretary connot director of the company
5. This requirement is not applicable if there is more than one director
6. The auditors report is addressed to the shareholders.
7. The fiduciary duty stems from the position of trust and responsibility
8. A director must act in the best interest of the company
9. The courts are generally reluctant to interfere
10. A companys state of health is reflected in its accounts
11. Healthy profits might lead to a bonus or capitalization to the shareholders
12. Continuous losses may result in insolvency and liquidation
Part IV
1. What is the role of the board?
-make vital decisions
- executive/ non-executive Director
- appoint the CEO
2. Whom does the Board appoint and what is his role in the company?
- appoint CEO
a. oversees day-of-day running of the business

b. secures smooth operating of the company

c. delegate power
3. CERTIFICATE OF INCORPORATION- a document issued after filing of the
constitutional documents of the company and paying a filing fee
MEMORANDUM OF ASSOCIATION- the document stating the objectives of the
company and details of its nominal capital
LEGAL ENTITY- a person or organization which is able to make contracts and may
be sued for damages
ARTICLE OF ASSOCIATION- A document which contains provision for the internal
management of the company
Part V
1. Be in charge OF a department or project
2. Be involved IN doing something
3. Deal WITH an area of work
4. Liaise WITH someone about an area of the business
5. Report directly TO somebody
6. Run the business ON day-of-day basis
7. Take care OF an area of work.
Part VI
1. FREELANCER2. LIABILITY3. FOREMAN- someone who leads a group of workers
4. WIKINOMICS- using internet to find solving a problem
5. TO DELEGATE- decision making ; to give someone else responsibility for doing
something instead of you
6. CHAIN OF COMMOND- a system of authority with different levels, one above
the other
7. SUBSIDIARY- dependent on other company
8. PUBLIC LIMITED COMPANY9. SOLE PREPARATION10. ENTERPRISE ZONE11. CORPORATE CULTURE-a companys shared attitudes, beliefs, practices and
work relationshipsggg
12. INTRANET13. AUDIT14. PLC- Public Limited Company
Part VII
Explain the main functions of the following departments
1. Personnel
*trainings (term and conditions)
* social events
* recruiting new employees
2. Finance
*pay taxes
*pay payroll for employees
*make pro and loss balance
*preparing budget

Part VIII
Zlot, wiec
cytowa
precedens
postrzega
Wdraa

rally
quoting
precedent
perceive
Deplay/emplemen
t
Poprzenik
predecessor
Staysta
intern
scuffle
starcia
converge
Zebra si
Be at the helm
By na czele
Vote down
Gosowa przeciw
ruling
rozporzdzenie
Branch
Dzia,wydzia
payroll
Wypata,zapata
--------------------------------------------------------------------------------------------------------------------------------MONEY/BANKING
Part I
1.Income tax is related ones annual income.
2. A salesman is paid a commission on the goods he sells.
3. Im afraid that the bank will refuse my application for an extended overdraft.
4. The governments policy is to subsidize firms in trouble to prevent
unemployment.
5. The firm will go bankrupt if it cannot meet its liabilities.
6.The salary is $35,000 per annum with annual prizes of $2,000 for five years.
7. Borrowed money that has to be paid back constitutes a debt.
8. A person who has borrowed money is a debtor.
9. His inheritance will be held in trust for him until he is 21.
10. The going rate for the job is $7 an hour.
11. When you buy a house you can claim tax relief on the mortgage.
12. If you dont complete your income tax return, you may have to pay a fine.
13. The government introduced stringent currency controls which will make it
more difficult to holiday abroad.
14. For some jobless people, joining the dole queue is a humiliating experience.
15. At this bank you can get 14% interest on your savings.
Part II
1. DEBT- a sum of money which is owned to someone
2. OVERDRAFT- an arrangement to withdraw more money from a bank account
than you have in it
3. FINE- paid as a punishment for breaking the law
4. FEE- paid while traveling, esp. on public transport
5. FEAR- money usually from relative to live on
6. ALLOWANCE- money paid by divorced people to support the former husband or

wife
7. MORTGAGE- the money which a building society or bank lends to someone to
buy a house
8. STOCKBROKING- buying and selling stocks or shares for clients
*9.BROKING- Money received from someone in his or her will
10. LEGACY- money paid to authors or inventors according to the sales of their
work
11. MATURITY- date when a loan has to be repaid
12. LIQUIDITY- having cash available when depositors want it
13. STOCK EXCHANGE- the place where the shares of a publicly quoted company
are sold
14. INTEREST RATE/PROFIT- the difference between borrowing and lending rates
*15. PORTFOLIO- all the investments owned by an individual or organization
*16.
- Something that acts as a security or a guarantee for a debt
*17. COLLATERAL- The profits made on investments
18. PENSION PLAN - an arrangement for saving money to give you an income
when you are retaired
*19.
- Credit standing
*20.
the rate of interest fixed by a central bank
Part III
1. The basic feature of Islamic banking is that it is interest free.
2. Instead of charging and paying interest Islamic banks and their customers
share profits/losses.
3. Depositors in Islamic banks do not receive a fixed return.
4. Businesses that borrow from Islamic banks have to share their profits with the
bank.
5. Islamic banks operate in a similar way to venture capitalists who buy
companies stocks.
6. Bank lend savers deposit to people who need to borrow money.
7. They also create credit by lending the same original deposit several times.
8. How much credit banks can create depends on the reserve requirements.
9. Before lending money banks have to assess the risk involved.
10. The interest rate on a loan depends on how risky it is for the bank to lend the
money.
11. Banks always need liquidity, so they cant lend all their money in loans with
long maturities.
Part IV
1. CENTRAL BANK The Federal Reserve was founded by Congress in 1913 to
provide the nation with a safer, more flexible, and more stable monetary and
financial system.
2. INVESTMENT BANK- We provide a full range of products and services, including
advising on corporate strategy and structure, and raising capital in equity and
debt markets.
3. PRIVATE BANK- How can we help you? We can:
- Build a long-term, one-to-one relationship with your banker.
- Manage your familys diverse business and personal assets.
- Build a portfolio tailored to your familys unique needs.

- Play an active role in managing your assets.

4. CLEARING BANK- Nearly twelve million cheques and credit pass through the
system each working day. Cheque volumes reached a peak in 1990, but usage
has fallen since then, mainly owing to increased use of plastic card and direct
debits by personal customers.
5. COMMERCIAL BANKS- Why bank with us? Because we offer:
- a comprehensive range of accounts and services
- over 1,600 branches, many with Saturday opening
- free withdrawals from over 31,000 cash machines
- online and telephone banking for round-the-clock access to your account
Part V
CALLING ALL STUDENTS
ABC Bank now offers 1% interest on current account and 2,5% on saving account.
We will give you a chequebook and plastic: a free debit card for use in cash
dispensers, and the possibility to apply for a credit card . You can pay fixed
monthly bills by standing order , and other bills by statement . We can also sell
you foreign currency for your next holiday, or travelers cheques for greater
security. What are you waiting for? Call us today.
Part VI
Explain the difference between the following.
1. Current account vs. saving account
Current account- we can withdraw money at any moment; saving account- we
can withdraw money but then we lose our interest and we dont earn.
2. Debit vs. credit
debit- all money that goes out on our account; credit- all money that come into
our account
3. Standing order vs. Direct debit
Standing order- pay fixed sum of money regullary; direct debit- we must tell our
bank when some institution bills will come they should pay
Part VII
Explain the main functions of investment bank
1. Financial advice
2. Valuation of different market
3. Raising capital by issuing stock, shares and bonds
4. Stockbroking and dealing
5. Underwriting securities
---------------------------------------------------------------------------------------------------------------------------------International Trade, Marketing
PART I
1. invoice- faktura
2. bill of lading- konosament
3. retailer- sprzedawca, detalista
4. letter of credit - akredytywa
5. convertibility- wymienialno
6. rynek pracy- labour market
7. udzia w rynku- market share

8. fracht- freight
9. ubezpieczenie- insurance
10. pynny kurs- floating rate
PART II
1. A limit to the quantity of goods that can be imported- quota
2. Attempt to reduce imports in favour of local production- protectionism
3. A country's ability to produce certain goods more efficiently than some other
countries- comparative advantage
4. When a country exports more than it imports- trade surplus
5. Trade in goods rather than in services - visible trade
6. A document which states where the goods come from- certificate of origin
7. A document signed by the carrier confirming that the goods have been
received for shipment8. Imports and exports of goods and services without any government
restrictions- free trade
9. Import taxes imposed by governments- tariffs
10. Selling goods abroad at below cost price (to destroy competition)- dumping
11. To fall in value in a market system- depreciate
12. Trying to get consumers to forward an online marketing message to other
people- viral marketing
13. Continuous changes in a price or value - fluctuations
14. To increase in value of a currency in an otherwise fixed system - revalue
15. The official legal right to make or sell an invention for a particular period of
time- patent
16. A small group of buyers with special needs- niche
17. The knowledge which consumer have of a brand- brand awareness
18. A company's products of a particular type- product range
19. When a celebrity recommends a product- endorsement
20. When you buy cheaper product after buying more expensive ones- down
market
21. Places of business for selling goods to customers (shops, kiosks, etc.) - outlets
22. A small amount of product to try or taste- sample
23. A good period for sellers when prices rise quickly- price boom
24. When competing companies reduce prices in response to each other- price
war
25. Company which is the first to reduce or increase a price- price leader
Part III
1. Customs clearance- completing import documents and paying any import
duties or taxes
2. Commercial invoice - contains details of the goods : quantity, weight, number
of packages, price, terms of delivery, terms of payment and information about
the transportation
3. Irrevocable credits - cannot be changed unless all the parties involved agree
4. Incoterms- state the responsibilities of the buyer and the seller; determining

wheter the buyer or the seller will pay the additional costs
*5. Strategic industry*6. Infant industry*7. Subsidize8. generic products or generics - products no-name which replace brands
products
*9. Trademark*10. Copyright11. consumer durables ( can be used more than one time, f.ex. car, computer)
12. positioning (pozycjonowanie produktu): how a company wants its product to
be seen
*13. High-end products
14. brand switcher : someone who try different brands
15. Product placement- this is way of promotion, we can for example watch this in
film
*16. Market challenger17. Cluster- a group of similar things situated close together
18. Headhunter- a recruiter of important person for company
19. Market penetration- the strategy of the setting a low price to try to sell a
large volume and increase market share
20. Media plan- order to reach the right people
Part IV
Name and explain the marketing mix from the customers point of view
*1. Customer solution*2. Customer cost*3. Convenience4. Communication- they inform but they need response from customers
Part V
Give the full names of the following abbreviations:
1. NAFTA- North America Free Trade Agreement
2. WTO- World Trade Organization
3. FOB- Free on Board
4. EXW- Ex Works
5. ICC- International Chamber of Commerce
6. CIF- Cost, Insurance and Freight
7. USP- Unique, Selling Proposition
8. DDP- Delivered Duty Paid
9. FCA- Free Carrier
10. FMCG- Fast Moving Consumer Goods
11. EFTA- European Free Trade Association
12. PPP- Purchasing Power Poverty
--------------------------------------------------------------------------------------TAXATION
Part I
1. What fiscal policy should be applied when the economy is overheated?
deflationary fiscal policy, trying to cool down the economy

*2. What is political business cycle and what are the ways of avoiding it?
3. What is the aim of monetary policy?
Changing interest rate and level of the money supply.
4. What is the aim of fiscal policy and how can it be achieved?
Changing the level of government expenditure or taxation to limit the extent of
business cycle
5. What is a regressive tax system?
people with lower income pay more tax
6. Name the way of avoiding taxes used by multinational corporate.
Double irish, dutch sandwich , perks
7. What is degressive tax system?
more you earn the lower you pay
8. What is a tax haven?
this is place, when taxes are very low
Part II
1. DIRECT TAXES- an adjective describing taxes on revenue or income
2. PROPORTIONAL TAX, FLAT TAX- a tax that has one rate that is the same for
everybody
3. BENEFIT, DOLL- money paid by the government to sick and unemployed
people.
4. PROGRESSIVE TAX- a tax that has a higher rate for taxpayers with higher
income
5. INDIRECT- an adjective describing taxes on consumption or spending
6. CAPITAL TRANSFER- a tax imposed on inherited money or property
7. ESCISE- an additional sales tax levied by governments on tobacco, petrol and
alcoholic drinks
8. TAX EVASION- using illegal methods to minimize your burden
9. REFLATIONARY- policy trying to stimulate the economy government spending
or cutting levels of taxes
10. RECESSION- downsizing of economy lasting more than six months
11. PEAK- the highest point of the business cycle
12. TROUGH- the lowest point of the business cycle
Part IV
1. If the government thinks the economy is contracting too much it can cut taxes
and increase its spending.
2. Fiscal policy involves taxation and government spending
3. If there isnt an independent central bank, governments can manipulate the
business cycle to their own advantage
4. If the government thins the economy is growing too quickly it can raise tax
rates and cut its expenditure.
5. Monetary policy involves interest rate and the money supply.
Part V
A. synonyms

1.
2.
3.
4.
5.

boost
downturn
expenditure
recovery
expand

stimulate
downswing
spending
upturn
growth

B. antonyms
1.
2.
3.
4.
5.

peak
save
expand
demand
boom

Trough
Spend
Contract
Supply
Recession

Part VI
LOOPHOLE- dziura w systemie
ECONOMIC CONTRACTION- spadek ekonomiczny,spowolnienie
TAX RATE- stopa podatkowa
SLUMP- gwatowny spadek
OUTPUT- produkcja
FLAT TAX- podatek liniowy
EXCISE- akcyza
TAX HAVEN- raj podatkowy
SURPLUS- nadwyka
SUPPY- poda

1-peak
2- slide
3- go south
4- trough
5- recovery
6-boom