Đề cương TACN1

1 Vũ Trần Minh Trang – CQ58/22.
3LT1
ĐỀ CƯƠNG ÔN TẬP TIẾNG ANH CHUYÊN NGÀNH 1

(Các câu hỏi ôn thi theo từng bài)
UNIT 1: ECONOMICS
1. What do resources include?
 Resources include the time and talent people have available, the land,
buildings, equipment and other tools on hand, and the knowledge of how
to combine them to create useful products and services.
2. Main question: What is economics?
 Economics is the study of how people choose to use resources to improve
their well-being and it is the social science that deals with the production,
distribution and consumption of goods and services.
3. What can be considered as important choices?
 Important choices involve how much time to devote to work, to school,
and to leisure, how many dollars to spend and how many to save, how to
combine resources to produce goods and services, and how to vote and
shape the level of taxes and the role of government.
4. What purpose do people use their resources for?
 The purpose that people use their resources is improve their well-being.
5. What does the term “well-being” mean?
 The term “well-being” means the satisfaction people gain from the
products and services they choose to consume, from their time spent in
leisure and with family and community as well as in jobs, and the
security and services provided by effective governments.
6. Why does economics reveal the ways people and government behave?
 Because economics is a driving force of human interaction.
7. What are two types of economics?
 They are macroeconomics and microeconomics.
8. What does microeconomics study?
 Microeconomics focused on the actions of individuals and industries, like
the dynamics between buyers and sellers, borrowers and lenders.
9. What does macroeconomics study?
 Macroeconomics takes a much broader view by analyzing the economic
activity of an entire country or the international marketplace.
10.Main question: What can you learn from the economic theory of Adam
Smith?
2 Vũ Trần Minh Trang – CQ58/22.3LT1
 People who acted in their own self-interest produced goods and wealth
that benefited all of society. Government should not restrict or interfere
in markets because they could regulate themselves and, thereby, produce
wealth at maximum efficiency.
11. Main question: What is the difference between the economic theory of
Adam Smith and Marxism theory?
 Adam Smith believed that people who acted in their own self-interest
produced goods and wealth that benefited all of society. He believed that
government should not restrict or interfere in markets because they could
regulate themselves and, thereby, produce wealth at maximum efficiency.
Theory of Adam Smith forms the basis of capitalism.
 Marxism states that capitalism will eventually fail because factory
owners and CEOs exploit labor to generate wealth for themselves.
Marxism believed that such exploitation leads to social unrest and class
conflict. To ensure cocial and economic stability, he theorized, laborers
should own and control the means of production.
12. Main question: What does the recent economic theory of the Keynesian
School indicate?
 The recent economic theory of the Keynesian School describes how
governments can act within capitalistic economies to promote economic
stability. It calls for reduced taxes and increased government spending
when the economy becomes overly active.
13. In general, how can people benefit from studying economics?
 Through economics, people and countries become wealthy and studying
economics can help one understand human thought and behavior.
UNIT 2: ECONOMIC SYSTEMS

1. What is free the market economy?
 A free market economy is an economic system in which the market is
supposed to be regulated by the law of supply and demand.
2. What is the market?
 Market is the place at which people meet or contact in order to buy or sell
goods and services. It includes is the relation between producers and
consumers, buyers and sellers, investors and workers, management and
labour.
3. How do companies compete in the market economy?
 Companies are supposed to compete freely, and any attempt at hindering

free competition is punishable by law.
4. How does the Government influence the economy in the free market
economy?
 In the free market economy, the Government influences the economy
through its fiscal and budgetary policies.
5. What is the planned economy?
 Planned economy is a system whereby the structure of the market is
deliberately planned by the state, in which production and consumption
quotas are fixed beforehand, and where there is no real competition
between industrial or commercial organizations.
6. Main question: What are the differences between a free market
economy and a planned economy?
Different A free market economy A planned economy
Concept A free market economy is an A planned economy is a system
system in which the market is whereby the structure of the
supposed ro be regulated by the market is deliberately planned by
law of supply and demand. the state, in which production
and consumption quotas are
fixed beforehand, and where
there is no real competition
between industrial or commercial
organizations.
Structure A free market economy is an A planned economy is a system
economic system in which the whereby the structure of the
market is supposed to be market is deliberately planned by
regulated by the law of supply the state.
and demand
Competition In the free market economy, There is no real competition
business firms are supposed to between industrial or commercial
compete freely and any attempt organizations in the planned
at hindering free competition is economy.
punishable by law
The In the market economy, direct In the planned economy, private
intervention government intervention is ownership does not exist. There
of theoretically ruled out although is direct government intervention
goverment the government will influence in the economy.
the economic situation through
its fiscal and bugetary policies.
7. What is a mixed economy?

 A mixed economy is an economic system in which some goods and
services are produced by the government and some by private enterprise.
8. What do you think are the disadvantages of a planned economy?
 Lack of profit motive may lead to firms being inefficien. Lot of time and
money is wasted in communicating instructions from the government to
the firms.
UNIT 3: MICROECONOMICS
1. Main question: What is microeconomics?
 Microeconomics is branch of economics that deals with how consumers
and firms behavior while making decisions on the allocation of scarce
resources.
2. In a planned economy, who makes decisions on the allocation of scarce
resources?
 In a planned economy, government makes decisions on the allocation of
scarce resources. / The allocation decisions are made mostly by the
government.
3. Why are many microeconomic tools and concepts of limited relevance in
Cuba and North Korea?
 Because firms are told what how much to produce, and how to produce it;
workers have little flexibility in choice of jobs, hours worked, or even
where they live; and consumers typically have a very limited set of goods
to choose from.
4. What does the term “trade-offs” mean?
 Trade-offs means balance, specifically, when you want something you
have to give up others because of limited resources.
5. Main question: What is economic agent?
 Economic agent is any individual or organization that affect the econt my
through economic behavior.
6. Main question: What is market mechanism?
 Market mechanism means by which the forces of demand and supply
determine prices and quantities of goods and services offered for sale in a
free market.
7. Main question: What is economic growth?
 Economic growth is an increase in the economy of a country or an area,

especially of the value of goods and services the country or area produces.
8. Main question: What can you learn from the “consumer theory”? or
What does the “consumer theory” describe/indicate/show?
 Consumer theory describes how consumers, based on their preferences,
maximize their well-being by trading off the purchase of more of some
goods with the purchase of less of others. We will also see how
consumers decided how much of their incomes to save, thereby trading
off current consumption for future consumption.
9. Main question: Give some examples explaining the trade-offs made by
consumers?
 Consumers have limited income, they must trade-off between, speding or
saving money, buying now or in the future.
10. Main question: What does the “workers theory” describe?
 Workers face constraints and make trade-offs. First, people must decide
whether and when to enter the workforce. Second, workers face trade-
offs in their choice of employment. Finally, workers must sometimes
decide how many hours per week they wish to work, thereby trading off
labor for leisure.
workers?
 Because the kinds of jobs – and corresponding pay scales – available to a
worker depend in part on educational attainment and accumulated skills,
one must trade off working now (and earn an immediate income) with
continued education (and the hope of earning higher future income).
 Another example, while some people choose to work for large
corporations that offer job security but limited potential for advancement,
others prefer to work for small companies where there is more
opportunity for advancement but less security. Or trading off labor for
leisure.
12. Main question: What does the theory of the firm indicate?
 The theory of the firm describes how the trade-offs can be best made, it
must decide whether to hire more workers, build new factories or do both.
firm?
 A firm must decide whether to hiring additional workers or buying new
machinery, and to producing one set of products or another.
 Or a car company must decide how many of each type of vehicle to

produce, if it wants to produce a larger total number of car and trucks
next year or the year after, it must decide whether to hire more workers,
build new factories or do both.
14.What limits or constraints does the Ford Motor Company have to face?
 The Ford Motor Company faces limits in terms of the kinds of products
that they can produce, and the resources available to produce them. Ford
is very good at producing cars and trucks, but it does not have ability to
produce airplanes, computers or pharmacueticals. It is also contrained in
terms of financial resources and the current production capacity of its
factories.
UNIT 4: MACROECONOMICS
1. Main question: What is macroeconomics?
 Microeconomics is branch of economics that deals with the economic
activity of an entire country and industries.
2. Main question: What are two major macroeconomic policies?
 Two major macroeconomic policies are monetary policy and fiscal policy.
Monetary policy is a macroeconomics policy by which Central Bank,
uses its tools to control a nations’s money supply. While fiscal policy is a
macroeconomics policy by which Ministry of Finance, uses taxation and
Government spending to control nation’s ecomony. The basic objectives
of the two main macroeconomic policies are to promote economic
growth and to keep inflation under control.
3. What are the main tools of monetary policy?
 The main tool of monetary policy is money supply.
 The main tools of monetary policy are reserve requirements, discount
rate, apen market operations.
4. What are the main tools of fiscal policy?
 The main tools of monetary policy are Government spending and
taxation.
5. Main question: What are the differences between monetary policy and
fiscal policy?
 The differences between monetary policy and fiscal policy are: Monetary
policy which controls a nation’s money supply is supervised by each
country’s Central Bank while fiscal policy which controls a
government’s revenue and spending is in the hand of the Ministry of

Finance.
6. Main question: What is the difference between microeconomics and
macroeconomics?
 The difference between microeconomics and macroeconomics is:
Microeconomics is the study of decisions that people and business make
regarding the allocation of resources and prices of goods and services.
Microeconomics focuses on supply and demand and other forces that
determine the price levels seen in the economy.
 Macroeconomics is the field of economics that studies the behavior of the
economy as a whole and not just on specific companies, but entire
industries and economies. Macroeconomics looks at economy – wide
phenomena, such as Gross Domestic Product (GDP) and how it is
affected by changes in unemployment, national income, rate of growth,
and price levels.
 Microeconomics takes a bottom – up approach to analyze the economy
while macroeconomics takes a top – down approach.
7. Why is it said that microeconomics and macroeconomics are
interdependent and complement one another?
 Because there are many overlaping issues between two fields. For
example, increased inflation (macro effect) would cause the price of raw
materials to increase for companies and in turn affect the end product’s
price charged to the public.
UNIT 5: DEMAND AND SUPPLY

1. Main question: What is the definition of “demand” and “quantity
demanded”? or What is the difference between “demand” and
“quantity demanded”?
 Demand is the quantity of goods or services buyers are willing and able
to buy at various prices in a period of time.
 Quantity demanded is the quantity of goods or services buyers are willing
and able to buy at a certain price in a period of time.
2. What factors cause the whole demand curve shift to the left or to the
right?
 They are shift factors of demand: society’s income, prices of other goods,
expectations and tastes. (Đó là các yếu tố ngoài giá của cầu: thu nhập của
xã hội, giá cả của hàng hóa khác, kỳ vọng và thị hiếu.)
3. Main question: What is the definition of “demand curve”?

 Demand curve is going down curve reflecting an inverse relationship
between prices and the quantity demanded for goods and services.
4. Main question: Name the shift factors of demand. Give an example of
one of the shift factors of demand and analyze it.
 The shift factors of demand are society’s income, prices of other goods,
expectations and tastes.
 For example, if higher incomes cause the buyers of a specific good to be
willing and able to buy more at various prices, this event is expressed as
an increase in demand and is modeled as a shift of the demand curve to
the right. If buyers are willing and able to buy less at all of the various
prices because of lower incomes, there is a decrease in demand, and the
demand curve shifts to the left.
5. Main question: How do prices of a good influence its quantity
demanded?
 If the price of a specific good or service increases, the quantity a buyer
will purchase will decrease. If the price decreases, the quantity a buyer
will purchase will increase. The relationship between the prices and the
quantity demanded is negative relationship. And we must hold all the
other possible influences constant.
6. Main question: What is the definition of “supply” and “quantity
supplied”? or What is the difference between “supply” and “quantity
supplied”?
 Supply is the quantity of goods or services sellers are willing and able to
sell at different prices in a period of time.
 Quantity supplied is the quantity of goods or services sellers are willing
and able to sell at a certain price in a period of time.
7. Main question: What is the definition of “suppy curve”?
 Suppy curve is going up curve reflecting a positive relationship between
prices and the quantity supplied for goods and services.
8. Main question: How do prices of a good influence its quantity supplied?
 If the price of a specific good or service rises, the quantity supplied will
increase. If price decreases, the seller will produce less and the quantity
supplied will decrease. The relationship between prices of good and
quantity supplied is positive relationship. Other factors are held constant.
9. Main question: Name the shift factors of supply. Give an example of
one of the shift factors of supply and analyze it.
 The shift factors of supply are prices of inputs, technology, taxes, and
suppliers’ expectations. For exmaple, an increase in the co.ll..sts of
producing a good would result in a decrease in supply and the supply
curve shifts to the left. A decrease in the costs of producing a good would
result in an increase in supply and is modeled as a shift of the supply
curve to the right.
10. Will the supply curve of beer shift to the right or to the left if there is an
increase in its production?
 If there is an increase in beer’s production, the supply curve of beer shifts
to the left.
11. Main question: When is a market in equilibrium?
 A market will be in equilibrium when there is no reason for the market
price of the product to rise or to fall. This occurs at the price where
quantity demanded equals quantity supplied.
UNIT 6: PUBLIC FINANCE

1. What does the U.S Treasury do when revenue from taxes is not enough
to cover all of the government’s expenditures? (Kho bạc Hoa Kỳ làm gì
khi doanh thu từ thuế không đủ để chi trả cho tất cả các chi tiêu của
chính phủ?)
 When revenue from taxes is not enough to cover all of the government’s
expenditures, U.S Treasury will start borrowing money by issuing bonds.
2. How much is the federal government going to collect in tax revenues in
fiscal year 2014?
 The federal government is going to collect $3 trillion in tax revenues in
fiscal year 2014.
3. Main question: What is “deficit spending”?
 Deficit spending is a situation of government budget in which
government spending exceed government’s revenue.
4. Main question: What is the definition of “Public Finance”?
 “Public Finance” is a social science, the study of government income,
government spending and assessment of their effectiveness on the
economy and society.
5. What type of taxes contributes the largest proportion of tax revenues?
(Loại thuế nào đóng góp tỷ lệ lớn nhất của doanh thu thuế?)
 Income taxes contributes the largest proportion of tax revenues
6. What are federal funds/government fund? (Quỹ liên bang là gì?)
 Federal funds are general revenues, meaning Congress and the President
can decide to spend them on just about anything when they conduct the
annual appropriations process.
7. For what purpose are federal funds used?
 Federal funds used to spend them on just about anything when they
conduct the annual appropriations process.
8. What are trust funds?
 Trust fund is an amount of money invested and managed for some
specific programs.
9. For what purpose are these funds used?
 Trust funds can be used only to pay very specific programs. The vast
majority of trust fund revenues pay for Social Security and Medicare.
10. What way does the Treasury borrow money?
 The Treasury borrow money by Selling bonds and other types of
Securities.
11. Who does the Federal government owe money to?
 Debt held by the public is the total amount the government owes to all of
its creditors in the general public.
 (Nợ do công chúng nắm giữ là tổng số tiền chính phủ nợ cho tất cả các
chủ nợ của nó trong công chúng.)
12. Main question: What are sources of government revenue?
 The sources of government revenue are tax and borrowing:
+ These revenues come from 3 major sources: income taxes paid by
individuals; payroll taxes paid jointly by workers and employers;
corporate income taxes paid by business. And there are also handful of
other types of taxes like customs duties and excise taxes.
+ Borrowing: the Treasury borrows money by issuing bonds; borrowing
constitutes a major source of revenue for the federal government.
UNIT 7: FISCAL POLICY

1. What way do government spending and taxation affect the economy?
Example?
 Government spending and taxation directly affect the overall
performance of the economy. For example, if the government increases
spending to build a new highway, construction of the highway will create
jobs and people spend more money on purchases, thus, the economy
tends to grow.
2. Main question: What is deficit spending? Is it useful or harmful for the

economy? Why?
 Deficit spending is a situation of government budget in which
government spending exceed government’s revenue. It is spending funds
obtained by borrowing or printing instead of taxation.
 Deficit spending can be helpful for the economy. For example, when
unemployment is high, the government can undertake projects that use
workers who would otherwise be idle. The economy will then expand
because more money is being pumped into it.
 Deficit spending also can harm the economy. When unemployment is
low, a deficit may result in rising prices, or inflation. The additionl
government spending creates more competition for scarce workers and
resources and this inflates wages and prices.
3. What are the government’s major economic policies mentioned above?
 The government’s major economic policies mentioned above are Fiscal
policy and Monetary Policy.
4. What are they aimed at?
 They aimed at maintaining economic growth, high employment and low
inflation.
5. Main question: What is Fiscal policy?
 Fiscal policy is a macroeconomics policy by which Ministry of Finance,
uses taxation and Government spending to control nation’s ecomony
6. Main question: Under what circumstances can fiscal policy be
expansionary? Why?
 Expansionary fiscal policy is a macroeconomic policy by which a
government, decrease the taxes and increase government spending. The
aimed of expansionary policy is to stimulate total spending in the
economy, know as aggregate demand, to promote the economic growth.
Government uses expansionary policy when a government feels its
economy is not growing fast enough or unemployment is too high.
7. Main question: Under what circumstances can fiscal policy be
contractionary? Why?
 Contractionary fiscal policy is a macroeconomic policy by which a
government, increase the taxes and decrease government spending. The
aimed of contractionary policy is to restrict demand and slow down the
economy. Government uses contractionary fiscal policy when inflation is
high.
8. Main question: What factors should be considered in making decisions

on fiscal policy?
 The 1st factor is the level of economic growth or unemployment likely in
the future.
 The 2nd factor is whether or not to run a budget deficit by spending more
money than the government raises.
 The 3rd factor is influenced by political considerations such as beliefs
about the size of the role that governments should play in the economy or
the likely public reaction to a particular course of action.
 Fiscal policy decisions can be influenced by other outside factors as well
such as the fiscal policies of other countries, the requirements of the IMF.
9. Why should the government consider the fiscal policies of other
countries?
 Because by doing so, the government may tempt companies to relocate
by offering them generous tax programs or other benefits.
10. Main question: What is “Government revenue”?
 Government revenue is the money received from taxes, fees, fines,
investment, securities sales, mineral rights and resources rights as well as
any sales that are made.
UNIT 8: TAXATION
1. Main question: What are function of taxation?
 The function of taxation are:
+ To raise revenue to finance government expenditure
+ Indirect excise duties can be designed to dissuade people from smoking,
drinking alcohol and so on.
+ Income taxes are one of the ways in which governments can
redistribute wealth and income in society, among different segments of
the population.
2. Main question: What is taxation?
 Taxation is the system of charging taxes/ The act or principle of levying
taxes or the conditin of being taxed.
3. Main question: What is tax?
 Tax is the amonut of money that individuals and firms compulsory pay to
government on their incomes, assets and consumptions
4. Main question: How do people evade tax? (Người dân trốn thuế bằng
cách nào?)
 Self-employed people undeclared part-time evening jobs with small and

medium – sized family firms, on which no one pays any tax or national
insurance. (Những người tự làm nghề tự do không khai báo công việc
bán thời gian buổi tối với các công ty gia đình vừa và nhỏ, mà không ai
trả bất kỳ khoản thuế hay bảo hiểm quốc gia nào.)
 Criminal organizations, meanwhile, tend to pass money through a series
of companies in very complicated transactions in order to disguise its
origin from tax inspectors – and the police; this is known as laundering
money. (Các tổ chức tội phạm, trong khi đó, có xu hướng chuyển tiền
thông qua một loạt các công ty trong các giao dịch rất phức tạp để ngụy
trang nguồn gốc của nó khỏi thanh tra thuế - và cảnh sát; điều này được
biết đến là rửa tiền.)
5. Main question: How do people avoid tax?/What are some legal ways of
avoiding tax?
 To reduce income tax liability, some employers give highly-paid
employees lots of “perks” (short of perquisites) instead of taxable money,
such as company cars, free health insurance, and subsidized lunches.
 Donations to charities that can be subtracted from the income on which
tax is calculated are described as tax-deductible.
 Companies have a variety of ways of avoiding tax on profits. They can
bring forward capital expenditure (on new factories, machines, and so on)
so that at the end of the year all the profits have been used up; this is
known as making a tax loss. Multinational companies often set up their
head offices in countries, where taxes are low.
6. What is direct tax?
 Direct tax is the tax which is levied on directly taxpayer, especially on
the assets or incomes of people and economic organization.
7. What is indirect tax?
 Indirect tax is the tax which is levied on indirectly taxpayer, especially on
the value of goods and services.
8. What is tax credit?
 Tax credit is an amonutthat is subtracted directly from tax bill or tax
amount to enter.
9. What is tax deduction?
 Tax deduction is an expense that is deducted directly from total income
before tax.
10. What is tax liability?
 Tax liability is the debt to a government incurred by a taxpayer as

accrued or assessed taxes.
11. What is tax evasion?
 Tax evasion is the illegal method to minimize the tax liability.
12. What is avoiding tax?
 Avoiding tax is the legal method which base on the knowledge about
taxes, tã accounting, GAAP to minimize the tax liability.
13. What is progressive tax?
 Progressive tax is the tax that the higher taxable amount, the higher tax
rate.
14. What is regressive tax?
 Regressive tax is the tax that the higher taxable amount, the lower tax
rate.
15. What is proportional tax?
 Proportional tax is the tax that apply a tax rate for many fifferent taxable
amount.
16. What is business/corporate tax?
 Business tax is the tax which is levied on the profits earned by companies
and businesses during a financial year, caculated on the net profit, after
deducting the expenses and depreciation of the businesses.
17. What is personal tax?
 Personal tax is the tax, which is levied on the icome of each individual,
according to the tax rate prescribed by law, this is an important sorce os
tax for the government budget.
18. What is income tax?
 Income tax is the tax that levied on income of each individual and firm.
19. What is asset tax?
 Asset tax is the tax that levied on wealth of each individual
20. What is consumption tax?
 Consumption tax is the tax that levied on the value of consumption
21. What is sales tax?
 Sales tax is the tax that is levied on a percentage of the price of most
items that are sold to customers.
22. What is value-added tax?
 Value-added tax is is the tax that is levied on the price of product or
services at each production, distribition or sale to the customers.
23. What is excise taxes/luxury tax?
 Excise tax/luxury tax is the tax that is levied on specific products and
services such as gasoline, alcohol… It is used to regulate the use of
particular types of products or services that government needs to restrict.
24. What is custom duty?
 Custom duty is the duty levied on by a government on imported goods.
25. What is “laundering money”?
 Laundering money is an action that change the illegal money intio legal
money.
UNIT 10: ISSURANCE

1. Main question: What is the inssurance?
 It is a fiancial agreement between insured and insurer, in which insured
pay premium of insurance and insurer pay the cost of losses.
2. Main question: What is the insurer?
 Insurer is a insurance company (or insurance agency) who provide the
insurance services.
3. Main question: What is the inssured?
 Inssured is the person, group of people or organization that is onr of two
paties in insirance arragement.
4. Main question: What is premium payment?
 That is the amount of money that customer or insured pay to the insurer
on insurance policy in order to losses occurred will be shared or
compensated.
5. Main question: What is compensation?
 Compensation is the amount of money that insurance company have to
compensate to the inssured or customer when they suffer an expected
losses.
6. What is Medium of exchange?
 Medium of exchange is something generally accepted as representing a
standard of value and exchangable for goods and services.
7. In what way, losses can be predicted before they occur? (Theo cách nào, tổn
thất có thể được dự đoán trước khi chúng xảy ra?)
 Losses can be predicted before they occur through the operation of
insurance system.
8. Why the predictability of losses in advance is basic to an insurance system’s
operation? (Tại sao khả năng dự đoán tổn thất trước là cơ bản đối với hoạt
động của hệ thống bảo hiểm?)
 The predictability of losses in advance is basis to an insurance system’s

operations because it allows the cost of losses to be financed and
redistributed in advance.
9. What is insurance in financial definition?
 Insurance in financial definition is a financial agreement that redistributes
the cost of unexpected losses.
10. What does the insurance agreement involve?
 The insurance agreement involves the transfer of many different exposure
to loss to one insurance pool.
11. How can an insurance system accomplish the redistribution of the cost of
losses?
 An insurance system accomplish the redistribution of the cost of losses
by collecting a premium payment from every participant in the system.
12. What does the insured receive when a loss occur?
 The insured receives a promise from the insurance system to be
compensated in the event of a loss.
13. Why are people willing to pay an insurance premium?
 People are willing to pay an insurance premium to be relieved of the
uncertainly about a loss, as well as to be compensated if the loss actually
occurs.
14. Is insurance like gambling? Why?
 Insurance isn’t like gambling because the law has found a means of
distinguishing between gambling contracts, which it will not enforce, and
insurance contracts, which it will.
15. What do you know about contracts of insurance?
 Contracts of insurance form a special class of contract in that law
requires parties to them, the insured and the insurer, to exercise the
utmost good faith towards each other.
16. Main question: What are the operating principles of insurance?/ What
are the functions/roles of insurance?
 Though the operation of insurance system, losses can be predicted in
advance. Insurance system allows the cost of losses to be financed and
redistributed in advance.
 The insured can be compensated if the loss actually occurs.
 Even if no loss occurs during a year, as will be the case, for most insured,
value has still been received in the form of an eliminated unpleasant
mental state, the anxiety about a loss.
UNIT 11: MONEY AND ITS FUCTIONS

1. Main question: What is money?
 Money is anything accepted by all community as a medium of
economic exchange.
2. Main question: What is Gold Standard?
 Gold Standard is a system of providing and controllong the exchange of
money on a country, in which the value of money is fixed against that of
gold
3. Main question: What is Sliver Standard?
 Gold Standard is a system of providing and controllong the exchange os
sliver.
4. Main question: What is Bimetalic Standard?
 Gold Standard is a system of providing and controllong the exchange os
two metals (usually gold and silver).
5. Main question: What is commodity money?
 Commodity money is the money that its cost of production is equal to
purchsing power.
6. Main question: What is token money?
 Token money is the money that its cost of production is much less than
purchsing power.
7. Main question: What is purchasing power?
 Purchasing power is is the quantity of goods or services that a unit of
money can buy at a given time.
8. Main question: What is A measure of value?
 A measure of value is a unit of account, a unit by which value of a thing
is accounted and compared
9. Main question: What is A store of value?
 A store of value is anything with value that may be stored and retrieved
at a later date with the expectation that it will still have value.
10. Main question: What is A standard of deferred payments?
 A standard of deferred payments is a system of credit or debt in which a
borrower receives something of value now, but agrees to repay it later,
typically with interest.
11. What is the price of money?
 Price of money is the monetary expression of value, that is the account of

money is paid when buyer purchases goods and services.
12. What is installment buying? (mua trả góp)
 Installment buying is a system for paying for goods by installments in
which the payments are made at regular times.
13. What are the functions of money?
 The functions of money are: a medium of exchange, a measure of value,
a store of value and a standard of deferred payments.
14. What is the medium of exchange?
 A medium of exchange is anything that is widely accepted in payment for
goods and services and in settlement of debts (thanh toán khoản nợ).
15. How is money used as a medium of exchange?
 Money is a medium of exchange through which people exchange goods
and services, like workers exchange labour services for money, people
buy or sell goods in exchange for money.
16. How is money used as a unit of account/a store of value and as a
standard of deferred payment?
 Money is used as a unit of account in which prices are quoted and
accounts are kept. (Tiền được sử dụng như một đơn vị tiền tệ khi giá
được định và tài khoản được lưu)
 Money is a store of value because it can be used to make purchases in the
future. This mean that if we choose not to buy with our money today, we
can save it to buy in the future. (Tiền được sử dụng như phương tiện cất
trữ vì nó có thể được sử dụng để mua hàng trong tương lai. Điều này có
nghĩa là nếu chúng ta chọn không mua bằng tiền của mình ngày hôm nay,
chúng ta có thể tiết kiệm để mua trong tương lai)
 Money is a standard of deferred payments when you buy something but
do not pay for it immediately, your payment is expressed in terms of
money to be paid in the future. (Tiền là được sử dụng như là phương tiện
trả chậm khi bạn mua một thứ gì đó nhưng không thanh toán ngay lập tức,
khoản thanh toán của bạn được thể hiện dưới dạng tiền khi được thanh
toán trong tương lai.)
17. What do you think is the most important function of money and why?
 I think the most important function of money is a medium of exchange
because this function of money helps in buying and selling goods and
services freely. And medium of exchange is the basis of other functions
of money.
18. What are two main types of money?

 Two main types of money are commodity money and token money.
19. Give some types of token money?
 Some types of token money are: bank note, coins, paper note, cheque,...
20. Main question: What are some main differenes between commodity
money and token money?
 The value of commodity money is about equal to the value of material
contained in it but token money’s value or purchasing power as money
greatly exceeds its cost of production or value in uses other than as
money.
 Token money is lighter and easier to exchange goods and services than
commodity money.
UNIT 12: MONETARY POLICY

1. What is the monetary policy?
 Monetary policy is a macroeconomics policy by which Central Bank,
uses its tools to control a nations’s money supply.
2. How does the fed control the percentage of deposits banks keep in
reserve?
 The Fed control the percentage of deposits banks keep in reserve by
controlling the reserve requirement of all US banks.
3. What is called reserve requirement ?
 The reserve requirement set by FED is the minimum amount of reserves
as banks must have.
 Reserve requirement is the required percentage of reserves (deposits) that
banks and thrifts mush hold incash or in deposits on the requirement of
the Central Bank.
4. What determined amount banks hold as reserve?
 The amount banks keep in reserve depends on the Fed requirements and
partly on how much banks feel theey need for safety. The amount most
banks need to safety is much smaller than what the Fed’s requires. For
them, it’s the Fed’s reservve requirements that determines the amount
they hold as reserves.
5. What is the central role of the reserve requirements?
 The reserve requirements play a central role in how much banks may
lend out.
6. What is the second tool of monetary policy?
 The second tool of monetary policy is changing the discount rate.

7. What is the discount rate?
 The discount rate is the rate of interest the FED charges for banks’ loans.
 The discount rate is the cost of borrowing that a commercial bank has to
pay to Central Bank charged on the loans.
8. What is the Open market operations?
 Open market operations is a term that refers to the purchase and sale of
securities in the open market by the Federal Reserve.
9. What is the inflation?
 Inflation is the increase in prices resulting from an increase in the supply
of money or credit.
10. How can the Center bank shift aggregate demand?
 The Center bank can shift aggregate demand by making more or less
money available.
11. How can the bank encourage people to borrow and spend more money?
 The bank can encourage people to borrow and spend more money by
offering lower interest rate or easier approvals.
12. Main question: What is the difference between expansionary monetary
policy and restrictive monetary policy?
 Concept: Expansionary monetary policy is a monetary policy by which a
country’s Central bank, uses its tools to expand the money suppy and
stimulate the economy. Restrictive monetary policy is a monetary policy
by which a country’s Central bank, uses its tools to reduce the money
suppy and restrict the economy.
 Goal: The goal of expansionary monetary policy is to increase aggregate
demand. To do this, the Central bank can lowers the reserve requirements,
drops the disscount rate or buys more bonds, it will increases bank
lending capacity. The goal of restrictive monetary policy is to decrease
aggregate demand. To do this, the Central bank can raises the reserve
requirements, increases the disscount rate or sells bonds in the open
market, it will reduces bank lending capacity.
13. When will prices begin rising?
 As market participants bid against each other for increasingly scarce
goods, prices will start rising.
14. What can the central bank do to reduce aggregate demand?
 To reduce aggregate demand, the central bank can reduce money supply
by raising reserve requirements, increasing discount rate or selling bonds
in the open market.
15. When might the central bank want to reduce the money supply? (Khi
nào ngân hàng trung ương muốn giảm cung tiền?)
 The central bank want to reduce the money supply in case of an
overheating economy, excessive aggregate demand puts to much pressure
on production capacity.
16.What is the Central Bank?
 Central Bank is a bank that provides services to a national government,
put offical financial plans os that government into operation, and controls
the amount of money in the economy.
UNIT 14: THE FOREIGN EXCHANGE MARKET

1. What is the foreign exchange market?
 The foreign exchange market is the market in which national currencies
are exchanged.
2. Why is it considered to be an OTC market?
 Because it has no fixed working hours, no central trading place or
meeting places and the primary communication instruments are
telephones and computers.
3. Why is London the world’s largest foreign exchange center?
 Because of the large volume of international financial business generated
here and its favourable geographical location.
4. What are 2 types of transactions in the foreign exchange market?
 Two types of transactions in the foreign exchange market are Spot and
Forward transactions:
+ Spot transactions are contractions in which different currencies are
exchanged. They are undertaken for an actual exchange of currencies
(delivery or settlement) 2 business days later.
+ Forward transactions are contractions in which different currencies are
exchanged. They involve in a delivery date further into the future, a year
or more.
5. What are the types of participants in the foreign exchange market? /
How many types of participants are there? Who are they?
 There are three types of participants in the foreign exchange market:
+ Customers, such as multinationa corporations, are in the market

because they require foreign currency in te course of their cross border
trade or investment business.
+ Market makers, such as banks, that is their dealers will at any time
quote buying and selling rates for currencies – dollars to the pound,
deutschmarks to the dollar and so on.
+ Brokers, are specialist companies, they act as intermediaries between
the banks and charge a comission for their services.
6. For what purpose do multinational corporations need foreign
currencies?
 Multinational corporations need foreign currencies because they need
foreign currency in course of their cross border trade or investment
business.
7. What do the term “bid rate” and “ offer rate” mean? (Thuật ngữ “Tỷ lệ
giá thầu” và “Tỷ lệ chào hàng” là gì?)
 “Bid rade” means buying rate, “offer rate” means selling rate.
8. How do brokers participant in the foreign exchange market? (Làm thế
nào để các nhà môi giới tham gia vào thị trường ngoại hối?)
 Brokers act as intermediaries between the banks. They are specialist
companies with the telephone lines to the banks throughout the world so
that at any time they should know which bank has the highest bid (buying)
rate for a currency and which the lowest offer (selling) rate. By calling a
broker, it should be possible for banks to find the best dealing rate
currently available. This service charged a commission.
9. Main questions: What is the foreign exchange market? What are
functions of the foreign exchange market?
 The foreign exchange market is the market in which national currencies
are exchanged. The functions of the foreign exchange market are: The
foreign exchange enables banks and international corporations to trade
foreign currencies in large amount. Capital flows arising from trade in
goods and services, international investment and loans together create
this demand for foreign currency. ((Chức năng: Ngoại hối cho phép các
ngân hàng và các tập đoàn quốc tế giao dịch ngoại tệ với số lượng lớn.
Dòng vốn phát sinh từ trao đổi hàng hóa và dịch vụ, đầu tư quốc tế và các
khoản vay cùng nhau tạo ra nhu cầu ngoại tệ này.)
10. What are the main features of the foreign exchange market?
 The main features of the foreign exchange market are:
+ It is an over the counter market primary communication instruments

are telephones and computers.
+ It is not an organized market with fixed hours a physical meeting place.
+ It has developed rapidly in response to the expansion of international
capital flows and in response to the growth in the volume of world trade
in goods and services. (Nó đã phát triển nhanh chóng để đáp ứng với sự
mở rộng của các dòng vốn quốc tế và để đáp ứng với sự tăng trưởng về
khối lượng thương mại thế giới về hàng hóa và dịch vụ.)
11.What is Exchange rate?
 Exchange rate is the rate at which the currency unit of one country may
be exchange for that of another.
12. What does the term “transaction” mean?
 A transaction is a piece of business, for example an act of buying or selling
something.
13. What does the term “volatility” mean?
 Volatility is the quality or state of being likely to change suddenly,
especially by becoming worse (Biến động là chất lượng hoặc trạng thái có
khả năng thay đổi đột ngột, đặc biệt là trở nên tồi tệ hơn).
14. Who are customers in Forex?
 Customers can be multinational corporations, importers and exporters, and
individuals.
15. For what purposes do multinational corporations participate in Forex?
 Multinational corporations have demand of foreign currencies for the
acquisition of financial and real assets between parents companies and their
subsidiaries.
16. For what purposes do importers and exporters participate in Forex?
 Importers and exporters have demand of foreign currencies for making or
receiving payments for imports/ exports.
17. For what purposes do individuals participate in Forex?
 Individuals may demand foreign currencies for their trips abroad, or for the
purpose of saving.
18. How do brokers participate in Forex?
 They give advice/ consultancy on exchange rates for their customers.
19. What purposes do brokers participate in Forex for?
 They charge commission for their consultancy.
UNIT 15: THE FINANCIAL MARKETS

1. What are the main functions of financial market?
 The main functions of financial market are: Channeling funds from
households, firms and governments that have saved surplus funds to
those that have a shortage of funds.
2. How many categorizations of financial market are mentioned in the text?
 Debt and equity markets; primary and secondary markets; exchanges and
Over-the-counter markets; Money and capital markets.
3. What is the debt market? (Thị trường nợ là gì?)
 Debt market is the financial market in which debt instruments are traded.
4. What is the equity market? (Thị trường chứng khoán là gì)
 Equity market is a financial market in which equity instrument are traded.
5. What is the a debt instrument? (Công cụ nợ là gì?)
 Debt instrument is a contractual agreement by the borrower to pay the
holder of the instrument fixed dollar amounts at regular intervals until a
specific date.
6. Do shareholders of a corporation reserve fixed dollar amount at regular
intervals? (Các cổ đông của một công ty có nhận được khoản tiền cố
định theo định kỳ không?)
 No, they don’t because they share in the net income and assets of
corporation and the thing they have are not debt instrument.
7. In which types of financial market are fresh shares issued and sold?
(Loại thị trường nào là nơi mà các cổ phiếu mới được phát hành và
bán?)
 Fresh shares issued and sold in primary markets
8. Why are the primary market for securities not well no to the public?
(Tại sao thị trường chứng khoán không được công chúng biết đến
(không phổ biến)?
 Because the selling of securities to buyers often takes place behind closed
doors.
9. What are two ways of organizing secondary market?
 Two ways of organizing secondary market are exchanges and OTC
markets.
 Exchanges market is the centralized market in which listed securities are

traded.
 Over – the – counter market decentralized market in which unlisted
securities are traded.
10. On the basic of the maturities of securities traded in each market, what
are financial markets classified into? (Trên cơ sở kỳ hạn của chứng
khoán được giao dịch ở mỗi thị trường, thị trường tài chính được phân
loại thành gì?)
 On the basic of the maturities of securities traded in each market,
financial markets classified into Money and capital markets.
 Money market is a financial market in which short – term debt securities
are traded.
 Capital market is a financial market in which long – term debt securities
are traded.
11.Main question: The definitions and functions of primary market and
secondary market?
 Primary market is a financial market in which new securities are sold to
initial buyers by the corporation or goverment agency borrowing funds.
 A secondary is a financial market in which securities that have been
previously issued can be resold.
 Functions of primary market are issuing, underwriting, selling security to
the public.
 Functions of secondary market are:
+ Make it easier and quicker to sell financial instruments to raise cash,
that is, they make financial instrument more liquid.
+ Determine the prices of securities that the issuing firm sells in the
primary market. The investor who buy securities in the primary market
will pay the isuing coporation no more than the price they
think the secondary market will set for this seurity.
12.What are intermediate-term debt instruments?
 They are instruments with the maturity from 1 to 10 years.
13. What are benefits for the creditors of a company?
 They receive fixed amounts of money including interest and principal
payments at regular intervals until the maturity date.
14.Can creditors intervene/ interfere in the company’s operations? Why?
 No, because the creditors have no right to vote on any issues of the
company.
15.Why are equity instruments long-term securities?

 Because they have no maturity date.
16.What are benefits for the shareholders of a company?
 They receive dividends paid by the company and the likely rise in prices
of shares.
17.How can shareholders get back their money?
 They can get back their money by selling their shares to someone else in
the securities markets.
18.Can shareholders intervene/ interfere in the company’s operations?
Why?
 Yes, because the shareholders have the right to vote on issues important
to the firm and to elect its directors.
19.Based on functions of the markets, how are securities markets classified?
 Based on functions of the markets, securities markets are classified into
primary markets and secondary markets.
20.Who can be initial buyers?
 They can be investment banks who underwrite fresh securities.
21.Can private investors access to information of the primary markets?
Why?
 No, they can’t. The information in primary markets is confidential and
fresh securities are only sold to initial buyers.
22.How are primary markets important to issuers? / What is the role of
primary markets?
 Primary markets help issuers (government agencies or corporations) to
raise more funds (by issuing fresh securities).
23.What are secondary markets?
 They are markets in which previously issued securities (outstanding
securities) are traded/ resold.
24.How are secondary markets important to issuers? / What is the role of
secondary markets?
 Although these markets don’t help issuers to raise more funds, they make
securities more liquid and desirable.
25.What types of markets are more popular for private investors? Why?
 Secondary markets are more popular because they can buy or sell (trade)
outstanding securities in secondary markets, but not in primary markets.
26.Based on operations of the markets, how are secondary markets
classified?
 Based on operations of the markets, secondary markets are classified into

Exchanges and OTC markets.
27.Based on the maturity of financial instruments, how are securities
markets classified?
 Based on the maturity of financial instruments, securities markets are
classified into money markets and capital markets.
28.What does the term “maturity” mean?
 Maturity is the time when an investment or insurance will be paid back.
(Đáo hạn là thời điểm mà một khoản đầu tư hoặc bảo hiểm sẽ được hoàn
vốn).
29.What does the term “mortgage” mean?
 Mortgage is an agreement under which a person borrows money to buy
property, esp. a house, and the lender may take possession of the property
if the borrower fails to repay the money. (Thế chấp là một thỏa thuận mà
theo đó một người vay tiền để mua tài sản, đặc biệt. một ngôi nhà, và
người cho vay có thể chiếm giữ tài sản nếu người vay không trả được tiền)
13. Chủ nợ của công ty được lợi gì?
=> Họ nhận được một khoản tiền cố định bao gồm các khoản thanh toán lãi và gốc
đều đặn cho đến ngày đáo hạn.
14. Chủ nợ có can thiệp/ can thiệp vào hoạt động của công ty không? Tại sao?
=> Không, vì các chủ nợ không có quyền biểu quyết về bất kỳ vấn đề nào của
công ty.
15. Tại sao công cụ vốn là chứng khoán dài hạn?
=> Vì chúng không có ngày đáo hạn.
16. Lợi ích của cổ đông công ty là gì?
=> Họ nhận được cổ tức do công ty trả và khả năng tăng giá cổ phiếu.
17. Làm thế nào để cổ đông có thể lấy lại tiền của mình?
=> Họ có thể lấy lại tiền bằng cách bán cổ phiếu của mình cho người khác trên thị
trường chứng khoán.
18. Cổ đông có được can thiệp/ can thiệp vào hoạt động của công ty không?
Tại sao?
=> Có, bởi vì các cổ đông có quyền bỏ phiếu về các vấn đề quan trọng đối với
công ty và bầu các giám đốc của công ty.
19. Căn cứ vào chức năng của thị trường, thị trường chứng khoán được phân
loại như thế nào?
=> Căn cứ vào chức năng của thị trường, thị trường chứng khoán được phân thành
thị trường sơ cấp và thị trường thứ cấp.
20. Ai có thể là người mua ban đầu?
=> Họ có thể là ngân hàng đầu tư bảo lãnh phát hành chứng khoán mới.
21. Nhà đầu tư tư nhân có thể tiếp cận thông tin của thị trường sơ cấp không?
Tại sao?
=> Không, họ không thể. Thông tin trên thị trường sơ cấp là bí mật và chứng
khoán mới chỉ được bán cho những người mua ban đầu.
22. Thị trường sơ cấp quan trọng như thế nào đối với tổ chức phát hành? /
Vai trò của thị trường sơ cấp là gì?
=> Thị trường sơ cấp giúp người phát hành (cơ quan chính phủ hoặc tập đoàn) huy
động thêm vốn (bằng cách phát hành chứng khoán mới).
23. Thị trường thứ cấp là gì?
=> Chúng là thị trường trong đó các chứng khoán đã phát hành trước đó (chứng
khoán chưa thanh toán) được mua bán/bán lại.
24. Thị trường thứ cấp quan trọng như thế nào đối với tổ chức phát hành? /
Vai trò của thị trường thứ cấp là gì?
=> Mặc dù những thị trường này không giúp người phát hành huy động thêm vốn,
nhưng chúng làm cho chứng khoán có tính thanh khoản cao hơn và được ưa
chuộng hơn.
25. Loại thị trường nào phổ biến hơn đối với các nhà đầu tư tư nhân? Tại sao?
=> Thị trường thứ cấp phổ biến hơn vì chúng có thể mua hoặc bán (giao dịch) các
chứng khoán đang lưu hành ở thị trường thứ cấp, nhưng không phải ở thị trường sơ
cấp.
26. Căn cứ vào hoạt động của thị trường, thị trường thứ cấp được phân loại
như thế nào?
=> Căn cứ vào hoạt động của thị trường, thị trường thứ cấp được phân thành thị
trường Sở giao dịch và thị trường OTC.
27. Căn cứ vào thời gian đáo hạn của các công cụ tài chính, thị trường chứng
khoán được phân loại như thế nào?
=> Căn cứ vào thời gian đáo hạn của các công cụ tài chính, thị trường chứng khoán
được phân thành thị trường tiền tệ và thị trường vốn.

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1 Vũ Trần Minh Trang – CQ58/22.

ĐỀ CƯƠNG ÔN TẬP TIẾNG ANH CHUYÊN NGÀNH 1

UNIT 2: ECONOMIC SYSTEMS

 Companies are supposed to compete freely, and any attempt at hindering

7. What is a mixed economy?

 Economic growth is an increase in the economy of a country or an area,

 Or a car company must decide how many of each type of vehicle to

government’s revenue and spending is in the hand of the Ministry of

UNIT 5: DEMAND AND SUPPLY

3. Main question: What is the definition of “demand curve”?

UNIT 6: PUBLIC FINANCE

UNIT 7: FISCAL POLICY

2. Main question: What is deficit spending? Is it useful or harmful for the

8. Main question: What factors should be considered in making decisions

 Self-employed people undeclared part-time evening jobs with small and

 Tax liability is the debt to a government incurred by a taxpayer as

UNIT 10: ISSURANCE

 The predictability of losses in advance is basis to an insurance system’s

UNIT 11: MONEY AND ITS FUCTIONS

 Price of money is the monetary expression of value, that is the account of

18. What are two main types of money?

UNIT 12: MONETARY POLICY

 The second tool of monetary policy is changing the discount rate.

UNIT 14: THE FOREIGN EXCHANGE MARKET

+ Customers, such as multinationa corporations, are in the market

+ It is an over the counter market primary communication instruments

UNIT 15: THE FINANCIAL MARKETS

 Exchanges market is the centralized market in which listed securities are

15.Why are equity instruments long-term securities?

 Based on operations of the markets, secondary markets are classified into

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