Unit 4
Unit 4. Money Matters
Part A. Listening (Total: 25 marks)
Transcript 1.
Source: http://www.examenglish.com/IELTS/IELTS_listening_part1.htm
Man: Hello, this is Business Nationwide, Daniel speaking, how can I help you?
Woman: Hi there, er, I‘ve recently started up a small business, and I noticed on your
website that you run some courses for people who are starting up.
Man: That‘s right, we do. We offer two courses which may be of interest to you. Our first
course is called ‗Getting Started‘. It‘s a two–hour evening course, and it runs from 6pm to
8pm. We discuss things like ‗Is starting a business right for me?‘, writing a business plan
and some of the legal issues. It runs at various locations in the area. Where are you based?
Woman: I live in Eastleigh.
Man: Eastleigh. So, the closest course to you would be in Handbridge, and the next one is
on the 20th March.
Woman: Uh-huh, and how much is that.
Man: That one is free.
Woman: Okay, well it might be worth it.
Man: But did you say you‘re trading already?
Woman: Yes, since about August.
Man: Well, you might be better off taking our three-day course – ‗Business Basics‘. It‘s not
free I‘m afraid – it‘s subsided and costs £80 for the three days, unless you‘ve been
unemployed in the past six months, in which case it‘s just £20.
Woman: No, that doesn‘t apply to me.
Man: Well, it‘s well worth the money. The three days cover the essential aspects of running
a business. The first day covers legal issues, such as tax, insurance, employment laws and
health and safety. The second day covers marketing and pricing, and the third covers
accounting and book-keeping.
Woman: It sounds useful. Does the ‗Business Basics‘ course take place in Handbridge too?
Man: Er, let me see. No, it‘s not available in Handbridge, I‘m afraid. The nearest course to
you would be in Renton. There‘s one on the 5th March, and another on the 18th April.
Woman: Yes, that might be useful. Man: I‘ll send out a pack to you if you like, with some
details of the courses and also some information about what you need to do to set up and
who you need to register with.
Woman: Great.
Man: Can I take your name?
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Unit 4
Woman: Yes, it‘s Lila Park.
Man: Lila? Is that L-A-I-L-A?
Woman: NO, L-I-L-A.
Man: Lila Park. And your address please?
Woman: 39 White Lane, Eastleigh.
Man: And have you got an email address? If so, we can send you details of any courses that
are happening near you that you might be interested in.
Woman: Yes, it‘s lila dot park at rainbow dot com
Man: Great, well I‘ll have the information pack sent out to you today.
Woman: Thanks, that‘d be great.
Man: My pleasure. Bye.
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Unit 4
Section 1. (20 marks)
Take 1 minute to read the following questions. Listen to the recording. Mark down useful
notes and answer the following questions.
BUSINESS NATIONWIDE
Courses available:
Name of Course:
e.g. Getting Started
Time:
Two hours from 1. 6pm – 8pm
Cost:
Free
Course Content:
Is starting a business right for me?
Writing a 2. Business Plan
Some legal issues
Nearest Location:
Handbridge
Next Course Date:
20th March
Name of Course:
3. Business Basics
Length of course:
4. three days
Cost:
5. £80 or £20 for recently unemployed
Course Content:
Day One: Legal Issues
Day Two: Marketing and Pricing
Day Three: Accounting and 6. book keeping
Nearest Location:
Renton
Next Course Date:
5th March or 7. 18th April
CALLER’S DETAILS
Name:
8. Lila Park
Address:
9. 39 White Lane, Eastleigh
email:
10. [email protected]
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Unit 4
Transcript 2.
Source: http://esl-lab.com/expense/expensesc1.htm
Ron: Uh, could I borrow a few bucks until payday? I'm a little strapped for cash.
Nancy: Uh, yeah, I guess, but I'm pinching pennies myself, and you still owe me $20 from
last week. And mom and your friend Ron said you borrowed money from them this past
week. [Oh, yeah.] How ARE things going anyway?
Ron: Well, not very well. To be honest, I'm really in the hole, and I can't seem to make
ends meet these days.
Nancy: What do you mean? I thought you landed a great job recently, so you must be
loaded.
Ron: Well, I do have a job, but I've used my credit cards to pay off a lot of things recently,
but now, I can't seem to pay the money off.
Nancy: Uh, do you have a budget? I mean, how do you keep track of your income and
expenses?
Ron: Well, when my money runs out, I come to you. Of course. [Great!] No, but I guess I
should have some financial plan.
Nancy: Well, let me see if I can help you. How much money do you spend on your
apartment?
Ron: Uh, I pay $890 on rent for the studio apartment downtown . . . not including utilities
and cable TV. But the place has an awesome view of the city.
Nancy: Uh, $890! Why are you paying through the nose for such a small place when you
could find a cheaper one somewhere outside of the downtown area?
Ron: Yeah, I guess.
Nancy: Okay. How much money do you spend on food a month?
Ron: Hmmm. I'm not really sure. I think I spend around $600. [$600?!] Well, I go out to
eat at least four times a week, so those expenses add up. I just don't enjoy eating alone, and
I don't have a knack for cooking like you do.
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Unit 4
Nancy: Well, I can understand that, but perhaps you ought to buy some microwaveable
meals you could prepare at home.
Ron: Well, I guess I could.
Nancy: And entertainment?
Ron: Well, I spend a few dollars here and there on basketball and movie tickets, a concert
or two, and ballroom dance lessons.
Nancy: Uh, exactly how much do you spend on all of these? Just a "few" dollars?
Ron: Well, oh . . . about $400 or so.
Nancy: Or so? No wonder you're having money problems. You can't just blow your money
on things like that! And what about transportation?
Ron: Oh, I commute to work everyday in my new sports car, but I got a great deal, and my
monthly payments are only $450. Come outside and take a look. We can go for a spin!
Nancy: No, I've heard enough. You've got to curb your spending, or you'll end up broke. I
suggest you get rid of your credit cards, cut back on your entertainment expenses, and sell
your car. Take public transportation from now on.
Ron: Sell my car?! I can't date without a car. What am I going to say? "Uh, could you meet
me downtown at the bus stop at 7:00?" Come on!
Nancy: And you need to create a budget for yourself and stick to it, and start with paying
off your bills, starting with me. You owe me $50 dollars.
Ron: Fifty dollars! Wait, I only borrowed $20 from you last week. How did you come up
with $50?
Nancy: Financial consulting fees. My advice is at least worth $30!
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Unit 4
Section 2 (5 marks)
Take 1 minute to read the following questions. Listen to the recording. Mark down useful
notes and answer the following questions.
1.
To whom is the man speaking?
A. his friend
B.
C.
2.
Which sentence would identify the man's current situation?
A. He has a lot of expenses including student loans.
B. He has a decent job, but he's looking for a new one.
C.
3.
a small place with a nice view of the city
a spacious apartment that includes cable TV
an apartment downtown with free parking
Which sentence best describes the man's dining practices?
A. He tries to go out to eat every night.
B.
C.
5.
He's in debt and is trying to borrow money.
How would you describe the man's apartment?
A.
B.
C.
4.
his sister
his mom
He doesn't know how to cook very well.
He prefers to eat alone.
What does the woman suggest the man do at the end of the conversation?
A. He should be careful when using his credit cards.
B.
C.
He ought to get rid of his car to save money.
He should stop spending money on entertainment.
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Unit 4
Part B. Reading (Total: 30 marks)
Text 1 (18 marks)
Read the article and answer the questions on the space provided.
Hong Kong hires grannies to keep eye on brokers
(Source: Seven Wong. Mastering English for HKDSE Paper 1 Reading. Hong Kong Joint-Us
Press Limited.)
[1] Hong Kong‘s hard-nosed financial regulators are adding a new weapon to their
arsenal in the battle to protect investors from unscrupulous stockbrokers: old ladies and
pregnant women. The Securities and Futures Commission (SFC) and de-facto central
bank, the Hong Kong Monetary Authority, plan to hire actors—including retirees and
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pregnant women—to make sure banks and brokerages use aboveboard techniques when
selling investment products.
[2] The controversial move has Hong Kong‘s financial community up in arms, claiming
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the so-called ―mystery shopper‖ program will entrap good and bad financial advisers
alike – and ruin their careers. ―It‘s a mess—this kind of entrapment will hurt a lot of
honest, hard working people,‖ Glenn Turner, chairman of Hong Kong‘s Independent
Financial Advisers Association, said. ―You may have nine good but inexperienced
advisers for every bad one, but they‘ll all get dumped into the same basket. It doesn‘t
help the industry move forward to hurt nine people to get one.‖
[3] The move comes two years after a mis-selling scandal rocked the city of seven
million following the collapse of Wall Street brokerage Lehman Brothers. More than
40,000 Hong Kong investors, including many retirees, bought about two billion US
dollars worth of complex financial products backed by Lehman Brothers, including
so-called minibonds.
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[4] Most saw their investment dissolve when Lehman went bust in 2008 as it buckled
under the weight of the collapse in US sub-prime, or high-risk, mortgages. Many
Lehman investors claimed they had been misled about the risks involved, sparking angry
protests against banks, the government and even financial regulators whom they accused
of failing to prevent the scandal.
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Unit 4
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[5] Last year, 16 banks in Hong Kong agreed to partially refund some of the investors in
a deal that could cost them up to 6.3 billion Hong Kong dollars (810 million US)
---almost 25,000 investors have so far accepted settlements worth a combined 5.2 billion
Hong Kong dollars. The Lehman scandal also prompted the SFC to announce proposals
aimed at tightening rules on the sale of investment products. Among them, banks and
brokerages would have to give investors a five-day grace period if they had second
thoughts about the deal.
[6] In March, Hong Kong police said they arrested two female bank employees
suspected of mis-selling Lehman-linked products. Hong Kong legislator Kam Nai-wai
described the mystery shopper program as ―very much needed‖. ―The Lehman
minibonds fiasco showed there are many mis-selling practices,‖ Kam told the daily
South China Morning Post. ―In fact, I think this scheme should go beyond investment
products to other consumer and lending products to make sure retailers and bankers are
teaching their clients appropriately.‖
[7] The program would help regulators better assess how certain investments are sold
and pin-point red flags, they said , noting that securities watchdogs in other jurisdictions
have used mystery shopper programs. ―It‘s not something new or groundbreaking,‖ an
SFC spokesman said. The regulators‘ plan could keep the industry on its toes, as long as
it doesn‘t go too far, a Post columnist wrote this week.
[8] ―It‘ a legitimate technique for monitoring the industry. It‘s another matter if the SFC
then proceeds to use the testimony of these ‗mystery shoppers‘ to slap big fines on
people or send them to jail through our courts of conviction,‖ the column said. ―Inciting
people to commit a crime is in itself a crime. I think the SFC understands this or, at least,
I hope it does.‖
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Unit 4
Answer questions 1-8 using information from the article ―Hong Kong hires grannies to keep
eye on brokers‖. Write your answers in the space provided.
1. The best meaning of the phrase ‗hard-nose‘ in line 1 is to describe people as… (1 mark)
A. being unable to laugh or joke about anything.
B. being tough and practical in their work.
C. being kind and reasonable when dealing with others.
D. being cruel and unfeeling.
2. What is Glenn Turner‘s attitude to the new idea in paragraph 2?
A. He thinks it‘s a good idea.
B. He has no opinion about it.
C. He will wait and see before giving an opinion.
D. He thinks it’s a very bad idea.
3. Complete each summary by underlining the correct options. ONE has been done for you
as an example. (6 marks)
The SFC
or otherwise identified / known / recognised as the Securities and Futures
Commission and the Hong Kong Monetary Authority will soon employ /
hiring / seeking actors to help them keep an eye on financial advisers in
Hong Kong.
This new to keep surveillance or in other sentences / language / words spy on banks
plan
and brokerages has attracting / drawn / sought a lot of criticism from the
finance sector already.
The
finance
industry
in Hong Kong is being blamed / blessed / banished for much of the poor
current economy / economics / economic state with the Lehman Brothers‘
minibonds fiasco causing much / many / more of the uproar.
4. What according to Glenn Turner, chairman of Hong Kong‘s Independent Financial
Advisers Association will be the biggest problem created by the ―mystery shopped‖
program? Write your answer in ONE complete sentence. (2 marks)
He thinks that it will catch many good but inexperienced advisers as well as the bad
ones.
5. Find words in line 3-15 which could be replaced by the following: (3 marks)
a. debatable
controversial
b. fair and truthful
c. breakdown or failure
honest
collapse
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Unit 4
6. In line 29, the word ‗they‘ refers to… (1 mark)
A. brokerages.
B. investors.
C. banks.
D. investment products.
7. In paragraph 5 what is meant by a ‗five-day grace period‘? (1 mark)
A. It is a period of time that allows buyers to change their mind about their
purchase.
B. It is a period of time in which banks can change the price.
C. It is a period of time in which investors can buy more at the same price.
D. It is a period of time in which the SFC can look into the sale without taking action.
8. Find words or expressions in paragraph 6 and 7 which mean the opposite of these words
or phrases: (3 marks)
a. to let go free
b. stay inside
arrested
go beyond
c. well tried and tested
groundbreaking
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Unit 4
Text 2 (12 marks)
Read the article and answer the questions in complete sentences on the space provided.
Tai Tais hock their bandbags
(Source: Seven Wong. Mastering English for HKDSE Paper 1 Reading. Hong Kong Joint-Us
Press Limited.)
[1] Chanel, Gucci, Hermes and Louis Vuitton handbags are no longer just the best
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friends of tai-tais and socialites; a moneylender is also targeting the luxury items as
collateral in a first for the personal-loan market. A television advertisement screened in
the past three weeks shows a cheerful woman walking out of Yes Lady Finance with a
cheque after pledging her baguette handbag for a personal loan.
[2] The upmarket pawn brokerage is the brainchild of finance-company operator Wallace
Tung Wai-wa and Byron Yiu Kwan-tat, the owners of Milan Station, the city‘s largest
second-hand handbag chain. ―Handbags are a gimmick to make our name heard,‖ Tung
said. ―It is only the beginning of a bigger business – property mortgages.‖
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[3] Escaping unscathed from the global credit crunch, Tung and Yiu saw a business
opportunity in the cash-strapped and set up money-lending firms Yes Lady Finance and
Yes Man Finance in April. Targeting luxury handbags, Yes Lady assesses the value of
popular handbags and offers to lend up to 70 per cent of their market value, charging
interest below the industry average.
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[4] For example, for a Louis Vuitton handbag valued at HK$20,000 in the second-hand
market, Yes Lady will lend 70 per cent of the value to the owner – HK$14,000 – and
charge interest as low as 28 per cent a year. This means the owner will have to pay
interest of HK$979 a month over a three-month maturity. By the due date, the owner has
to settle the outstanding loan or forfeit the handbag.
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[5] The government caps the interest pawnbrokers can charge at 3.5 per cent a month (42
per cent a year). The rate offered by Yes Lady is cheaper, and way below the maximum
legal interest rate of 60 per cent. ―It is a good fund-raising option for some tai-tais,‖
Tung said. ―They may not want to sell their handbags, which may be a gift from
husbands and mean a lot to them.‖
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Unit 4
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[6] However, Tung conceded that handbag finance was limited by fashion trends and
economic scale. His ultimate business model rests on home financing, aiming to
capitalise on the government‘s decision last month to restrict bank lending to
luxury-home buyers. The maximum mortgage on a luxury home worth more than
HK$20 million was lowered to 60 per cent of the home‘s value, down from 70 per cent.
Despite Yes Lady‘s innovative strategy, competition is punishing in a city with too many
finance companies and banks chasing borrowers.
[7] Billy Mak Sui-choi, an associate professor at Baptist University‘s department of
finance and decision sciences, said Yes Lady Finance could undercut its rivals by
targeting female borrowers and charging lower interest because it had handbags as
collateral, which meant its risks were relatively lower. ―Its operation is like a pawn shop.
It may lead to some copycats opening up a new market through collateral of laptops,
luxury watches and lighters.‖
[8] Partly because of high credit card interest rates, finance companies thrive in Hong
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Kong, with the market dominated by major banks such as Citibank, HSBC and Standard
Chartered and other operators such as Aeon Credit Service (Asia), United Asia Finance,
promise (HK) and Prime Credit. Some moneylenders do not take any assets as collateral
and charge higher interest, but still lower than credit card issuers.
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Unit 4
Answer questions 9-14 using information from the article ―Tai Tais hock their handbags‖.
Write your answers in the spaces provided.
9. What does the word ‗collateral‘ in line 2 mean? (1 mark)
A. a pledge to come back
B. a promise of low interest
C. a pledge to repay a loan
D. a promise to borrow more money
10. The main idea of paragraph 1 is… (1 mark)
A. Hong Kong women buying brand-name handbags.
B. a company called Yes Lady which lends money to women who use their handbags
as security.
C. How a company is using TV advertising to sell handbags.
D. How money can be used to buy handbags.
11. Read paragraph 5 and 6 carefully and decide if the following statements are true (T), false
(F), or not stated (X). Put the appropriate symbols in the boxes below. (3 marks)
a. Most women do not want to sell the handbags.
T
b. Yes Lady and Yes Man will enter the mortgage business next
month.
X
c. Mortgage loan limits were raised from 60% to 70% of the value
of luxury flats.
F
12. Which of the following statements about paragraph 6 is NOT true? (1 mark)
A. Wallace Tung sees limits on his business idea.
B. Banks can lend more than 70% on flats worth less than $20 million.
C. The government has just recently lowered the amount, which can be borrowed for
luxury flats.
D. Competition amongst lenders is very strong.
13. What does the underlined word ‗Its‘ in line 35 refer to? (1 mark)
A. Baptist University‘s department of finance‘s
B. handbags‘
C. lower interest‘s
D. Yes Lady Finance’s
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Unit 4
14. Complete the summary of the passage below with words from the article. The first letter
of the word has been given to help you. The first ONE has been done for you as an
example. Note: the form of the word may need changing. (5 marks)
The (a) o (owners) of Milan Station, the largest (i) second-hand handbag chain in
Hong Kong, have turned to a new venture; that of upmarket pawn shop. A recent
advertisement on TV showed a young lady walking out of Yes Lady Finance with a
cheque. She had used her handbag as (ii) collateral to get a personal loan.
This new idea, the brainchild of Wallace Tung Wai-wa and Byron Yiu Kwan-tat, is
something that according to university professor, billy Mak Sui-choi, could be the start
of a new type of moneylender. He thinks that Yes Lady‘s (iii) risks are lower than
ordinary finance companies as they take in handbags as collateral and therefore, are
able to charge lower interest rates to borrowers. This would (iv) undercut many of
their rivals in a business in Hong Kong in which (v) competition is very strong as there
are more willing lenders than able borrowers.
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Unit 4
Part C. Writing (Total: 25 marks) (Refer to Appendix A for the Marking Rubrics)
Task 1 (10 marks)
You should spend about 20 minutes on this task.
Write an article to educate young people the concept of saving money. In your article

analyse the importance of saving money since young

suggest possible methods of saving money
Write at least 150 words.
Task 2 (15 marks)
You should spend about 40 minutes on this task.
Write about the following topic:
Some people think that investment is necessary in order to combat with inflation.
Do you agree or disagree?
Give reasons for your answer and include any relevant examples from your own knowledge
or experience.
Write at least 250 words.
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Unit 4
Part D. Speaking (Total: 20 marks) (Refer to Appendix B for the Marking Rubrics)
Part 1 (5 marks)
Warm-up Conversations
Investment

How many types of investment are there in our society?

Is investment popular in Hong Kong? [Why?]

Do you believe stock market is a good investment tool? [Why?]
Part 2 (5 marks)
Impromptu Speech
Describe a popular investment tool in Hong Kong.
You will have to talk about the topic
for one to two minutes.
You should say:
- which tool it is
- what it is about
- how the tool helps us to make money
You have one minute to think about
what you are going to say.
You can make some notes to help
you if you wish.
and explain why you think it is popular.
Part 3 (10 marks)
Thematic Discussions
Discussion topics:
Saving money
Example question:
Is saving money an important part of your culture? Why?
Do you think young people nowadays have the habit of saving money? Why?
Do you think people in the past had a stronger concept of saving money than nowadays?
Why?
Inflation
Example question:
What are the main reasons for the cause of inflation?
How does inflation affect our lives and living standard? Why?
Do you think inflation always carry a negative connotation? Why?
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