B. Public finance

The government collects money from citizens through taxes. Income tax is the tax collected on wages and salaries. Inheritance tax is collected on what people inherit from others. Customs or excise duties have to be paid on goods imported from other countries. VAT or value added tax is a tax paid on most goods and services when they are bought or purchased. Companies pay corporation tax on their profits. If you pay too much tax, you should be given some money back, a tax rebate.

The government also sometimes pays out money to people in need, e.g. unemployment benefit (also known informally as the dole) disability allowances and student grants (to help pay for studying). Recipients draw a pension / unemployment benefit or are on the dole or on social security.

Every country has its own special currency. Every day the rates of exchange are published and you can discover, for example, how many dollars there are currently to the pound sterling or hryvnya.

A company may sell shares to members of the public who are then said to have invested in that company. They should be paid a regular dividend on their investment, depending on the profit or loss made by the company.

Exercise 1

Give the English equivalents to the words and phrases given. Be ready to use them in the sentences of your own.

Отримати відшкодування, банківська позика, депозитний рахунок, капіталовкладення, поточний рахунок, платити відразу, знімати гроші, вносити гроші на поточний рахунок, торгуватися, перевищення кредиту, мито, акцизний збір, здирництво, податок на спадщину, плата за проїзд, одержувати пенсію, курс обміну валюти, купувати оптом, купувати у кредит, сплачувати відсотки, мати гроші на банківському рахунку, прибутковий податок, податок на додану вартість, акції, допомога по безробіттю, плата за послуги, дивіденд, повернення податку, соціальне забезпеченння, збиток, грошова допомога по інвалідності, прибуток, корпоративний податок, вигідна покупка, сплачувати рахунки, знижка, касовий чек.

Exercise 2

Fill in the gaps with the given verbs. Mind the tense.

buy spend lose pay cost sell win waste find give

1. My car was five years old, so I……………… it and ……………… a new one.

2. I was very sad when I …………… my watch in the street. It was a present from my wife and it …………… her a lot of money. Fortunately, somebody ………… it the next day and took it to a Police Station.

3. I ………… over $2.000 for my computer, but it isn't worth very much now.

4. My father………… me $50 last week but I ………… most of it on a ticket for a concert on Friday.

5. Last week somebody ………… $1m in a game on television. It was incredibly exciting.

6. I'm afraid I ………… my money on those CDs because I never play them.

Exercise 3

Match the words on the left with their definitions on the right.

1. interest 2. a mortgage 3. an overdrawn account 4. a savings account 5. a current account 6. a pension 7. a disability allowance 8. child benefit 9. a grant 10. a dividend 11. a bonus 12. a premium 13. an overdraft 14. commission 15. a deposit 16. an investment 17. a share 18. royalties 19. alimony

a. a bank account with minus money in it b. money paid towards the cost of raising a family c. money given by the government for education, welfare, etc. d. an account that is used mainly for keeping money e. money paid to people after a certain age f. an account that cheques are drawn on for day-to-day use g. money chargeable on a loan h. money paid to people with a handicap i. a loan to purchase property j. an additional payment which is a reward to those who work for a company for their extra work k. an amount of money borrowed from a bank, greater than that which is in your account l. an amount of money that goes to a shareholder m. money paid to authors or inventors according to the sales of their work n. a sum of money used to make more money from something that will increase in value o. money that a person pays to an insurance company to protect against loss or damage p. a part of the value of a company that you may buy q. a part-payment of money which you make to stop the seller from selling his goods to others r. an amount of money, related to the value of goods sold, which is paid to a salesman for his services s. money paid by a divorced father to his former wife for the upkeep of his children

Exercise 4

Choose the right answer.

1. When you retire at the age of sixty-five, you receive a(n) …. from the government.

a) allowance b) fine c) grant d) pension

2. If production in the factory exceeds the target, the workers get a ……..

a) bonus b) donation c) gratuity d) premium

3. Income tax is related to one’s annual ………

a) allowance b) wages c)income d) bonus

4. The kidnappers demanded a ….. of $1,000,000.

a) aid b) allowance c) ransom d) reward

5. A salesman is paid …… on the goods he sells.

a) commission b) percentage c) provision d) salary

6. The President admitted taking ……. and had to resign.

a) bribes b) fees c) fines d) premiums

7. Mr Rich earns $8,000 a month…… and $5,000 a month net.

a) bulk b) gross c) mass d) wholesale

8. You can only ……. this postal order at a post office.

a) alter b) cash c) exchange d) pay

9. Mrs Unemployed is finding it difficult to pay the …… on her insurance policy.

a) bonuses b) fees c) fines d) premiums

10. Our company made a record …… last year.

a) benefit b) earn c) profit d) winning

11. While you are away from the office on business trips, you will be given a daily …… of $50 towards meals and accommodation.

a) allowance b) fine c) permit d) reward

12. I hate the beginning of each year when all the ……. start coming in and I have to find the money to pay them all.

a) accounts b) bills c) receipts d) fines

13. For some jobless people, joining the …….queue is a humiliating experience.

a) benefit b) dole c) grant d) ration

14. Every Friday Fred ….. money out of the bank.

a) cashed b) drew c) robbed d) stole

15. It’s a good school, but the ……. are rather high.

a) fares b) cost c) fees d) pay

Exercise 5

Is the ordinary 'person-in-the-street' pleased to see these newspaper headlines or not?

Mortgage rate goes up Wages to be frozen Pension age raised

Interest rates down VAT to be reduced NUMBER ON DOLE RISES

Exercise 6

Complete the sentences with the suitable words.

1. Money which has to be paid on what you inherit is known as ……………………

2. If the bank lends you money, you have a bank …………………………………...

3. If you have some money in your account you are in the …………………………

4. I paid too much tax last year so I should get a …………………………… soon.

5. If it's no good, take it back to the shop and ask for a ………………………….

6. A fixed amount which is paid, usually monthly, to workers of higher rank is known as a ………………………………………………………

7. A sum of money which is owed to someone is a …………………………………

8. Money which in the form of coins and notes, not cheques is ……………………

9. Money paid as a punishment for breaking the law is a……………………………

10. An amount of money you receive, usually weekly, in return for labour or service is known as …………………………………

11. Money paid while travelling, especially on public transport, buses, trains, etc. is a ………………………

12. A tax on imported articles paid to the Customs is ……………………………….

13. Money paid by a divorced father to his former wife for the upkeep of his children is …………………….

14. Money paid at a restaurant after eating is a ……….………………………

15. Money paid to the government for services that the state provides is called ……

16. Extra percentage paid on the loan is ………………………………………….

17. Money paid for professional services, e.g. to a doctor is called a ……………….

18. Money returned to you after you pay too much is …………….

19. Money paid for a place to live is …………

Exercise 7

Put each of the following words or phrases into its place in the text below.

banks beads buy coins change

currency depositing earn exchange rate

goods investments money paper bills

savings accounts sell shells value

Money

Money is what people use to……….. things. People spend money on ……… and services. Many people save part of their money by………… it in a bank. People ………. money by performing services. They also earn money from ………, including government bonds, and from ……….

………… can be anything people agree to accept in exchange for the things they ……… or the work they do. Ancient peoples used such varied things as………, ……….., and cattle as money. Today, most nations use metal coins and ……….. Different countries’ ……….. and bills look different and have different names.

A person can ……. his money for the money of any country according to the …………. Usually, such rates are set by the central…….. of a country. The ……. of a country’s ………. may change, depending on the economic and political conditions in that country.

Exercise 8

Translate into English.

1. Наступного року уряд планує додати до держбюджету 49 млрд грн завдяки основним податкам: податку на додану вартість, прибутковому податку, акцизному збору.

2. Якщо я віддам всі свої борги, у мене зовсім не залишиться грошей.

3. Найбільше грошей наша сім’я витрачає на продукти.

4. Коли постає вибір – що купувати і як, я завжди намагаюсь купувати речі оптом, а не в роздріб, а коли і купую якусь одну дорогу річ, то шукаю магазини, де можна придбати товари в розстрочку й під низькі відсотки.

5. Люди неохоче сплачують податки, але заплативши, скажімо, податок на спадщину чи прибутковий податок, ви можете бути певні, що хтось отримає допомогу по безробіттю, допомогу по непрацездатності або пенсію.

6. Вона зараз не працює, бо доглядає за дитиною і отримує допомогу по догляду за дитиною.

7. Купівля на виплат дуже зручна для тих, хто не хоче брати позику в банку, а потім сплачувати її та відсотки.

8. Люди віддають перевагу “твердій валюті”, тому міняють гривні на долари та євро.

9. У банку ви можете відкрити поточний рахунок, депозитний рахунок, отримати готівку по чеку, або ж обміняти валюту по курсу, встановленому НБУ.

10. Я віддаю перевагу поточному рахунку, а не депозитному, так як я ділова людина, і мені часто доводиться знімати гроші.

11. Коли ви сплачуєте за покупку готівкою, ви можете попросити надати вам знижку.

12. Купуючи коштовну річ у Великобританії обов’язково візміть у власника крамниці касовий чек, і коли ви пред’явите його на митниці вам повернуть ПДВ.

13. Заплати за проїзд, будь ласка, я залишила свій гаманець вдома.

14. Він зізнався в тому, що брав хабарі.

15. Викрадачі людей вимагали викуп у сумі $50 000.

Exercise 9

Match the statements below with a word(s) from the box.

building society cash cheque credit card currency deposit fee grant wages income tax in credit interest loan mortgage overdrawn pension receipt rate of exchange salary unemployment benefit (VAT) value added tax withdrawal

1. A word for a document you receive when you buy something.

2. A word for an organisation which lends you money to buy a house or a flat.

3. A word for money you earn from a larger amount of money or pay on money you borrow.

4. Two words for money which is lent to you.

5. Two words for the action of taking out or putting money into a bank account.

6. Three words for methods of paying for things you buy.

7. Two words to describe the status of your account.

8. Two words for money the government takes away from you.

9. Three words to describe the payment you receive for work you do.

10. Two words to do with money from a foreign country.

11. Three words or expressions to describe money which the government may pay you.

Exercise 10

Fill in the table bellow for this or any other country.

Rate of inflation __________ Exchange rate (against the US dollar) __________ Interest rate __________ Basic level of income tax __________ Rate of VAT __________ Monthly state pension __________

Exercise 11

Complete the following sentences. Each (-) represents one letter.

1. I spend about $ 1.5 a week on bus f_ _ _ _.

2. I had to pay d _ _ _ on the Turkish carpet I brought in through the Customs yesterday.

3. Now that Mr Old has retired, he lives partly on his p_ _ _ _ _ _ and partly on the

i _ _ _ _ _ _ _ from his savings account.

4. In spite of its size his family was quite w _ _ _ -off, because he brought in a good

s_ _ _ _ _.

5. Gold would be a good i _ _ _ _ _ _ _ _ _; it’s bound to increase in value.

6. Due to inflation the s_ _ _ _ _ _ _ of living went down by fifteen p_ _ _ _ _ _.

7. I couldn’t buy the house because the bank refused to let me have a m_ _ _ _ _ _ _.

8. You must stop wasting your money on silly things and start s_ _ _ _ _. This is the only solution to your f_ _ _ _ _ _ _ _ troubles.

9. One dollar is e_ _ _ _ to over 5.37 hryvnyas.

10. The v_ _ _ _ of the pound has fallen recently.

11. I want $500-worth of Euro. What is the e _ _ _ _ _ _ _ rate, please?

12. All the workers in our firm get a Christmas b_ _ _ _ of $ 100.

Exercise 12

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