Unit+3+Loans+for+the+Dream

Unit 3 Loans for the DreamWhere does all your money go in your family? This has something to do with expenditure. A company also has its expenditure. What do you think are some of the items a company must spend money on?A. The following words and phrases will appear in this unit. Listen carefully and study the definitions.1.depreciation: falling in value2.overdraft: a sum lent by a bank to a person who has overdrawn3.collateral: valuable property promised to a lender if one is unable to repay a debt4.life policy: an assurance to be paid after the death of the person5.deed: a legal document that is an official record of an agreement or official proof that someone owns land or a building6.securities: investment in a company or in government debt which can be traded on the financial markets and which produces an income for the investor7.balance: the amount of money you have in a bank account, or the amount of something that you have left after you have spent or used up the rest8.due date: the date on which something is expected to happen, especially the date on which a sum of money is expected to be paid9.economic bubble: a phenomenon in economics in which too much loose cash finds its way into an area of the market, resulting in a buying frenzy that leads to wildly inflated prices. Economic activity in those areas affected is not sustainable in the long run, so large numbers of late investors eventually go bankrupt.10.finance: provide the money needed for something to happen11.dime: an American or Canadian coin which has the value of ten centsB. Listen to the following dialogues. Complete the exercises.Dialogue one: Tick the expenditure items mentioned by the speaker.Items ItemsCharities Theatre and other arts eventsEating out Stocks and sharesHobbies (DIY, sailing, etc.) AntiquesFood and groceries CarsDialogue two: Complete the chart. Use ticks to indicate whether the expenditures on those items are up, down or the same as last year. Supply the figures mentioned. ItemsSameUp Down Figures Entertainment2,566Depreciation 300Secretarial expenses.Motor expenses2.612Audit & accountancy costsTelephone & postageHalf as much as last year Audioscript:Dialogue one:A: You asked me where all the money goes. Its difficult to say exacdy, but obviously we spend a lot of money on groceries. I enjoy cooking, and as we have a large family four children our food bill is quite big. Wc also like eating out my wife and I probably go out to a restaurant about once a week. Unfortunately, there are no theatres round here, so we dont go to the theatre as much as wed like. But we do spend money on our hobbies. I like doing jobs around the house Im one of the local DIY centers best customers and Im very keen on sailing thats a very expensive hobby. Im also very interested in antiques, especially clocks. You must let me show you my collection one day .B: Id like that. I wanted to ask you about holidays. Do you usually go abroad or stay in this country? A: We usually stay here. Ln fact, we spend very little on holidays. We have a small house near the sea and we usually go there. Thats where I do my sailing. We did go away for a week last year, but that was exceptional.Dialogue two:A:So how much did we spend on entertainment this year?B:2,566.A:Thats down a little on last year. And whats the figure for depreciation?B:300, the same as last year.A:Hm, expenditure on secretarial expenses is up.B:Yes, theres a big increase there.A:Whats the figure of 2,612 for?B:Wheres that?A:Six figures down.B:Thats motor expenses.A:And what does this figure represent?B:Audit and accountancy costs.A:Theyre both up a lot.B:Yes, but expenditure on telephone and postage is down. Its half as much as last year.Part II Raising money for buying a car Owning a car is perhaps a dream for many people. However, buying a car requires a lot of money. How can you realize that dream? Turn to the bank for help.A. Listen to the dialogue. Take notes. Then complete the summary.Summary:Mr. Jackson works in the college with a good salary. As his old car is too old to be worth repairing, he would like to have a newer one. Since he can get about a hundred pounds for the old car, he wants to raise some money, three hundred fifty to four hundred overdraft, from the bank.The bank manager suggests two kinds of loans with different interest rates and conditions: a Personal Loan and an Ordinary Loan. Mr. Jackson is expected to repay the money within 24 months.B. Now try this: listen to a more authentic version of the dialogue. First complete the chart to show the differences between the two loans. Then try to find the English equivalents of the Chinese expressions listed.security charged to the bankinterest rate chargedinterest rate calculated onpersonal loan7%the original amount takenordinary loan7.5%a day to-day basis1. 透支额（贷款）overdraft2. 偿还 repayment3. 短期贷款short-term basis4. 付利息 pay interest on5. 担保物 collateral6. 寿险 life policy7. 房屋的房契 deeds of the house8. 政府证券 government security9. 凭证 certificate10. 按日计算 on a day-to-day basisAudioscript:J Mr. JacksonB Bank ManagerB: Well, good afternoon, Mr. Jackson.J: Good afternoon. Ive come to see you to see whether its possible to . get an overdraft. Im . I want some money. Yes Ill tell you quite frankly what it is. Im wanting to buy a new car. (Yes I dont know whether its possible to raise any money from the bank in this way. B: Er, I see no reason why not. J: Ive got an old car . B: Whats your proposition?J: Well, Ive got this old car which is an eight-year-old Morris 1000, and I dont think theres any point in having it repaired any more because it just isnt worth it. I feel that I could probably get about a hundred pounds for it and then that means that I would need about another four hundred-odd, three hundred and fifty . MhmJ er, on top of that, to buy a,a, not a new car exactly, but a newer one. Mhm Urn,.B: Do you use the car for your business, for your work?J: Er, yes I do, up to a point. That is to say, sometimes I take it to work and sometimes I dont, because Im almost within walking distance of the College. Mhm Does this have some bearing on the, on the question of whether I can get an overdraft?B: No, I dont think so. I, er, it was just a matter of interest that I asked you, really. You think three hundred and fifty?J: I would say about three hundred and fifty to four hundred. With the other, with the other Yes hundred pounds then it would be about, er, five hundred pounds; well, one can get quite a decent car for five hundred pounds Quite second hand, of course.B: Quite. And what sort of period of time could you repay us?J: Well, erm, this rather depends on you. Um, I would like to . I, er, what is the normal procedure for such a sum of money?B: Well, for such a sum of money we could (would) expect repayment within 24 months.J: Two years?B: Two years.J: I see.B: We are lenders in the short term, remember, not long term.J: Yes. Er, is there . Do you, do I pay interest on this?B: You will pay interest on well, the type of loan I have in mind is a Personal Loan, as I assume youve got no form of collateral to offer.J: What is what is collateral?B: Well, have you any shares in any companies or life policies, deeds of houses, or anything like that?J: I have some Government Securities, is . would this be . sufficient?B: You have some Government Securities, and what is their value?J: Er, its about.B: Have you got the certificates?J: . eight hundred pounds or so.B: About eight hundred pounds?J: Yes, but I dont want to.B: You dont want.J: . cash them.B: No. No, well you wouldnt. that wouldnt involve you in cashing them. I could grant you an Ordinary Loan where the interest to you would be less than on a Personal Loan, if you were willing to charge that Share Certificate to us.J: Yes. I see, um, er, is it, is it possible to er . whats . that, that would be the only security which you would need, in fact?B: I shouldnt need any other security, other than that . I see not on a loan, not on a loan of that size. Or if you would agree to do it on a Personal Loan basis which cough I would not require any security whatever, as on a Personal Loan we have death cover and you are in regular employment, er, in, er, good-sala-ried employment, with a with a good, with a good salary, therefore I would not ask you for erm, any security. Yes. Yes. But the interest rate would be higher than on an Ordinary Loan. Yes I should charge you seven percent on a Personal Loan and thats on the original amount taken, whereas on an Ordinary Loan it would be at one and a half percent over Bank Rate, minimum six percent, and that would be calculated on a, on a day-to-day basis, so it docs in fact work out cheaper.J: I see. Yes.Part III Credit cardsCredit cards have taken an important role in our life. Cardholders use it to buy goods and then to receive a statement every month. However, using a credit card can be very expensive. Do you know why?A. Listen to a mini-lecture about credit cards given by Young American Bank. Complete the outline.OutlineI. The importance of credit cardsII. NatureA: “charge”- paying at a later dateB: “ limit”III. The potential disadvantagesexpensiveA: easy to make lots of purchases on cardB: likely to pay a tremendous amount of interestIV The benefitA: indispensable in lifeB: helpful for emergenciesC: good for travelD: insuring purchaseB. Now try this: listen to a more authentic version of the material. Audioscript: Credit cards are an important part of American life. Whether we have a positive or negative image of credit cards, they are an inescapable part of our finances, either now or in the future.Without a credit card, its just about impossible to rent a car, make a hotel or airline reservation, or even get a membership at a video store.Since credit cards are so important, yet so many people are in financial trouble because of them, we feel education is extremely important. We want to show our customers that credit cards are not toys; they are an important responsibility.A credit card can be used to charge things like clothes, tapes or CDs, dinner at a restaurant, or maybe a hotel room while youre on vacation. When you charge something, you are agreeing to pay for your purchase at a later date. Basically, you are buying something now and paying for it later.Credit cards come with a limit. Lets say your credit card has a limit of $100.00. That means you can charge up to $100.00 worth of items on your card. You will get a statement in the mail each month that lists the charges you have made. You will also have to make a payment every month that you have a balance owing.Since were about educating our customers on the realities of credit and credit cards, were going to be perfectly honest. First, using a credit card can be very expensive. Banks dont offer credit cards just because they like you. They offer them because they make money when customers use credit cards.How do they make money? When you charge something on a credit card, you not only will have to pay for what you bought, but you will also have to pay interest, or a finance charge, if you dont pay your hill in full by the due date. The finance charge is your extra cost for having something now and paying for it later. The interest rate on a credit card can be 15% or even higher. If, however, you pay your bill in full every month by the due date, you do not have to pay interest. And of course, we highly recommend you do that!Its very easy to make lots of purchases on your card and then be surprised at how quickly they add up when your bill arrives! If youre not careful when you use a credit card, you could find yourself in a lot of debt. And it always takes much longer to pay it off than to spend it.You will also want to be careful about buying things with credit card you wouldnt normally be able to afford. Again, you can get in over your head and end up paying a tremendous amount of interest.However, when used correctly, credit cards can be very helpful. Its sometimes hard to do certain things without a credit card. Credit cards are also helpful for emergencies and are good for travel. Some credit cards even insure your purchase, meaning if something is lost, stolen, or broken, it can be replaced.We believe the best way to become responsible with credit is to learn through hands-on experience. If you begin at a young age with a low limit, you wont be likely to blow it and get in financial trouble later on.Part IV More about the topic: The Great Ruro CrisisMichael Portillo, former UK Conservative Party politician and Cabinet Minister, is on his way to debt-stricken Greece. He believes that the Euro crisis must have shaken the Greeks faith in Europes single currency and wonders if therell be a desire to revert to the free-floating Drachma. With tensions rising in the Eurozone, is this the moment it becomes more united, or will it be pulled apart?In this section, you are going to hear part of a documentary on the Greek financial crisis. While listening, note down the key words in the notes column. Then fill in the gaps in the following chart to make a comparison between Greece before and after joining the Euro. Audioscript:Narrator: Arriving at Athens New International Airport, there is no obvious sign that Circece is in dire straits. It all looks pretty normal, but ten years after joining the Euro, this country is effectively bankrupt and the government has put the airport up for sale.Michael Portillo: I havent been to Greece for 20 years since I came as a government minister. And Athens just had an old-fashioned airport in those days, had a different location from this beautiful new one. And Greece had its own currency, the Drachma. Since then the country has been through an economic boom, when borrowing was chcap and the government and the people went on a spending binge, now have come the years of bust. And I believe . that Greeces crisis is due to having joined the Euro. How did all this come about?BBC Host: The launch of the Euro is the dawn of a new age, according to the European Central Bank, as 12 countries take the plunge.Narrator: The Euro was introduced on New Years Day 2002.Joining it was supposed to help weak economies like Greece, catch up with their richer eurozone partners.Michael Portillo: Ive come to pay my respects at this shrine to the Drachma, Greeces last national currency. It gave up the right to print its own money in favor of joining a broader European dream. In my view, a weak economy like Greecc should never have shared the same currency with Germany, the economic powerhouse of Europe. The weak Drachma made it easy to export Greek tomatoes and olives. But being part of the stronger Euro has made Greece uncompetitive and sucked in manufactured imports. Narrator: And this is just the sort of manufactured import that flooded into Greece once it had joined the Euro. The Greeks went on a buying spree of German luxury cars, cars like the Porsche Cayenne.Michael Portillo: This car and the Euro were launched in the same year, and their stories are intertwined. Produced by the technological wizardry of Germany, the middle classes of non-industrial Greece aspired to own it. And this car turned into the symbol of German manufacturing might and the Greek economic bubble.Narrator: To help me to understand just what happened in Greece after it joined the Euro, I have arranged an appointment with a man, who has taken a special interest in the origin of Greeces debt crisis. Michael Portillo:Hi, Jason, how are you? Hi, Michacl! How are you?Narrator: Economist and hedge fund manager Jason Manolopoulos.Michael Portillo: Tell me, a lot of people think that the figures to enable Greece to join the Euro were rigged. You know, the figures on the deficit and so on. Is that true? Were the figures rigged?Common acknowledgement that they were rigged. Everybody in the European Commission also knew it. But again Greece joining was a political project back then rather than a purely economic project. Describe for me those boom years after Greeces joined the Euro around the times of the Olympics, what was it like?Jason: You get all these fancy villas springing up, you had huge amounts of spending in luxury goods, people taking weekend trips to Paris rather than going to their local village. A huge sense, you know, just a general sense of euphoria. Everybody was happy going out. Greece had won the Football of the Euro. With the Olympics, it was like a dream coming true. People were allowed to have a lifestyle that they hadnt enjoyed previously. At one point in time in 2010, there were 8 billion of car loans in Greece. Michael Portillo:8 billion?Jason : 8 billion that was 3.5% of GDP, compared to zero ten, ten years ago.Michael Portillo: Would Greeks be able to buy as many cars like this if it wasnt under the Euro?Jason: Oh, absolutely not. During the 80s, the cars on the streets here were predominantly French, Italian and Japanese. And you know, these luxury cars or German cars reputation was not worth the money, uh . too expensive. The strong exchange rate that Greeks had by being in the Euro helped them, but also more importantly, the availability of cheap credit to finance these purchases made all these