In this document you will find English words. This concerns the words from the book: Professional English in Use, unit 25 up to and including unit 36. In the summary, the words have been included per unit with the English description, and occasionally a Dutch translation. Exactly as it should be le...
25. Money markets
Money markets Consist of a network of corporatonss fnancial insttttonss iniestors and
goiernmentss which need to borrow or iniest short-term capital.
Short-term Up to 12 months.
Liquidity Haiing cash aiailable when depositors want it.
Cash-flows In-comings and ott-goings of money.
Compettte interest rates Higher ones than they wotld get from a bank
Intestment companies Btsiness that is trading financial instruments stch as stockss bondss short-term
loans and debtss rather than lending money.
Treasury bills (or T-bills) Bonds issted by goiernments.
Maturity The length of tme before a bond becomes repayable.
Discount Kortng. Selling something beneath the nominal talue.
Nominal talue Valte written on them.
Redeemed Paid back. Tertgkopen
Commercial paper Short-term loan issted by major companiess also sold at a discotnt.
Unsecured Not gtaranteed by the company’s assets.
Certficates of deposit (CD’s) Short-term or meditm-terms interest-paying debt instruments.
Debt instruments Written promises to repay a debt. They are issted by banks to large depositors
who can then trade them in de short-term money markets.
Time deposits The holder agrees to lend the money for a specifed amotnt of tme.
Repurchase agreement (repo) Very common form of fnancial contract. It’s a combinaton of two transactons.
Dealer Dealer. Iemand die prodtcten ierkoopt en inkoopt.
26. Islamic Banking
Interest-free banking There is no interest charged on loans. Not paying interest on saiings. It’s against
certain ethical or religiots beliefs.
Profit and loss sharing (PLSt The bankss their depositors and their borrowers share the risks of the btsiness.
Bank-customer relatons are iery close.
Venture capitalists or risk Bty shares of new companies.
capitalists
Safekeeping The depositors can withdraw their money at any tmes and they permit the bank to
tse it.
Profitability Its ability to earn a proft.
Rate of return The amotnt of money the iniestment payss expressed as a percentage of the
amotnt iniested.
Intestment accounts are fixed-term deposits which cannot be withdraw before mattrity.
Maturity The length of tme before a bond becomes repayable.
Leasing or hire purchase Agreements haie higher interest rates than bank loans and oierdrafs. These are
when a ctstomer makes a series of monthly payments to bty dtrable goods.
Sertice charge Seriicekostens administratekosten.
Working capital Werkkapitaal. Money tsed in btsinesses in their day-to-day operatons.
, 27. Money supply and control
Money supply It’s the stock of money and the stpply of new money. (Cash and bank deposits).
The ctrrency in circulaton Coins and notes that people spend.
Time deposits Bank deposits that can only be withdrawn afer a certain period of tme.
Narrow money This only incltdes ctrrency and sight deposits.
Sight deposits Bank deposits that ctstomers can withdraw wheneier they like.
Broad money Saiings deposits and tme deposits. Money market ftndss certfcates of deposit
(CD)s commercial papers reptrchase agreements.
Velocity of circulaton How qtickly money moies from one instttton or bank accotnt to another.
The qtantty of money spent is the money stpply tmes its ielocity of circtlaton.
Monetary authorites Central banks sometmes the goiernment.
Monetary policy Trying to control the rate of infaton to maintain financial stability. This iniolies
changing interest rates. The aim is to protect the ialte of the ctrrency.
Discount rate The rate the central bank sets to lend short-term ftnds to commercial banks.
Reserte-asset rato The minimtm percentage of its deposits a bank has to keep in its reseries.
Monetarist Monetarist economists are those who argte that if yot control the money stpplys
yot can control inflaton.
Inflaton Infate.
Monetary growth Too mtch money being added to the money stock.
28. Venture capital
Start-ups New btsinesses
Pritate companies Companies (start-tps) aren’t allowed to sell stocks or shares to the general ptblic.
Founders The people who start the company.
Risk-aterse Banks are tnwilling to lend to new companies where there’s a danger that they
won’t get their money back.
Venture capital/Risk capital/ Ftnds for new enterprises.
Start-up capital
High net worth inditiduals Iniest in start-tps. Banks call rich people this way.
Angels or angels intestors Iniest in start-tps. We call rich people this way.
Entrepreneurs People with an idea to start a new company.
Business plan A btsiness plan begins with a stmmarys which explains in one or two pages:
What sort of company it is
What the prodtct or seriice iss and what is special abott it
Who the managers are
How mtch money yot needs and what yot will tse it for
Rate of return The amotnt of money the iniestment pays
Public company A company that is listed on a stock exchange.
Exit strategy Exit strategie. The way yot stop yotr btsiness when yot get in to trotble or lose
money.
Mezzanine financing Needing more capital to expand before yot join a stock exchange. It tstally
consists of contertble bonds or preference shares that receiie a fxed diiidend.
Contertble bonds Bonds that are later conierted to shares.
Preference shares Preferente aandelen.
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