Учебнометодическое пособие Петрозаводск 2010 ббк 81. 2Англ удк 811. 11 Г 613 Рецензенты
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(10) In addition, some countries such as the United States limit the amount that a consumer can be held liable for fraudulent transactions, which shifts the liability to the merchant. This encourages the use of credit cards for electronic and mail order transactions, collectively called “card not present” transactions. For further security, some banks are offering one time numbers for use in these transactions. They have spread far and wide beyond their initial market of the wealthy businessman and are now ubiquitous amongst the middle class of most Western countries. (11) The relatively low security of the credit card system presents many opportunities for fraud. However, this does not imply that the system is broken. The goal of the credit card companies is not to eliminate fraud, but to reduce it to manageable levels, such that the total cost of both fraud and fraud prevention is minimized. This implies that high-cost low-return fraud prevention measures will not be used if their cost exceeds the potential gains from fraud reduction. This opportunity for fraud has created a black market in stolen credit card numbers, which must generally be used quickly before the cards are reported stolen. (12) Three improvements to card security are being introduced to the more common credit card networks now. An additional 3–4 digit code is now present on the back of most cards, for use in “card not present” transactions. The on-line verification system used by merchants is being enhanced to require a 4 digit Personal Identification Number (PIN) known only to the card holder, and the cards themselves are being replaced with similar-looking tamper-resistant smart cards which are intended to make forgery more difficult. The majority of smartcard (IC card) based credit cards comply with the EMV (Europe Visa MasterCard) standard. (13) The 3–4 digit numbers for use in “card not present” transactions are to be found in different places on the various cards, and are referred to differently by the card issuers: AMERICAN EXPRESS: 4 digits long, printed on the front side of the card above the number, referred to as the CID, or Card Identification Number. MASTERCARD: last 3 digits of the number printed on the back signature panel of the card, referred to as the CVC, or Card Validation Code. VISA: last 3 digits of the number printed on the back signature panel of the card, referred to as the CVV, or Card Validation Value. 3) Name the paragraphs containing information on: a) the shape and size of credit cards, b) payments over the telephone by credit card, c) the rights and duties of cardholders, d) the case when credit card companies don’t pay the merchant, and even fine them, e) the systems of security in the three most famous credit cards: American Express, Visa and Mastercard. 6.22 FLEXIBLE MORTGAGES 1) What are advantages and disadvantages of having a mortgage? 2) Read the heading and the words from the article and say what it is about: to adjust, to borrow, debt, equity, flexible, income increase, interest rate, liability, mortgage, penalty, to suit. Flexible mortgages can be adapted to suit home-owners’ varying financial needs. A mortgage which adjusts to the ebbs and flows of a borrower’s financial situation could become a popular option with households who experience variations in income levels. With a flexible mortgage, you can link many of your debts under one roof with the advantage of interest rates of between 5% and 7%. Having all your borrowings together has obvious management advantages. If the equity in a house is higher than the value of a current mortgage and the applicant can prove that he or she is capable of meeting the repayments, remortgaging can allow you to set by a sum which can be drawn down gradually for home improvements. There may, of course, be a tax liability if the extra money borrowed is used for purposes other than the house or garden. Also, since the borrowings are over a much longer period, the eventual repayment sum will be considerably higher than with a term loan. And it is important not to forget to change your life cover to suit the altered circumstances. A big attraction is the fact that a flexible mortgage can be adapted to suit changes in a person’s financial circumstances. The facility to take a sabbatical on repayments can be invaluable when finances are at low ebb. Many incomes these days are so irregular that six-monthly or even annual repayments may suit better – and believe it or not, this can be arranged. You can even opt for a dual rate, part-fixed and part-flexible, so that you are safeguarded whatever way interest rates move. So why are flexible mortgages such a closely-guarded secret? “We don’t broadcast all we can do because most people just want simplicity and a fast response,” said Wyndham Williams, Allied Irish Bank (AIB) Head of Mortgages. “We allow any frequency of repayment, yearly, seasonal – anything to suit a customer’s cash flow. We can also allow you to take a six to 12 months break in repayments or arrange a reduction in repayments.” AIB also facilitates a “top-up” of an existing mortgage, although Williams was quick to point out that the Revenue Commissioners may ask for proof that the money was used for a backyard swimming pool and not for a brand new Lambordhini. Independent mortgage consultant Shane Richardson of National Mortgage Services says that once the value is in your home, there is nothing to stop you borrowing extra to help clear off all your loans, choosing whatever rate you prefer. “What this is giving you is cash flow – using the equity in your property to allow you to live,” said Richardson. “Home improvers may want to pay electricians, plumbers and plasterers on a piecemeal basis, with part of the money upfront. Remortgaging can facilitate this.” On a cautionary note, Richardson stressed the importance of remaining in a careful control of your borrowings. “We are concerned that if a customer, who is a bad manager, clears all their debts by extending their mortgage, they may quickly get into the same situation.” We say, “Please don’t go off and borrow again because they are using up a vast chunk of their equity in the process.” Bank of Ireland’s flexible mortgages offer a number of options. They will pay the first-time buyer’s grant up-front for a customer and claim it back from the government. They have a split interest rate option where the customer can choose to divide his/her mortgage rate between fixed and variable. From 5 to 30-year terms can be arranged for borrowings up to an age limit of 75. Customers can choose to repay for 10 months of the year if it suits, taking Christmas and the summer months off. Most banks and building societies offer breaks in repayments of up to three months over the term of the loan – an attractive option for those taking maternity leave or a short career break for study. You can arrange for your mortgage to be index-linked, with repayments increasing by 2% or 3% each year to keep pace with wage rises and inflation. In some cases, up to 10% of a lump sum can be used to reduce the loan each year without incurring a penalty. The secret of managing a flexible mortgage is to look on it as a loan which will tide you over a bad period, but ultimately it should reduce interest penalties when the good times return. 3) Answer the questions: a When are flexible mortgages especially useful? b Why aren’t flexible mortgages used widely? c What causes concern on the part of a bank? d What does Bank of Ireland offer? 4) Make up an outline of the text in writing. 6.23 Fundraising Basics 1) Have you ever participated in the fundraising activities? What did you raise money for? Was it difficult to persuade people to donate money for that purpose? Today there are more non-profit and charity groups than ever. On the one hand, this is a great development – it means that as a society we are becoming more aware of a need to give to others. We even see that people are taking the necessary steps to ensure that we help others. On the other hand, though, the presence of so many non-profits creates a unique problem – “donor’s burnout.” In short, did you realize that there was more donation drive running across your neighborhoods, TVs and newspapers? The increased competitiveness of fundraising has created a whole new business: the fundraising business. There are consulting firms that will help you fundraise more effectively – for a price, of course. There are also many companies that claim that their fundraising efforts or products will make money for you non-profit in exchange for a share in the profits. Many people assume that fundraising is as simple as holding garage sales or some other activities until enough money is raised. If you only want to raise a small amount of money for a specific purpose (e.g. Student’s fund for college), this may be fine, but for many groups using this approach is too uncertain and too limited to be very effective. If your group is around for a while because your organization runs on donor’s support, then you will want to raise money consistently in order to keep your group going. You will need to learn many things in order to keep enough money coming consistently: fundraising is not an easy activity and it does require skills to achieve the best results. 2) The text contains a number of words to describe fundraising activities, such as donation, fundraising, etc. How many can you find? 6.24 a job opening at a bank 1) Read the text quickly and answer the questions: a) Is the text a recruitment advert, a news article, or an advert for some journal? b) Is the text for university graduates, people with experience, people who haven’t been to university? THE BANK A mid sized private sector Bank with an asset footing of € 50 billion operating with a countrywide network of 50 Branches (being expanded to 65 by the year end), desires to re-position itself to become a key, top quartile local bank amongst its competitors. Its current focus is on growing multiple lines of business, while strengthening its existing niche in the commercial middle market and expanding credit to the agriculture sector. More importantly the Bank now wants to build its retail/consumer banking business segment faster especially in the field of housing finance. The outreach and scope of the products and services set aimed at its commercial customers is to be broadened and deepened. The development of the new financial products in all of the above segments has to be fast tracked and marketed. The shareholders are committed to make the Bank a significant player in the above referred areas. The Bank expects to grow rapidly in the next 3 to 5 years building a high level of awareness in the market for the franchise. PROFILE OF THE DESIRED CANDIDATE Business Degree, preferably Master’s or equivalent. Business Experience Twenty plus years in general banking, a significant part of it in General Management at a country and/or business level including retail banking. Overseas exposure with an International Bank is desirable. Requirements:
Behavioral qualities:
2) Read the text carefully and answer the questions: a) What kind of bank is it as to its asset, its niche in the market, the customers, and the plans for development? b) Among the enumerated requirements for the candidate, what do you consider to be the most important for this kind of bank? c) How will you rank the behavioral qualities required for the candidate? 6.25 THE PUBLIC SECTOR IN FINLAND 1) What spheres of activity refer to public sector (the industries and services that are supported by tax money and controlled by the government): religion, civil service, gardening, education and research, health services, military service? 2) What spheres of taxation in Finland would you like to compare with those in the Russian Federation? The growth in overall production and services is due to the extension of publicly-financed activities. The civil service, defense, education and research, hospital and health services, and social security are an integral part of the Finnish society. There are considerably more people working in the services than in industry. Public services are maintained out of taxation by either the state or the local municipalities. The state aids municipalities in proportion to their incomes. The most important direct tax is that levied by local authorities on all residents, the rate being under 20% of their incomes. State income tax is progressive, and at most the rate is slightly under 40% of taxable income. The rates for the state income and property taxes, as well as the local tax, are determined annually. The main indirect tax is the turnover or sales tax, the rate of which, with certain exceptions, is about 18% of the retail price. Excise taxes are imposed on fuels, tobacco and alcoholic beverages. The motor vehicle tax is one of the highest in the world. Stamp duty is another important source of income for the state. The importance of customs duties has radically declined. The state’s share of direct taxation is about 60%, the local authorities 25%, and the remaining 14% consists largely of social security contributions. The trend in tax policy has been towards indirect taxation. Different forms of income transfers and benefits to individuals and companies alike play an important part in the public economy. In addition to public housing programs, various interest-subsidized loans account for a major part of both central and local government. 3) Answer the questions: a) How are public services financed? b) What is the rate of the local tax? c) What is the rate of the state income tax? d) What taxes are indirect? e) What products are excise-taxed? f) What are other sources of income for the state? g) What is the trend in tax policy? 6.26 BENEFITS BETTER, CLAIMS WELFARE 1) Study the heading and the words and guess what this article is about.
2) Read the article and answer the questions: a) How much will income threshold increase? b) What kind of children will get increase in benefit payments from the Department of Social Welfare (DSW)? c) Who else, except children, will get benefits from the DSW? The Department of Social Welfare (DSW) claims several initiatives since 2005 have significantly improved the welfare of children in the lowest socio-economic groups. The department says:
3) Which sentences correspond to the content of the article? a) The President announced several initiatives that will improve the welfare of children. b) The number of families getting the benefits is growing. c) Children benefits will rise from £15.80 to £30 per child per month. |