Tài liệu tiếng anh chuyên ngành 1

Unit 1: Economic
Summary
Economics is the study of how people choose to use resources to improve their
well-being. Economics is the study of the production and consumption of good and
the transfer of wealth to produce and obtain those goods. There are two main types
of economics: macroeconomic and microeconomic. Microeconomics focuses on
the action of individuals and industries,like the dynamic between buyers and
sellers,borrowers and lenders. Macroeconomics,on the other hand,take a more
broader view by analyzing the economic activity of an entire country or the
international marketplace. There 3 economics theory: Adam Smith, Marxism and
Keynesian School. Studying economics can help one understand human thought
and behavior.
Comprehension questions
1. What do resources include?
→ Resources include the time and talent people have available,the
land,building,equipment and the other tools on hand,and the knowledge of
how to combine them to create usefull products and services.
2. What can be considered as important choose?
→ Important choose can be considered as how much time to devote to
work,to school,and to leisure,how many dollars to spend,how many to
save,how to combine resources to produce goods and services,and how to
vote and shape the level of taxes and the role of government.
3. What does the term “well-being” main?
→ Well-being includes the satisfaction people gain from the products and
services they choose to cunsume,from their time spent in leisure and with
family,and community as well as in jobs,and the security and services
provided by effective governments.
4. Why does economics reveal the way people and government behave?
→Because economics is a driving force of human interaction. It explains
how people interact within markets to get what they want or accomplish
certain goals.

Unit 3 : Microeconomics
Summary
Much of microeconomics is about limits-the limited incomes that consumers
can spend on goods and services. It is about the allocation of scarce resources.
In a planned economy,these allocation of mostly by the govornment. In modern
market economies, consumers,workers and firms have much more flexibility
and choice when it comes to allocating scarce resources. Microeconomics
describes the trade-off that consumers,workers and firms face,and show how
these trade-off are best made. Consumer theory describes how consumes, based
on their preferences,maximize their well-being by trading off the purchase of
more of some goods with purchase of less of other. Workers theory,first,people
must decide whether and when to enter the workforce; second, workers face
trade-offs in their choice of employment; finally,workers must sometimes
decide how many hours per week they wish to work thereby trading off labor
for leisure. Firms also face limits in terms of the kinds of products that they can
produce and the resources available to produce them. The theory of the firm
describes how these trade-offs can be best made. Microeconomics also
describes how price are determined. The central role of markets is the third
important theme of microeconomics.
Comprehension questions:
1. In a planned economy, who makes decisiions on the allocation of scarce
resources?
→ The government
2. Why are many microeconomic tools and concepts of limited relevance in
Cuba and North Korea?
→ Because: Firms are told what and how much to produce,and how to
produce it,workers have little flexibility in choice of jobs,hours worked or
even where they live,and consumers typically have a very limited set of
goods to choose from.
3. What does the term “trade-off” mean?

→
Unit 4 : Macroeconomics
Summary
Macroeconomics provides us with a bird’s eye view of country’economic
landscape. The goal of macroeconomics is to look at overall economic
trends such as employment levels, economic growth, balance of payments,
inflation and so on. Macroeconomics including monetary policy and fiscal
policy. The basic objective of these two main macroeconomic policies are to
promote economic growth and to keep inflation under control. Central banks
use monetary policy by increaseing or decreasing the money supply to keep
the economy from overheating or slowing down too quickly. Fiscal policy is
used by the government. Taxation and government spending greatly
influence a country’economic growth. Microeconomics different with
macroeconomics. Microeconomic is generally the study of individuals and
business decisions, Macroeconomic looks at higher up country and
government decisions. However,they are actually interdependent and
complement one another since there are overlapping issues between 2 fields.
Comprehension questions:
1. What are two major macroeconomic policies?
→ Two major macroeconomic policies are moneraty policy and fiscal
policy.
2. What are the main tools of monetary policy?
→ Monetary policy which controls a nation’s money supply is supervised
3. What are the main tools of fiscal policy?
→ Fiscal policy which controls a government’s revenue and spending.
Unit 5: Demand and supply
Summary
Demand describes how price influences buyer behavior. If the price of a specific
good or service increases,the quantity demand will decrease. If the price
decreases,the quantity will increase. So,we must hold all the other possible

influences contant. The shift factors of demand are society’s income,price of other
good,expectation and tastes. Demand curve shows the prices influense on buyers.
On our demand model,we illustrate a change in one of the shift factors of demand
curve to the left or to the right. The seller,just like the buyer will be influenced by
prices when deciding how much to provide or produce. The shift factors of supply
include: change in prices of input,technology,taxes,and supplies expectations. If
one of the shift factors of supply change, supply curve will change. Equilibrium is
a situation in which there is no tendency for change. A market will be in
equilibrium when there is no reason for the market price of the product to rise or to
fall. Demand and supply curve simply graphs of demand and supply schedules.
Comprehension questions:
1. What is the definition of “demand”?
→ Demand is the quantity of goods and services buyers are willing and able
to buy more at various prices.
2. What is the difference between “demand” and “quantity demand” ?
→ Demand is the quantity of goods and services buyers are willing and able
to buy more at various prices. Quantity denmand is the quantity of goods
and services buyers are willing and able to buy at a certain price in a period
of time.
3. What is the definition of “supply”?
→ Supply is the quantity of goods and services sellers are willing and able
to sell more at various prices.
4. What is the difference between “supply” and “quantity supply” ?
→ Supply is the quantity of goods and services sellers are willing and able
to sell more at various prices. Quantity supply is the quantity of goods and
services sellers are willing and able to sell at a certain price in a period of
time.
5. Will the supply curve of beer shift to the right or to the left if there is an
increase in its production costs?
→ If beer’s production costs increase, supply curve of beer shift to the left

Unit 6 : Public finance
Summary
The federal government raises trillions of dollars in tax renenue each year,though
there are many different kinds of taxes as: individuals income taxes,payroll
taxes,corporate income taxes,customs duties and excise taxes. Income taxes and
corporate are designated as federal funds,while payroll taxes become trust funds. If
the federal government spends more than revenues,the Treasury borrows money by
issuing bonds. To finance the debt,the U.S Treasury sells bonds and other types
securities. The federal debt is the sum of the debt held by the public,this is “debt
held by federal accounts” . So,the government owes to all its creditors in the
general public and foreign investors and central banks of other countries.
Comprehension questions:
1. What does the U.S Treasury do when revenue from taxes is not enough
to cover all of the government’s expenditures?
→ When revenue from taxes is not enough to cover all of the government’s
expenditures,the U.S Treasury borrows money to make up the difference.
2. How much is the Federal government going to collect in tax revenues in
fiscal year 2014?
→ The Federal government going to collect in tax revenues in fiscal year
2014 are projected to be $3 trillion.
3. What type of taxes contributes the largest proportion of tax revenues?
→Taxes contributes the largest proportion of tax revenues is individual
income.
4. What are federal funds?
→ Federal funds are income taxes and corporate taxes.
5. For what purpose are these funds used?
→Congress and the president conduct and the annual appropriations
process.
6. What are the trust funds?
→ Trust funds are payroll taxes.

7. For what purpose are these funds used ?
→ Trust funds can be used only to pay for very specific programs.
8. By that way does the Treasury borrow money?
→ The Treasury borrow money by issuing bonds.
9. Who does the Federal Government owe money to?
→ The money borrowed from regular people like you and from foreign
countries.
Unit 7 : Fiscal policy
Summary
Government spending and taxation directly effect the overall performance of
the economy. If the government increases spending, will create fob,create
income,so the economy tend to grow. If the government increases taxes, the
economy tend to shrink. When the government spends more than it
receives,it runs deficit. Government spending deficits by borrowing money.
Deficit spending obtained by borrowing and printing instead of taxation-can
be helpful for the economy. However,it also can harm the economy. Fiscal
policy is expansionary when taxation is reduced or public spending is
increased. Fiscal policy is contractionary when taxation is increased or
public spending is reduced. A government must make judments about a
number of factors including the level of economic growth of unemplyment
likely in the future,and whether or not torun a budget deficit by spending
more money than the government raises,by political considerations,by fiscal
policies of other countries and by the requirements of IMF.
Comprehension questions:
1. In what way do government spending and taxation affect the
ecnomy? Give example ?
→Government spending and taxation directly affect the overall
performance of the economy. For example, if the government increases
spending to build a new highway, construction of the highway will create
jobs and people spend more money on purchases, thus, the economy

tends to grow
2. What is deficit spending? Is it useful or harmful for the economy?
Why?
→ Deficit spending obtained by borrowing and printing instead of
taxation-can be helpful for the economy.
3. What are the government’s major economic policies mentioned
above?
→ The government’s major economic policies mentioned above are
Fiscal policy and Monetary policy.
4. What are they aimed at?
→ They are aimed at maintaining economic growth,high employment
and slow inflation.
5. Under what circumstances can fiscal policy be expansionary? Why?
→ F.P is expansionary when a government fells its economy is not
growing fast enough or unemployment is too high.
Because, when increasing spending or cutting taxes,the government
leaves individuals and businesses with more money to purchase good or
invest in new equipment,so raise demand,which requires additional
production,creating jobs,generating more spending. The result is higher
employment and a growing economy.
6. Under what circumstances can fiscal policy be contractionary? Why?
→ F.P is contractionary when inflation is high
Because, a contractionary F.P reduce the amount of money in the
economic available for puchasing,goods.
7. What factors should be considered in making decisions on the F.P?
→ Factors should be considered in making decisions on the F.P include:
the level of economic growth of unemplyment likely in the future; whether
or not to run a budget deficit by spending more money than the
government raises;political considerations;fiscal policies of other
countries and by the requirements of IMF.

Unit 8 : Taxation
Summary:
Most of the money to run the government comes from taxes of all sorts-
on personal and corporate incomes,on sales of goods,on imports and on
inheritance. The ultimate source of all tax money is the same-people. The
primary function of taxation is,to raise revenue to finance government
expenditure,and other purposes. There is always a lot of debate as to the
fairness of tax system,as business profits are generally taxed
tivice:companies pay tax on their profits and the shareholders pay income
tax on dividends. The higher the tax rate,the more people are tempted to
cheat. To reduce income tax liability,some employers give highly-paid
employees lots of “perks” instead of taxable money.
Unit 10 : Insurance
Summary
Insurance is a financial arrangement that redistributes the costs of
unexpected losses. The insurance arrangement involves the transfer of
many different exposures to loss to one insurance pool. An insurance
system accomplishes the redistribution of the costs of losses by collecting
a premium payment from every participant in the system. The insured
receives a promise from the insurance system to be compensated in the
event of a loss. Contracts of insurance form a special class of contract in
that the law requires parties to them,to exercise the utmost good faith
towards each other.
Comprehension questions:
1. In what way,losses can be predicted before they occur?
→ Losses can be predicted before they occur through the operation of
insurance system.
2. Why is the predictability of losses in advance is basic to an
insurance system’s operation?
→ Because it allows the cost of losses to be financed and

redistributed in advance.
3. Why are people willing to pay an insurance premium?
→ Because they find the possibility of suffering a large loss
unpleasant to contemplate.
Unit 11 : Money and its functions
Summary
Money is a commodity accepted by general consent as a medium of exchange,
which serves as a medium of exchange, a measure of or an unit of account, a store
of value and a standard of deferred payments. Money has 2 main types:
commodity money (Its value is equal to the value of contained materials) and
token money (its value exceeds the cost of production or value in uses other than as
money).
Comprehension questions :
1. What is the concept of “money”?
→ Money is a commodity accepted by general consent as a medium of
exchange.
2. What are the functions of money?
→ The functions of money are medium of exchange, measure of value, store
of value, and standard of deferred payments.
3. What is a medium of exchange?
→ A medium of exchange is anything that is widely accepted in payment for
goods and services and in settlement of debts.
4. How is money used as a medium of exchange?
→ Money is used as a medium of exchange which exchange goods &
services?
5. How is money used as a unit of account?/a store of value and as a
standard of deferred payment?
→ Money is used as a unit of account as we need measurements for
distances,weights,& energy,so we need measurements for the value of things
offered at the market.

→Money is used as a store of value as it can be used to make purchases in
the future.
→Money is used as a standard of deferred payment as is expressed in terms
of money to be paid in the futuer.
Unit 12 :Monetary policy
Summary
Monetary policy is the process by which monetary authority of a country controls
the supply of money. By law, the Fed controls the percentage of deposits banks
keep in reserve by controlling the reserve requirement of all US banks. The reserve
requirement is the minimum amount of reserves as bank must have and it decides
how much money banks have to lend out. Other tools of monetary policy are
changing the discount rate,so can expand or contract the money supply. A third
tool:open market operations,this are the primary tool of monetary policy. Monetary
policy contains 2 types: expansionary which may be used to shift aggregate
demand and restrictive which may be used to cool an overheating economy.
Comprehension questions:
1. What is the moneary policy?
→ Monetary policy which controls a nation’s money supply is supervised by
each country’s central bank.
2. How does the Fed control the percentage of deposits banks keep in
reserve?
→ The Fed control the percentage of deposits banks keep in reserve by
controlling the reserve requirement of all US Banks.
3. What is the called reserve requirement?
→ The percentage the Fed sets as the minimum amount of reserves as bank
must have is called the reserve requirement.
4. What determines the amount banks hold as reserves?
→ The Fed’s reserve requirements determines the amount they hold as
reserves.
5. What is the central role of the reserve requirement?

→ The reserve requirement play a central role in how much money banks
have to lend out.
6. What is the second tool of monetary policy?
→ The second tool of monetary policy is Discount rate.
7. What is the discount rate?
→The discount rate is the rate of interest the Fed charges for those loans.
8. How can the central bank shift aggregate demand?
→ The central bank can shift aggregate demand by making more or less
money available.
9. How can the banks encourage people to borrow and spend more
money?
→ The banks can encourage people to borrow and spend more money by
offering lower interest rates or easier approvals.
10. When will prices begin rising?
→ As market participants bid against each other for increasingly scarce
goods, prices will start rising.
11. What can the central bank do to reduce aggregate demand?
→ The central bank can reduce the money supply by: raising reserve
requirements, increasing the discount rate,or selling bonds in the open
market.
12.When might the central bank want to reduce the money supply?
→ The central bank might want to reduce the money supply when an
overheating economy.
Unit 14 : The foreign exchange market
Summary
The foreign exchange market is an over-the-counter market,the primary
communication instruments being the telephone and the computer. The
foreign exchange market enables banks and international corporations to
trade foreign currencies in large amounts. Foreign exchange trading is
divided into spost and forward business. There are 3 types of participants in

the market: customers,banks and brokers.
Comprehension questions:
1. What is the foreign exchange market?
→ The foreign exchange market is the market in which such national
currencies dollars,pesos,deutschemarks,yen,trancs,and others are
exchanged.
2. Why is it considered to be an OTC market?
→ The foreign exchange market is considered to be an OTC market.
Because it is not an organized market with fixed hours and a physical
meeting place.
3. Why is London the world’s largest foreign exchange centre?
→ London the world’s largest foreign exchange centre, because:
• London’trading position arises partly from the large volume of
international financial business generate as:
insurance,Eurobonds,shipping,commodities and banking.
• London benefits from its geographical location
• London thus trades 24 hours a day.
4. What are two type of transactions in the foreign exchange market?
→ Two type of transactions in the foreign exchange market are spot
transactions and forward transactions.
5. How many type of participants are there? Who are they?
→ There are 3 types of participants in the market. They are customers,
banks and brokers.
6. For what purpose do multinational corporations need foreign
currencies?
→ Multinational corporations need foreign currencies in the course of
their cross border trade or investment business.
7. How do brokers participate in the foreign exchange market?
→ Brokers participate in the foreign exchange market as intermediaries
between the banks.

Unit 15 : Functions of financial markets
Summary
The main function of financial markets is to provide capital from surplus
funds to shortage funds. There are several categorizations of financial
markets. A firm or an individual can obtain funds in a financial market in
two ways, they are debt and equity markets. Secondly, we have primary
markets and secondary markets. Secondary markets can be organized in 2
ways: exchanges market and over – the – counter – market. Finally, on basis
of the maturity of the securities, they are money market and capital market.
Comprehension questions:
1. What is the main function of financial markets?
→The main function of financial markets is channeling funds from
households, firms, and governments that have saved surplus funds by
spending less than their income to those that have a shortage of funds.
2. How many categorizations of financial markets are mentioned in the
text?
→There are 4 categorizations of financial markets. They are Debt and
Equity Markets, Primary and Secondary Markets, Exchanges and Over-the-
counter Markets, Money and Capital Markets.
3. What is the debt market?
→The debt market is a financial market in which to issue a debt instrument,
such as a bond or a mortgage.
4. What is the equity market?
→The equity market is a financial market in which shares are issued and
traded.
5. What is a debt instrument?
→Debt instrument is a contractual agreement by the borrower to pay the
holder of the instrument fixed dollar amounts at regular intervals until a
specified date.
6. Do shareholders of a corporation receive fixed dollar amounts at regular

intervals?
→No, they don’t. Because it depends on the number of their shares in the
company, and firm’s net income and firm’s assets.
7. In which type of financial markets are fresh shares issued and sold?
→ It is Primary market
8. Why are the primary markets for securities not well known to the
public?
→The primary markets for securities not well known to the public because
the selling of securities to initial buyers often takes place behind closed
doors.
9. What are two ways of organizing secondary markets?
→Two ways of organizing secondary markets are exchanges and Over-the-
Counter Markets.
10. What are differences between Exchanges and OTC markets?
→Differences between Exchanges and OTC markets are:
Exchanges Markets Over-the-Counter Markets
Location meet in ONE central location different locations, or in computer
contact.
Form Direct Indirect
Competitiveness low High (most common)
Changes Many common stocks are traded
Examples Wheat, corn, silver, and other raw
materials.
Bonds.
11.On the basis of the maturity of the securities traded in each market,
what are financial markets classified into?
→The basis of the maturity of the securities traded in each market, financial
markets classified into are Money and Capital Markets.