Tiếng anh chuyên ngành 1 Học viện Tài chính

Unit 1: ECONOMICS
Q1. What does economic study?
Economics studies about the way people choose to use resources to improve
well-being. Resources are anything pp use to produce goods and service.
Resources includes the time and talent pp have available, the lands, buildings,
equipments and other tools on hand and so on. Well-being means satisfactions
or happiness pp gain from the products and services they choose to consume.
Q2. Why do pp have to choose to use resources?
PP have to choose to use resource because of the limited resource but unlimited pp
need.
Q3. What are 2 branches/ types of economics? What do they study?
2 types of economics are microeconomics and macroeconomics.
- Microeconomics focuses on economic actions of individuals,
households, industries.
- Macroeconomics studies the actions of larger entities such as a country, a
region, world or the international market place.
Q4. What is economic theory of Adam Smith about?
First theory is Classical School of Adam Smith. He believed that people who
acted in their own self- interest produced goods and wealth that benefited all of
society. Gov should not restrict or interfere in markets because they could
regulate themselves and there by, produce wealth at maximum efficient.
- Capitalism is the mode of production that includes private ownership of
means of production.
Q5. What is Karl Marx economic theory? What is it about?
Second theory is Marxism theory and Karl Mar, he believed that such
exploitation of factory owners and CEOs leads to social unrest and class
conflict. Laborers should own and control the means of production. Karl Marx
pointed out the weakness in capitalism CEOs or employers exploit employees,
which leads to class conflict and social unrest.
 Laborers should own and control of production.
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Unit 2: ECONOMICS SYSTEM
Q1. What is a free market economy? A planned economy? What are
differences between market eco and planned eco?
 Free market eco: Market eco is a system in which the market that is the
relation between producers and consumers, buyers and sellers, investors
and workers, management and labour is regulated by the law of supply
and demand. Companies compete freely and government influences the
economy through its fiscal and budgetary policies.
 Planned economy: is an economic system whereby the structure of the
market is deliberately planned by the state. In the planned economy,
production and consumption quotas are fixed beforehand and there is no
real competition between industrial or commercial organizations.
 DIFFERENCES BETWEEN PLANNED ECO AND MARKET
ECO:
MARKET ECO
- Economic activities are fully

PLANNED ECO
- Economic activities are decided

depend on the role of market

by some central authority or by

force

the Gov

- Producer are free to produce the

- Producer are not free to produce

highly demanded goods in order

the highly demanded goods in

to maximise their profits

order to maximise their profits

- Self- interest is the prime
consideration

- Social welfare is the prime

consideration
Unit 3: MICROECONOMICS

Q1. What is microeconomics concerned with?
Microeconomics is concerned with the decision made by small economic units
– consumers, workers, investors, owners of resources, and business firms. It’s
also concerned with the interaction of consumers and firms to form markets
and industries.

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? In planned economy, who makes decisions on allocation of resources?

Government
? In market economy, who makes decisions on allocation of resources?
 Consumers, firms, employers, employees (workers).
Q2. What does theory of the firm indicate? Theory of consumer indicate?
- The theory of the consumer describes how consumers decide to spend their
money income and limited budget to maximize their well-being based on
their individual preferences.
- Theory of firms describes how firms decide to allocate resources such as
technology, capital production capacity to maximize their profit.
Q3. Discuss the allocation of scarce resources in microeconomics
Microeconomics studies about the actions of individuals and industries. It
describes how to make the most of the limits such as limited income, limited
technology, limited time, etc,… Due to these limited resources, consumers,
workers and firms have to make trade-offs.
For example, consumers trade off current consumption with future
consumption. Worker have to trade off working now with continuing
education, working for large corporation with small corporation, labor with
leisure. Firms have to choose the type of goods to produce, hire more workers
to build a new factory.
Q4. Role of prices?
Trade offs are partly based on the price => price is very important.
Q5. What is a market?
Market is the place where consumers, workers and firms interact. In free
market economy, the price of a good is decided in the market by the
interactions of consumers, workers, firms. In a centrally economy, prices are
set by the gov.
Q6. What are the main themes of microeconomics?
The first important theme of microeconomics is making optimal trade-offs.
Consumers, workers and firms make the best choices for their limits such as
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income, time and budget. The second important theme is the role of price,
which the trade-offs described in the first one are partly based on. The central
role of markets - the third theme of microeconomics, describes how to
determine the prices in the different markets.
Unit 4: MACROECONOMICS
Q1. What is the goal of macroeconomics:
The goal of macroeconomics is to look at overall economic trend such an
employment levels economic growth, balance of payments, inflation, so on.
Macroeconomic factors include inflation, economy growth, unemployment,
international business, so on.
Q2. What are 2 microeconomics policies? What are some differences
between them?
2 major macroeconomics policies are moneytary policy and fiscal policy. The
objectives are to promote economic growth and keep inflation under control.
There are some differences between them. Firstly, Ministry of Finance makes
decisions fiscal policy while monetary policy is supervised by Central Bank.
Secondly, fiscal policy controls gov’s revenue such as gov’s spending and
taxation but Central Bank’s job is to control a nation’s money supply. Thirdly,
tools of fiscal policy are tax and gov’s spending, moneytary policy uses some
tools like reserve requirement, discount rate, OMO.
Q3. What are some differences between micro and macroeconomics?
- Microeconomics focuses on the action of individuals and industries while
macroeconomics studies activities of an entire country or the international
marketplace.
- The goal of macroeconomics is to make regarding the allocation of
resources and prices of goods, focuses on demand and supply while the goal
of macroeconomics is to look at overall economic trends such as
employment levels, economic growth, balance of payments,…

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- The major policies of microeconomics are price policy, competition
policy… while the major policies of macroeconomics are monetary policy
and fiscal policy.
- Microeconomics takes a bottom-ups approach to analysing the economy
while macroeconomics takes a top-down approach.
Mac
- It is the study of country and gov decisions.

Mic
- It is the study of individual and

- Focuses on the activities of entire country or businesses decisions.
international economy, economy-wide

- Focuses on the economic behaviour

phenomenal.

of individual: household, consumer,

- Look at overall economic trends:

enterprise,…

employment levels, economic growth,

- Make regarding the allocation of

inflation,..

resources and prices of goods and

- Uses: fiscal policy and moneytary policy

services.

- Top-down approach.

- Uses: price policy and competitive
policy.
- Bottom-up approach
Unit 5: DEMAND AND SUPPLY

Q1. How does the price of good influence its Quantity demanded and
quantity supplied?
A change in the price cause a change in Qd and Qs when other factors are
constant.
- If price of a good increases, the quantity supplied will increase and vice
versa, the quantity demand will decrease.
- If price of a good decreases, the quantity supplied will decrease and vice
versa.
 A change in the price causes a movement along the demand/ supply
curve.
Q2. Named some shift factors of demand?
Shift factors of demand
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Nhân tố phụ của cầu


Society’s income

Thu nhập của xã hội

Prices of other goods.

Giá các mặt hàng khác

Expectation

Mong muốn

Tastes

Thị hiếu

Q3: Example about a change in a shift factor that can lead to a change in
D/S.
- When other factors are constant, if society’s income increases, demand for
luxury goods and normal goods will increase, demand for inferior goods
will decrease.
- Demand curve for luxury and normal gooods shift to the right, demand
curve for inferior goods shifts to the left.
Ex: When other factors are constant, if price of Honda motorbikes increases,
demand for Yamaha motorbikes will increase. Demand curve shifts to the right.
- When other factor are constant, if the price of petrol increase, demand for

petrol motorbikes will decrease. Demand curve shifts to the left.
Ex: Input: raw materials, labor, machine,…
-

When other factor are constant, if there is an improvement in technology,
supply will increase and supply curve shifts to the right.

Q4. 1. Describe demand curve?
- Prices and shift factors of demand( society’s income, prices of other goods,
expectations, tastes) can influence buyer behavior.
- On the model/graph, a price change causes a movement along a given demand
curve. A change in one of shift factors causes a shift of entire demand curve to
the left or to the right.
2. Describe supply curve?
- Prices and shift factors ( including taxes, technology, prices of inputs or
supplier’s expectations) can influence seller behavior.
- On the model, a price change causes a movement aong a given supply curve.

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A change in one of shift factors causes a shift of entire supply curve to the left
or to the right.
Unit 6: PUBLIC FINANCE
Q1. What are some sources of gov revenue?
Gov revenue comes from many kinds of taxes, profit from investment, fees and
fines, and borrowing by issuing and selling gov securities (mostly bonds).
Some different types of tax are:
1. Income taxes: is the tax imposed on personal income
2. Corporate income tax: is the tax imposed on profit of company

3. Payroll tax: the tax imposed on salaries or wages of employee
4. Gain tax: imposed on frofit made by selling assets
5. Excise tax: imposed on special goods and services like beer, alhocol,…
6. Custom duty: imposed on imports
*What are the main sources of government revenue?
- There are 2 main source of government revenue. First, tax revenue comes
from three major sources: individual income taxes, payroll taxes and
employers, corporate income taxes. Income taxes and corporate income taxes
become “federal funds” and payroll taxes become “trust fund”. The second one
is “borrowing”. The US treasury borrows money by issuing bonds and other
types of securities to finance the debt.
Q2. What are 2 funds formed from goverment tax? What are they used to?
Trust fund
Payroll tax

Federal fund
- Income tax

tax?
For what

Very specific

- Corporate tax
- Spend them and just about

activities?

programs such as

anything when the President and

social security and

Congress conduct the annual

What type of

Medicase
Q3: What are 2 types of gov/ federal debt?

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appropriation process.


The federal debt is the sum of the debt held by the public plus the debt held by
federal accounts.
+ The debt held by the public is total amount of money gov borrows from
individuals or organizations in that country (domestic investors) or in other
countries (foreign/international investors).
+ Debt held by federal accounts is total amount of money that the Treasury has
borrowed from itself when trust fund run a surplus.
Unit 7: FISCAL POLICY
Q1. What is the deficit spending? How is it helpful and harmful for the
economy?
- Deficit spending is spending funds obtained by borrowing and printing
instead of taxation.
- It can be useful or harmful for the economy.
+ Useful when unemployment rate is too high, gov borrows money to

undertake projects, which use workers who would be idle, it will create more
jobs and the economy will expand because more money is being pumped into
it. When pp have more income, they will spend more and production increase,
more jobs are created.
+ Harmful when the unemployment rate is low. Gov pumps money into the
market, which can increase supply, it may result in rising prices or inflation,
and creates more competition for scarce workers and resources.
Q2. Factors affecting decision on fiscal policy?
Factors affecting decision on fiscal policy include inside factors and outside
factors. Inside factors include level economic growth, level of unemployment
or inflation, ways to finance deficits, political consideration. Outside factors
include fiscal policies of other countries and requirements of ITM or World
Bank.
Q3. What is an expansionary/ contractionary fiscal policy?
How

Expansionary/Loose
By reducing taxation and increasing

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Contractionary/Tight
By increasing taxation and


When

Why

public spending.

It occurs when a Gow feels its economy

reducing public spending.
It occurs when economy is

is not growing fast enough or

overheating and inflation is too

unemployment is too high.
high.
With the aim of stimulating total spending To restrict demand and slow
in the economy, known as aggregate

down the economy.

demand.
Unit 12: MONETARY POLICY
Q1. What are 3 tools of MP? Which is the most regular?
There are three main tools of monetary policy.
- The first tool is reserve requirement. It is the percentage the Fed sets as the
minimun amount of reserves that banks must have for safety. (by changing
the RR, the Fed can increase or decrease the money supply: If the Fed
increase the RR, it contracts the money supply, banks have to keep more
reserve so they have less money to lend out).
- The second one is discount rate - the rate of interest the Fed charges for
bank loans. (by changing the DR, the Fed can expand or contract the money
supply: If the Fed decrease the DR, it expands the money supply, banks
have to keep less discount so they have more money to lend out.) These two
tools above are mainly used for major change.

- The primary tool of monetary policy is open market operations-the Fed’s
buying and selling Gov securities. (to expand the money supply, the Fed
buys bonds. To contract the money supply, the Fed sells bonds).
By changing 3 main tools, central bank can expand or contract money supply.
Q2. What is an expansionary/restrictive MP?
- Central bank uses expansionary MP when the economy is growing slowly.
In this case, central bank decreases reserve requirement, reduces the
discount rate or buys more bonds. This can increase money supply, increase
aggregate demand.

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- Central bank uses restrictive MP when the economy is overheating. In this
case, central bank increases reserve requirement, increases discount rate or
sells more bonds. This will reduce lending capacity and increase interest
rate, thereby reducing money supply in the market.
When

Expansionary policy
When the economy is slows down, the gov

Restrictive policy.
When the economy is overheating.

wants to increase aggregate demand.
How

Encourage pp to borrow and spend more

- Reduce bank lending capacity

money, increase the money supply.

- Reduce pool

Effect It causes the demand curve shift to the

- Lessened loan.
It causes the demand curve shift to

?

the left.

right.
Unit 8: TAXATION

Q1: What are some functions of taxation?
- Definition: Tax is compulsory fee gov collects from individuals and
organizations to finance gov’s programs/ activities/ expenditure.
- Taxation is the gov’s action of collecting tax to finance its programs.
* Functions:
- Tax is a source of gov revenue. It is used to finance gov programs.
- Tax is tool of fiscal policy. So it is used to regulate the economy.
- Each type of tax has its own functions. For example, excise tax is used to
restrict/ limit consumption of some goods which is not good for health or
environment. Custom duty is used to protect domestic industries. And gov can
also encourage capital investment by permitting various method of accelerated
depreciation accounting that allow companies to deduct more of the cost of

investments from their profits, and consequently reduce their tax bills.
- Main function of taxation is to raise revenue Government expenditure. Gov
uses taxes to encourage capital investment by permitting various methods of
accelerated depreiciation accounting (deductiong costs of investment from

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profits to reduce tax bills). The last one is through progressive tax system, Gov
can redistribute wealth to ensure social equality.
- Other purpose functions are to dissuade people from smoking, drinking
alcohol and encourage capital investment.
Q2. What is tax evasion? Example/ How do pp evade tax?
- Tax evasion is using illegal ways to avoid paying tax.
- Example:
+ People do not declare imports at the customs, part – time jobs. =>
underground economy.
+ Businesses make false declarations about cost to reduce tax.
+ Laundering money to reduce taxable money criminal organizations pass
money into different companies in a very complicated transaction to
disguise the origin of money.
Q3. What is tax avoidance? Example/ How do individual avoid paying tax?
How do businesses avoid paying tax?
- Tax avoidance is using legal ways to reduce/ avoid tax by reducing the tax
money to legal minimum.
- For individuals:
+ Employers give highly – paid employees perks instead of taxable money.
+ Tax shelter: individuals can postpone payment of tax by putting apart of
salary into pension plan life insurance policies.
+ Tax deductible: money on charities are subtracted from taxable money.

- Avoiding tax on salaries: Firstly, companies often give perks to employees
instead of taxable income (known as loopholes in tax law). Secondly,
people can
postpone the payment of tax by investing in pension funds or life insurance
policy,
known as tax shelter. Finally, tax deductibe means substracting a certain

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amount
from taxable income
- Avoiding tax on profits: Companies can bring forward capital expenditure
to use up all profits knowns as making tax loss or setting up head offices in
countries where taxes are low known as tax havens is a way to avoid taxes
on profit
Unit 10: INSURANCE
Q1: What is insurance in financial definition?
- Insurance is the financial arrangement that redistribute the cost of
unexpected loss.
- Insurance system collects premium from every participant (insured), but pay
compensation for very few insured who suffer from unexpected losses.
Q2: Why are people willing to pay insurance premium?
- People are willing to pay premium because:
+ They can get compensation if loss actually occurs
+ If no loss occur, they are relieved of the uncertainty about a loss.
Q3: Is insurance like gambling? Why?
- Sometime, It is said that insurance like gambling, but the difference is
gambling contracts will not enforce, while insurance contracts will enforce.
- Claim: a formal request for payment or services covered by insurance

policy.
Unit 11: MONEY AND ITS FUNCTION
Q1. What are 4 functions of money? Explain each function?
 The first function is money as a medium exchange: A medium of exchange
is anything that is widely accepted in payment for goods and services and in
settlement of debts.
 Money as a measure of value: Money is used to measure the value of things
offered at the market. It measures the value of goods in unit of account. Unit

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of account is the unit of which prices are quoted and values are kept. Unit of
account is different from country to country.
 Money as a Store of value: because it can be used to make purchase in the
future. It means if you have money but you don’t buy goods in certain, you
can save it to buy in the future. (Save now, spend later). This function can
suffer from intention.
 Money as a Standard of deferred payment: Means if you buy something but
you don’t pay immediately, you can pay it in the future. Money is used to
pay after you buy something. Money is used to to settle debt in the future.
(Buy now, pay later.)
> The most important function is money as a medium of exchange.
Because if money without this function, all transaction would be more
difficult and waste time. If this function wasn’t done, other function
would not be done.
Q2. Differences between commodity and token money
 Commodity money is a useful good that serves as a medium of exchange.
As a result, the value of commodity money is about equal to the value of the
material contained in it.

Example: gold, silver, copper, furs, skins,…
 Token money is a means of payment whose value or purchasing power as
money greatly exceeds its cost of production or value in uses other than as
money.
Example: cash, bank note, credit card,…
Unit 14: FOREIGN EXCHANGE MARKET (FOREX)
Q1. What is forex? Why is it considered to be an Over The Counter market?
The foreign exchange market (forex) is the financial market in which such
national currencies as dollars, pesos, deutschemarks, yen, francs, and others are
exchanged.
- Characteristics (Feature):
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+ It is not an organized market with fixed trading hour and a physical
meeting place.
+ It is an over-the-counter market (because all the nations join the forex
-> different time zones in different countries).
+ The primary communication instruments are the telephone and the
computer
*Why is foreign exchange market to be an OTC market?
Because transactions are made throughout the day via telephone and computer
link. It is not an organized market with fixed hours and physical meeting
place.
Q2. What are 2 types of foreign exchange transaction?
- There are 2 types of forex transaction, they are spot transaction and forward
transaction.
- Spot transaction: transaction is undertaken on the actual exchange date
(delivery date) which is 2 business days later.
- Forward transaction: the actual exchange date (delivery date) is specified

date in the future, even a year or more.
Q3. 3 groups of participant in the Forex?
- Customers: individuals (travellers, students, investors), multination
companies (investment), import – export companies (trade), acquire foreign
currency.
- Dealers: banks: can trade foreign currencies on their own accounts. Banks
make a profit from the difference between bid rate and offer rate.
- Brokers: specialist companies with telephone lines to the banks throughout
the world. Brokers help to find the best dealing rate (offer and bid rate) for
banks, brokers get commission for their services.
Q4: 4 types of participants in FOREX market?
- Customers (such as: importing and exporting companies) need foreign
currencies for their cross-border trade or investment.
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- Market maker (central bank) quote buying (bid) and selling(offer) rates for
currencies in the forex market.
- Dealers such as banks or coporations earn a profit on the difference between
buying and selling rates.
- Brokers act as intermediaries between banks and they don’t deal on their
own account. They charge a commission for their service.
Unit 15: FINACIAL MARKET
Q1. What is a financial market and its function?
 Financial market is a market in which financial instruments (valuable
paper/ document) such as debt, bonds, shares, currencies are exchanged.
- Gov issue bonds and sellers investors.
 Function of the financial market is channelling funds from those who have
saved surplus funds to those who have a shortage of funds. Transfer funds
from leader who has a surplus of fund to borrowers who have a shortage.

Q2: What are some differences between primary and secoundary market?
Primary market
Secondary market
Is a financial market in which new Is a financial market in which
securities are sold to initial buyers by the securities that have been previously
corporation or G agency borrowing funds. issued can be resold.
It is not well known to the public. It is well known to the public.
Because the selling of securities take
place behind closed doors.
Function of primary market is to raise + make it easier and quicker to sell
fund for issue of firms.

financial instruments to raise cash.
+ help determine the prices of fresh

share in primary market.
Q3: What are some differences between money and capital market?
 Money market is a financial market in which only short term debt
instruments are traded. And the money market is safer and more liquid
than capital market.( Thị trường tiền tệ là thị trường tài chính trong đó
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chỉ có các cơng cụ nợ ngắn hạn. Và thị trường tiền tệ an toàn hơn và lỏng
lẻo hơn thị trường vốn)
 Capital market is a financial market in which longer term debt and
equity instruments are traded.( Thị trường vốn là một thị trường tài
chính, trong đó giao dịch mua bán trái phiếu dài hạn và công cụ vốn chủ
sở hữu).
Q4: What are some differences between debt and equity market?

Debt market
is a financial market in which debt

Equity market
is a financial market in which equity

instruments like bonds, mortages are

instrument, such as common stock is

traded.
traded.
Debt instrument include: short term, Equity instruments are consider as long
long term, and intermediate term.

term ones. Because they don’t have

Debt holder receive predetermined fixed

maturity date.
Equity holder benefit directly from any

interest rate.

increases in the corporation’s
profitability or asset value .
Equity holders get dividends share
ownership, vote on the important

Debt holder don’t share in benefit

decisions.
The corporation must pay all its debt

directly from any increases in the

holders before it pay its equity holders.

corporation’s profitability or asset value.
Q5: Exchanges and OTC markets:
Exchange market is the financial market in which buyers and sellers of
securities meet in one central location to conduct trade.
For example: the New York and American stock exchange.
OTC market is the financial market in which the dealers at different locations
who have an inventory of securities stand ready to buy and sell securities OTC
to any one.

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