ANSWER KEYS

Part A. Vocabulary
I. Match the words with the correct definitions.

1-B 5-O 9-Q 13-G 17-K

2-H 6-N 10-P 14-R 18-S
3-A 7-M 11-E 15-U 19-F
4-C 8-D 12-L 16-I 20-T

Part B. Structures

I. Choose the best alternatives to complete the sentences.

1- A 6-D 11-B 16-C

2-B 7-D 12-B 17-A
3-A 8-C 13-A 18-A
4-B 9-D 14-C 19-B
5-C 10-B 15-C 20-B

Part C. Following completion of sentence

1. Companies finance most of their activities by way of internally generated cash
flows.
2. Companies generally use an investment bank to issue their bonds.
3. Bondholders get back their original investment on a fixed maturity date.
4. Most bonds have fixed interest rates
5. Governments also issue bonds to raise money, and these are considered to be a
risk-free investment.
6. The price of bonds varies inversely with interest rates.
7. Bonds are saleable instruments that can be traded on the secondary bond market.
8. UK government bonds soared for a second day yesterday after the Bank of Englad
unveiled plans to buy billions of pounds of assets to kickstart the economy.
9. Fund managers and speculators rushed to buy government bonds.
10. The central bank will create new money to buy £75bn of assets.
11. Good news is thin on the ground for investors.
12. As it is still unclear whether we are headed for a worldwide recession or depress
in.
13. So any area of investment that promises growth is going to spark more than a little
interest.
14. It means that fund managers who choose wisely can make decent money from this
area.
15. Investors have an opportunity to benefit from the industry’s high rate of growth.
16. This fund invests in debt securities in various currencies issued by government ,
institutions and companies in emerging markets.
17. Emerging markets today account for one third of economic activity worldwide and
three-quarters of global growth.
18. High – yield US fund aims to achieve a high level of income.
19. The fund invests in companies whose products generate long-term economic ,
ecological and social benefits.
20. Loans are administered by established microfinance institutions on three
continents.
21. Investments are made globally with no restrictions as to country , currency or
sector.