1Mr. Joel D. Aldrich

BA Elementary EnglishMA English Comprehension

Mr. Joel D. AldrichBA Elementary English

MA English Comprehension

Table of Contents

Unit 1Statistics 1

Unit 2The Stock Market 9

Unit 3Telephoning 16

Unit 4Marketing 18

Unit 5Transport 20

Unit 6Advertising 24

Unit 7Banking Services 28

Unit 8Cash and Currencies 31

Unit 9Finance and Banking 34

Electronic Banking 38

Checking Account and Debit Card SimulationStudent Instructions & Work Sheets 45

Practice Writing Checks 52

Student Assessment 63

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Unit 1

Statistics

Vocabulary

Rose sharply = to go up very fast

Fell gradually = to go down slowly

Reached a peak = to reach the highest point

Increased gradually = to go up slowly

Remained constant = to stay the same

Declined sharply = to go down very fast

Leveled off = to move toward stability or consistency: Prices leveled off.

Fluctuated = to move up and down

Turnover = usually, total sales for a given period (for example, annual turnover of $10 million).

Profits = the excess of total revenues over total costs in a given time period.

Demand = 1. (economic definition) A schedule of the amounts that buyers would be willing to purchase at a corresponding schedule of prices, in a given market at a given time. 2. (business executive definition) The number of units of a product sold in a market over a period of time.

Overheads = costs incurred whether you make a profit or not, such as salaries, rent, electricity, wear and tear; they are often expensive and usually unavoidable.

Output = the quantity of something (as a commodity) that is created (usually within a given period of time)

Costs = the money expended to produce and market a product or service.

Graphs:Graphs give a clear picture of trading performance and other statistical information.

From the words above, match the correct picture.

_________________ __________________ _________________

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Turnover Profits Sales

__________________ __________________ _________________

_________________ __________________

Read the following article and study the graph.

Britain’s inflation rate climbed to 8.1% last month, its highest since last summer and up from 7.5% in February. The underlying rate of inflation, excluding mortgage-interest payments, rose to 6.3%

The main reason for the inflation increase was the March 1 rise in mortgage rates from 14.5% to 15.4%. But there was a range of other price increases. Food prices, for example, rose 0.6% last month and have increased 8.7% over the past year. Seasonal food prices are 14.1% up on a year ago.

Official figures also showed that average earnings grew by 9.5% in the 12 months to February, up from 9.25% in the previous month.

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DemandCosts Overheads

Prices Output

Line Graph

5

Rise in average earnings

Retail price inflation

4 verbs that mean went up

4 nounsconnected with money

Choose the word that is closest in meaning to these two words in the text.

Figures are:a. information b. symbols c. subjects d. statistics

Earnings are:a. taxes b. income c. winnings d. profit

Line Graphs are one way of presenting data. What are these two other ways called?

___________________ ______________

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4 adjectivesconnected with time

Task: Create a graph from one of these three topics below.

Topic 1: Bar Graph

How long McDonald’s cleaners must work to buy a BigMac

As this issue of ALU is about wages, the editorial team decided it would be a good idea to see how long it would take a cleaner to buy one of the products she/he helps to sell.

Now almost a traditional target for anti-globalisation / anti-capitalist protesters, we chose McDonald’s, known throughout the world for union-busting, low pay, and cheap food.

We decided to compare what we thought would be a universal meal, the Happy Meal. However we discovered that Happy Meals varied across the region, and so decided on the BigMac. Of the responses we received, only India does not sell the product, so we took the burger considered nearest to the BigMac, the McChicken Burger.

The responses we received show quite clearly that the target consumer group varies from country to country. Taking extreme examples, an Australian cleaner could buy three BigMacs after working for one hour, whereas a Pakistani cleaner would have to work for more than fourteen hours to buy the same burger.

Pay rates and burger prices seem to vary in large countries like China, and we have chosen the cheaper burger for comparison.

Pay rates quoted apply to adults. However we learn that in Australia, an adult (over 19 years old) part-time worker who has completed training would be paid $10.61 per hour. But many fast food workers are younger and are paid less - for instance, if they are under 17 years old they receive only $5.83 per hour.

Staff turnover in this sector is often quite high, and as we have seen, ‘trainees’ can be paid reduced rates. This means that significant numbers of McDonald’s workers are often not earning the official rates quoted here.

There are no McDonald’s outlets in Nepal.

Australia Big Mac

Staff

A$3.00 US$1.58

A$10.61 US$5.60 per hour

China BigMac

Sales staff

Rmb9.90 US$1.19

2.5 US$0.30 per hour

Hong Kong BigMac

Cleaner

HK$10.20 US$1.30

HK$15.00 US$1.92 per hour

India McChicken burger

Min wage

IRs48 US$0.98

IRs5.60 US$0.11 per hour

Malaysia Big Mac MR4.30 US$1.13

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Cleaner MR3.00 US$0.78 per hour

NZ Big Mac

Worker

NZ$3.95 US$1.72

NZ$8.30 US$3.61 per hour

Pakistan Big Mac

Cleaner

PR185 US$3.08

PR13 US$0.22per hour

Philippines Big Mac

Staff

P65 US$1.27

P28 US$0.54 per hour

South Korea Big Mac

Staff

W 3,100

W 2,100 per hour

Sri Lanka Big Mac

Worker

SRs265

SRs45 per hour

Thailand Big Mac

Min wage

B55 US$1.26

B20 US$0.46 per hour

From: Asia Monitor Resource Center: http://www.amrc.org.hk/4202.htm

Bar Chart: Big Mac Price and Salary Comparison

If you are a cleaner in McDonalds in the countries below, how long do you have to work before you can afford to buy a Big Mac?

Write 150 words describing the bar graph.

Topic 2: Pie-Charts

UK Regions and Population

The table below gives the population and area of each country in the UK in 2001.

CountryArea (000 km2) Population

(millions)England 130.4 49.2Northern Ireland

13.6 1.7

Scotland 78.1 5.1Wales 20.8 2.9

Copy and paste this data into Excel to draw TWO pie charts - one for area and one for population.

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Write a short description of the pie-charts.

Pie-Charts 3: UK Population and Area

In the pie-charts, you have to compare two charts

Suggested Answer

The two pie-charts compare the areas of regions in the UK with their populations. Overall, although England is the largest region by size, its population is much bigger than that of the other areas.

England has more than three-quarters of the population of the UK, but just over half the area. In contrast, Scotland, with just 5 million people, or one-tenth the population of England, occupies over a quarter of the land area of the UK. Wales and Northern Ireland are more densely populated than Scotland. Their combined population is just under 5 million, but they have half the area of Scotland.

In conclusion, England is the most densely populated area, followed by Wales, Northern Ireland, and finally, Scotland.

Topic 3: Line Graph Weather in Three African Cities

Assessment: Students should accurately complete the line graphs and be able to interpret the information provided by the graphs.

Temperature Data

Cities Lat. Long. J F M A M J J A S O N D

Aswan 24deg.N 33deg.E 59 63 70 78 85 90 91 90 88 82 72 62

Walvis Bay 23deg.S 14deg.E 65 66 66 65 62 60 59 57 58 60 61 64

Cairo 30deg.N 31deg.E 55 57 63 70 76 80 82 82 78 74 65 58

Kayes 14deg.N 12deg.W 77 81 89 94 96 91 84 82 82 85 83 77

Mogadishu 2deg.N 45deg.E 77 79 81 82 80 77 75 76 76 77 76 77

Bulawago 21deg.S 29deg.E 71 70 69 66 61 58 57 61 67 71 72 72

Algiers 37deg.N 3deg.E 53 55 58 61 66 71 77 78 75 68 62 57

Cape Town 34deg.S 18deg.E 70 70 68 63 59 56 55 56 68 61 64 68

Addis Ababa 9deg.N 39deg.E 60 62 65 64 66 64 62 61 61 62 59 59

Yaounde 4deg.N 12deg.E 74 74 74 72 72 71 70 71 71 71 72 73

Kananga 6deg.S 22deg.E 76 76 76 77 77 76 77 76 76 76 77 77

Mombassa 4deg.S 40deg.E 80 80 82 81 78 77 75 76 77 78 79 80

Nairobi 1deg.S 37deg.E 64 65 66 65 63 61 59 60 63 66 64 63

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Rainfall Data

Cities J F M A M J J A S O N D

Aswan - - - - - - - - - - - -

Walvis Bay - - - - - - - - - - - -

Cairo 0.4 0.2 0.2 0.2 - - - - - 0.3 0.7 1.4

Kayes - - - - 0.6 3.9 8.3 8.3 5.6 1.9 0.3 0.2

Mogadishu - - - 0.7 2.2 3.5 2.0 0.6 0.5 0.7 0.4 -

Bulawago 5.5 4.8 4.5 0.8 0.6 - - - 0.3 0.6 3.1 4.9

Algiers 4.2 3.5 3.5 2.3 1.3 0.6 0.1 0.3 1.1 3.1 4.6 5.4

Cape Town 0.7 0.6 0.9 1.9 3.8 4.5 3.7 3.4 2.3 1.6 1.1 0.8

Addis Ababa 0.6 1.9 2.8 3.4 3.0 5.7 11. 12. 7.6 0.8 0.5 0.2

Yaounde 1.6 2.7 5.9 9.1 8.1 4.5 2.6 3.3 7.6 8.9 5.9 2.0

Kananga 7.2 5.4 7.9 6.1 3.1 0.2 0.1 2.5 6.5 6.6 9.1 6.6

Mombassa 0.8 0.9 2.3 7.8 13. 3.6 3.5 2.2 1.9 3.4 5.0 2.2

Nairobi 1.9 4.2 3.7 8.3 5.2 2.0 0.8 0.9 0.9 2.0 5.8 3.5

 Line Graph: Weather in Three African Cities

The graphs show the average monthly temperature and rain fall in five different African cities.

Write a short description of the chart.

Find a map of Africa, locate the five cities and add it to your description.

From: http://www.hawaii.edu/hga/Lessons/Africa/climoAFR.html

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Unit 2

The Stock Market

This is an introductory teaching unit on the stock market.

I. Introduction to Stocks

A share of stock is a share of a business. Many people try to gain more money by investing their money in stocks. People who own stock are called stockholders. They are then a partial owner of the company that issues the stock and may share in a company’s profits, if the company makes a profit during the year. This is paid in the form of dividends. The company’s board of directors distributes the dividends proportionately by the number of shares outstanding.

Common stock is always issued by the corporation. It represents an ownership interest in the company. People owning common stock usually have the right to vote for the directors of the company. Preferred stock may also be issued by the corporation. This kind of stock is given certain preferential treatment over common stock. These stockholders may receive fixed dividends before the common stockholders are paid, along with other advantages. However, they generally have no voting privileges and cannot expect to receive more than their fixed dividend.

The prices of stock change often. Most active stocks change in value during a day’s trading. A corporation only has a certain number of shares available to buy. The laws of supply and demand cause the prices to fluctuate. Prices depend on general business conditions, company earnings, and what people think is the future prospect of the corporation. When more people want to buy, the market in stocks will rise. When more people want to sell, prices go down. The trick is to try and guess correctly; buy when the price is low, sell when the price is as high as it is going to go.

Stockbrokers (or "brokers") are the people whose job it is to buy and sell stocks for the buyer. They also can give advice about which stocks might be good investments. The buyer pays the broker a small commission, or fee for services, each time stocks are bought and sold.

An excellent list of stock terms can be found on the net at the USA Today web page. Look under the heading "Financial Glossary."

A stock exchange is the market place where brokers buy and sell stocks. The NYSE (New York Stock Exchange), AMEX (American Stock Exchange), and NASDAQ (National Association of Securities Dealers) are the three main U. S. stock exchanges. The current prices of many stocks are available on the net, along with a lot of other stock market information. Two sources are listed on the home page "hot points." See the "Reading and Understanding Stocks" section below on how to read the stock listings.

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II. Reading and Understanding the Stocks

Current stock listings on the net are organized a little differently from source to source, but they all have the same basic information.

First you have to type in the correct SFN, the abbreviation for the name of the company. If you don’t know what the abbreviation is, you can find it by looking in the "Search for Symbol" section on the USA Today web page. There are many other sources, too.

Once you have entered the correct SFN, you will see the information you need.

Last - The most recent trade of a stock.

Change - This shows the change in price from the previous day’s closing price.

Currency - This shows the currency that is used, such as USD for U. S. dollar.

% Change - This calculates the percentage change in the price of a stock from the previous day's closing price.

Open - The price at which a stock opens the trading day.

Day Low- This is the lowest price that a stock has traded at during the day.

Day High - This is the highest price that a stock has traded at during the day.

Volume - This is the daily number of shares of a stock that changes hands between a buyer and a seller. Some sources give these listings in hundreds or thousands.

Dividend - The annual per share cash payout investors should expect.

P.E. - The Price-to-Earnings Ratio - The ratio of the market price per share to the earnings per share.

You practice reading real stock information. Looking at a company's listing and figure out the answers to questions like these:

1. What was the highest price paid per share that day?

2. What was the lowest price paid that day?

3. What was the closing price paid that day? (This might not be available because the web carries the latest information, and the market can still be open and changing!)

4. Now figure the net change. This is the difference in price from the last price paid per share on the previous day. It can be positive or negative.

Use a newspaper, too.

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Stock quotations on the net are available in fractional form and. If you want to, which I want you to, practice converting prices from their fractional form, as they are listed in the newspaper, to a decimal to the nearest thousandth. For example 12 3/8 means 12 3/8 dollars. Change the 3/8 by dividing 3 by 8. The result is 0.375, so 12 3/8 = 12.375

III. Stock Market Practice Problems

1. Jessica earned $5.00 an hour baby-sitting. In an entire year that turned out to be 410 hours. How many shares of Disney stock, that is selling for 83 5/8 dollars per share, could she buy with that money? Don't include transaction costs at this time.

Solution:

$5.00 x 410 = $2050 to spend

The price of one share is $83 5/8, or $83.625

$2050 divided by $83.625 = 24.5142003

Jessica cannot buy part of a share of stock, so she drops the decimal portion of the number. She can buy 24 shares of the stock.

Now find out how many shares Jessica could have purchased if the Cost per share is:

5 1/4 16 1/8 31 7/8 22 1/2 75 5/16

2. Pat earned $3170 during the summer. How many shares could he buy of a stock that is selling for 29 3/8 per share? This time include the broker's commission of 3%.

Solution:

Change the commission of 3% to 0.03 and multiply by 3170

3170 x 0.03 =$95.10 That is the broker's commission, which should be subtracted from the amount to be invested.

$3170 - $95.10 = $3074.90

The price of one share is 29 3/8, or $29.375

Divide the amount he has left after the commission by the price per share: $3074.90 Ö $29.375 = 104.6774468

Again, the decimal portion of the number must be dropped because he cannot buy part of a share of stock. He can buy 104 shares of stock.

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Now find out how many shares could be purchased if Pat had $3170 with a 3% broker's commission, and:

Cost per share is:

5 1/4 16 1/8 31 7/8 22 1/2 75 5/16

3. Jason bought 36 shares of stock at 43 3/8, or $43.3125, per share. He didn't have to pay a commission fee. What was the total amount that Jason invested, to the nearest cent?

Solution:

Multiply and then round off to the nearest cent

36 x $43.31 = $1559.16

Jason invested $1559.16

Now find out the total amount invested (to the nearest cent) when:

Number of Shares: Cost per Share:

25 $55.125

60 $11.25

100 $26.375

250 $9.875

40 $71.75

4. Henry bought 40 shares of stock at 32 7/8, or $32.875, per share. He paid a commission of $39.45. What was the total amount that Henry invested, to the nearest cent?

Solution:

Multiply to find the cost of the shares, and round to the nearest cent.

$32.875 x 40 = $1315.00

Then add the commission

$1315.00 + $39.45 = $1354.45

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Henry invested $1354.45 in all.

Now find out the total amount invested, to the nearest cent, when:

Number of Shares: Cost per Share: Commision Paid:

25 $46.50 $37.20

60 $16.45 $28.62

100 $9.375 $25.15

85 $49.125 $118.27

200 $37.75 $206.50

5. Georgia sold her 30 shares of Nike stock five months after she bought them. The sale price was $82 5/8 per share. She paid a commission of $74.36. What was the profit or loss on the $2416.77 that Georgia invested?

Solution:

Multiply the price per share by 30 to find the total price of the stock

$82.625 x 30 = $2478.75

Now subtract the amount of the commission

$2478.75 - $74.36 = $2404.39

Since the amount received was more than the amount invested, there was a gain. Subtract to find the gain.

$2416.77 - $2404.39 = $12.38

Georgia had a gain of $12.38 on her investment.

Now find the amount of profit or loss when:

Amount Invested: Number of Shares Sold: Sale Price per Share: Commission Paid:

$75.00 100 $10.375 $31.13

$1254.75 30 $42.125 $31.60

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$1500.00 70 $22.50 $47.25

$3328.00 200 $17.75 $88.75

$1950.86 50 $39.875 $59.81

Now you are ready for the project, see below!

IV. Stock Market Project

This project is for students who are already familiar with the stock market. They can use their understanding in an investing simulation.

This can be done individually, in pairs, or in small groups. Each group starts with $20,000 (or amount of your choice) to purchase stock. You are to surf the net for stock advice. Stock selections can have other certain criteria of your choice. For example, one from:

Clothing / shoe company Food / restaurant toys one each from the NYSE, AMEX, and NASDAQ. one picked randomly

You should calculate a 3% commission each time they buy or sell stocks.

You will then collect their data using the net and other sources. You will make your stock selections and purchase stock. You then calculate their beginning portfolio value. (See directions below). At designated intervals, they should assess their portfolios. You will show your progress to the rest if the class using charts, graphs, and oral presentations.

At the end of the project, you prepare a written report summarizing how you did and what you learned. It may even include what you would like to do with the imaginary money earned, or what you would have to do without, in the case of losses.

You need "Buy/Sell Forms" to purchase and sell stocks. Here is an example of what a Buy/Sell Form could look like:

Buy / Sell Form

Group -

Stock-

Buy Sell

Price of the Stock

16

Number of Shares

Price of Shares in all

3% Commission + -

Total Price:

You will also need a "Stock Form" to record the price, change, and value of that stock. Here is an example of a Stock Form:

Stock Form

Group -

Stock-

Date Old Price New Price Change Number of Stocks Value

As a group keep track of their holdings on a "Portfolio Form." Example:

Portfolio Form

Group -

Date Stock Value

__________________ ___________________________________ ____________

__________________ ___________________________________ ____________

__________________ ___________________________________ ____________

__________________ ___________________________________ ____________

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You will use plenty of math when they are trying to spend their $20,000 on stocks. You should discover that you need to have a system for figuring out and keeping track of your purchases. Hopefully you will come up with an organized list that will look something like this:

Stock Price Number of Shares Cost of Purchase 3% Commission Total Price

Unit 3

Telephoning

Look at these pictures and label them using the words below:

Directory Car phone Phone card Memory Pay phoneOperator Handset Answering machine Switchboard Mobile phone

2.__________________ 3.___________________________

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4._________________5.________________

1.__________________

6.____________________

7._______________________

10.___________________

8.___________________ 9.__________________

A: Read this newspaper article. Then answer the questions that follow.

The Mobile Phone Market is Booming

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There are now over one million telephone subscribers in the UK – the most in Europe.But Scandinavians are the most enthusiastic mobile phone users. Almost one in a hundred Swedes has a mobile phone compared to one in five hundred in the UK. Elsewhere in Europe the use of the mobile phone has been limited.The growth in the UK is partly

due to its deregulated telecommunications market and the competition this introduced: at the moment, the cost of owning a portable phone in the UK is the cheapest in Europe. Using portable phones in Sweden is more than twice as expensive as in the UK and in France and Germany it costs almost five times as much.The introduction of mobile

phones is slowly increasing around Europe. The German government has authorized a third cellular network to cope with the new demand. In Italy a consortium is competing to provide the country’s second system. It has been calculated there will be 30 million portable phones in use in Europe by the year 2000. In Eastern Europe the figure will be around 1.5 million.

Which of the following statements is true? If it is false, then correct it.

The UK has the highest percentage of mobile phone users in Europe.

Mobile phones are more popular in Scandinavia than in EC countries.

Using a mobile phone in France is five times as expensive as in Sweden.

By the end of this century, there will be more than one million portable phones in Eastern Europe.

A telephone subscriber is –a. a person who has a telephoneb. a person who has shares in the telephone companyc. a person who works in telecommunications

To cope with a demand is to –a. meet and satisfyb. to stimulate and encourage itc. to provide competition for it

When a market is deregulated – a. a standard system has been imposedb. prices have been kept as low as possiblec. government control has been reduced

A consortium is – a. a group of companies in competition for a contractb. a state authorityc. a group of companies working together

Unit 4

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Marketing

What are the five words beginning with P in the marketing mix?

1. p _ _ _ _ _ _ (the item made for sale)

2. p _ _ _ _ (how much it will cost)

3. p _ _ _ _ _ _ _ _ (what does the container look like)

4. p _ _ _ _ (where it will be sold)

5. p _ _ _ _ _ _ _ _ (what publicity it will get)

This diagram shows the marketing process from start to finish. Insert the six missing words in their correct positions.

Research Distribution Strategy Consumer Costing Development

Packaging is an important part of marketing. Read this article and match each sentence on the right with the same idea in the text. The answer to number one has been underlined.

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Market _________

Product_______________

Marketing_______________

Channels of _______________

_____________________

_____________________

Production

PromotionSelling

Consumer

Labels can give the consumer quite a lot of information about a product. Which of the following are on this cheese packet label?

Task: For your next class, present the following information to the class.

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Packaging DesignBesides protecting the product

and making it easy to handle, manufacturers and retailer attach great importance to packaging as a means to lure shoppers. For example, Griffins steak pie was recently re-designed – same contents and box, just different graphics – and, with subsequent marketing and promotion, sales reportedly went up 200 per cent.

For different types of product, different types of design may be more appropriate: toiletries are not quickly thrown away so their design may be more stylish then, say, baked beans which are kept in a cupboard. Packaging does have one basic design principle, though: it should stand out on the shop shelves. Designed with flair, it can promote the quality of a product.

1. Packaging can attract consumers and encourage them to buy.

2. Products that are used for a long time are worth smarter packaging than goods that are stored out of sight.

3. Packaging can prevent damage to the goods inside.

4. The best packaging not only says what is in side, but also suggests how good the product is.

5. The fundamental rule about packaging is that it should be seen clearly in the shop.

Now find the words that correspond to these definitions (They are in the same order in the text).

6. change7. what is inside something8. drawings and pictures

1. the type of product

2. the name of the retailer

3. the weight

4. the price the shopper pays

5. the bar code

6. instructions on how to store it

7. instructions on how long to keep it

8. a price given for the purposes of comparison with similar products

1. Find a selection of labels and explain the information on each one. Approximately 5 labels.

2. Choose two examples of what you consider to be good packaging and explain why you think they are good examples of packaging.

Unit 5

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Transport

Containerization has streamlined the whole system of transporting goods. These pictures show the final stages in the delivery of a cargo of tropical fruit to the retailer. Match each sentence with the correct picture and choose word(s) from the list to fill in the gaps.

A: Using the vocabulary above, fill in the blanks and the write the picture number in the box provided to the right.

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Picture No.

1

dories retailers docked quality assurance

packed port delivery cartons

inspected hold weighed containers

a. The fruit is _____(7)____, graded and _______(8)_____ into cartons.

b. The fruit is delivered to a variety of ______(9)____ and markets.

c. Once he ship has _____(10)______ at the discharge _____(11)_____, the _______(12)______ are taken out of the ______(13)______ of the vessel by gantry cranes.

d. The _______(14)______ are loaded on to vans for _______(15)_______.

e. Once the containers reach the distribution center, they are opened and a _______(16)______ team conducts an __________(17)__________.

f. The containers are moved around the port by straddle carriers and then loaded onto ____________(18)_______________.

B: Each company has to choose the most suitable form of transport for its own needs. Here are some advantages and disadvantages of road, rail and air transport. Put each item into the correct box to complete the table.

Reduced insurance costs due to shorter transit times

Door-to-door service Fastest over long distances Not tied to any time table No need for trans-shipment Routs limited by lines and stations Good for bulk commodities in large

quantities

Most economical fuel Especially suitable for containers Delayed by traffic congestion in cities Weight and size of cargo limited Can reach places inaccessible to other

forms of transport High freight rates

1 Road: advantages 2 Rail: advantages 3 Air: advantages

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7. _____weighed_______________ 8.___________________________

9.___________________________ 10.__________________________

11.__________________________ 12.__________________________

13.__________________________ 14.__________________________

15.__________________________ 16.__________________________

17.__________________________ 18.__________________________

4 Road: disadvantages 5 Rail: disadvantages 6 Air: disadvantages

C: If you heard the following comments, which of the three forms of transport would the people be talking about?

1.

____________________________

2.

_____________________________

3.

________________________________

4.

_________________________________

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The roll-on roll-off facilities mean the carrier doesn’t have to unload in transit.

We’d received an S.O.S. for the drugs so I didn’t hesitate.

Of course it’s even faster now there’s the new motorway.

I sent the coal that way as it was cheaper.

The high-speed container service operates mainly at night when there is much less traffic on the lines

5.

_______________________________

6.

______________________________________

D: Containerization is becoming more and more widespread.

1. Make a chart showing what the advantages and disadvantages are.

2. Present to the class next week.

Unit 6

Advertising

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We try to make sure the lorry has a fresh load for the return journey to keep haulage costs low.

If a retail chain is to maintain its profits, it is essential that stock moves in and out of the store quickly. Here department store personnel are discussing the eight different ways of encouraging turnover listed below.

A: Which is each person talking about?

B: Identify the five key advertising media pictured here.

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introductory offers money-off coupons competitions jingles

free samples gimmicks demonstrators window display

1. ___________________________

2. ___________________________

3. ___________________________

4. ___________________________

5. ___________________________

C: These eight verbs are commonly used in advertising. Choose the right one to complete each sentence.

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1. The copywriter created a slogan which would ________ to a wide cross-section of consumers

2. The agency wants to _________ a campaign targeting the under -16 market.

3. The consumers we want to ________ are professionals who purchase up-market products.

4. All advertising must __________ the right product image.

5. Giving away free badges helped to _____________ ice-cream sales to children.

6. The number of TV commercials in a campaign depends on how much the client wants to _____________ and the people he wants to reach.

7. The function of advertising is primarily to inform and to _____________.

8. Our plan is to _____________ the new product across a wide range of media.

D: Create your own advertisement for your own product. Present it to the class.

Unit 7

Banking Services30

attack spend promote appeal

boost launch persuade project

A: Banks offer a wide range of services. Look at these eight customers and choose the leaflet that they each need.

1. ____________________________________

2. ____________________________________

3. ____________________________________

4. ____________________________________

5. ____________________________________

6. ____________________________________

7. ____________________________________

8. ____________________________________

B: Read this information about one bank’s travel and holidays services.

When you travel…..31

Whether your journey is for holiday or business, we’ve the widest range of services to help you on your way.

Travers ChequesAvailable in most of the worlds currencies, these are both a safer way to carry cash – and in many countries the only legal way to travel with all you need. Our sterling travelers cheques are available over the counter in values of £10, £20, £50 and £100. They’re accepted in hotels, restaurants and shops around the world and banks will cash them for a small charge.Foreign CurrencyWe cannot meet all your requirements – and advise you of any local restrictions. Please try to order well in advance. Exchange rates fluctuate: a footnote on the application form explains how these are calculated. Before returning home, we suggest you spend any forieng coins locally, as these cannot be exchanged for sterling.

Eurocheques and CardsUsed like an ordinary check and guarantee card, these guarantee up to the equivalent of about £100 each, and can be used wherever you see the ‘EC’ symbol – at over 200,000 bank branches and five million outlets in 40 countries.In most countries you write your Eurocheque in the local currency. When using or cashing more than two checks at a time, you will be asked for identification – so it’s a good idea to carry your passport with you.Eurocheque books are issued free. The card itself is valid up to two years, at a £5 annual fee.CardsafeRegister for cardsafe protection for only £6 a year (£15 for three years) and safeguard all you credit and charge cards.

Are the following statements true or false according to the text? Give reasons.

True False Explanation 1 Travelers cheques are cashed

free of chargeX Banks will cash them for a small

charge.2 Foreign currency does not

always cost the same3 Only foreign notes can be

exchanged4 Travellers’ cheques must be

presented with a guarantee card5 You can not use more than two

Eurocheques to pay for any one purchase

6 You need a new Eurocheque card every two years.

7 Each new Eurocheque card costs £5

8 If your travellers’ cheques are stolen, you should contact Cardsafe for a refund.

C: Match the words in list 1 with the correct word in list 2.

1 232

Retail LimitInterest CurrencyCredit Form

Application RateForeign Outlet

Exchange BranchBank free

D: What services does your bank offer their clients? Present to the next class.

Unit 8

33

Cash and Currencies

A: Look at these two pictures and find six objects in them which start with the word cash.

1. ________________________________ 2. _______________________________

3. ________________________________ 4. _______________________________

5. ________________________________ 6. _______________________________

Here are eight more vocabulary items that include the word cash. Choose the correct definition.

34

1. to cash a cheque is toa. exchange a cheque for cashb. pay money into your accountc. pay money into someone else’s

account

2. to cash inis toa. sell something (shares/travelers

cheques)b. pay cash for something

(shares/travelers cheques)c. open the cash register

3. to cash in on is toa. forecast the receipt of cashb. profit from somethingc. calculate money spent

4. a cashier is aa. dealer of foreign currencyb. book in which payments are recordedc. person who pays and receives

money

5. to cash up is toa. add up the cash at the end of the dayb. obtain cash from a bankc. get a reimbursement

6. a cash crop isa. commission charged on foreign

exchangeb. something that is grown in order to

be soldc. a company’s reserves in cash for

emergencies

7. cash flow isa. the conversion rate between

currenciesb. money which is immediately available c. the movement of money into and out

of a business

8. petty cash isa. small denomination bank notesb. money held in a business to cover

small expensesc. small denomination coins

B: Where do these currencies come from? The list of countries is given to help you.

1 peso

Mexico

2 schilling 3 drachma 4 cruzado 5 krona 6 rupee 7 dollar

8 naira 9 zloty 10 lira 11 yen 12 pound 13 yuan 14 mark

15 rouble 16 escudo 17 shekel 18 baht 19 rial 20 dinar 21 peseta

Austria Brazil China Germany Greece India Iran Israel

Italy Japan Mexico Nigeria Poland Portugal Spain

Sweden Thailand U.S.S.R. U.K. U.S.A. Yugoslavia

C: Read this article on Eastern Europe.

35

Now find:

1. three places to exchange money

_____________ ___________ ____________

2. three currencies

_____________ ___________ ____________

3. three countries that prefer dollars

_____________ ___________ ____________

4. three other ways of paying

_____________ ___________ ____________

Are these statements true or false, according to the article?

T F

5. The mark is more popular than the dollar in Romania. 6. The mark is more popular than the pound in Czechoslovakia 7. Credit cards are not accepted in Eastern Europe. 8. It is illegal to exchange money with a taxi driver. 9. Taxi drivers give top rates of exchange. 10.You may have to wait a long time to cash traveler’s cheques.

Unit 9

36

Cash is best when traveling in Eastern EuropeFor travel in Eastern Europe, it is best to take cash in dollars, marks or pounds, though credit cards and travellers’ cheques are good back-up and Eurocheques, too, can be useful.

In Hungary, the Soviet Union and Romania, according to regular visitors, the dollar is king, but the mark is preferred in Czechoslovakia. Pounds are accepted but not as popular.

In those countries with an active black market, taxi drivers will exchange money for you. They are normally reliable although they do not give top rates. Do not forget, however, that it is illegal. Traveler’s cheques have one big disadvantage. Queues at banks and exchange bureau can be so long that you may have to wait for several hours to get your money.

Finance and Banking

37

Electronic Banking

How is this Possible?

Electronic funds transfer (EFT) makes electronic baking possible. EFT uses computer networks to transfer money electronically (rather than by check or cash) amoung bank accounts. E-banking allows a person to make withdrawals, deposits, computer or machines (such as a point-of-sale (POS) terminal or automated teller machines (ATMs) or cash machines), rather than in person or via the mail with cash or check

Benefits of E-Banking

24 hour service

Fast

No paper

Variety of methods

Convenience

Worldwide access

Types of E-Banking Debit Card

ATMs

Direct Deposit & Payments

Smart Card

Stored-Value Card

Home Banking

What is E-Banking

Electronic banking or e-banking gives people electronic access to bank accounts and cash in a fast and paperless way. It can be accessed 24 hours a day.

Debit Card

A debit card is a plastic card which looks like a credit card, but it is connected to the cardholder’s bank account for purchases. When a purchase is made, money is automatically taken from the designated account. It provides access to the EFT system by running a card through an ATM or POS terminal. Some cards are dual function cards, meaning one card performs both ATM and debit functions. Debit cards require using a personal identification number (PIN) to access an account to perform

transactions. A PIN confirms that the user of the debit card is authorized to access the account.Debits cards can be used with:Point-of-sale (POS) terminal. These are located at a store and allows the customer to use a debit card to make purchases.Automated teller machines (ATMs) or cash machines are electronic computer terminals which offer automated, computerized banking

After the transaction is finished, a receipt is printed. Keep ATM receipts to compare them with the monthly account statement. Remember to take the ATM card when finished.

Automated teller machines (ATMs) or cash machines are electronic computer terminals which offer automated, computerized banking. Most ATMs allow customers to make deposits, cash withdrawals, transfers between accounts, and to check account balances. ATMs can be found in a variety of places including financial institutions, supermarkets, and convenience stores. ATMs offer simple and fast 24 hour access to bank accounts. ATM cards may be provided with bank accounts, but they are not mandatory. ATMs are

accessed with an ATM or debit card and a PIN. Customers belonging to a specific financial network may use ATMs free of charge. However, a customer fee may be charged for using another financial institution’s ATM. Fees will vary and be posted on the ATM. To use an ATM, put the card into the card slot and enter the PIN when it is asked for, then perform the transaction.

ATMs

38

Direct Deposit & Payments

Direct deposit allows paychecks and benefit checks to be directly deposited into a specified bank account (usually checking or savings) the customer signs an authorization form to allow their employer to automatically deposit the paycheck or benefit check. Direct payments authorize bills to be paid by a specified bank account. This can be done for fixed expenses like mortgages or vehicle payments

ATM DO’S & DON’TS

Never choose a PIN easily associated with the user. For example: birthdays or addresses.Don’t choose a repetitive or consecutive PIN numbers.Don’t write the PIN number down in the place where the card is kept.Do shield screen from onlookers at ATMs when entering PIN.If something suspicious happens at the ATM, cancel the transaction, take the card, leave, and report it to the authorities.

and flexible expenses like electric and phone bills. The customer sighns an authorization form to automatically deduct money from his / her account to pay the bill. According to Federal Law, the customer can choose to stop the authorization by writing or calling the financial institution at least 3 days prior to payment. If calling, some institutions may also require a written record.

How To Use ATM / Debit Cards Safely

Sign the back of the debit card and write see ID.Keep PIN hidden. Do not write it down in the place where the card is kept. Memorize the PIN.Procect the PIN. This can be done by:Not telling oters the PINNot giving the PIN out over the phoneShielding the PIN when entering it at an ATMChange the PIN if it is suspected that someone else knows itKeep receipts from all transactions and compare them to the monthly account statement.

Be ready to transact quickly – have everything readyWrite down the card number and financial institution contact information. Store it in a safe place separate from the card. This will be needed if the card is lost or stolenReport a lost or stolen card immediately!Plan activities so it will not be necessary to use the ATM after darkUse an ATM located inside a supermarket or other place of businessUsa a drive-up ATM. Pull up close to it, lock car doors, and roll up the windowsBe aware of the surroundings – if something suspicious happens, leave and report everything unusual to the proper authorities (financial institution, police

Lost or Stolen Cards

If an ATM or debit card is lost or stolen, report it to the financial institution immediately! If it is reported within two business days, the cardholder is only liable for $50.00. If the cardholder waits longer to report it missing, they could be liable for up to $500.

Smart Card & Stored -ValueA smart card is a card with a built-in computer chip to store prepaid amounts of money. Money is electronically loaded onto the card and is automatically deducted from the balance when a purchase is made. These cards are re-loadable meaning money can keep being added to reuse the card. A stored-value card is the same as a smart card, but is not re-loadable.

Stored-value cards are disposable cards that are thrown away when the money is used. Store gift cards are common examples. The cards, like cash, can be used by other people if lost or stolen. Keep track of the card! Other examples are phone cards and one-card system. A one-card system (generally found a universities) is a card that acts as an ID and as a smart card.

39

Future Trends

E-banking is a continually changing market due to technology. Each financial institution has its own e-banking rules and services. Dual-function debit and ATM cards are examples of commonly used services developed in the past few years. Financial institutions are working toward the goal of one card to function as a smart card, debit card, credit card, and an ATM card.

People currently use signatures and PINs to access accounts. This may be replaced by codes, voice commands, or eye, fingerprint, and handprint scans. Some universities have already begun using hand scanning than a card for cafeterias and dorm access.

Because technology is always changing, it is important to keep up to date with new trends and the safety that goes along with them.

Check 21Check Clearing for the 21st Century Act (Check21) is a current trend in EFT that is changing banking. Prior to Check 21, a customer would write a check to pay for a service or product, And have several days before the money would transfer from the customer’s bank account to the service provider’s account. This time between when the a person writes the check to when the money is actually withdrawn is called float time.

Float time allows a person to write a check when there is not enough money in the account and deposit the money later. (Using float time to pay for purchases is not a recommended practice). Now, because of Check 21, the check is sent electronically to the customer’s bank and the money is withdrawn within hours of the transaction, therefore, eliminating all float time. Check 21 is similar to the debit card process

Home BankingA new area of e-banking home banking, where customers may use a touch-tone phone or a computer with internet access to access their accounts. Phone access allows customers to transfer money between accounts, view account balances, change PINs, and report lost or stolen debit cards. With internet access, a customer can go to their financial institution’s website if it offers internet banking. The customer logs on with their social security number and a password. This allows a person to view account balances, transfer money between accounts, stop check payments, pat bills, order checks, and apply for loans and credit cards.

40

In a Hurry?Many supermarkets and super discount stores combine shopping and banking

into one stop! Banks now have branches in stores with extended hours to provide

customers better service!

Electronic banking (e-banking) is relatively new in the banking industry. E-banking allows 24-hour access to move money electronically in a fast and paperless way. This electronic movement of money is made possible by electronic funds transfers (EFTs). EFTs use computer networks to transfer funds electronically (rather than by check or cash) among various bank accounts. E-banking allows a person to make withdrawals, deposits, and bill payments via phone, computer or machines (like an ATM or POS terminal) rather than in person via the mail with cash or check. Benefits to e-banking include:

◊ 24-hour access;◊ Fast;◊ Paperless;◊ Convenient;◊ World-wide access;◊ A variety of methods.

A debit card is a plastic card which looks like a credit card, but it is connected to the cardholder’s bank account for purchases. When a purchase is made, money is automatically taken from the designated account. It provides access to the EFT system by swiping the card into an ATM or POS terminal. Some cards are dual function cards for ATMs and debit cards, meaning one card performs both functions. Debit cards require using a personal identification number (PIN) to access an account to perform transactions. A PIN confirms that the user of the debit card is authorized to access the account.

Automated teller machines (ATMs) or cash machines are electronic computer terminals whichoffer automated, computerized banking. ATMs allow customers to make deposits, cash withdrawals, account transfers, and to check account balances. ATMs can be found in a variety of places including supermarkets, financial institutions, and convenience stores. ATMs are accessed with an ATM or debit card and a PIN. Fees may be charged for ATM use, but it will vary depending on the financial institution. Another type of electronic computer terminal is a point-of-sale (POS) terminal. The POS terminal is located at a store and allows the customer to use a debit card to make purchases. Direct deposit allows paychecks and benefit checks to be directly deposited into a specified bank account (usually checking or savings). The customer signs an authorization form to allow their employer to automatically deposit the paycheck. Direct payments authorize bills to be paid by a specified bank account. This can be done for fixed expenses like mortgages or vehicle payments and for flexible expenses like the phone or electricity bill. Smart cards are cards with a built-in computer chip to store pre-paid amounts of money. Money is electronically loaded onto the card and is automatically deducted from the balance when a purchase is made. More money can be reloaded onto the card. Stored-value cards are like smart cards, but they are not re-loadable. They are thrown away when the money has been used. Gift cards are a good example of a stored-value card.

Check Clearing for the 21st Century Act (Check 21) is a current trend in EFT that is changingbanking. Prior to Check 21, a customer would write a check to pay for a service or product, and have several days before the money would transfer from the customer’s bank account to the service provider’s bank account. This time between when a person writes the check to when the money is actually withdrawn is called float time . Float time allows a person to write a check when there is not enough money in the account and deposit the money later. (Using float time to pay for purchases is not a recommended practice; however, people use it anyway.) Now, because of Check 21, the check is sent electronically to the customer’s bank and the money is

41

Introduction

withdrawn within hours of the transaction, therefore, eliminating all float time. Check 21 is similar to the debit card process.

A new area of e-banking is home banking, where customers may use a touch-tone phone or acomputer with internet to access their accounts. Phone access allows customers to transfer money between accounts, check account balances, change PINS, and report lost or stolen debit cards. Internet access allows customers to check account balances, transfer money between accounts, pay bills, order checks, stop check payments, and apply for loans or credit cards.Safety Precautions in E-Banking

E-banking does not always involve exchanges between people. Because of this, a photo ID is often requested to verify that the person making the payment is the person responsible for payment; ebanking procedures and products must be protected from theft and fraud. The following are tips to protect consumers who use debit cards and other e-banking products and services.

To use ATM and debit cards safely, follow these tips:◊ Sign the back of the card and write “see ID”;◊ Memorize the PIN;◊ Do not write down the PIN in the place where the card is kept;◊ Protect the PIN;◊ Keep receipts;◊ Be aware of surroundings (location, people nearby, etc.).

Report lost or stolen Debit cards immediately. If it is reported within 2 business days, the cardholder is only liable for $50.00. If the cardholder waits longer, he/she could be liable for up to $500.00. However, this can vary depending upon the financial institution because some may not charge the account holder anything if the correct reporting steps were taken.E-banking is a continually changing market due to technology. Each financial institution has its own rules and ways they use e-banking. Some future trends of e-banking include developing one card which functions as a smart card and credit card. People may also begin using voice commands or eye, fingerprint, or handprint scans instead of PINs. Because technology is always changing, it is important to keep up to date with new trends and the safety that goes along with them.

Name: _____________________________________

Date: ____________________

Total points earned28 Total points possible

Percentage

42

Electronic Banking

Directions: Answer the following questions based on the information on electronic banking.

1. Define electronic banking (E-banking). (1 point)

2. What are three transactions people perform via E-banking? (3 points)

3. Identify three benefits to E-banking. (3 points)

4. What is the difference between a debit card and a credit card? (2 points)

5. Does it cost to use an ATM? If so, what kind of charges may apply? (4 points)

6. What can the use of direct deposits prevent? How? (2 points)

7. Define direct payment. (1 point)

8. What is the difference between smart cards and stored-value cards? (2 points)

9. What are two ways a person can bank from home? Describe each way. (4 points)

10. Check 21 eliminates float time. Define float time. (1 point)

11. What should a consumer do if his/her ATM or debit card becomes lost or stolen? (1 point)

12. What are four tips consumers should know about using an ATM/debit card safely? (4 points)

13. What is one future trend in the financial marketplace? (1 point)

1. Beyonce moved to a new city four months ago. She is still finding her way around and does not know all of the streets. She needs to get some cash before the weekend because she will be going on an overnight trip and needs to pay for three meals. On Thursday evening, she realizes she still has not gone to the ATM. She gets in her car and heads to the nearest

43

Scenarios

convenience store to use the ATM. However, it is outside the building in an unlit area. It is already dark outside and she feels a little unsure about using the ATM. What options does Beyonce have besides using this outside ATM?

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

2. George went to dinner last night with some friends. He used his debit card to pay for dinner, but he woke up this morning and cannot seem to find it. What should George do about his missing debit card?

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

3. Laura likes the convenience of ATMs. She usually makes her deposits and withdrawals at the ATM. When she makes a deposit, what can she do to shorten her time at the ATM? What should she have ready before going to the ATM?

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

4. Juan was vacationing out of the country last week. While he was there, his wallet was stolen which included his debit card. He did not report it immediately because he did not have the bank’s phone number. The wallet was returned to him three days after it was stolen. When he got back from vacation, he called his bank to tell them what happened. While the card was missing, multiple charges were made totaling $500 which he is now liable for. What could Juan have done differently to prevent him from being liable for the charges?

____________________________________________________________________________

44

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

5. Jody went to use the ATM outside of a convenience store. While she was making a transaction, a suspicious person came up behind her and tried to watch her. She tried to finish her transaction as quickly as possible and leave. What should a person do when this situation occurs?

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

6. Dan’s paychecks are mailed to him through the postal service. A few months ago, one of the paychecks was stolen and cashed by an unknown person. What could Dan do to prevent this from happening?

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

7. Anna has trouble paying her bills on time. She always has enough money, but she does not remember to send in the checks before the due date. She always mails them late and ends up paying late charges. What are some suggestions for Anna to help her make the bill payments on time?

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

45

____________________________________________________________________________

8. Marcus has to go birthday shopping for his niece who lives in another state. He cannot decide on what to get her. He does not feel comfortable sending cash in the mail and prefers not to purchase a gift certificate. What other options are available to Marcus for sending her a monetary gift?

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

9. Nelli has a large long distance bill each month because she just moved away from her family and calls them every day. The phone bill is getting so big that she can no longer afford to pay it each month. Instead of running up a long distance phone bill, what are some ways Nelli can control her long distance costs?

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

10. Tamarr had a problem with his ATM/debit card recently. Someone discovered his PIN, stole his card, and removed all the money out of his account. Tamarr reported the card stolen immediately and was not liable for the money stolen from his account. What are some ways Tamarr can protect his PIN with the new ATM/debit card?

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

46

47

Checking Account

And

Debit Card Simulation

Student Instructions& Work Sheets

48

Checks Legal documents that function like cash Checks can ”bounce” if there is insufficient funds, or not enough

money in the account to cover the total check amount, in an account

A checking account register and checkbook are used to record all transactions

ATM Automated teller machine that is electronically connected to

an individual’s bank account Can be used to withdraw cash and make deposits Additional bank fees may be charged

Debit CardPlastic card that is electronically connected to an individual’s bank account.When purchases are made, money is automatically withdrawn from the bank account.Requires a PIN or personal identification number to confirm the user of the debit card is authorized to access the account

PRO’S Convenient Small Use like a credit card Carry less cash Does not allow

overspending

CON’S Can loose track of balance

if transactions are not written down

Opens checking account to credit fraud

Others can gain access to the account if the card is lost and the PIN is known

49

Checking Account

Checking accounts are a common financial service used by many customers. They can help to manage money and makes paying bills convenient.

Why do people use checking accounts? Reduces the need to carry large

amounts of cash Convenience – useful for paying bills

instead of cash or money order Written record of expenses – keeps

track where money is spent on a check register and can act as a spending plan tool

Safety – using checks is safer than carrying cash

Funds in a checking account are easily accessed through:

Check ATM Debit Card Telephone Internet

50

Endorsing A Check

To deposit a check, it must be endorsed. This means the person who receives the check must sign the back of the check to approve it to be deposited or cashed.

Types Of Endorsements

Blank Endorsement – anyone can cash or deposit the check after the check has been signed by the receiver of the check.

Restrictive Endorsement – more secure than a blank endorsement because the receiver writes ‘for deposit only,’ and the account number where the money will be deposited, above the signature. This allows the check to only be deposited.

Special Endorsement – the check can be transferred to second party if the receiver signs the back and writes ‘pay to the order of (fill in the person’s name).

Endorse here

X Sally Smith

Endorse here

For Deposit Only – Acct. # 37246810

X Sally Smith

Endorse here

Pay to the order of Mike Smith

X Sally Smith

Directions: Endorse the three checks with your signature. The restrictive endorsement is for account number 987654321 and the special endorsement will be paid to Jonathan Smith

Endorse here

X

Do not write, stamp or sign below this line

Reserved for Financial Institution only

Endorse here

X

Do not write, stamp or sign below this line

Reserved for Financial Institution only

Endorse here

X

Do not write, stamp or sign below this line

Reserved for Financial Institution only

51

Making A Deposit

A deposit slip contains the account holder’s account number and allows money (cash or check) to be deposited into the account. Checking account deposit slips are located in the back of the checkbook after the checks. Checks must be listed on the deposit slip individually. If more checks are being deposited than fit on the deposit slip, write the extra checks on the back of the deposit slip and write the total amount of the checks from the back on the front where indicated. Deposits can be made at an ATM or with a bank teller. Cash back may only be received if the deposit is made with a teller. If cash is received it is not deposited into the account. The amount deposited must be recorded in the check register to eep the balance current.

In the example below, Sally received her paycheck, #5678 from Piggly Wiggly for $154.01, and a $20.00 birthday check #601 from Fran Smith. She is completing the following deposit slip for her checking account. She also wants to receive $30.00 cash back from the deposit.

Deposit Slip Front

Deposit Slip 93-456-9540

Sally Smith Cash Dollars Cents

500 Great StreetYourtown, Tx 55555 Checks

List Singly

Date 9/1/06Deposits may not be available for immediate withdrawal Piggly Wiggly #5678 154 01

Sally Smith Total from other side

20 00 Sign here for cash recieved

GuardianAngle Banking Sub Total 174 01423 South 15th

Yourtowm, Tx. 55555 * Less Cash Received 30 00

0123456789 ; 1234567890 Net Deposit 144 01

52

DEPOSIT SLIPP DESCRIPTION1. Date: The date the deposit is being made.2. Signature Line: Sign this line to receive cash back.3. Cash: The total amount of cash being deposited.4. Checks: List the checks being deposited individually. If more checks are being deposited than the number of spaces on the front, use the back of the deposit slip. Identify each check on the deposit slip by abbreviating the name of each check write and check number.5. Total from other side: The total amount from all checks listed on the back.6. Subtotal: The total amount of cash and checks.7. Less Cash Received: The total amount of cash being received.8. Net Deposit: The amount being deposited into the account. To calculate the amount, subtract the cash received from the subtotal.

DEPOSIT SLIP BACK

CHECKS Dollars CentsList Singly1. Fran Smith #601 20 00

2.

3.

4.

5.

6.

7.

TOTAL 20 00Enter on Front

53

DEPOSIT SLIPS

Deposit Slip Front

Deposit Slip 93-456-9540

Sally Smith Cash Dollars Cents

500 Great StreetYourtown, Tx 55555 Checks

List Singly

Date Deposits may not be available for immediate withdrawal

Sign here for cash reciev

Guardian Angle Banking Sub Total 423 South 15th

Yourtowm, Tx. 55555 * Less Cash Received

0123456789 ; 1234567890 Net Deposit

Directions: Complete the deposit slip below with the following checks on September 2, 2006. Withdraw $15.00 from the deposit.

$50.00 from Lonni James – check # 598 $86.00 from Sarah Lanning – check #4459 $15.00 from Roberta Smith – check #692

DEPOSIT SLIP BACK

CHECKS Dollars CentsList Singly1.

2.

3.

4.

5.

6.

7.

TOTAL Enter on Front

Why should an individual record all deposits in their check register?

Writing a check description1. Personal Information – The check holder’s name and address; may include a phone

number, but not required. Do Not list a social security number on a printed check for safety reasons.

2. Check number – numbers used to dentify checks. The check numbers are printed chronologically and should be used in this order.

3. Date – The date the check is being written.4. Pay To The Order Of – The name of the person or business to whom the check is being

written.5. Amount of the Check in Numerals – The amount of the check written numerically; write

the cents smaller and underline them. Write the number next o the dollar sign to prevent someone from adding numbers to change the amount of the check.

6. Amount of Check in Words – The amount of the check written in words. Star at the far left of the line. Write down the dollar amount in words first, then write “and” after the words, and finish by writing the amount of cents over the number 100. draw a line from the end of the writing to the end of the line.

7. Memo – Space to identify the reason for writing the check. It is a good place to write information requested by a company when paying a bill, generally the account number

8. Signature – The account holder’s signature agreeing to the transaction.54

Writing A Check

To pay for items using a checking account, writing a check is one option that can be given to the pewrson or business as a form of payment. To write the check, the account holder must complete the following items on the check in order for it to be accepted: date, payee (to whom the check was written), amount in numerical form written out, and his / her signature. Immediately record the check into the check register.

In the example below, Sally Smith wrote check #301 to Gas ‘N’ Go for $15.78.

Sally Smith 93-456-9540 301500 Great Street 45086244786Tourtown, Mt. 55555 Date September 2, 2006

Pay to the Order of Gas ‘N’ Go

Fifteen and 78/100--------------------------------------------------------------------- Dollars

Guarding Angot Banking423 South 15th

Yourtown. Mt. 55555

Memo Gass Sally Smith 0123456789 : 1234567890 : 301

$15.78

9. Identification Numbers – The first set of numbers is the routing numbers to identify the account’s financial institution, the second set is the account number, and the third set is the check number.

Practice Writing Checks

Directions: Write check #302 below to “Aspen Properties” for rent in the amount of $375.00 on September 3, 2006

Directions: Write check #303 below to “Hungry Man” for food in the amount of $27.32 on September 6, 2006

55

Sally Smith 93-456-9540 302500 Great Street 45086244786Tourtown, Mt. 55555 Date

Pay to the Order of

Dollars

Guarding Angot Banking423 South 15th

Yourtown. Mt. 55555

Memo

0123456789 : 1234567890 : 301

$

Sally Smith 93-456-9540 303500 Great Street 45086244786Tourtown, Mt. 55555 Date

Pay to the Order of

Dollars

Guarding Angot Banking423 South 15th

Yourtown. Mt. 55555

Memo

0123456789 : 1234567890 : 301

$

CHECK Clearing for the 21st Century Act (Check 21). Prior to Check 21, a customer would write a check to pay for a service or product, and have several days before the money would be transferred from the customer’s bank account to the service provider’s account. Now, because of Check 21, the check is sent electronically to the customer’s bank and the money is withdrawn automatically, therefore, aperson must have the money in his / her account before writing the check. Check 21 is similar to the debit card process. Many stores are moving toward using this technology to avoid receiving bad checks.

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Why is good penmanship important when writing checks?

What color pen should be used when writing checks? Why?

A debit card is a plastic card which looks like a credit card, but is electronically connected to the cardholder’s bank account for purchases. When a purchase is made, money is automatically taken from the designated account. Debit cards require using a personal identification number (PIN) to access the account to perform a transaction. A PIN confirms that the user of the debit card is authorized to access the account. The card is used by swiping it through the store machine or entering it into the ATM machine. When using ATM machines not provided by the financial institution sponsoring the card, additional bank charges may be assessed. To authorize the purchase a PIN must be entered or the receipt must be signed.

Front and back view of Sally’s debit card is shown below.

Front Back

USING A DEBIT CARD DESCRIPTION

1. Account Number – This sixteen digit number is the account number that links all purchases made with the card to a designated bank account.

2. Expiration Date – The debit card is valid and may be used until this date.

3. Cardholder’s Name – The cardholder’s full name is written and displayed.

4. Magnetic Strip – When the debit card is swiped, the magnetic strip automatically withdraws funds from the cardholder’s account.

5. Authorized Signature – The cardholder must sign in the signature box on the back of the debit card to authorize payments. The cardholder should write “See ID” in the signature bos to ensure the person using the card is authorized to do so.

6. Verification Number – This three digit number is located on the back of the card in the signature area. The signature panel will typically have a series of numbers with the verification number being the last three numbers. These three numbers help ensure the

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USING A DEBIT CARD

Authorized Signature123456 789

Not Valid Unless Signed

Debit Card

1234 5678 9101 1213

Good Thru 01 / 09

S a l l y S m i t h

card is in the cardholder’s possession when making purchases to prevent unauthorized use.

Date Number Description of

transactionPayment / Debit

Deposit / Credit

T

Fee (if any)

Balance

$275.009/1 DEP Deposit 144 01 144 01

September paycheck 419 019/2 301 Gas ‘N’ Go 15 78 15 78

Fuel 403 239/2 DEP Deposit 136 00 136 00

Reimbursment 539 239/3 302 Aspen Properties 375 00 375 00

Rent 164 239/6 303 Hungry man 27 32 27 32

Food 136 919/9 DC The Video Store 3 50 3 50

Movie rental 133 41

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Checking Account Register

All transactions including deposits, checks, debit card purchases, additional fees, and ATM use should be recorded in a check register immediately after completion. Record monetary amounts for purchases in the payment / debit column and deposits in the deposit / credit column. A running balance of all transactions is kept in the far right balance column.

In the example below, the deposits from September 1 and September 2, check 301, 302, and 303 have been recorded in the check register. On September 9th, Sally rented a video from The Video Store for $3.50 using a debit card. This transaction is also shown below in the register.

CHECKING ACCOUNT REGISTER DESCRIPTION

1. Date – The date the check was written or the day of the transaction was made.

2. Number – The number of the written check. If a debit card or ATM was used, write DC or ATM.

3. Description of Transaction – The person / business the check was written to or where the ATM / debit card was used. The gray line can be used to write the memo for budgeting purposes.

4. Payment /Debit (-) – The amount of the transaction; deducted from the balance.

5. Deposit / Credit (+) - The amount of the transaction; added to the balance.

6. T – A box used to track whether the check was cleared on the monthly bank statement when reconciling at the end of each month.

7. Fee (if any) – Any extra fees charged to the account; listed on the bank statement.

8. Balance – The balance, which is a running total, calculated by adding or subtracting each transaction; keep this updated.

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Date Number Description of

transactionPayment / Debit

Deposit / Credit

T

Fee (if any)

Balance

$275.009/1 DEP Deposit 144 01 144 01

September paycheck 419 019/2 301 Gas ‘N’ Go 15 78 15 78

Fuel 403 239/2 DEP Deposit 136 00 136 00

Reimbursment 539 239/3 302 Aspen Properties 375 00 375 00

Rent 164 239/6 303 Hungry man 27 32 27 32

Food 136 919/9 DC The Video Store 3 50 3 50

Movie rental 133 419/16 ATM 40 00 40 00

93 419/16 ATM 2 00 2 00

91 419/30 304 43 72 43 72

47 699/30 DC 2 75 2 75

44 949/30 DEP 30 00 30 00

74 94

60

September Check Register

Example below; The check register below is for the entire month of September and will be used to reconcile Sally’s bank statement.

61

Why is it important to keep a running total of the account balance in the far right column?

During the month of September, did Sally ever “bounce a check” or overdraw her checking account?

62

SEPTEMBER BANK STATEMENT

Bank statements show all transactions that have occurred in a specific timeline, usually one month. The statement can be used to reconcile the account, which means to balance the checkbook register each month to the balance shown on the statement. Reconciling the account each month allows individuals to track accurately and manage their finances wisely.

In the example below, Sally Smith’s September bank statement is shown.

GUARDING ANGEL BANKING STATEMENT FOR:423 SOUTH 15TH SALL SMITHYOURTOWN, MT 55555 500 GREAT STREET YOURTOWN, MT 55555

THIS STAEMENT COVERS: 9/1/06 THROUGH 9/30/06

CHECKING Previous Statement Balance on 8/31 $275.00ACCOUNT Total Deposits $280.01 +#1234567890 Total Withdrawals $463.60 -

New Balance $ 91.41

DEPOSITS AND Date Posted Transaction AmountOTHER CREDITS 9/3 Deposit at South 15th Branch $144.01

9/5 Deposit at South 15th Branch $136.00

Total Deposits $280.01

WITHDRAWALS Date Posted Check # Amount9/3 301 $ 15.789/4 302 $375.009/7 303 $ 27.329/9 Debit Card The Video Store $ 3.509/16 ATM Cash $ 40.009/16 ATM Fee Bank Fee $ 2.00

Total Withdrawals $463.60

Directions: Using the September Check Register and September Bank Statement reconcile Sally Smith’s bank account.

View the September Bank Statement and on page and the September Check Register on page .

Place a check mark in column (theT column) on the September Check Register for all transactions that have cleared and are displayed on the September Bank Statement. The first transaction has been completed.

Find the current checking account balance on the September Bank Statement and write it on line A below.

Write the sum of all outstanding deposits on line F.

Add any outstanding deposits which are shown below and write on line B.

Calculate the subtotal (A+B) and record on line C.

Write the sum of all outstanding withdrawals on line G.

List any outstanding withdrawals shown below on line D.

Calculate the total (C-D) and write on line E. compare this result with the current balance in the check register. They should be the same.

If the total is not the same as on the check register, double-check the math and make sure all service fees and charges have been added to the check register.

63

During the month of September, was Sally charged any additional bank fees? Why or Why not?

RECONCILING A CHECKING ACCOUNT

64

ENTER Bank Statement Balance $A

ADD (+)Outstanding Deposits $B

SUBTOTAL (=) $C

SUBTRACT (-)Outstanding Withdrawals $ D

CACULATE (=)Total should be the same asThe checkbook register $E

Deposits Outstanding

Date Amount9/30 30 00

Total F

Withdrawals Outstanding

Number Amount303 43 72

DC 2 79

Total G

65

CHECKING ACCOUNT SAFETY

The safety tips described below will help account holders prevent fraudulent use of their checking accounts.

WHAT SHOULD I DO IF I LOOSE MY CHECBOOK, ATM OR DEBIT CARD?

1. Immediately report it to the financial institution.

2. File a report with the police.

If a checkbook is stolen and reported, financial institutions generally do not hold the account holder liable for any fraudulent charges.

If the ATM / debit card is reported within 2 business days, the cardholder is only liable for $50.00.

If the cardholder waits longer, he / she could be liable for up to $500.00.

This can vary depending upon the institution because some may not charge the account holder anything if the correct reporting steps were taken.

Be sure to keep checkbooks, ATM / Debit Cards in a safe place!

CHECKING ACCOUNT AND DEBIT CARD

SIMULATION

66

STUDENT ASSESSMENT

Step One:View Sally Smith’s monthly transactions described below and complete all necessary transactions using the information on pages 62-69.

September 2 - Endorse Sally’s September paycheck for $154.01 from “Piggly Wiggly” with a blank endorsement and complete the deposit slip.

September 4 - Record a debit card transaction for $15.78 at “Gas ‘N’ Go” for fuel in the check register.

September 6 - Write check #501 to “The Pizza Place” for pizza for $9.50 and record in the check register.

September 10 - Write check #502 to “George’s Fast Food” for food for $3.99 and record in the check register.

September 13 - Record ATM transaction for $20.00 cash in the check register.

September 15 - Record a debit card transaction at “Gas ‘N’ Go” for fuel for $16.92 in the check register.

September 18 - Write check #503 for a video rental at “The Main Video” for $5.00 and record in the check register.

September 23 - Endorse the birthday gift check for $40.00 from Paula Smith with a restricted endorsement into bank account 123456789 and complete the deposit slip.

September 27 - Record a debit card transaction in the check register for dinner at “JR’s Caf.” for $12.50.

September 29 - Record a debit card transaction in the check register for purchasing food at “Super Mart” for $14.75.

September 30 - Write check #504 for $30.00 to “Student Activities” to pay for an activity ticket and record in the check register.

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Directions

Step Two:Reconcile Sally’s September bank statement using her completed check register and information on page 70 and 71.

Step Three:Answer all review questions on page 72.

September Pay Check and Deposit Slip

DO

NO

T W

RIT

E, S

TA

MP

OR

SIG

N B

ELO

W

TH

IS LIN

E.

RE

SE

RV

ED

FO

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INA

NC

IAL IN

ST

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TIO

N

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En

dorse Here

X

68

Piggly Wiggly 93-456-9540 1234Main Street 45086244786Tourtown, Mt. 55555 Date September 2, 2006

Pay to the Order of Sally Smith

One Hundred Fifty-Four and 01/100 ----------------------------------------------- Dollars

Guarding Angel Banking423 South 15th

Yourtown. Mt. 55555

Memo September Paycheck Piggly Wiggly

0123456789 : 1234567890 : 1234

$154.01

September Pay Statement

Debit Card Receipt & Checks 501 – 502

Piggly Wiggly Pay Period 8/1/2006 – 8/31/2006

EmployeeSally Smith

SSN000-00-0000

Check #1234

Check Amount$154.01

Pay Type-Gross Pay

Deductions Current Year to Date

$180.00 Federal WithholdingState WithholdingSocial SecurityMedicare

$7.50$4.72$11.16$2.61

$120.00$75.52$178.56$41.76

Totals $25.99 $415.84

69

Deposit Slip 93-456-9540

Sally Smith Cash Dollars Cents

500 Great StreetYourtown, Tx 55555 Checks

List Singly

Date Deposits may not be available for immediate withdrawal

Sign here for cash reciev

Guardian Angle Banking Sub Total 423 South 15th

Yourtowm, Tx. 55555 * Less Cash Received

0123456789 ; 1234567890 Net Deposit

Debit Card Receipt

September 4,2006Gas ‘N’ Go

$15.78

Thank You For Your Business

ATM Receipt, Debit Card Receipt & Check 503

70

Sally Smith 93-456-9540 501500 Great Street 45086244786Tourtown, Mt. 55555 Date

Pay to the Order of

Dollars

Guarding Angot Banking423 South 15th

Yourtown. Mt. 55555

Memo

0123456789 : 1234567890 : 501

$

Sally Smith 93-456-9540 502500 Great Street 45086244786Tourtown, Mt. 55555 Date

Pay to the Order of

Dollars

Guarding Angot Banking423 South 15th

Yourtown. Mt. 55555

Memo

0123456789 : 1234567890 : 502

$

ATM Receipt

September 13, 2006Machine Location: Guardian Angel Bank 423 South 15th Yourtown, MT 55555

Cash Withdrawal from Checking Account$20.00

Birthday Money & Deposit Slip

71

Debit Card Receipt

September 15, 2006Gas ‘N’ Go

$16.92

Thank You For Your Business

Sally Smith 93-456-9540 503500 Great Street 45086244786Tourtown, Mt. 55555 Date

Pay to the Order of

Dollars

Guarding Angot Banking423 South 15th

Yourtown. Mt. 55555

Memo

0123456789 : 1234567890 : 503

$

Paula Smith 93-456-9540 5678700 Friendly Poulavard 45086244786Tourtown, Mt. 55555 Date September 20, 2006

Pay to the Order of Sally Smith

Forty and no/100 ------------------------------------------------------------------------ Dollars

Guarding Angot Banking423 South 15th

Yourtown. Mt. 55555

Memo Birthday Gift Paula Smith

0123456789 : 1234567890 : 503

$40.00

DO

NO

T W

RIT

E, S

TA

MP

OR

SIG

N B

ELO

W

TH

IS LIN

E.

RE

SE

RV

ED

FO

R F

INA

NC

IAL IN

ST

ITU

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N

US

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En

dorse Here

X

Deposit Slip

72

Deposit Slip 93-456-9540

Sally Smith Cash Dollars Cents

500 Great StreetYourtown, Tx 55555 Checks

List Singly

Date Deposits may not be available for immediate withdrawal

Sign here for cash reciev

Guardian Angle Banking Sub Total 423 South 15th

Yourtowm, Tx. 55555 * Less Cash Received

0123456789 ; 1234567890 Net Deposit

Debit Receipts & Check 504

73

Debit Card Receipt

September 19, 2006Super Mart

$14.75

Thank You For Your Business

Check Register

Date Number Description of Transaction

Payment / Debit

(-)

Deposit / Credit

(+)

T

Fee(if any)

Balance

74

Debit Card Receipt

September 27, 2006JR’s Cafe

$12.50

Thank You For Your Business

Sally Smith 93-456-9540 504500 Great Street 45086244786Tourtown, Mt. 55555 Date

Pay to the Order of

Dollars

Guarding Angot Banking423 South 15th

Yourtown. Mt. 55555

Memo

0123456789 : 1234567890 : 503

$

September 2006 Statement

75

GUARDING ANGEL BANKING STATEMENT FOR:423 SOUTH 15TH SALL SMITHYOURTOWN, MT 55555 500 GREAT STREET YOURTOWN, MT 55555

THIS STAEMENT COVERS: 9/1/06 THROUGH 9/30/06

CHECKING Previous Statement Balance on 8/31 $100.00ACCOUNT Total Deposits $194.01 +#1234567890 Total Withdrawals $ 83.69 -

New Balance $210.32

DEPOSITS AND Date Posted Transaction AmountOTHER CREDITS 9/3 Deposit at South 15th Branch $154.01

9/25 Deposit at South 15th Branch $ 40.00

Total Deposits $194.01

WITHDRAWALS Date Posted Check # Amount9/5 Debit Card Gas”N”Go $ 15.789/9 501 $ 9.509/11 502 $ 3.999/14 ATM Cash $ 20.009/16 Debit Card Gas”N”Go $ 16.929/19 503 $ 5.00

9/28 Debit Card JR’s Café $ 12.50

Total Withdrawals $ 83.69

76

RECONCILING A CHECKING ACCOUNT

Withdrawals Outstanding

Number Amount

Total

Deposits Outstanding

Date Amount

Total

Review Questions

1. Describe what is written on the back of a deposit slip.

77

ENTER Bank Statement Balance $

ADD (+)Outstanding Deposits $

SUBTOTAL (=) $

SUBTRACT (-)Outstanding Withdrawals $

CACULATE (=)Total should be the same asThe checkbook register $

2. When signing a check, why should an individual sign his / her name in cursive writing?

3. Why is it important to record all transactions in the check register?

4. Why would transactions completed on the last day of the month be “outstanding” on the bank statement?

5. What is the most difficult step in reconciling a checking account?

78