Money management - an introduction

Date: 2015-10-07; view: 608.

Write a word from the box in the correct form in each gap.

Capital budgeting

Capital budgeting is the longer-term version of theoperational budgeting. As in short-term planning or budgeting, long-range planning or capital budgeting must take into consideration anticipated exchange rate movements for discounting future cash flows. This becomes part of the risk involved in choosing the discount rate, along with any environmental uncertainty. Environmental uncertainty can be mild, such as the risk of unexpected heavier taxation, or severe, such as the risk of expropriation. In general, the risk is greater in less developed countries than in wealthier trading partners, but even in the the latter there are many adverse events that are unpredictable.

benefit • debt • dividend • insurance • interest • investment • mortgage • overdraft • pension • share

1. Different bank accounts pay different amounts of (1) __________________. It makes sense to shop around before you open an account.

2. If your salary doesn't always get you to the end of the month, you'll have to arrange a/an (2) __________________with your bank, so it's worth being on good terms with your bank manager.

3. If you're planning to buy a house, you'll probably need to get a/an (3) __________________.Once again, shop around to get the best deal.

4. If you're thinking about taking out life (4) __________________make sure you talk to an independent financial advisor. They'll give you unbiased advice.

5. Make sure you know what (5) __________________you're entitled to. If you're on a low income and have a family, you may be surprised how much you'll receive from the state each month.

6. Even if you're only in your early twenties, it pays to plan for the future. If you can, start paying into a/an (6) __________________scheme now to ensure you have a comfortable retirement.

7. It goes without saying that you should try to avoid getting into too much (7) __________________.Only buy things on credit if you're sure you can afford to pay the monthly instalments.

8. If you do manage to start saving a little each month, you might want to think about buying some (8) __________________.Their value can go down of course, but they can be a good(9) __________________particularly in the mid- to long-term. Many companies pay an annual (10) __________________to shareholders - this can be a welcome source of extra income if the company's doing well.