5. Work with vocabulary. Identify the words and word combinations from the previous exercise by the context provided.

Vocabulary. Part I

1. Anyway Barclays' return on average _________________ last year was 5.8% - down from 7.2%. So the rate of return for Barclays' owners declined. Barclays, on this fundamental yardstick, saw a deterioration in performance. (2 words)

2. Even though manufacturing has recovered fast, it has nowhere near made up for the destruction ________ during 2009-10, so output is below where it was when Lehman went bust. Meanwhile the world economy, which was recovering faster than expected in 2010, has slowed down, and Britain's key export market, the Eurozone, has tanked because of disastrous leadership and the naked pursuit by Germany of its own self-interest. (v, Participle II)

3. A. He wrote to Mr Lyon: "I enclose an article from yesterday's Daily Telegraph suggesting that I'm a mortgage ________. I think it inevitable that you will soon receive a frivolous and malicious complaint, inspired I am sure by a national newspaper ... I would therefore like to beat them to it." B. House ________ Sang-Min ‘Sonny' Kim sentenced to prison time for mortgage fraud. (n)

4. A. Contrast that with Norway. Quite apart from the recurring debate about the ability of Scotland to emulate Norway's oil fund by __________ financial surpluses, the Norwegians are enjoying some spectacular new finds. B. More than £5.6bn in cash is being ___________ in homes across the UK, according to the body which provides protection for savers when banks fail. The Financial Services Compensation Scheme suggests one in people feel their money is safer at home than in an account - but many house insurance policies provide limited cover when it comes to cash. (v, form changed)

5. Forbearance is when creditors relax their normal lending criteria and conditions, so that their debtors don't ___________. So, for example, up to 8% of all those with mortgages in Britain are enjoying a holiday on payments, or have changed to paying interest only, or are enjoying some other relaxation of normal lending conditions, according to an analysis by the Financial Services Authority for the Bank of England. (2 words)

6. Facebook shares have fallen sharply since the flotation to $30, 21% down on the launch price of $38. The company is also being sued by disgruntled shareholders, who allege that Facebook's revised growth figures were not disclosed to all investors prior to the flotation. Morgan Stanley, the lead ___________ on the share sale, said it had fully complied with the rules. (n)

7. "There was no increase in employment or costs and profits fed straight through to the bottom line with rapidly increasing margins. The second element was that with the banks writing off huge amounts, when that was over, the percentage gain in profits was very rapid indeed." But the crisis took a new turn - centred on Europe. Eurozone fears: By the end of 2010 the catastrophe of the _________________________ market was being replaced in investors' minds by the dire state of the European sovereign debt market. (3 words)

8. Western financial experts who fear a bursting of the Chinese real estate bubble point out that the Chinese economy is more dependent on house building than the United States economy was, before the ___________ bubble burst in 2007. (2 words)

9. A. The ability to get your insurance to pay for it is a ___________. They may raise your rates. B. Her authority in the company is a ___________. She makes more enemies than allies. (3 words)

10. "This financial crisis has exposed a set of core problems with our financial system," said Mr. Geithner. "The system permitted an excessive build-up of leverage, both outside the banking system and within the banking system. "The shock absorbers that are critical to preserving the stability of the financial system - capital, margin, and ____________ in particular - were inadequate to withstand the force of the global recession, and they left the system too weak to withstand the failure of major financial institutions." (2 words)

11. It has been cast as a referendum on the country's future membership of the Eurozone. But could it be that the result no longer matters? The steady ___________ of cash by depositors from the Greek banks has reportedly accelerated in recent days. And if this apparent bank run gets out of hand, there is a danger that Greece could find itself forced out the euro, whichever way its citizens vote. (n)

12. For many small businesses like Clover, social media outlets such as Twitter, Facebook and blogs offer a relatively inexpensive way to build brand loyalty and reach potential customers. But many companies are still very reactive - coming to social media only because they know everyone else is using it, says Zach Hofer-Shall, an analyst with Forrester Research. Some companies are afraid of social media's novelty, he says, afraid of spending money and staff time on something they don't really understand. Yet Mr. Hofer-Shall says small business owners who use social media well find it doesn't have to be too time consuming, and it can effectively build brand loyalty and ______ new customers. (v)

13. A. The manager precipitated the _______ of the system he represented by demanding reform of which it proved incapable. B. The Russian national holiday marks Russia's declaration of sovereignty in 1990 - a key episode in the ________ of the Soviet Union. (n)

14. Mr. Fisher said there was little the Bank could have done to prevent the build-up of ________ and unsustainable debt in the run-up to the financial crisis which began in 2007. He said policymakers could not achieve two different policy objectives with a single policy instrument, and that raising interest rates to deter banks from building up ________ would have caused a separate problem in dampening down inflation too much. (n)

15. A. Pushing for greater capital market liberalization after the _______ of the 1990’s will be controversial. B. The news first: an influential shareholder tells me investors may demand the resignation of Marcus Agius as chairman of Barclays. The investor has also told Barclays that it needs to appoint someone to conduct an independent review of what went wrong at the bank, focused in particular on whether the culture of the bank has been sufficiently reformed. He says Barclays must make a statement in the next 48 hours or so about how it intends to make sure there can never be a repeat of the _______. The pressure on Mr. Agius and Mr. Diamond intensified when Barclays' shares dropped like a stone earlier today: at one point it was 18% lower. "We are very worried that, in a general sense, the wrongdoing that has been identified has imperiled its licence to operate" said the investor. (n)

16. More than eight out of 10 Unite union members who responded to a survey said their monthly salary does not last until the next pay day. Based on a survey of 350,000 of its members, Unite said 82% were unable to make their wages last the whole month. It added that 12% of that group had subsequently needed to _______ to payday loans. (v)

17. Air Australia, with a staff of 300, flies international routes to Bali, Thailand and Hawaii. It also operates domestic flights to Brisbane, Melbourne, Perth, Derby and Port Hedland in Australia. "In the short-term, the fleet will be grounded. It currently appears that there are no funds available to _______ operational _________ so flights will be suspended immediately." (2 words)

18. A. Japanese chipmaker Renesas has seen its shares ________ to a record low amid reports it is planning to raise cash and cut jobs. B. Sony shares have ________to a 31-year low, a day after the company reported a record annual loss of 456.7bn yen ($5.7bn; £3.5bn). (v)

19. As well as indicating that £8.5m would need to be saved to achieve "cost neutrality" in running costs, the Auditor General was quoted as saying that transitional costs in implementing the new structures remained uncertain. He said in his letter: "I recommend that you consider adding a reasonable contingency to the budget." Mr Hutt told the committee she thought the Auditor General's report was "very favourable". It heard transitional funding arrangements of between £12.5m and £15m were in place to ______ any ______ . Assembly civil servant Brian Mitchell agreed with the minister's view that the letter was "generally constructive". (2 words)

20. A. Mr. Blackshaw's dedication to the job saw him responding to out-of-hours emergencies on a 24-hour, seven-days-a-week basis for more than 20 years before the introduction of a weekly _______ payment. B. Hungary had been in talks with the International Monetary Fund and was given a 20bn-euro _________ loan by the IMF in 2008 to prevent it having to default on its debts. (adj)

21. It estimated that people who own their homes outright, with no mortgage at all, own property worth a total of £1.43tn. Meanwhile, nearly half of people with a mortgage had one that was worth less than 70% of the value of their homes, giving them an __________________ of at least 30%. Another quarter of borrowers had mortgages worth between 70% and 90% of their homes. The rest had less than a 10% equity stake in their homes. Thus people with mortgages own homes worth a total of £1.84tn and of that their unmortgaged _________________ amounts to nearly £800bn. (2 words)