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2. Write t if the sentence is true and f if it is false:

___ 1. A business that goes bankrupt is insolvent.

___ 2. People want to get dividends.

___ 3. An auction is a private sale.

___ 4. A thrifty person saves money.

___ 5. If you spend too much, you will have a deficit.

___ 6. Wealthy people often pawn their possessions.

___ 7. You should not vouch for a person unless you trust him.

___ 8. If you start a business, you want a large outlay.

___ 9. When you forfeit something, you lose it.

___ 10. Each shareholder of a company owns part of it.

3. Answer each question with an active word:

1. What shows proof of a business deal?

2. What kind of a sale does not have fixed prices?

3. Where can you obtain money in exchange for one of your possessions?

4. What will the bank do if you do not make your loan payments on time?

5. Who buys and sells in hopes of making a profit?

6. What do shareholders own?

7. What does a government have if it spends more than it takes in?

8. What are taxes for the government?

9. What is a bill that you should have paid by yesterday but didn’t pay?

10. What are you if you cannot pay your bills?

4. Cross out the word or phrase that is least related in meaning:

1. outlay late overdue

2. forfeit give up speculate

3. bankrupt insolvent thrifty

4. foreclose guarantee vouch for

5. share deficit portion

6. pawned thrifty economical

7. sale auction voucher

5. Answer the following questions:

1. Are banks in your country permitted to foreclose on overdue loans? 2. Have you ever pawned anything? 3. Do you consider yourself to be a thrifty person? 4. Does your country have a budget deficit? 5. Have you ever buy anything at an auction? 6. Which of your friends or relatives would you be willing to vouch for? 7. Does your country have laws concerning bankruptcy proceedings?

6. Fill in the blanks with one of the active words:

1. She is known for her ___ because she gets by on very little money each month. 2. She ___ some of her jewelry in order to get enough money for her ticket. 3. As a(n) ___ in this company, you can participate in a small way in the running of the company. 4. He is constantly buying and selling shares of various companies because he is a(n) ___. 5. The bank will ___ on that property soon if they do not make some payments on their loan. 6. I can ___ her honesty; she has worked in our bank for over twenty years and we trust her completely. 7. Many people go to ___ to get bargains on old furniture. 8. If your phone bill is ___, the phone company may disconnect your service.

9. Our ___ for this project was so large that we will have to take in a lot of money before we will be able to show a profit. 10. That company often pays large ___ to its shareholders.

7. Match a word from A with its synonym in B:

A.

B.

1. bankrupt

2. deal

3. greed

4. jewel

5. pay

6. poor

7. save

8. thrifty

9. trade

a) avarice

b) broke

c) gem

d) defray

e) transaction

f) indigent, needy

g) frugal

h) put aside / away

i) barter, swap