[D] Banking

LET'S UNLOCK WORDS AND PHRASES 🔐

deduct

[ dih-'duhkt ]

verb

- to take away an amount or part from a total

The company deducts $31.93 each week from my salary for health insurance.

cautious

[ 'kaw-shuhs ]

adjective

- not acting quickly in order to avoid risks; careful

She's a very cautious driver.

down payment

noun

- an initial partial payment

You have to pay a 25 % down payment for the house first.

mortgage

[ 'mawr-gij ]

noun/verb

- (n) the amount due on a property; (v) to borrow money with your house as collateral

Jane and Steven took out a $400,000 mortgage to buy the house.

transaction

[ tran-'sak-shuhn ]

noun

- a business deal

Customers worry about the security of online transactions.

LET'S READ! 📖

Direction: Read the conversations and see how the new words are used.

Dialogue 1

John_Happy Icon

Employee 1

Here's the contract for your loan. It's several pages long.

Melly_Happy Icon

Employee 2

It says here that the bank can automatically deduct the monthly payment from my checking account.

John_Happy Icon

Employee 1

That's right; all you'll need to do is to make certain that you always have enough in your balance to cover the automatic deduction.

QUESTION:

1. What does employee 1 need to do to cover the automatic deduction?

Dialogue 2

Icon_Mike

Mike

Let's look for a brochure that describes in detail the mortgage application process.

Icon_Anna Happy

Anna

If we save more money toward a down payment, we'll reduce the amount we need to borrow.

Icon_Mike

Mike

It's good to be cautious when borrowing money. Often you can borrow money at a better rate when you have a larger down payment.

QUESTION:

1. What will happen if Mr. and Ms. Right could save more money toward their down payment?

LET'S UNDERSTAND! 📚

Word Families

Part of Speech

Word

Example

verb	accept	The bank will not accept a student ID as a valid form of identification
noun	acceptance	The bank's acceptance of checks allows extra time for out-of-state checks to clear before they are credited to your account.
adjective	acceptable	Shorter banking hours would not be acceptable to many customers, who might close their accounts as a result.

verb	deduct	Remember to deduct the monthly bank fee from your statement.
noun	deductible	Taxes and health insurance payments are what we call deductibles because they are deducted from your paycheck.
noun	deduction	Deductions are made electronically every month and will appear on your statement.

verb	restrict	The bank's policies restrict the number of deductions you can make from your account without a penalty.
noun	restriction	The restrictions on who was eligible for a mortgage made it impossible for many low-income families to borrow money.
adjective	restricted	Information about your account is confidential and its use without your permission is restricted.

verb	sign	Once you have signed the mortgage contract, the bank will make a check payable to you.
noun	sign	The sign in the bank's lobby announces their rates for savings accounts and for loans.
noun	signature	Your signature can be electronically recorded to be verified later.

verb	transact	You can transact business electronically.
noun	transaction	Each transaction at the foreign exchange counter seems to take forever.
adjective	transactable	Users have some level of security when buying or selling transactable and shippable items.

NOTES

Words which end with -ble, -ory, -ness are adjectives.
Words which end with -ness, -ion, are nouns.

LET'S PRACTICE! 📄

Part I

Direction: Complete the table with the correct word form.

Verb	Noun	Adjective
restrict
deduct
sign
transact
accept

Part II

Direction: Read the following and write the appropriate form of the word in the blank.

Short Talk

transact
downpayment
mortgages
cautious
restrict

Banks are not only places in which to save money or to (1) your financial business, but also institutions from which people can borrow money. Every day, people look to banks for loans, such as (2) for new homes. A loan is essentially a contract that binds the lender to a schedule of payments, so both parties should be (3) and not enter into the arrangement without thinking. Banks will look at such factors as how much people have saved towards (4) in determining whether to make a loan. Banks have different kinds of accounts. Some pay high quarterly dividends. Some accounts even severely (5) the number of times, if any, that you can access your account or the amount of cash you can take out.

LET'S RECAP! 📝

TOEIC VOCAB LET'S RECAP

1. Which new words/phrases were easiest to remember? Give three.

どの語句/文が覚えやすかったですか？３つ挙げてください。

2. Which words/phrases were you having a hard time to speak/understand? Give three.

どの語句/文が話したり理解するのに難しかったですか？３つ挙げてください。

deduct

[ dih-'duhkt ]

verb

- to take away an amount or part from a total

The company deducts $31.93 each week from my salary for health insurance.

cautious
[ 'kaw-shuhs ]
adjective
- not acting quickly in order to avoid risks; careful
She's a very cautious driver.

down payment
noun
- an initial partial payment
You have to pay a 25 % down payment for the house first.

mortgage
[ 'mawr-gij ]
noun/verb
- (n) the amount due on a property; (v) to borrow money with your house as collateral
Jane and Steven took out a $400,000 mortgage to buy the house.

transaction
[ tran-'sak-shuhn ]
noun
- a business deal
Customers worry about the security of online transactions.