_________ means the ability to borrow money with the promise to pay it back.

GLOSSARY. ability-to-pay principle– principle that states taxes ought to be paid by those who can best afford them;

ability-to-pay principle– principle that states taxes ought to be paid by those who can best afford them

account balance – the amount of money that you have in your bank account

accountability– the obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner; it also includes the responsibility for money or other entrusted property

acquisition– taking control of a firm by purchasing 51 percent (or more) of its voting shares

aggregate demand– the total quantity of goods and services consumers, business and govern­ment are willing and able to buy at different possible price levels

aggregate supply– the total amount of goods and services produced by the economy in a given period, usually one year

agriculture– the science, art, or practice of cultivating the soil, producing crops, and raising livestock and in varying degrees the preparation and marketing of the resulting products

allocation of resources – the action or process of allocating or distributing resources; an amount of resources assigned to a particular recipient

artisan– a skilled worker who makes things by hand; one that produces something (as cheese or wine) in limited quantities often using traditional methods

assessed value– value placed on real estate or personal property by government (or court appointed) assessors for determining ad valorem (according to the value) taxes, or to levy damages on the orders of a court

asset(s) – a thing or value that a person or a company owns, such as money or property or the right to receive payment of a debt

balance sheet– financial statement sum­marizing a firm's assets, liabilities and net worth

bank – a financial establishment that uses money deposited by customers for investment, pays it out when required, makes loans at interest, and exchanges currency

bank account – (written abbreviation a/c) an arrangement with a bank that allows you to keep your money there. You can deposit (= pay in) or withdraw (= take out) money when you need to

banking– the business conducted or services offered by a bank

banknote– a piece of paper money of a particular value that you use to buy things. The usual word is note.

bankruptcy – the state of being unable to pay your debts

barter– an exchange without money of goods or serv­ices

benefit(s) – a helpful and useful effect that smth has; money that is paid to people who are unemployed, ill, etc. by the government or through a system of insurance; the advantages that you get from your company in addition to the money you earn

board of directors – the group of people chosen by shareholders to control a company, decide its policies and appoint senior officers

borrow– (antonym: to lend) to receive and use something that belongs to someone else and that you must give back to them later; to borrow money, especially from a bank. Money that you borrow from a bank is calleda loan.

broker– someone who buys and sells things such as shares in companies or foreign money for other people

budget– a financial plan that summarizes income and expenditures over a period of time

bulk– unpackaged, homogenous, dry or liquid goods, without mark or count and usually free-flowing, bought and sold by weight or volume, such as grains, oils, and ores

bureaucracy– a complicated official system which is annoying or confusing because it has a lot of rules, processes etc.; the officials who are employed rather than elected to do the work of a government, business etc.

buying behavior– the behaviour of individuals and households who buy goods and services for personal consumption

buying decision– a consumer's decision to make a specific purchase

capacity– the highest sustainable output rate (maximum number of units per month, quarter, or year) that can be achieved with current resources, maintenance strategies, product specifications, etc.

capital accounting – that part of balance of payments which records net changes in a country's international financial assets and liabilities

capital– money or property, especially when it is used to start a business or to produce more wealth

cash – money in the form of coins or notes rather than cheques or credit cards, etc.;money in any form that is available for you to use when you need it

centrally planned economy-an economic system in which a substantial majority of economic activity is carried out through central directions to people and firms as to what they must buy and sell, and at what prices

CEO (chief executive officer) top executive responsible for a firm's overall operations and performance

charter – (in some US states) the name used for the Articles of Incorporation, one of the legal documents that is created when a company is formed

cheque (Am. check) – written order to pay money, i.e., one of a set of printed pieces of paper that you can sign and use instead of money to pay for things; a commonly used means of transferring money through the banking system

coin– a flat disc or piece of metal with special designs on it, used as money. The right to make and issue money is a state monopoly.

command economy– an economic system in which the activities of firms and the allocation of productive resources is determined by government direction rather than market forces

commodity– a product that can be bought and sold

commodity money – money with its own value as a good. At different times different commodities were used as money: iron and bronze, cattle and fish, furs and skins, cowries and precious metals, especially gold and silver. Gold coins are examples of commodity money because gold is worth something as a commodity, not just as a monetary unit.

competition– a situation in which people or organizations try to be more successful than other people or organizations; the people or groups that are competing against you, especially in business or in a sport; an organized event in which people or teams compete against each other

consumer – a person who buys goods or services for their own use

consumer behavior – the way in which consumers choose how to spend their oncomes

consumer goods– goods that people buy for their own use, rather than goods bought by businesses and organizations

consumption– the utilization of economic goods in the satisfaction of wants or in the process of production

convertible currency – a currency that can legally be exchanged for another or for gold. In times of crisis, governments sometimes restrict such exchange, giving rise to black market exchange rates.

chief executive officer– top executive responsible for a firm's overall operations and performance. He or she is the leader of the firm, serves as the main link between the board of directors (the board) and the firm's various parts or levels, and is held solely responsible for the firm's success or failure. One of the major duties of a CEO is to maintain and implement corporate policy, as established by the board. Also called President or managing director, he or she may also be the chairman (or chairperson) of the board

corporate tax – a tax that companies pay on their profits

corporation – a large company or group of companies; a business organisation that has been officially created (incorporated) and is owned by shareholders

costs – the amount of money that a business needs to spend regularly; the amount of money that is paid to produce smth

counterfeit – (adj.) made to look exactly like something else. Counterfeit bank notes, tickets, etc. are illegal copies made in order to trick people

credit card – a small plastic card issued by a bank or a credit company, which enables the lawful owner to make purchases (to obtain goods and services) on credit. A similar card that you use to pay for things directly from your bank account is called a debit card

currency –money that is used in a particular country;the physical embodiment of money, in the forms of paper bills or notes, and metal coins. Money from a country with a strong economy that can be used for buying things in other countries is called hard currency.

customer– someone who buys goods or services from a shop or business

debt– a sum of money that a person or organization owes

decision-making – the process of reaching decisions, especially in a group of people or in an organisation

default– failure to meet an obligation when it comes due

demand – a consumer's willingness and ability to buy a product or service; the quantity of a commodity or service wanted at a specified price and time

demand curve – the graphic representa­tion of demand

denomination – the face value of a banknote or coin

depreciation– a reduction in the value or price of something;the decrease in the economic potential of an asset over its productive or useful life

distribution– the act of sharing things among a large group of people in a planned way; when goods are supplied to shops and companies for them to sell

dividend – an amount of the profits that a company pays to shareholders

economic growth– increases in an econ­omy's total output over a period of time

economic incentives – a reason for doing smth. In market economies, profit, interest, wages, and rent provide economic incentives

economic resources – the assets (things of value) which an economy (or business) may have available to supply and produce goods and services to meet the ever-changing needs and wants of individuals (in the case of a business) and society (in the case of society as a whole)

economics– the social science concerned with the production, distribution, exchange and consumption of goods and services and the analysis of the commercial activities of a society

economy– the system by which a country's money, goods and services are produced and used, or a country considered in this way; something that you do in order to spend less money; the careful use of money, time, goods etc. so that nothing is wasted

effective demand– the level of demand that represents a real intention to purchase by people with the means to pay

effectiveness– the degree to which objectives are achieved and the extent to which targeted problems are solved. In contrast to efficiency, effectiveness is determined without reference to costs and, whereas efficiency means "doing the thing right," effectiveness means "doing the right thing"

efficiency – getting any given results with the smallest possible inputs, or getting the maximum possible output from given resources

elasticity– the responsiveness of a dependent economic variable to changes in influencing factors

elasticity of demand –a measure of the sensitivity of demand for goods or services to changes in price or other marketing variables, such as advertising

electronic money – non-physical currency that is traded and used over the Internet.

electronic transfer – the process of moving money from one account or bank to another that involves the use of electronic systems

employee - a person who is paid to work for smb

employer – a person, company, or organization that pays people to work for them

employment– the state of being employed; the number of people who have jobs; the use of a particular object, method, skill etc. to achieve something

enterprise– a company, organization, or business; the activity of starting and running businesses; a large and complicated project, especially one that is done with a group of other people; the ability to think of new activities or ideas and make them work

entity – a business that exists as a separate unit that has its own legal identity

entrepreneur - a person who makes money by starting or running businesses, especially when this involves taking financial risks

entrepreneurship– the capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit

environmental economics– a branch of economics study that analyzes financial impacts from environmental policies. Environmental Economics includes impacts such as regulatory compliance costs

equipment– the tools, machines, clothes etc. that you need to do a particular job or activity;the process of equipping someone or something

equity– share in a company from which the owner of the shares receives some of the company's profits rather than a fixed regular payment; a situation in which all people are treated equally and no one has an unfair advantage

exchange rate– the rate, or price, at which one country's currency is exchanged for the currency of another country.

expenditures– the total amount of money that a government, organization, or person spends during a particular period of time

exploitation– the development and use of minerals, forests, oil etc. for business or industry; (sometimes) a wasteful or destructive utilization of a natural resource; an unjust or improper use of another person for one's own profit or advantage

externalities– a loss or gain in the welfare of one party resulting from an activity of another party, without there being any compensation for the losing party

factors of production– resources required for generation of goods or services, generally classified into four major groups: (1) land (including all natural resources), (2) labour (including all human resources), (3) capital (including all man-made resources), and (4) enterprise (which brings all the previous resources together for production). These factors are classified also as management, machines, materials, and money (this, the 4 Ms), or other such nomenclature. More recently, knowledge has come to be recognized as distinct from labour, and as a factor of production in its own right

fiat money – money whose usefulness results, not from any intrinsic value or guarantee that it can be converted into gold or another currency, but only from a government's order (fiat) that it must be accepted as a means of payment.

finance– the management of money by governments, large organizations etc.; (plural) money or other liquid resources of a government, business, group, or individual; the system that includes the circulation of money, the granting of credit, the making of investments, and the provision of banking facilities

fiscal policy – the way in which a government charges taxes or spends money in order to manage the economy

flat tax – fixed tax, a system in which tax is paid at the same rate, however much you earn or spend

free enterprise economy – an economic system in which private business operates in competitive markets to satisfy consumer demands and to maintain equilibrium in the national economy and in which government action in this respect is restricted to protecting the rights of individuals rather than acting as a directing economic force

free market– a market that operates under conditions of perfect competition

functions of money – the roles played by money in an economy. These are a medium of exchange, a measure of value, and a store of value

glut– market situation where the supply of a good or service far exceeds its demand, usually resulting in a substantial fall in its price

gold standard – a monetary system in which both the value of a unit of the currency and the quantity of it in circulation are specified in terms of gold. If two currencies are both on the gold standard, then the exchange rate between them is approximately determined by their two prices in terms of gold

goods– commodities, or physical, tangible items that satisfy some human wants or needs, or something that people find useful or desirable and make an effort to acquire it

gross domestic product– the value of a country's overall output of goods and services (typically during one fiscal year) at market prices, excluding net income from abroad

health insurance – insurance against medical expenses and loss of earnings due to accident or illness

household – all the people living together in a single house or flat/apartment, considered as a unit

income– the money that you earn from your work or that you receive from investments, the government etc.

income tax – the amount of money that you pay to the government according to how much you earn or receive from some other sources

incorporate – (v) – to form a legal company or organisation, for example by obtaining a certificate from the authorities

inflation– a continuing increase in prices and fall in the purchasing value of money, or the rate at which prices increase

input– anything that goes into the produc­tion process

insurance– risk-transfer mechanism that ensures full or partial financial compensation for the loss or damage caused by event(s) beyond the control of the insured party

intermediary – a person or an organisation that helps other people or organisations who are unable or unwilling to deal with each other directly to reach an agreement

investment – the action or process of using money in order to make a profit or earn interest, for example by buying shares, bonds, property, etc.; the act or process of buying materials, machines, etc. to make goods to sell

irredeemable – impossible to change or make better; money or something that cannot be exchanged

know-how– commercial and saleable knowledge of how to do a particular thing; experience

labour– work, especially physical work;all the people who work for a company or in a country

labour productivity– rate of output per worker (or a group of workers) per unit of time as compared with an established standard or expected rate of output

labour supply– availability of suitable human resources in a particular labor market

laissez-fair– literally, leave to do; a policy of non-intervention by government in the economy, leaving all decisions to the market

land– includes all physical elements in the wealth of a nation bestowed by nature such as climate, environment, fields, forests, minerals, mountains, lakes, streams, seas, and animals

Law of Supply and Demand –the theory that prices are determined by the interaction of supply and demand: an increase in supply will lower prices if not accompanied by increased demand, and an increase in demand will raise prices unless accompanied by increased supply

lease– a legal agreement which allows you to use a building, car etc. for a period of time, in return for rent

legal tender – money that can legally be used to pay for things in a particular country

liability/liabilities – the amount of money that a company or a person owes; the state of being legally responsible for smth

liquidity – the capacity to turn assets into cash, or the amount of assets in a portfolio that have that capacity. Cash itself (i.e., money) is the most liquid asset.

macroeconomicsthe study of large economic systems such as those of a whole country or area of the world

management– the conducting or supervising of something (as a business); especially: the executive function of planning, organizing, coordinating, directing, controlling, and supervising any industrial or business project or activity with responsibility for results; the directors and managers who have the power and responsibility to make decisions and oversee an enterprise

manufacturing– the process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or specifications.

margin for profit– ratio of profit after taxes to cost-of-sales, often expressed as a percentage. It is one of the measures of the profitability of a firm, and an indicator of its cost structure.

marginal costs – the increase or decrease in the total cost of a production run for making one additional unit of an item. It is computed in situations where the breakeven point has been reached: the fixed costs have already been absorbed by the already produced items and only the direct (variable) costs have to be accounted for

marginal product– output that results from one additional unit of a factor of production (such as a labour hour or machine hour), all other factors remaining constant

marginal revenue product– the worth of the extra output that can be generated by adding an extra input unit

marginal tax rate – a rate of tax that is paid on your next unit of income; the highest rate of tax that smb pays

Marginalism – the concept that economic behaviour can be determined by analysing the fluctuations in the demand for basic goods and services

market – the area of economic activity in which buyers and sellers come together and the forces of supply and demand affect prices; the available supply of or potential demand for specified goods or services

market economy– an economic system in which the main decisions regarding production, distribution, and exchange are made by the market, i.e. by the forces of supply and demand

market equilibrium– the situation when supply and demand in a market are equal at the prevailing price

means of liquidity – money or goods that can easily be sold to pay debts or anything else that can easily be exchanged for money

means of production– the facilities and resources for producing goods

measure of value – one of the most important properties of money: its ability to be a benchmark for measuring value of goods and services.

medium of exchange - anything that is used, like money, to make payments for goods, services, and assets. For payments between countries with different currencies, if the national currencies are not trusted, another country's currency or gold may be used.

microeconomics– the branch of economics that deals with the behaviour of individual market participants, mainly individual firms or consumers

mixed economy– an economy in which both publicly and privately owned enterprises operate simultaneously

money –anything (any commodity or token) that is generally accepted in payment for goods and services. It serves as a medium of exchange, a measure of value and a store of value

money supply – the quantity of currency in circulation plus the amount of demand deposits. The money supply, together with the amount of real economic activity in a country, is an important determinant of its price level and its exchange rate

natural resources– naturally occurring materials such as coal, fertile land, etc., that can be used by man

necessity– something that you need to have in order to live

needs and wants – unsatisfied human desires that motivate their actions and enhance their fulfilment when met

opportunity costa benefit, profit, or value of something that must be given up to acquire or achieve something else

output– the amount of goods or work produced by a person, machine, factory etc.

ownership– the ultimate and exclusive right conferred by a lawful claim or title, and subject to certain restrictions to enjoy, occupy, possess, rent, sell, use, give away, or even destroy an item of property

partnership – a business that is owned by a group of professional people that work together and share the profits

perishable goods = perishables – things, especially foodstuffs, likely to decay after a short time if it is not kept in the proper conditions

population– the number of people living in a particular area, country etc.; all of the people who live in a particular area;

price system – the use of prices to allocate scarce resources

private enterprise – the economic system in which industry or business is owned by individuals and independent companies and is not controlled by the government; a business that is owned by individuals or other companies, not by the government

private sector – the part of a country’s economy that is not under the direct control of the government, but is owned by individuals and independent companies

privatization– sale or return of publicly owned enterprises to private ownership and control

product– the good or service one receives in an exchange

production– the processes and methods used to transform tangible inputs (raw materials, semi-finished goods, subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services

productive resources– materials, labour or money which is used to create goods and services

productivity– the output of goods and services as measured per unit of time, or per person, per company, per industry, or for the whole economy

profit – the surplus remaining after total costs are deducted from total revenue, and the basis on which tax is computed and dividend is paid. It is the best known measure of success in an enterprise

profitability– when a business or an activity makes a profit, or the amount of profit it makes

property– the thing or things that someone owns; a building, a piece of land, or both together

proprietor– the owner of a business

purchasing power - the amount of of real goods and services that money will buy, usually measured (inversely) by the CPI (consumer price index); value of a unit of money considered in terms of how much you can buy with it

ratio– a relationship between two amounts, represented by a pair of numbers showing how much bigger one amount is than the other

rationing – government allocation of scarce resources and consumer goods, usually adopted during wars, famines, or other national emergencies

raw material– basic substance in its natural, modified, or semi-processed state, used as an input to a production process for subsequent modification or transformation into a finished good

representative money – paper currency backed by a government or bank’s promise to redeem it for a given weight of precious metal (gold or silver). Money of this type was based on the gold standard, and, in theory, could be exchanged for a fixed amount of gold. For example, the US dollar was convertible to gold until 1934.

reserve currency –a currencythat is consideredstrong and reliable and is used a lot in international trade. National banks keep large stores of reserve currencies

resource– an economic or productive factor required to accomplish an activity, or as means to undertake an enterprise and achieve desired outcome

retailing– the business of selling goods to ultimate consumers for personal or household consumption

returns on capital– ratio measuring the profitability of a firm expressed as a percentage of funds acquired from investors and lenders

revenue– the income generated from sale of goods or services, or any other use of capital or assets, associated with the main operations of an organization before any costs or expenses are deducted; the income accruing from taxation to a government during a specified period of time, usually a year

salary– a fixed regular payment made usually on a monthly basis by an employer to an employee, especially a professional or white-collar worker

scarcity– a limit to the supply of produc­tive resources or consumer goods in relation to producers' or consumers' demand for them

securities– financing or investment instruments (some negotiable, others not) bought and sold in financial markets, such as bonds, debentures, notes, options, shares (stocks), and warrants

services– intangible products such as accounting, banking, cleaning, consultancy, education, insurance, expertise, medical treatment, or transportation

shareholder – a person or group that owns shares in a company or business

shortage – a situation when there is not enough of the people or things that are needed

small-scale decision-making unit – the informal group of individuals within an organization that decides which items the organization should buy

sole proprietorship – a business that is owned and run by one person

stock – the value of all the shares a company can make available; a number of shares in a company that one investor holds; a supply of a particular type of thing that a shop has available to sell; the total amount of something that is available to be used in a particular area

stock market– a place where shares are bought and sold, i.e. a stock exchange

store of value – one of three basic functions of money: the ability to retain value over time, and therefore be useful for those who wish to sell something now and not spend he proceeds until later

substitute – a good or service which can be used instead of another

supply– the amount of a good or service offered for sale

supply curve– a curve showing the amount that firms in an industry are willing to supply at each possible price

surplus – an amount of something left over when requirements have been met; an excess of income or assets over expenditure or liabilities in a given period

sustainability– continued development or growth, without significant deterioration of the environment and depletion of natural resources on which human well-being depends

tax– an amount of money that you must pay to the government according to your income, property, goods etc. and that is used to pay for public services;compulsory monetary contribution to the state's revenue, assessed and imposed by a government on the activities, enjoyment, expenditure, income, occupation, privilege, property, etc., of individuals and organizations

tax loophole – a provision in the laws governing taxation that allows people to reduce their taxes

tax rate – the percentage of an amount of money or of the value of smth that has to be paid as tax

taxation– a means by which governments finance their expenditure by imposing charges on citizens and corporate entities

trade– the activity of buying, selling, or exchanging goods or services between people, firms, or countries

trade-off– giving up one thing in order to obtain something else

traditional economy –an economic system that allocates scarce resources according to customs; change and growth are very slow; people do what their parents did before them; and most goods are produced and consumed locally

transaction– a business deal; the action or process of buying or selling something

traveller’s cheque (AmE. traveler’s check) – a printed piece of paper that you sign and can exchange it for money of a foreign country when you are travelling. Traveller’s cheques can be replaced if they get lost or stolen.

undercapitalization– a situation where a business does not have sufficient stockholders' funds for its size of operations. An undercapitalized firm does not have enough cash to carry out its functions and usually does not qualify for bank or other loans due to its unacceptably high loan-to-equity ratio. Under capitalization is one of the major causes of business start-ups failures

unemployed– person of employment age (generally 16 to 55 years) who does not have a paying job but is available for work and is actively seeking a job

unemployment– total number of able men and women of working age seeking paid work

unit of account - a basic function of money, providing a unit of measurement for defining, recording, and comparing value.

urbanization– an increase in a population in cities and towns versus rural areas

value – the amount that something is worth, measured especially in money

venture capital– capital invested in a project in which there is a substantial element of risk

venture capitalistsprivate investors who provide venture capital to promising business ventures

wage(often plural) a fixed regular payment for work, typically paid on a daily, hourly, weekly or piece work basis

warrant– an official document giving someone the right to do something, for example buy shares in a company; a legal document that is signed by a judge, allowing the police to take a particular action

wealth– a large amount of money, property etc. that a person or country owns

wear-and-tear– gradual physical deterioration of an asset from age, use, and/or weathering

welfare – practical or financial help that is provided, often by the government, for people that need it; the health, happiness, and fortunes of a person or group

workforce– total number of a country's population employed in the armed forces and civilian jobs, plus those unemployed people who are actually seeking paying work; total number of employees (usually excluding the management) on an employer's payroll

yield– the amount of profits, crops etc. that something produces;the annual income earned from an investment, expressed usually as a percentage of the money invested

_________ means the ability to borrow money with the promise to pay it back.

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Would it be better to borrow money from an elderly relative than from a bank?

Would it be better to borrow money from an elderly relative than from a bank?

As most people said, family loans are dangerous to the relationship. The lender should not lend more than they are willing to forgive, and the borrower should not borrow more than they are very certain they can repay.

I would suggest a few things to consider:

  • The amount should be small enough that it will not impact their ability to pay bills within the life of the loan. (And be pessimistic about how long it will take to pay back for the purpose of this test.)
  • The amount should be small enough that you will be able to pay it off quickly; ie. this should be a very short-term loan.
  • You should pay them at least as much as they would otherwise make on the money.
  • Defaulting on the loan is not an option. Even if you go through bankruptcy and are legally allowed. this is family, and you gave your word.

Anecdote: I borrowed some money from my grandfather when I graduated from college to help with cash flow for an apartment, vehicle, etc. It was about 5% of my starting annual salary and I paid it back quickly and with interest.

/ teacher's 10 / SPOTLIGHT10_Ts_200-205

_________ means the ability to borrow money with the promise to pay it back.

Spotlight 10 Merchant STORY key 12/3/08 12:15 PM Page 200

Merchant of Venice Key

Before you start

2 He was a tradesman.

3 The King Edward VI Grammar School

4 Latin grammar and literature

6 Anne Hathaway

9 Macbeth , Romeo and Juliet , A Midsummer Night’s Dream , Hamlet , etc

10 On 23 April 1616

1 Shylock (people treat him badly)

2 Gratiano (admires Bassanio and likes to do everything Bassanio does)

3 Portia (a beautiful woman)

4 a) Bassanio (a loyal friend)

b) Gratiano (completely loyal to Bassanio)

5 Jessica (unhappy because she hates living with her father)

6 Bassanio (likes to spend a lot of money)

7 Shylock ( angry because people treat him badly)

8 a) Nerissa (listens to Portia’s problems)

b) Salarino and Salanio (try to cheer Antonio up) 9 The Duke of Venice (very wise . must decide

10 Nerissa (always gives Portia sensible advice)

1 (Suggested Answers)

Shylock, Antonio, Bassanio and Portia / In a street in Venice / In the first picture, Shylock and Antonio seem to be having an unpleasant conversation; in the second picture, Bassanio is telling Antonio of his love for Portia.

angry: Shylock, picture 1 fed up: Antonio, picture 1

in love: Bassanio and Portia, picture 2 worried: Antonio, picture 2

3 (Suggested Answers)

ñ because he wants to marry Portia and he needs money for the wedding.

ñ I don’t think you should make a habit of it, but I can’t see any harm if a genuine need arises. / Not really, if you are not sure that you can pay it back. Also you sometimes have to pay interest, which is expensive.

ñ I usually ask my parents / a friend / my relatives to lend me some.

ñ Bassanio is going to borrow money from Shylock.

1 (Suggested Answers)

At Shylock’s house. / Yes, because we can see Antonio signing an agreement in the second picture. / No, because he looks very worried about Antonio’s ships and whether he will be able to pay him back in the first picture.

2 In the first picture Shylock looks worried and unsure; in the second picture he looks pleased and almost smiling. This is because he thinks at first that Antonio’s ships may be lost and he will not get his money back. Then he realises that he has a chance of taking revenge on Antonio by taking a pound of his flesh if he fails to repay him.

_________ means the ability to borrow money with the promise to pay it back.

Spotlight 10 Merchant STORY key 12/3/08 12:15 PM Page 201

3 1 He thinks he will not get paid back because Antonio may lose all his ships.

2 He doesn’t like him because Antonio thought it was wrong to lend people money and charge them interest.

3 Shylock will lend Antonio three thousand ducats, to be paid back in a period of months. If Antonio does not do this, he must let Shylock take a pound of his flesh.

4 Bassanio thinks that Antonio is risking his personal safety by making this agreement with Shylock.

5 Antonio believes that his ships will return safely and he will then have plenty of money.

4 (Suggested Answers)

ñ He thinks Antonio’s ships won’t return and he will be able to carry out his plan and take revenge.

ñ Yes, he did, because although he was taking a personal risk, he was helping his friend, Bassanio, which shows how loyal he was. / No, he didn’t, because he put himself at great risk and maybe even Bassanio could have got into trouble.

ñ Bassanio is going to get the money he needs and he will go to Belmont to propose to Portia.

1 (Suggested Answers)

Launcelot. / A piece of paper; it could be a note.

2 She seems to be escaping from a window and maybe she doesn’t want anyone to recognise her, so she has dressed up as a boy.

3 1 Jessica writes a letter to Lorenzo.

2 Jessica tells Launcelot her plan.

3 Launcelot finds Lorenzo and his friends.

4 Launcelot gives the letter to Lorenzo.

5 Lorenzo tells his friends about Jessica’s plan.

6 Lorenzo and his friends go to Shylock’s house.

Merchant of Venice Key

7 Jessica hands down a box of gold and jewels from the window.

8 Jessica climbs down a tree.

4 (Suggested Answers)

ñ happy and excited, because she has made a plan to escape and marry the man she loves.

ñ maybe lonely, as she is living alone in the house with her father whom she doesn’t like, and she says that nothing much happens at home.

1 (Suggested Answers)

Maybe it has something to do with Portia, as we can see her in the second picture, where she seems to be waiting a little impatiently for some kind of answer or result.

2 1 He’s opening the gold box.

2 He seems disappointed with what he has found inside.

3 He’s opening the silver box.

4 He’s probably thinking that he has been made a fool of.

a piece of paper

4 (Suggested Answers)

ñ because Portia was beautiful and rich and her father wanted to be sure that she married the best husband for her.

ñ a silly one, because choosing the right box is just a matter of chance and guesswork. / a clever one, because the inscriptions written outside test the character of the man.

ñ the gold box, because it says many people would want what is inside it. / the silver box, because it says I will get what I deserve, so that would be fair.

ñ Someone is going to open the lead box and will pass the test, since the other two have failed.

_________ means the ability to borrow money with the promise to pay it back.

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Merchant of Venice Key

1 (Suggested Answers)

Bassanio is opening the lead box.

2 Bassanio has passed the test of the perfect husband and is proposing to Portia. Something similar seems to be happening with Nerissa and Gratiano. Both couples are exchanging rings.

4 (Suggested Answers)

1 because she was afraid he would fail it and then they couldn’t get married.

2 because he would give and risk everything for Portia, as the inscription asked.

3 Yes, I do, because Portia doesn’t want him to go and Bassanio is sure he is the right man for her. / No, I don’t, because they don’t know each other very well and Bassanio may only want her because she is rich and beautiful.

4 Maybe the two couples will get married, or maybe we will find out more about Jessica and Lorenzo.

1 (Suggested Answers)

Shylock looks angry in both pictures and is probably discussing Jessica’s escape with Salarino and Salanio. He might be angry with Antonio because he thinks Antonio had a hand in it. Maybe Antonio’s trouble also includes the fact that he has bad news about his ships, which means Shylock will want his pound of flesh.

2 The box is probably open because Jessica has disappeared with Shylock’s gold and jewels, as we learned she had planned to do in Episode 3. / Shylock must be furious and is probably threatening to punish Jessica severely when he finds her. I suppose he is also saying how sad he is about the missing wealth.

4 (Suggested Answers)

ñ Yes, because she is his own flesh and blood. / No, because he treats her badly and is very strict.

ñ because a) Antonio makes fun of him but

borrows his money,

b) he has been involved in Jessica’s escape,

c) he accuses Shylock of charging interest on his loans.

ñ Yes, because one bad turn deserves another and the first person learns a valuable lesson. / No, because two wrongs don’t make a right and the person taking revenge only becomes more bitter. It is better to forgive your enemies.

ñ We are going to learn more about Antonio and his problem with the ships he has lost.

1 (Suggested Answers)

He has news from Antonio that his ships are lost and he realises that Antonio will not be able to pay Shylock back the money he borrowed, meaning that Shylock can now take his pound of flesh.

2 She’s speaking to her maid Nerissa and holding a paper, maybe a letter. She must have some kind of plan to help Antonio out of his difficult situation.

3 1 His ships are lost at sea and he cannot afford to pay Shylock back his money.

2 She tells him to go to Antonio at once.

3 She writes a letter to her cousin, Doctor Bellario, a doctor of law.

4 One of Portia’s servants.

5 Books, papers and clothes.

6 They are going to go to Venice and disguise themselves as young lawyers to help Antonio.

_________ means the ability to borrow money with the promise to pay it back.

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4 (Suggested Answers)

1 Bassanio feels very worried. / He is afraid that Shylock will take his pound of flesh from Antonio.

2 Bellario is a doctor of law and can give her advice about how she can help Antonio in court.

3 Yes, I think her plan will work, because her cousin Bellario will give her good advice about how to win in court. / No, I don’t think her plan will work, because people will recognise Portia and Nerissa in their disguise.

1 (Suggested Answers)

Shylock and Antonio are in court. The judge is hearing the case for Shylock’s pound of flesh. Portia is defending Antonio.

2 They are Portia and Nerissa in their lawyers’ disguise.

3 In the first picture, Shylock is very angry with Antonio and sure of his case. He is going to demand his pound of flesh. In the second picture, it seems that Portia is winning the case for Antonio. Shylock appears to be taken aback by something unpleasant and unexpected and the case is not going as he had hoped.

The Duke of Venice

5 (Suggested Answers)

ñ because he wants his pound of flesh in order to get revenge.

ñ She finds fault with Shylock’s plan. According to the law, he must take only the flesh without the blood, but that is not possible. Also, this act would make Shylock a murderer.

ñ extremely relieved and grateful to Portia.

ñ very angry that his plan hasn’t worked.

ñ Antonio and Bassanio are going to thank the two young lawyers for helping them, but I don’t think they will find out yet who they really are.

Merchant of Venice Key

1 (Suggested Answers)

1 Bassanio is happy because Portia has saved his friend, Antonio.

2 Gratiano is giving her the ring in payment for her services in court and as a token of thanks.

3 Shylock has gone home in disgust.

3 (Suggested Answers)

1 They want to play a trick on them; they want to have some fun with them.

2 I think they were right, because the young lawyers had saved their friend’s life and giving the rings away showed how grateful Bassanio and Gratiano were. / I think they were wrong, because although the young lawyers did a very great thing, the men should not have broken their promises to their wives.

3 Yes, I do. My parents taught me that keeping a promise is very important, and you can’t trust someone who doesn’t keep their promise. / No, not every single time. We’re all human, and sometimes we forget or circumstances change and it isn’t possible to keep the promise we have made.

4 Obviously, at the end of the play Bassanio and Gratiano have to find out who the young lawyers really are. I don’t think the ladies will be angry with them about the rings, because Portia said it was all about having some fun with them.

1 (Suggested Answers)

Everybody seems to be feeling very happy because of the successful trial, and we can see them celebrating by raising their glasses.

_________ means the ability to borrow money with the promise to pay it back.

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Merchant of Venice Key

3 (Suggested Answers)

ñ Yes, because they confused their husbands but they didn’t really do any harm. / No, because the husbands felt foolish and embarrassed, and the trick with the rings put them in a very difficult position.

ñ The story ends happily for almost everyone, but Shylock is not happy that his plan for revenge has failed.

ñ It teaches us a number of lessons.

Appearance and reality can be two different things: The three boxes show that things are not always as they appear on the outside. Money is less important than friendship and love: Shylock, whose god is money, is the most unhappy character in the play.

Friendship and love are worth sacrificing oneself for:

Bassanio shows that he is willing to give and risk all for Portia when he opens the lead box. The qualities of mercy and justice receive their just rewards:

Shylock is not prepared to show any mercy to Antonio, but his plan for revenge misfires.

Final Comprehension Quiz

ñ My favourite character is Antonio, because he is willing to take a big risk to help his friend Bassanio.

ñ I dislike Shylock, since all he cares about is money. He is also a cruel man who is not prepared to show any mercy.

ñ Yes, I think it would be an easy way to make money. / No, because I feel that it is unfair to take advantage of people who are desperate for money by charging them interest.

ñ Yes, because lawyers can really help people get out of difficult situations. / No, because lawyers are only interested in their clients and not necessarily in seeing justice done.

ñ Clear, methodical thinking; a quick mind; good at public speaking and persuading others.

ñ Yes, because it’s difficult to convince people. Defending someone who is in the wrong may make you feel dishonest. / No, since lawyers are well prepared by their study and training. They don’t have to make final decisions; the judge and jury do this.

ñ When they return home to Belmont after the trial, Bassanio and Gratiano confess to giving the rings to the two young men in court. Portia and Nerissa are very angry with their husbands for breaking their promise to wear the rings always. They decide not to tell their husbands the true identity of the young lawyers. Instead, they pretend to believe that Bassanio and Gratiano have given the rings to other women. Therefore, feeling their husbands are not to be trusted to keep their promise, they end up leaving them.

ñ The Pound of Flesh

Shylock was a rich and highly successful moneylender. Nobody liked him very much, as he charged much higher rates of interest than other moneylenders, but he was successful because you could always borrow as much as you wanted immediately.

He lived all alone in the heart of London’s banking area. Every morning, dressed in expensive suits and silk ties, he walked to his office round the corner from his flat. Only very desperate people came to Fairway Financial Services, and the more desperate they were, the more interest Shylock charged them.

One day a thin man dressed in shabby jeans came into his office.

_________ means the ability to borrow money with the promise to pay it back.

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“My name is Tony Burns,” he said. “I need to borrow thirty thousand pounds for my daughter to have an operation. I have to send her for surgery in New York next week. If I delay, she might die. The bank can’t loan me the money that quickly. Can you help?”

“Thirty thousand pounds is a lot of money, Mr Burns,” replied Shylock. “What can you give me if you fail to pay back the loan?”

“You can take my flat,” said Tony. “It’s worth five times the amount.”

“All right,” agreed Shylock, “but I’ll have to charge you an extra ten thousand pounds interest. You can have a year to repay the money.”

Tony’s face fell. He was only a London taxi driver, and he knew he could never repay forty thousand pounds so quickly. So they agreed on another plan. Tony would work for Shylock parttime in the evenings as a debt collector. This would be unpaid work over a period of five years, so that Tony could pay back his loan.

It seemed very hard and unfair to Tony, but there was nothing else he could do, as he loved his little daughter dearly.

Merchant of Venice Key

The child was operated on in New York and within a month she was home again. The doctors were very pleased with her progress. Tony was overjoyed to learn that her chances of a full recovery were almost certain.

In the meantime, he had started working for Shylock. It was very tiring for him spending all day driving his passengers around London, and then having to deal with Shylock’s difficult customers, who made all kinds of excuses why they couldn’t repay their loans.

The other moneylenders in the area soon realised what was happening and took legal action. Shylock was breaking the rules of the Moneylenders’ Association. The rules said interest was to be no more than fifteen per cent, and Shylock was charging more than thirty per cent. The court ordered him to cancel Tony’s debt and he himself was no longer allowed to practise as a moneylender. Instead, Shylock became very poor and had to earn his living as an insurance salesman.

How to Know When It’s the Right Time to Borrow Money for Your Small Business

_________ means the ability to borrow money with the promise to pay it back.Obtaining financing from a bank or lender for your small business can be quite the task. That’s why it’s important to know when it’s the right time to do it. You may not get the results you want if you do it at the wrong time. Depending on your business goals and objectives, you may want to borrow money right away or bootstrap for as long as possible and borrow money later on down the line. Below are 4 questions you should ask yourself (and answer) to determine if you’re ready to borrow money for your small business (especially if it is a startup).

Most (if not all startups) won’t have any significant track record of success. So if you are just starting out, keep in mind that banks and lenders will require you to provide a personal guarantee for any business funds they lend to you. Since the business has not started generating any revenue (or significant revenue), banks and lenders will hold you responsible for paying back anything you borrow for the business. In this case, defaulting on a small business loan could seriously damage your personal credit.

If you have challenged credit (or bad credit), there are options for you to obtain financing for your small business (i.e. things like microloans, 401k funding, and Heloc’s), however this type of financing often requires that you pledge valuable collateral to a lender to get approved. If you don’t own assets that have significant value, you may not qualify.

Depending on what type of capital you obtain (i.e. loans or lines of credit), you may have a monthly payment. With a small business loan, your monthly payments will usually begin about 30 days after the loan is disbursed to you. With a business line of credit you won’t have any monthly payments until you begin using the credit line. However, it’s still important to be confident that you can make the monthly payments (on time) whether it is a loan or line of credit. Late payments will damage your personal and/or business credit and make it difficult for you to acquire debt financing in the future. Therefore you must be confident that you are ready to take on debt that you can pay back on time, all of the time.

What revenue generating activities will I implement to start generating revenue quickly for my small business?

If you are going to borrow money for your small business (especially as a startup), you should have a solid idea of how you will use the funds to begin generating revenue quickly for the business so you will have the ability to service the debt. Revenue generating activities include marketing and advertising, hiring contractors or employees, and pretty much anything that contributes to you closing the sale or getting paid faster. Implementing the right revenue generating activities at the right time is critical to you being able to pay back whatever you borrow.

The bottom line is that borrowing money for your small business can be very beneficial to you depending on when you do it. For example, if you’re in a slow growth business, you may want to bootstrap for as long as possible until cash flow becomes more frequent and consistent. If you’re in a high growth business, you may want to obtain your funding early on because you’ll have the cash flow to pay back whatever you borrow. One of the most important things about borrowing money for your small business is having the cash flow to service the debt on time. If you feel that you will have trouble servicing the debt, borrowing money may not be the right thing to do at the moment.