Skills Test Unit 3 Test A

Name: ___________________________________________

Impersonal passive
1 Rewrite the sentences in two different ways using the impersonal passive.
1 There are rumours that the government is about to raise the rate of income tax.
It ________________________________________________________________________.
The government ____________________________________________________________.
2 We estimate that a quarter of the students in this university are living on the breadline.
It ________________________________________________________________________.
A ________________________________________________________________________.
3 Trials have proved that the new driverless car is completely safe.
It ________________________________________________________________________.
The ______________________________________________________________________.
4 Investors claim that market conditions have improved recently.
It ________________________________________________________________________.
Market ____________________________________________________________________.
5 They anticipated that a number of stores would be under threat of closure.
It ________________________________________________________________________.
A ________________________________________________________________________.

Mark: ___ / 5

1
Listening
2  Listen to a radio news programme about the fortunes of two lottery winners, John
McGuinness and Peter Lavery. Circle the correct answers (a–d).
1 Who didn’t have a very high-paid job before their lottery win?
a John b Peter c Both John and Peter d Neither John nor Peter
2 Who split up with their wife or girlfriend after winning the lottery?
a John b Peter c Both John and Peter d Neither John nor Peter
3 Who responded to winning by going on a spending spree?
a John b Peter c Both John and Peter d Neither John nor Peter
4 Who got involved in investing in a well-established local business?
a John b Peter c Both John and Peter d Neither John nor Peter
5 Who is now both penniless and homeless?
a John b Peter c Both John and Peter d Neither John nor Peter

Mark: ___ / 10

2
Reading
The rogue trader
On 23 February 1995, an inconspicuous twenty-seven-year-old derivatives broker called Nick Leeson
went from obscurity to infamy virtually overnight. Having knowingly made a series of increasingly
risky and unauthorized speculative trades on the stock market in Singapore, fully aware that he had
squandered millions of dollars of his bank’s money and run up incalculable losses, Nick left a note on
his desk saying ‘I’m sorry’ and went on the run. He was eventually arrested in Germany after a
worldwide manhunt, and extradited back to Singapore, where he was sentenced to six and a half
years in prison. His face was on the front pages of the world’s press, and his name became
synonymous with greed and the worst excesses of financial institutions.
The bank Leeson worked for, Barings of London, was Britain’s oldest merchant bank and one of the
most venerable financial institutions at the time. Founded in 1762, it had financed the Napoleonic
wars, the Louisiana purchase and the construction of the Erie Canal, and it was believed to be home
to many of Queen Elizabeth II’s investments. On 26 February 1995, after a mad scramble to find
money to pay all its debts, the bank was forced to close down within days of Leeson’s exposure.
What grabbed the world’s attention was the fact that this catastrophe was caused by the actions of a
single trader based at a small office in Singapore. Seduced by the sensational profits reported by their
whizz-kid broker, it would seem that Leeson’s bosses hadn’t noticed that he was concealing
enormous losses in a secret bank account, and had inexplicably allowed him to play fast and loose
with their money. The story was not just about the recklessness of one individual, but about the
collective failure of a financial institution that was so concerned with making a profit that it failed to
regulate its employees. At a time when the public viewed banking as a secure and competent
industry, the shock was overwhelming, and all trust was lost overnight.
Today, the man who once epitomized the greed and dishonesty of the banking sector in the eyes of
the general public has moved on. Leeson lives in Ireland with his wife, his teenage son, and two older
stepchildren, and his life is very different. Gone are the days when he would splash out on luxury
items. That’s not to say that he is in any way down on his luck, or strapped for cash, though.
Ironically, he makes a good living from his notorious past, sharing his experiences in ways that help
others. Not only does he provide debt counselling for those in financial trouble, but he also appears
regularly as a guest speaker at corporate events: a living, breathing example of how it can all go
wrong in the finance industry.
Looking back, Leeson admits to a mixed bag of emotions about his role in the downfall of Barings,
ranging from deep regret at times to acceptance at others, while generally not feeling ashamed or
contrite about his actions. When questioned, he points out that he has served his time (four and a half
years in prison, in fact, after a cancer scare reduced his sentence), and that he has had to face the
personal cost of his actions, not least the breakdown of his first marriage. He also claims his losses
were mere drops in the ocean compared to the billions that banks continue to lose as a result of
fraudulent or reckless actions, or, indeed, that his actions should be seen in the light of the billions
banks are fined on a regular basis for malpractice. It is a compelling argument. Since Leeson’s time,
brokers have committed spectacular frauds, and banks have gone bust, in ways that were
unimaginable in the early nineties.
In Nick Leeson’s life, though, there remains the task of explaining his actions to his children. He has
chosen to tell them the whole story. What he remembers most is the web of lies he felt obliged to tell,
and the isolation he experienced as a young broker, desperate to do well, but having no one to turn to
for advice. What he has learned is that, in life, we should always talk to those we trust, and always
seek advice before making decisions that might prove to be as catastrophic as the ones he made.

3
3 Read the article. Circle the correct answers (a–d).
1 According to the article, which of the following is true about Nick Leeson’s actions in 1995?
a He was unaware of the high risk factor involved in his investments.
b He did not realize how serious the consequences of his actions might be.
c He knew that his actions on the trading floor had a significant element of chance.
d He genuinely believed that his employers knew about his actions.
2 What does the article say about Barings of London?
a Its failure undoubtedly resulted in significant losses for Queen Elizabeth II.
b The institution made no attempt to save itself when Leeson’s actions came to light.
c Its management had not paid enough attention to what Leeson was doing.
d People in senior positions there may have acted recklessly or even illegally.
3 What does the article say about Nick Leeson’s life today?
a In order to make ends meet, he works as a debt counsellor for an Irish company.
b He appears to have retrained in order to help others like him.
c He cynically admits that he exploits his notoriety for financial gain.
d He continues to make reference to his past in his current career.
4 In the opinion of the writer of the article, how does Leeson feel about his past crimes?
a He harbours a profound sense of remorse and shame.
b He has largely come to terms with what happened.
c He still can’t face the people that his actions have hurt.
d He feels that his prison sentence was far too lenient.
5 Which of the following does the writer of the article say about Leeson and his actions?
a Leeson has learned notable lessons from his experiences in 1995.
b It is a desperately difficult task for Leeson to explain his actions to his children.
c Leeson’s behaviour remains just about the worst example of financial fraud in history.
d Leeson continues to be tormented by the sense of isolation he once felt.

Mark: ___ / 10

4
Writing
4 Write an article about one of these issues.
 The UK National Lottery raises money for good causes, but many think it is bad for society.
What are the consequences, good and bad, of having a national lottery, and to what extent is
having one justified?

 In many major cities, house prices have risen dramatically in recent years. This is good news for
homeowners, but not for those renting or looking to buy for the first time. What are the causes
and effects of rising house prices, and what, if anything, should be done about this issue?

Follow the plan:

Mark: ___ / 15
TOTAL MARKS: ___ / 40

5
Challenge!
5 Complete the text with the correct words (a–d).
Howard Hughes
Since his death in 1976, the story of the life of reclusive billionaire Howard Hughes 1________ in
numerous books and documentaries. At one time the world’s richest man, Hughes had all the
2
________ of wealth and success, including a string of luxury hotels in Las Vegas, his own aircraft-
manufacturing company and even his own film studio, RKO Pictures. He adored planes and was
famous for 3________ out on often reckless manufacturing projects. For example, he 4________
millions of dollars on building an enormous flying boat, which became known as the Spruce Goose.
Although originally the plane 5________ to be a part of the war effort, it wasn’t finished until after
the war ended, and it only flew once. In later life, Hughes lived as a recluse, and his avoidance of
publicity 6________ rise to many legends about his eccentric behaviour. It 7________ his strange diet
and unhealthy lifestyle resulted 8________ his decline and death.

1 a has told b has been told c was told d has been telling
2 a signs b leanings c patterns d trappings
3 a splashing b crashing c pouring d throwing
4 a frittered b strapped c squandered d spread
5 a had designed b had been designing c had been designed d had it designed
6 a gave b made c took d set
7 a is believed to be b believed that c believes to be d is believed that
8 a on b in c from d for