 Test your English. Bank bailouts. Step 1. Listen. You will hear a passage about an academic topic. Listen carefully and be prepared to take a short quiz afterward. Bank bailouts. Bank bailouts refer to the strategies employed by governments to rescue financial institutions that are experiencing severe financial distress. The rationale behind bank bailouts is that the failure of such institutions can lead to a serious economic crisis and negatively impact the health of the larger economy. While bank bailouts can provide temporary relief to financial institutions, they are not without controversy. Some critics argue that bailouts can re-sport irresponsible behavior and create moral hazards where banks are encouraged to undertake risky activities with the expectation of government intervention if things go wrong. Additionally, taxpayers often bear the burden of the costs associated with bank bailouts, which can erode public confidence in the financial system. Step 2. Take the quiz. Answer these questions about the passage. Number 1. Bank bailouts are government strategies aimed at helping financial institutions. A. True. B. False. You can pause the video if you'd like more time. 2. What is the purpose of bank bailouts? A. To reward irresponsible behavior. B. To prevent a serious economic crisis. C. To boost public confidence in the financial system. B. To encourage banks to undertake risky activities. 3. According to the passage, what is one consequence of bank bailouts? A. Boosting confidence in the financial system. B. Lowering the costs associated with failure. C. Bringing the economic crisis to an end. D. Rewarding irresponsible behavior. 4. Who typically bears the cost of bank bailouts? A. Taxpayers. B. Economists. C. Government. D. Financial institutions. 5. Why do critics consider bailouts to be a moral hazard? A. Financial systems are controversial. B. Government is expected to be involved. C. Banks may engage in risky behaviors. D. There is an erosion of public trust. Answer key. 1. Bank bailouts are government strategies aimed at helping financial institutions. True. 2. What is the purpose of bank bailouts? To prevent a serious economic crisis. 3. According to the passage, what is one consequence of bank bailouts? Rewarding irresponsible behavior. 4. Who typically bears the cost of bank bailouts? Taxpayers. 5. Why do critics consider bailouts to be a moral hazard? Banks may engage in risky behaviors. Step 3. Check your vocabulary. Choose the best word for the following definitions. 6. Anguish or pain caused by difficult circumstances. Critic. Severe. Distress. Hazard. Distress. 7. The logical basis for a belief, action, or decision. Controversy. Rationale. Strategy. Moral. Rationale. 8. The easing of distress, hardship, tension, or pain. Relief. Erode. Rescue. Crisis. Relief. 9. Accept responsibility to perform or complete a task. Intervene. Undertake. Impact. Risky. Undertake. 10. What does bear the burden mean? Save on cost. Encounter risks. Take responsibility. Create moral hazards. Take responsibility. How did you do? Did you get them all right? Good for you. Step 4. Read the script. I will read the script aloud and you can follow along. Bank bailouts refer to the strategies employed by governments to rescue financial institutions that are experiencing severe financial distress. The rationale behind bank bailouts is that the failure of such institutions can lead to a serious economic crisis and negatively impact the health of the larger economy. While bank bailouts can provide temporary relief to financial institutions, they are not without controversy. Some critics argue that bailouts can reward irresponsible behavior and create moral hazards, where banks are encouraged to undertake risky activities with the expectation of government intervention if things go wrong. Additionally, taxpayers often bear the burden of the costs associated with bank bailouts which can erode public confidence in the financial system. Step 5. Summarize. Write about the topic in your own words or summarize it by speaking with your friends or classmates. Use the knowledge and vocabulary that you learned from the passage. This is a great way to practice all your English skills, reading, writing, listening, and speaking. Step 6. Discussion. Have a conversation with your friends or classmates about this topic. Discuss whether you think bank bailouts are a good idea. What's your opinion on this? Go ahead. Talk with your classmates. Take as much time as you'd like for this discussion. Step 7. Some questions. Having trouble getting started? Here are some sample questions for discussion. Do you think failing banks should be bailed out? What will happen if the government doesn't intervene? Why should taxpayers bear the burden for this? Take as much time as you need for your discussion. Thanks for watching. Don't forget to subscribe to our channel so that you can get regular updates when we publish new videos. To see more videos like this, click on the link above or check out our websites for more free English learning resources eslgold.com and freeenglishstudy.com