question: Moreover, a conflict of interest between professional investment managers and their institutional clients, combined with a global glut in investment capital, led to bad investments by asset managers in over-priced credit assets. Professional investment managers generally are compensated based on the volume of client assets under management. There is, therefore, an incentive for asset managers to expand their assets under management in order to maximize their compensation. As the glut in global investment capital caused the yields on credit assets to decline, asset managers were faced with the choice of either investing in assets where returns did not reflect true credit risk or returning funds to clients. Many asset managers chose to continue to invest client funds in over-priced (under-yielding) investments, to the detriment of their clients, in order to maintain their assets under management. This choice was supported by a "plausible deniability" of the risks associated with subprime-based credit assets because the loss experience with early "vintages" of subprime loans was so low.
1. How are professional investment managers compensated?
2. what effect does this have?
3. did they feel pressure to grow the assets under their control?
4. who did they have a conflict of interest with?
5. what decision did they have to make when profits from credit assets went down?
6. which did many of them choose?
7. did this benefit their clientele?
8. what effect did too much global investment capital have?
9. was the danger with subprime mortgages considered high?
10. what could they have done instead of investing the client's money?
****
answer: 1. on the volume of client assets under management
2. led to bad investments
3. yes
4. their clients
5. choice of either investing in assets where returns did not reflect true credit risk or returning funds to clients
6. to continue to invest client funds in over-priced investments
7. No
8. caused the yields on credit assets to decline
9. No
10. return funds to clients

question: A 13-year-old boy traveled to Washington, D.C. to raise money for homeless kids. Zach Bonner was pretty tired. Instead of going to camp last summer, Zach decided to walk 668 miles from Atlanta to Washington, D.C. He hoped more people would help homeless kids. His journey to help others began six years ago. Zach walked from his home in Tampa to Tallahassee. Then, in 2008, Zach Bonner went on a 270-mile walk from Tallahassee to Atlanta. In 2010, he did it again, from Tampa to Los Angeles. Last summer, Zach traveled 12 miles every day on foot. Along the way, he collected more than 1000 letters about homeless children. He hoped to give the letters to President Obama. Zach says he wants his walk to make a difference. More than 1 million children in the U.S. have nowhere to live. During his journey, Zach spent 24 hours with some homeless children so he could learn the difficulties they face. When Zach walked the last mile of his long journey, more than 500 supporters, including 300 homeless kids, joined Zach. They went with him down the National Mall. "It was a long walk," Zach says, "but it was meaningful." Although the journey is difficult and tiring, Zach won't give up. "When homeless kids get tired of being homeless, they don't get to stop. So why should I stop when I get tired of walking?"
1. How many children in the U.S. are homeless?
2. What is the boy's name?
3. How old is he?
4. Who was he raising funds for?
5. Where is he from?
6. How many miles did he walk in 2008?
7. What city did he start that walk in?
8. What city was the final destination on that walk?
9. How many letters did he collect?
10. About what?
11. To whom did he want to give the letters?
12. Which one?
13. How many hours did Zach spend with homeless kids?
14. How many miles a day did he travel per day last summer?
15. On foot?
16. How many supporters joined him on the final mile of his trip?
17. How many homeless kids joined him?
18. Where did they go together?
19. Did Zach give up summer camp for he could do one of his walks?
20. How many years ago did he start doing these walks?
****
answer: 1. More than 1 million
2. Zach Bonner
3. 13
4. homeless kids.
5. Tampa
6. 270-mile
7. Tallahassee
8. Atlanta
9. more than 1000
10. homeless children
11. the president
12. Obama
13. 24 hours
14. 12
15. yes
16. more than 500
17. 300
18. the National Mall.
19. yes
20. Six

question: Martin was returning to work in his London office after spending two weeks with his brother in New York.He was coming back with a heavy heart.It was not just that it was the end of a wonderful holiday; it was not just that he invariably suffered badly from jet lag ; it was that Monday mornings always began with a team meeting and,over the months,he had grown to hate them.

Martin was aware that colleagues approached these meetings with hidden agenda ; they indulged in game playing; and he knew that people were not being honest and open.The meetings themselves were bad enough-there was all the moaning afterwards at the meeting like"I could have improved on that idea,but I wasn't going to say".

As this morning's meeting began,Martin prepared himself for the usual dullness and boredom.But,as the meeting progressed,he became aware of a strange background noise.At first,he thought that he was still hearing the engine noise from the aircraft that had brought him back to London.But,as he concentrated on the noise,it became a little clearer.

He realized,to his amazement,that he could actually hear what they were thinking at the same time as they were speaking.What surprised him,even more than the acquisition of this strange power,was that he discovered that what people were saying was not really what they were thinking.They were not making clear their reservations.They were not supporting views which they thought might be popular.They were not contributing their new insights.They were not volunteering their new ideas.

Martin found it impossible not to respond to his new knowledge.So he started to make gentle interventions,based more on what he could hear his colleagues thinking than on what he could hear them saying."So,John,are you really saying...""Susan,do you really think that?""Tom,have you got an idea on how we could take this forward?"They looked at him,puzzled.In truth,he felt rather proud of his newly-acquired talent.

As the meeting progressed,it was clear to him that each member of the meeting was learning how to hear the thoughts of the others.The game playing started to fall away; people started to speak more directly; views became better understood; the atmosphere became more open and trusting.

The meeting ended.As people left the room,Martin found that he could still hear what they were thinking."That was the best meeting we've ever had.""All meetings should be like that.""In future,I'm going to say what I think".
1. What was wrong with Mondays for Martin?
2. Was it dull this Monday?
3. What did he notice that morning?
4. Is that what he thought at first?
5. What did he thinkg at first?
6. At first were people saying what they thought?
7. Did people usually feel good about the meetings?
8. When Martin started to ask questions what happened?
9. When the meeting was over were people happy with it?
10. What was their plan for future meetings?
****
answer:
1. They started with a team meeting
2. no
3. He could hear what everyone was thinking.
4. no
5. engine noise
6. no
7. no
8. people started to speak more directly
9. yes
10. to say what they thought