Name: Date: reading (10 marks) 1

TOTAL 

/50

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REVIEW TEST 9

NAME:  

 Date: 

 

READING (10 marks

)

1  Read the article and complete the summary below using no more than three words in each gap. Use 

only words that best summarize the content of the article. 1 mark for each correct answer.

The citizens of countries ruled by democratic governments are used to regular elections being held. Governments 

change, but often this has little immediate effect on a country’s economic growth. However, the situation can be 

different in countries ruled by unelected regimes, such as those of the former Soviet Union. 

When the government of an undemocratic regime falls, the country’s economy can experience major difficulties.  

Interest rates often rise, natural resources may not be properly protected and economic stability can suffer. This 

loss of wealth can lead to poverty and to recession. One reason for this is a reduction in investment from abroad. A 

typical pattern is as follows: a country’s leader falls, foreign investors leave, there is a rapid decrease in the market 

value of the currency, unemployment increases and retail sales decline. 

Many investors would rather put their money into overseas economies, which offer higher returns. However, they 

must be aware of the risks involved. Businesspeople benefitted from the high interest rates offered by banks based 

in Cyprus. However, this model could not be sustained and wealthy businesspeople lost huge amounts of money in 

Cyprus in 2013. Some say that these losses are unfair, but others say that the investors got what they deserved.

Investors looking for a safer, long-term return can invest in the real economy of a country rather than simply saving 

their money in banks. Such investments can fund jobs, develop new businesses, restaurants and shopping malls 

such as those found in the USA. Outside wealth can turn a failing economy around. Russia is an example of what can 

happen. It was once dismissed as a country without hope, but it is now a financial powerhouse. High returns offered 

to wealthy businesspeople by offshore banks are becoming increasingly rare, and there is now a chance that Russia 

might be able to raise more money in taxes. This would lead to more investment in the Russian economy, leading to 

a better standard of living for all.

If businesses invest in long-term projects such as factories, mining and resources needed for manufacturing, and if 

governments can establish effective means of redistributing income through spending and taxation, their countries’ 

economies will become more stable and their societies fairer.

States run by 

1

 hold regular elections. However, when a non-democratic government 

falls, a country’s 

2

 can suffer. 3. When important 

3

 such as coal, wood 

and cotton are wasted, the economy can decline dramatically. When an economy suffers badly, the 

country can experience negative growth. This is known as 

4

, typified by loss of jobs and 

increased poverty. This can happen when there is a sudden loss of 

5

 coming from other 

countries. A drastic fall in the value of a currency can lead to a reduction in 

6

, as people 

are no longer able to afford the prices charged by shops. Some financial institutions offer very high 

7

 rates, although investors risk losing a lot of money if the market fails. When people 

have more money to spend, there is an increased demand for shops, sometimes built together within 

large American-style 

8

. Greater investment in an economy can lead to a better 

9

 for a country’s citizens. Economies will become more stable if businesses invest in 

large projects such as those needed for the 

10

 industry.

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VOCABULARY (10 marks)