VOA DAY 2

Savers Have Many Choices in the US

From VOA Learning English, this is the Economics Report.

Are you a saver or a spender? "A penny saved is a penny earned." This old saying
calls attention to the wisdom of saving money. "Putting money away for a rainy
day" is another recognized saying.

In the US, people who want to start a savings account have several choices. These
include banks and credit unions. Credit unions are cooperatives for people who have
some kind of connection. For example, the members might work for a university or
a government agency. Most credit unions are nonprofit organizations.

Credit unions, banks and other financial organizations pay interest on savings
accounts. But the interest rate are generally low. Certificate of deposit, or CDs, pay
higher returns. With a CD, a person agrees not to withdraw the money for a certain
period of time.

This term could be anywhere from a few months to several years. longer terms, and
larger amounts, pay higher interest. But, early withdrawal means CD holders must
pay a penalty. Another way to save is through a money market fund. This is a kind
of mutual fund. Mutual funds invest money from many people. Money market funds,
however, may not be federally guaranteed like other kinds of savings. The Federal
Deposit Insurance Corporation guarantees savings up to $250,000.

In a number of countries, people have been saving less over the years. The
Organization for Economic Cooperation and Development is a group of 34 countries.
The OECD says Americans saved about four point five percent of their household
income last year, down from six percent four years ago.

Queen Mama Class

Venezuela's Economic Problems

From VOA Learning English, this is Economics. Venezuela is facing a number of

economic problems. Inflation is putting pressure on many businesses.

Rotzen Villabon owns a gift store. But his business needs American dollars to import
products made in China. He is unable to exchange Venezuelan money for dollars at
the official exchange rate of about 6.5 bolivares to the dollar. He says the supply of
dollars is even limited on the black market, where dollars cost much more. He says
that is why business at his store is down. Venezuela has the highest rate of inflation
in South America.

In February, Venezuela reduced the value of its currency by one third, which has
made imports more costly. The economic troubles have resulted in shortages of
products -- from necessities like food to beauty products. Venezuela is a major oil
exporter. The nation's oil wealth paid for many social programs during the 14-year-
rule of former president Hugo Chavez. But Venezuela's recent presidential election
showed there are divisions in the country.

Nicolas Maduro was declared the winner of a close election over opposition
candidate Henrique Capriles on April 14th. Mr. Capriles disputed the vote and called
for a recount. Henrique Capriles is a lawyer. He promised to open the economy to
foreign investment. Nicolas Maduro is former union leader. He served as vice
president to Mr. Chavez before the president died of cancer last month.

Mr. Maduro promised to continue the social policies and programs of Mr. Chavez.
For supporters, the election was about saving programs for free housing, health
care and education.

Queen Mama Class