Sending Money Home Reading Answers

The IELTS Academic Reading passage, ‘Sending Money Home’, helps you attempt various question types, each of which are asked in the IELTS Reading exam. By attempting to find the answers, it will help you get an idea of the difficulty level of the passages in the actual reading test. You can also solve more passages by taking one of our IELTS reading practice tests. 

The answers to the passage, ‘Sending Money Home’, is provided with explanation for your understanding and level up your preparation. You should be taking 20 minutes for this passage and answer the questions provided.

Here are the question types in the reading test

Reading Passage (Sending Money Home)

• Matching Headings (Q.1 – Q.7)
• Summary Completion (Q.8 – Q.13)

Reading Passage 

Sending Money Home

A Every year millions of migrants travel vast distances using borrowed money for their airfares and taking little or no cash with them. They seek a decent job to support themselves with money left over that they can send home to their families in developing countries. These remittances exceeded $400 billion last year. It is true that the actual rate per person is only about $200 per month but it all adds up to about triple the amount officially spent on development aid.

B In some of the poorer, unstable or conflict-torn countries, these sums of money are a lifeline – the only salvation for those left behind. The decision to send money home is often inspired by altruism – an unselfish desire to help others. Then again, the cash might simply be an exchange for earlier services rendered by the recipients or it could be intended for investment by the recipients. Often it will be repayment of a loan used to finance the migrant’s travel and resettlement.

C At the first sign of trouble, political or financial upheaval, these personal sources of support do not suddenly dry up like official investment monies. Actually, they increase in order to ease the hardship and suffering of the migrants’ families and, unlike development aid, which is channelled through government or other official agencies, remittances go straight to those in need. Thus, they serve an insurance role, responding in a countercyclical way to political and economic crises.

D This flow of migrant money has a huge economic and social impact on the receiving countries. It provides cash for food, housing and necessities. It funds education and healthcare and contributes towards the upkeep of the elderly. Extra money is sent for special events such as weddings, funerals or urgent medical procedures and other emergencies. Occasionally it becomes the capital for starting up a small enterprise.

E Unfortunately, recipients hardly ever receive the full value of the money sent back home because of exorbitant transfer fees. Many money transfer companies and banks operate on a fixed fee, which is unduly harsh for those sending small sums at a time. Others charge a percentage, which varies from around 8% to 20% or more dependent on the recipient country. There are some countries where there is a low fixed charge per transaction; however, these cheaper fees are not applied internationally because of widespread concern over money laundering. Whether this is a genuine fear or just an excuse is hard to say. If the recipients live in a small village somewhere, usually the only option is to obtain their money through the local post office. Regrettably, many governments allow post offices to have an exclusive affiliation with one particular money transfer operator so there is no alternative but to pay the extortionate charge.

F The sums of money being discussed here might seem negligible on an individual basis but they are substantial in totality. If the transfer cost could be reduced to no more than one per cent, that would release another $30 billion dollars annually – approximately the total aid budget of the USA, the largest donor worldwide – directly into the hands of the world’s poorest. If this is not practicable, governments could at least acknowledge that small remittances do not come from organised crime networks, and ease regulations accordingly. They should put an end to restrictive alliances between post offices and money transfer operators or at least open up the system to competition. Alternatively, a non-government humanitarian organisation, which would have the expertise to navigate the elaborate red tape, could set up a non-profit remittance platform for migrants to send money home for little or no cost.

G Whilst contemplating the best system for transmission of migrant earnings to the home country, one should consider the fact that migrants often manage to save reasonable amounts of money in their adopted country. More often than not, that money is in the form of bank deposits earning a tiny percentage of interest, none at all or even a negative rate of interest.

H If a developing country or a large charitable society could sell bonds with a guaranteed return of three or four per cent on the premise that the invested money would be used to build infrastructure in that country, there would be a twofold benefit. Migrants would make a financial gain and see their savings put to work in the development of their country of origin. The ideal point of sale for these bonds would be the channel used for money transfers so that, when migrants show up to make their monthly remittance, they could buy bonds as well. Advancing the idea one step further, why not make this transmission hub the conduit for affluent migrants to donate to worthy causes in their homeland so they may share their prosperity with their compatriots on a larger scale?

Questions 1-7

List of Headings

i Stability of remittances in difficult times

ii Effect of cutback in transaction fees

iii Targeted investments and contributions

iv Remittances for business investment

v How to lower transmission fees

vi Motivations behind remittances

vii Losses incurred during transmission

viii Remittances worth more than official aid

ix How recipients utilise remittances

x Frequency and size of remittances

xi Poor returns on migrant savings

Example:

Paragraph G xi

1 Paragraph A

2 Paragraph B

3 Paragraph C

4 Paragraph D

5 Paragraph E

6 Paragraph F

7 Paragraph H

Questions 8–13

Countries are unwilling to enforce lower transaction fees as they are worried about 8__________ and villagers lose out when post offices have a special relationship with one particular money transfer agency.

Each remittance might be small but the total cost of remittance fees is huge. Governments should 9__________ on small amounts and end the current post office system or make it more competitive. Another idea would be for a large non-profit association, capable of handling complicated 10__________ to take charge of migrant remittances.

Migrants who send money home are able to save money, too, but it receives little or no interest from 11__________. If a country or organisation sold bonds that earned a reasonable rate of interest for the investor, that money could fund the development of homeland 12__________ .The bonds could be sold at the remittance centre, which could also take donations from 13__________ to fund charitable projects in their home country.

Reading answers:

1 Answer: x
Question type: Matching Headings

Answer location: Paragraph A, lines 3-5

Answer explanation: This paragraph talks about the amount of remittances belonging to migrants. These are said to have exceeded $400 billion last year but the actual rate per person is only about $200 each month. Hence, it is the appropriate answer.

2 Answer: vi
Question type: Matching Headings

Answer location: Paragraph B, lines 2-3

Answer explanation: This paragraph explores the motivation of migrant workers’ decisions to send money home. Their motives are often driven by altruism which is a selfless desire to help others. Hence, the answer is vi.

3 Answer: i
Question type: Matching Headings

Answer location: Paragraph C, lines 4-5

Answer explanation: The money sent home by migrant workers continues to trickle in even during crisis situations and thus they act as insurance, providing stability in the face of political and economic crisis. Hence, it is the correct answer.

4 Answer: ix
Question type: Matching Headings

Answer location: Paragraph D, lines 2-3

Answer explanation: The remittances are utilised by the recipients to cover expenses related to food, housing and other daily necessities. It also pays for education, healthcare and contributes towards the upkeep of the elderly. Hence, Hence, the answer is ix.

5 Answer: vii
Question type: Matching Headings

Answer location: Paragraph E, lines 1-4

Answer explanation: There is unfortunately a loss of money when it comes to transferring due to astronomical transfer fees being charged. Money transfer companies and banks charge a fixed fee, while others charge a certain percentage, which varies from around 8% to 20% or more. These contribute to loss of the amount being received. Hence, Hence, the answer is vii.

6 Answer: v
Question type: Matching Headings

Answer location: Paragraph F, lines 2-9

Answer explanation: This paragraph mentions that transfer cost could be reduced by lowering it to no more than 1% or by having governments easing restrictions and ending restrictive alliances between post offices and money transfer companies. Alternatively, humanitarian organisations could set up a not-profit platform allowing migrant workers to send money home easily. Hence, the answer is v.

7 Answer: iii
Question type: Matching Headings

Answer location: Paragraph H, lines 1-3

Answer explanation: This paragraph talks about how targeted investments and contributions could help. For example, if a developing country or a large charitable society could sell bonds with a guaranteed return of three or four per cent on the premise that the invested money would be used to build infrastructure in that country, it would benefit both the parties involved. Hence, the answer is iii.

8 Answer: Money laundering
Question type: Summary completion

Answer location: Paragraph E, line 6

Answer explanation: High transfer fees cause migrant workers to lose out on sending money home but many countries are unwilling to lower money transfer fees because of widespread concern over money laundering. Hence, the answer is money laundering.

9 Answer: Ease regulations
Question type: Summary completion

Answer location: Paragraph F, lines 5-6

Answer explanation: Lowering the high cost of transferring money from one country to another could be done by many sources. For one, governments could ease regulations and acknowledge that small remittances that migrant workers send home are not coming from organised crime networks. Hence, the answer is ease regulations.

10 Answer: Red tape
Question type: Summary completion

Answer location: Paragraph F, lines 8-10

Answer explanation: A non-government humanitarian organisation, which would have the expertise to navigate the elaborate red tape and enable workers to send money home at a much cheaper cost. Hence, the answer is red tape.

11 Answer: Bank deposits
Question type: Summary completion

Answer location: Paragraph G, lines 3-4

Answer explanation: It is mentioned that the money sent home by migrants in the form of bank deposits earns hardly any rate of interest. Hence, the answer is bank deposits.

12 Answer: Infrastructure
Question type: Summary completion

Answer location: Paragraph H, lines 1-3

Answer explanation: If bonds with a guaranteed return of three to four percent could be sold on the promise that the money thus invested would be used only for the purpose of building the infrastructure in that country, it would be mutually beneficial. Hence, the answer is infrastructure.

13 Answer: Affluent migrants
Question type: Summary completion

Answer location: Paragraph H, 7-8

Answer explanation: Donations made by affluent migrants towards the transmission hub would also enable such migrants to contribute to noble causes and contribute to positive developments in their homelands. Hence, the answer is affluent migrants.

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