Sending Money Home Reading Answers, IELTS Passage

Sending Money Home Reading Answers: The IELTS Reading passage “Sending Money Home Reading Answers” includes a total of 13 questions designed to assess your reading comprehension skills. The questions are categorized into Matching Headings and Summary Completion.

This guide provides sample answers, tips, and strategies to help students tackle the passage effectively and improve their IELTS Reading band score. Read till the end to enhance your preparation and master different question types.

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Sending Money Home Reading Answers 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?

Sending Money Home Reading Answers Sample Questions 

Matching Headings (Q.1 – Q.7)

Match each paragraph (A–H) with the correct heading from the list below.

List of Headings:
i. The true impact of remittances in developing countries
ii. The financial cost of sending money home
iii. The potential role of bonds in development
iv. The reasons why migrants send money home
v. The need for regulatory changes to reduce transfer costs
vi. The countercyclical nature of remittances
vii. The social benefits of remittances
viii. The economic burden of resettlement
ix. The ways in which remittances are spent

1. Paragraph A - _______

2. Paragraph B - _______

3. Paragraph C - _______

4. Paragraph D - _______

5. Paragraph E - _______

6. Paragraph F - _______

7. Paragraph H - _______

Summary Completion (Q.8 – Q.13)

Complete the summary below using NO MORE THAN TWO WORDS from the passage for each answer.

Remittances from migrants amount to more than (8) _______, surpassing official development aid. In many countries, these funds act as a (9) _______, particularly in times of financial or political instability. Unlike official aid, remittances are sent (10) _______ to those in need, ensuring direct assistance to recipients.

However, one major drawback is the (11) _______, which significantly reduces the amount of money received by families. These charges vary, with some institutions demanding over (12) _______ per transaction. A possible solution is for governments to (13) _______ money transfer services, making transactions more affordable for migrants and their families.

Sending Money Home Reading Answers with Explanations 

1. Paragraph A - i. The true impact of remittances in developing countries

• Location: Paragraph A

• Reference: "These remittances exceeded $400 billion last year… about triple the amount officially spent on development aid."

• Explanation: This paragraph highlights the overall impact of remittances on developing nations, emphasizing their financial significance.

2. Paragraph B - iv. The reasons why migrants send money home

• Location: Paragraph B

• Reference: "The decision to send money home is often inspired by altruism… repayment of a loan used to finance the migrant’s travel and resettlement."

• Explanation: The paragraph discusses different motivations for sending remittances, such as support, repayment, and investment.

3. Paragraph C - vi. The countercyclical nature of remittances

• Location: Paragraph C

• Reference: "At the first sign of trouble… Actually, they increase in order to ease the hardship."

• Explanation: This paragraph explains how remittances rise during crises, unlike official funds, which may decrease.

4. Paragraph D - vii. The social benefits of remittances

• Location: Paragraph D

• Reference: "It funds education and healthcare and contributes towards the upkeep of the elderly."

• Explanation: This paragraph outlines the social benefits provided by remittances, such as healthcare, education, and community welfare.

5. Paragraph E - ii. The financial cost of sending money home

• Location: Paragraph E

• Reference: "Recipients hardly ever receive the full value of the money… Others charge a percentage, which varies from around 8% to 20%."

• Explanation: The paragraph highlights the financial burden caused by high transfer fees, reducing the amount received by families.

6. Paragraph F - v. The need for regulatory changes to reduce transfer costs

• Location: Paragraph F

• Reference: "If the transfer cost could be reduced to no more than one per cent… Governments could at least acknowledge that small remittances do not come from organised crime networks."

• Explanation: This paragraph calls for reforms in remittance regulations to lower transfer fees and allow more funds to reach recipients.

7. Paragraph H - iii. The potential role of bonds in development

• Location: Paragraph H

• Reference: "If a developing country… could sell bonds with a guaranteed return of three or four per cent… migrants would make a financial gain."

• Explanation: The paragraph introduces the idea of investment bonds that could benefit both migrants and their home countries.

8. Answer: $400 billion

• Location: Paragraph A

• Reference: "These remittances exceeded $400 billion last year."

• Explanation: The passage states that the total amount sent through remittances is more than $400 billion, which is higher than official aid.

9. Answer: lifeline

• Location: Paragraph B

• Reference: "In some of the poorer, unstable or conflict-torn countries, these sums of money are a lifeline."

• Explanation: The text describes remittances as a crucial support system for families in need.

10. Answer: straight

• • Location: Paragraph C

  • Reference: "Unlike development aid, which is channelled through government or other official agencies, remittances go straight to those in need."

  • Explanation: The answer highlights that remittances provide direct financial support to individuals, unlike government aid.

11. Answer: transfer fees

• • Location: Paragraph E

  • Reference: "Recipients hardly ever receive the full value of the money sent back home because of exorbitant transfer fees."

  • Explanation: The passage explains that high fees reduce the total amount received by families.

12. Answer: 20%

• • Location: Paragraph E

  • Reference: "Others charge a percentage, which varies from around 8% to 20% or more depending on the recipient country."

  • Explanation: Some remittance services charge as much as 20%, significantly reducing the funds received by migrants' families.

13. Answer: open up

• • Location: Paragraph F

  • Reference: "Governments should put an end to restrictive alliances between post offices and money transfer operators or at least open up the system to competition."

  • Explanation: The text suggests that increasing competition in money transfer services would reduce fees and benefit migrants.

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