The Summarize Written Text (SWT) task in the PTE Speaking & Writing module assesses your ability to understand and condense the main ideas of a text into one concise sentence. Today, we present a valuable practice task related to Decentralized Finance And Economic Equality, a popular and relevant topic that may appear in the PTE exam.
Overview: Decentralized Finance and its Importance in Economic Equality
Decentralized Finance (DeFi) is a rapidly growing movement that leverages blockchain technology to eliminate middlemen such as banks, offering financial services in a more transparent and equitable manner. As the traditional systems often limit access to credit and financial tools for underprivileged communities, DeFi promises a new era where global economic equality is achievable.
Blockchain-based DeFi financial system illustration
In this article, we will provide a Summarize Written Text practice task focusing on Decentralized Finance and Economic Equality. This is an advanced topic often discussed in current affairs and finance, making it a potential topic in your PTE exam.
Sample Summarize Written Text Task
Read the passage below and summarize it in one sentence. Your response must be between 5 and 75 words.
Decentralized Finance (DeFi) has the potential to bridge gaps in access to financial tools by utilizing blockchain technology, which operates without central authorities. In traditional finance, individuals and businesses in marginalized sectors suffer from limited access to credit, banking, and capital markets. DeFi, through its open protocols and smart contracts, allows for peer-to-peer transactions and financial services without centralized control. This setup democratizes access to financial resources, potentially fostering economic equality on a global scale, particularly for those who have been underserved by traditional financial systems. Despite its significant potential, DeFi is still in its infancy, and concerns remain regarding regulation, security, and legal implications that could affect its long-term viability.
Summarize the text in one sentence.
Sample Answers and Analysis
Band Score 90 – Fully-developed response:
Decentralized Finance (DeFi) utilizes blockchain technology to offer peer-to-peer transactions and financial services without central authority, providing financial inclusion to marginalized communities, although concerns about regulation and security remain.
- Content: Excellent as the response summarizes all key points: the purpose of DeFi, its benefits, and potential risks.
- Form: The sentence meets the word count requirements and contains no unnecessary details.
- Grammar: Flawless grammar and sentence structure.
- Vocabulary: Advanced but accurate vocabulary.
- Spelling: No spelling errors.
Band Score 75 – Good response:
DeFi allows for financial services without central authorities and could improve economic equality but faces issues like regulation and security.
- Content: Includes the central idea but slightly oversimplifies the potential of DeFi.
- Form: Valid with appropriate length.
- Grammar: Minor grammatical simplifications, but still correct.
- Vocabulary: Decent, though not as formal or precise as the top Tier.
- Spelling: Correct spelling.
Band Score 60 – Satisfactory response:
DeFi offers financial services without banks and may help with economic equality, but it has regulatory problems.
- Content: Covers the basic aspects but misses some depth and complexity, such as detailing how DeFi works.
- Form: Meets the word limit.
- Grammar: Basic grammar, correct but simplistic.
- Vocabulary: Limited but acceptable.
- Spelling: No spelling issues.
Band Score 50 – Needs improvement:
DeFi is part of the financial system that can help people get services, but there are challenges.
- Content: Vague and does not capture many key elements of the passage.
- Form: Word count is within the range, but lacks precision.
- Grammar: Simplistic sentence structure; could improve in clarity.
- Vocabulary: Very basic and lacks specific terms.
- Spelling: Spelling is correct, though vocabulary is too elementary.
Band Score 40 – Below average response:
DeFi helps with services like banking but has issues to fix.
- Content: Incomplete; the response does not cover enough of the original text’s ideas.
- Form: The sentence is too brief and lacks comprehensiveness.
- Grammar: Elementary grammar, over-simplification.
- Vocabulary: Severely underdeveloped vocabulary, very basic.
- Spelling: No spelling errors but poorly developed terms.
Vocabulary and Grammar Focus
Here are 10 advanced words and phrases from the passage, along with their meanings and usage examples. These are important for enhancing your vocabulary and understanding of decentralization in finance.
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Decentralized /diˈsɛntrəlaɪzd/ (adjective) – Distributed away from a central point of authority.
Example: The decentralized nature of blockchain removes the need for banks. -
Marginalized /ˈmɑːdʒɪnəlaɪzd/ (adjective) – Treated as insignificant or peripheral.
Example: Many marginalized communities lack access to basic financial services. -
Blockchain /ˈblɒktʃeɪn/ (noun) – A digital ledger in which transactions are recorded chronologically and publicly.
Example: Blockchain technologies are used in various applications beyond cryptocurrency. -
Protocols /ˈproʊtəˌkɔlz/ (noun) – Rules governing the exchange or transmission of data between devices.
Example: The open protocols in DeFi allow for secure peer-to-peer transactions. -
Smart Contract /ˈsmɑːrt ˈkɒntrækt/ (noun) – A self-executing contract with the terms directly written into code.
Example: Smart contracts automatically enforce agreements on decentralized platforms. -
Economy /ɪˈkɒnəmi/ (noun) – The system of production, consumption, and distribution of goods, services, and resources.
Example: DeFi may revolutionize the global economy by providing financial inclusion. -
Viability /ˌvaɪəˈbɪlɪti/ (noun) – Ability to work successfully.
Example: The long-term viability of DeFi depends heavily on regulatory frameworks.
DeFi contributing to global financial inclusivity
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Inclusivity /ɪnˌkluːsɪˈvɪti/ (noun) – The practice of including all sections of society, especially those marginally represented.
Example: Financial inclusivity through DeFi can help bridge economic disparities. -
Peer-to-Peer /pɪr-tuː-pɪr/ (noun) – (P2P) a decentralized network or process direct between individuals without centralized institutions.
Example: Peer-to-peer finance eliminates the need for traditional banking intermediaries. -
Equitable /ˈɛkwɪtəbəl/ (adjective) – Fair and impartial.
Example: An equitable financial system ensures equal opportunities for all participants.
Conclusion
Mastering the Summarize Written Text tasks in the PTE, especially with topics such as Decentralized Finance and Economic Equality, is crucial for high scores. These types of topics often reflect real-world finance discussions that require strong academic comprehension and precision in condensing ideas. Practice regularly with different topics, and leave a comment below if you need further clarification on any aspect!
