The top-down model of reading focuses on the reader's background knowledge and ability to make predictions about a text based on that knowledge. Readers use their existing knowledge to guide comprehension, relying on the text only to confirm or modify their predictions. It is a concept-driven approach where readers look at the overall meaning first before analyzing individual words or sentences. Exercises that activate readers' background knowledge, like pre-reading activities, help increase understanding by giving context and familiarizing readers with the topic before reading.