Broke hard-up in debt well-off make ends meet

a) She earns a lot of money. She's very....

b) He never has a lot of money. He can't afford luxuries. He's always....

c) I'll have to get an extra job in the evenings. I can't... on my salary.

d) I'm sorry I can't lend you any money. I haven't got any. I'm absolutely....

e) He's... He owes money to me and to bank too.

3. Match the following terms with the correct definitions:

current account, cheque, cash, liability, stock exchange, clearance, securities

1. means of borrowing money and raising new capital issued by compa­nies, financial institutions, governments;

2. deposit which can be withdrawn on demand and which is used by de­positor to finance day-to-day personal and business transactions;

3. coins and bank-notes which are in circulation in a country;

4. a market where company stocks and shares as well as government bonds are bought and sold;

5. a form of debt, for instance, a loan;

6. a means of transferring or withdrawing money from a bank or building society current account;

7. settling liabilities through the Clearing House.

4. Put a suitable form of these words into each space.

Afford charge cost rise pay economise reduce owe sell

1 I... the bank so much that I couldn't take a holiday abroad.

2. When I... the rent, I felt as if I had been robbed.

3.I paid in cash and they didn't... me so much.

4. After I had... my house, I realized I had made a mistake.

5. We... so that we could buy a new fridge.

6. The cost of living keeps... all the time.

7. We only could … last year's holiday by cutting down on luxuries.

8. How much did a double room...?

9. The shop on the corner has... everything by fifty percent.

5. Choose the appropriate word from the brackets.

1. (Whenever/elsewhere) a man has to (issue a deposit / settle a debt) or
has to make a purchase, he can do it with either cash or a (time deposit/chequing account).

2. Bank notes bring in no (interest/profit) at all.

3. The (temporary /net) suppliers of loan funds are households whereas business firms and the government are the main (temporary/ net) demanders of loans.

4. (Liability / clearance) function is performed in commodities markets by the International Commodities Clearing House.

5. There are enough workers in the factory to (owe / handle) all the avail­able machinery.

6. It is typical to (issue / withdraw) bonds for the period of several years.

7. The bank (borrows/ lends) the (deposited/ withdrawn) money to cus­tomers who need capital.

8. Cheques may be written not only against bank (securities / deposits) but also against (interest-bearing/net) building society accounts.

9. Nowadays a bank's main function is to be an intermediary between (lenders / depositors) and borrowers.

10. It does not make sense (He имеет смысла) for two banks to make two inter-bank (clearing/transactions). They calculate the (debt/net) flows and settle them.

6. Translate the following sentences from Russian into English.

1. У нее есть много денег на банковском счете.

2. При оплате наличными это будет стоить тебе 10 $.Если ты рассчитаешься чеком, это будет дороже.

3. Не могли бы вы обменять эту купюру на монету для пользования кофе-автоматом.

4. Я заплатил более $2000 за свой компьютер, но сейчас он уже не стоит этих денег.

5. Боюсь, я зря потратил деньги на эти СD-диски, потому что я их никогда не слушаю.

DISCOVERING LANGUAGE

1. Make these sentences 1) interrogative 2) negative:

1. There are some new commercial banks in our city.

2. There are state chartered banks that offer many services.

3. There are some non-deposit financial institutions in the USA.

4. There is an insurance company and some pension funds on the list below.

5. There is a growing number of small finance companies in the USA today.

2. Fill in the blanks with the pronouns some, any, and no:

1. Are there _ commercial banks in your town?

Yes, there are _.

2. Is there _ money in your savings account?

No, there isn't_.

3. Does a credit union lend _ money to its members?

Yes, it does. It lends _ money to its members.

4. Do pension funds invest _ money into the industry?

No, they don't. They invest _ money into the industry.

5. There are _ commercial finance companies that provide collateralized loans to

business.

 

3. Fill in the blanks with adjectives many and much:

1. _ insurance companies protect their customers against risk.

2. It takes one _ money to join a credit union.

3 Starting a business without financial support from the bank may cause you _

_trouble.

4. Banks in the USA are subject to _ government regulations.

5. Savings and Loan Associations attract _ small savers who do not want to have any

risk.

4. Fill in the missing prepositions where it is necessary.

1. The bank lends the deposited money... customers who need... capital.

2. Cheques may be written not only... bank deposits but also... interest-bearing building society accounts.

3. The demand... money is determined... the quantity needed to han­dle... business transactions.

4. Nowadays banks handle... huge amounts... money deposited... them.

5. If a cheque is... soft currency, one may have some trouble cashing it... abroad.

6. The Central Bank... Russia uses its reserves to help repay... Russia's foreign debt.

7. The bank borrows the funds... the public... the specific purpose... lending them... again... their customers.

8. Regulations... America and Japan prevent commercial banks... trad­ing... securities.

9. Creditors are persons or businesses... whom an individual or firm owes money... goods or services that they have supplied but... which they have not yet been paid, or because they have made... a loan.

10. Considerable fluctuations... prices... industrial shares are expect­ed to take place... the stock exchange... a period of weeks and months.

5. Complete the sentences with the appropriate modal verbs in the correct form.

1. Since the prices of shares and government securities fluctuate, a seller … receive more or less than he paid for them.

2. Commercial banks …. required to deposit more of their cash reserves in special deposits at the Central Bank than before.

3. The Central Bank has withdrawn this bank's license. The latter … unable to meet its liabilities.

4. The owner of the firm hopes the bank …defer repayment of the loan.

5. The bank is calling in its loans. Its depositors …withdrawn a lot of their deposits lately or the bank …accumulating funds for a major lending or investment project.

6. If the bank has refused to issue a deposit, it means they …dissatisfied with the information you gave them about yourself.

7. Banks …said to provide financial services.

8. The coffee market … grown considerably in Russia in recent years but the purchasing power of population fell after the 1998 financial crisis.

6. Complete the sentences with the appropriate tense form. Translate them from English into Russian paying attention to the phrasal verbs in bold.

1 There's nothing in our bank account. We… run out of money.

2 John… putting money by for his holiday all year; he's saved over £500!

3 I … take out a loan to buy my new car. I’ll pay back the money I borrowed over three years.

4 Doing this course … really eating into my savings! Every week I have to pay £50.

5 If you leave your job, what …. live on?

6 We're spending too much money every week! We… cut down on luxuries.

LISTENING

1. Paul and Maria are colleagues. It is Paul's first trip to Uruguay and Maria is giving him advice about money. Read and listen to dialogue 1.

Paul: Hello, Maria. Have you got a minute? I need some advice.

Maria: Hi, Paul. Of course. What's the problem?

Paul: Well. I'm doing a trip to Uruguay next week. It's my first trip there. I'm taking my credit cards, but can I use them everywhere?

Maria: Oh, I see. You can use them in some places, like hotels, but not all. For example, you can't always buy petrol with credit cards, or pay for car parks or train tickets. Cash is essential, but in dollars. Not in local currency.

Paul: I see. So traveller’s cheques, then?

Maria: Yes, they're useful. But take them in dollars. You can use traveller’s cheques in dollars everywhere.

Paul: What about Eurocheques? In Europe we use them everywhere. We use them just like ordinary cash or cheques.

Maria: No. Eurocheques aren't very useful. Not useful at all. Nobody uses Eurocheques.

2. Listen to dialogues 2 and 3 and complete the table.

	Uruguay	northern Europe USA
credit cards are used	some places, like hotels
credit cards are not used	petrol, car parks, train tickets
travellers' cheques are used	everywhere
Eurocheques	not useful

3. You are going to watch an episode "Money that doesn’t exist” of the video film ” Economics made easy ”. Here are some words that might seem unfamiliar to you:

• gilt, n - позолота, деньги

• gild, v - золотить

• custody - опека

• solvent - платежеспособный, кредитоспособный

• holders -арендатор, владелец, держатель

• bill - счет, расходы, стоимость

• interest - процент

• short -term bank loan - краткосрочный банковский кредит

• to be in the red - быть в долгу

• overdraw - превысить кредит (в банке); overdraft - превышение кредита, овердрафт, задолженность банку

 

4. As you watch this episode for the second time, pay attention to the facts you'll hear and be ready to say whether the following sentences are true or false:

 

1. A few centuries ago in Paris Mario Linland offered their customers a special service, they accepted the gold of their customers in safe custody and, as an exchange, gave them a kind of receipt-certificates.

2. These certificates could be exchanged for the gold again at any time by anybody not just for original owner. So these certificates were accepted everywhere as gold and were easier and less dangerous to carry around. And so a kind of paper gold was created.

3. The system continued to function as long as gilt minters didn't stay solvent, as long as they were not able to return gold to any holders who asked for it.

4. The man in the restaurant has had enough coins to pay for a fine meal.

5. He can pay the bill because he has got a check and he can pay with his check despite the fact that he hasn't got any money at his bank account at the moment or perhaps he is in the red as he got debts. All the same restaurants accept his check just as equal cash.

6. After a certain agreed limit the bank doesn't guarantee its customers' debts. The customer later doesn't have to pay back the money for the restaurant bill to the bank plus interest. He isn't allowed to overdraw his account by means of a check, money, as we can say, that doesn't exist!

FOCUS ON FUNCTIONS

1. The passive is very often used when we describe a process or a procedure because we are less concerned with who has done something than with what is done. For example, read this description of an export transaction involving a British firm and an Australian one:

First of all, the goods are sent to a port and loaded on board ship. They are inspected and if everything is fine, a 'clean' Bill of Lading (B/L) is signed by the captain and a copy sent to the exporting firm. Then a Bill of Exchange (B/E) requiring the Australian firm to pay on a future date is drawn up by the British firm and presented, together with the insurance certificate and the B/L, to a British bank. Next, the documentation is sent to the Australian bank. At this stage the B/E is accepted by the importer who is now given the B/L and is able to collect the goods when they arrive and pay his/her bank on the due date.

Note that is/are do not have to be repeated when the second verb (e.g. loaded/presented) follows 'and'.

2. See the picture below. Imagine a man called Mr. White owes Blacks plc. a sum of money. If he has an account at Bank В and the firm an account with Bank A what happens to the cheque he makes out?

The life story of a cheque

3. Complete the blanks with the following verbs: