Exc. 2. Match the terms to their definitions.

1) payment for the credit stated by the bank 2) a business deal, especially a sale or purchase 3) a bank that acts as an intermediary between companies and the investing public 4) the large amount of money collected 5) an arrangement between a bank and a customer under which the customer deposits with the bank a sum of money 6) a machine from which the customer of a bank can obtain cash in bank-notes up to a certain value at any time of day or night putting a cash card into it 7) a contract by which money is borrowed to buy a house or some other property

transaction   electronic cash till   fund account   interest rate   investment bank   mortgage

Exc.3. Cross one out.

1. transaction, deal, account, bargain

2. to loan, to lend, to credit, to borrow

3. to put in, to deposit, to establish, to invest

4. central, retail, savings, discount

 

Exc.4. Fill in the blanks with the following words:

fund, account, bankrupt, lend, interest

1. We will have to close the factory – our company is _________.

2. The best rate of ________ the banks can offer is around 14 per cent.

3. The bank doesn’t ________ her the money to buy the car because she has a bad credit record.

4. They used this money to set up a ________ for the refugees.

5. Some banks make it difficult to open an _________.

 

Exc.5. Match the groups of words in column A to the words in column B.

A	B
1) checking private current	a) fund
2) time demand fixed	b) deposit
3) commercial investment universal	c) money
4) pension mutual charity	d) account
5) to invest to put in to fund	e) bank

Exc.6. Match English words and phrases with their Russian equivalents.

1) private account	a) банкомат
2) time deposit	b) ипотечные банки
3) cash till	c) счет частного лица
4) low-interest loan	d) положить деньги в банк
5) financial transactions	e) денежные средства
6) monetary funds	f) срочный вклад
7) mortgage banks	g) финансовые операции
8) to deposit money in a bank	h) ссуда под низкий процент

Text 1. The Financial System

Task 1. Read and translate the text.

 

The financial system of a developed country is a network of financial institutions comprising organizations carrying out and regulating financial activities, the ministry of finance, the treasury, the central bank, the tax service, stock and currency exchanges.

Financial activities embrace budgeting, financing, investment, banking, taxation and insurance. Financial assets flow in the system from savers, who act as sources of funds, to borrowers, who use them. Savers and borrowers in the system are linked by financial intermediaries – banks, finance, investment and insurance companies. Banks occupy a central place in any financial system.

Historically the heart of financial services industry in Britain has been located in the famous “Square Mile” in the City of London. The City is one of the largest financial centres in the world.

There re more overseas banks in the City than in any other financial centre. The banking sector in Britain accounts for about a fifth of total international bank lending.

The world’s largest financial markets – the London Stock Exchange, the Foreign Exchange Market, the Financial Futures and Options Market, eurobond and Eurocurrency markets, the world’s largest international insurance market – are also located there.

 

Note on the Text

…”Square Mile” in the City of London. – … «Квадратная миля» в Лондонском Сити

future – фьючерс

option – опцион

 

Task 2. Comprehension questions

1. What does a financial system comprise?

2. What do financial activities embrace?

3. Who are the savers and borrowers linked by?

4. What is the “Square Mile”?

5. What financial markets are located in London?

 

Task 3. Find English equivalents for the following Russian phrases:

- финансовая система развитой страны

- сеть финансовых институтов (организаций)

- осуществлять и контролировать финансовую деятельность

- министерство финансов

- казначейство

- налоговая служба

- фондовые и валютные биржи

- финансовая деятельность охватывает

- финансовые активы

- вкладчики

- источники финансовых средств

- заемщики

- финансовые посредники

- занимать центральное место

- иностранные банки

- составлять (часть чего-л.)

- банковские ссудные операции

- рынок финансовых фьючерсов и опционов

- рынок еврооблигаций

- страховой рынок

 

Task 4. Give derivatives of:

financial

organization

regulating

taxation

saver

borrower

investment

insurance

service

lending

located

 

Task 5. Read the text and translate it into Russian. Say what role banks play in any financial system.

Banks play a very important role in any financial system. Most typically banks open accounts for their clients and receive money on current and deposit accounts. These funds are used by them to provide loans or for investment. Apart from these functions bankers perform many other functions of great value to their clients. Banks collect cheques, discount bills of exchange, transfer money, buy and sell securities for their clients, take charge of their clients’ valuables.

As a rule, commercial banks in a country are supervised by the central bank, which acts as the government’s banker. Among other functions central banks have the sole right to issue banknotes and to license retail banks.

 

Words and word combinations you may need

apart from – не говоря уже о, кроме, не считая

have the sole right – иметь монопольное право

 

Task 6. Match the infinitives in A with the nouns in B.

A B

to carry out and to regulate a place

to perform loans

to license activities

to occupy funds

to buy money

to borrow intermediaries

to issue a role

to use banknotes

to act as an account

to play bills

to open a function

to provide cheques

to collect currency

to discount banks