Find the nouns in the word list and put them in alphabetical order.

ЗМІСТ

Передмова……………………………………………………………………………..
Unit 1…………………………………………………………………………………...
Unit 2…………………………………………………………………………………...
Unit 3…………………………………………………………………………………...
Unit 4…………………………………………………………………………………...
Unit 5…………………………………………………………………………………...
Unit 6…………………………………………………………………………………...
Unit 7…………………………………………………………………………………...
Unit 8…………………………………………………………………………………...
Unit 9…………………………………………………………………………………...
Unit 10………………………………………………………………………………….
Unit 11………………………………………………………………………………….
Unit 12………………………………………………………………………………….
Unit 13………………………………………………………………………………….
Unit 14………………………………………………………………………………….
Unit 15………………………………………………………………………………….
Unit 16………………………………………………………………………………….
Unit 17………………………………………………………………………………….
Unit 18 (Part I) ………………………………………………………………………...
Unit 18 (Part II) ………………………………………………………………………..
Unit 19………………………………………………………………………………….
Unit 20………………………………………………………………………………….
Unit21………………………………………………………………………………….
Література……………………………………………………………………………..

 

ПЕРЕДМОВА

 

Даний посібник призначений для студентів факультету «Обліку і аудиту» за спеціальністю «Фінанси». Посібник розрахований на студентів, які вже мають знання нормативної граматики англійської мови та словниковий запас загальновживаної лексики.

Навчальний посібник “Elementary Finance” має на меті забезпечити підготовку до самостійного читання, розуміння і перекладу наукових текстів на англійській мові в галузі фінансів, а також розвинення навичок усного мовлення, формування широкого професійного словника та навичок ведення бесіди у рамках професійної тематики. Система лексико-комунікативних вправ спрямована на свідоме практичне засвоєння мовних елементів фахового стилю.

Посібник складається із 21 розділу, які охоплюють широке коло питань організації та функціонування фінансової системи, банківської системи, фінансових ринків, податкової системи, фінансового менеджменту, аудиту, бухобліку, інвестиційної діяльності, міжнародних фінансових інститутів.

UNIT 1

scarce дефіцитний, рідкий

raw materials сировинні матеріали

entrepreneurship підприємництво

production of goods and services виробництво товарів та послуг

to bring about викликати, приводити (до чогось)

equitable справедливий

revenue прибуток (який получають від збору податків)

allocation розміщення

transaction угода

income прибуток

the law of supply and demand закон попиту та пропозицій

input ресурс що вводиться

output продукція, випуск

customer споживач

wants потреби

to allow дозволяти

social security соціальне забезпечення

rationing device механізм розподілення

production costs витрати виробництва

to be subject залежати від, бути схильним до

alternate чергування

fiscal policy бюджетно-податкова політика

monetary policy кредитно-грошова система

 

 

Find the nouns in the word list and put them in alphabetical order.

Work with the a list of new words as in the example(students have to name words by heart)

Student A: scarce

Student B: raw materials

Find the antonyms to the following words.

Widespread, unfair, collection, expenditure, expense, producer.

 

Find the verbs and put them in alphabetical order.

Make up sentences with these verbs.

6. Find the word combinations and make up sentences starting with the phrases:

I know…, It is very important to...

 

Read and translate sentences only with new lexis.

1. Scarcity of resources makes it necessary to save them.

2. The modern market economy is populated by three types of economic agents.

3. In free markets, prices direct allocations of inputs of firms…

4. Anyone who studies economics knows that…

5. They are subject to a business cycle that…

6. Another recent change has been in the growth of self-employment.

7. Given the scarcity of resources, the market functions as a rationing device with the price mechanism as its principal instrument.

8. The Industrial Revolution allowed Britain to become the first industrialized trading nation.

9. The rational solution of the problem brings about the maximum economic growth, full employment, equitable distribution of revenues, and social security of the needy.

 

Put in the missing letters.

s..arce, raw materi..ls, ent..epren..urship, production of go..ds and se..vices, equ..table distr..buti..n, rev..nu.., al..ocati..n, tr..nsaction, inc..me, the law of sup..ly and d..mand, inp..t, o..tp..t, c..stomer, to a..ow, social sec..rity, fis..al.

Work in pairs. One student has to name all the words he/she memorized from the word list another student has to translate them.

Exercises

Answer the questions.

1. What is characteristic of any society?

2. How can economic resources be classified?

3. What is the most efficient economic system?

4. How does the market operate?

5. What is the price determined by?

6. What role does the price mechanism play in free market economy?

7. What does the allocation of resources reflect?

8. Why is competition an important source of the market?

9. What do businesses compete for?

10. Are businesses totally free in their policies?

11. What is the business cycle?

12. What determines the economic environment?

 

2. Find in the text English equivalents for the following Ukrainian phrases:

Потреби людей зростають; ресурси, необхідні для потреб людей, обмежені; нестача ресурсів робить їх економію необхідною; використовувати ресурси найбільш ефективним образом; виробництво товарів та послуг; викликати максимальний економічний ріст; справедливе розподілення доходів; соціальне забезпечення потребуючих; вільне підприємництво-найбільш ефективна економічна система; установлювати контакти; вести справи; закон попиту та пропозицій; попит перевищує пропозицію; ціна має тенденцію до підвищування (зниження); виділення ресурсів; діяти від свого імені; ціновий механізм є основним інструментом ринку.

 

Checking facts and ideas.

Economics is a science about such things as

a) using the economic resources in an efficient manner;

b) determining what goods and services are to be produce;

c) distributing scarce resources among the industries producing goods and services;

 

d) eliminating the market competition;

e) studying the law of supply and demand

f) satisfying human needs.

11. Single out the main points of the text. Use the following opening phrases:

The text looks at (the problem of…)

The text deals with the issue of..

It is clear from the text that…

Among other things the text raises the issue of…

The problem of…is of great importance

One of the main points to be singled out is

Great importance is also attached to…

In this connection, I’d like to say…

It further says that…

I find the question of…very important because…

We shouldn’t forget that…

I think that…should be mentioned here as a very important…mechanism of….

 

Grammar exercises.

 

Unit 2

 

to match приводити відповідно до чогось, вирівнювати

effective demand дійсний (фактичний) попит

maintenance підтримування

fixed capital investment вкладення до основного капіталу

to single out виділяти, вибирати

mixed змішаний

to split ділити

non-profit making некомерційний

amenity обслуговування, зручності

natural monopoly природна монополія

capital costs капітальні затрати

disposable income чистий прибуток

durable тривале користування

 

1. Find the nouns and put them in alphabetical order.

Student A: scarce

Student B: raw materials

3. Find antonyms to the following words:

Profitmaking, discomfort, harm, uneconomic, different, reasonable, fall, low, fast, to spend.

 

Put the missing letters.

To ma..ch, ef..ctive, d..mand, ma..nt..nance, fixed cap,,tal inv..stm..nt, to sin..le o..t, am..nity, disp..sable, inc..me, d..rable.

 

9. Work in pairs. One student has to name all the words from word list he\she memorized another student has to translate them.

 

Answer the questions.

1. What are the functions of the economic system?

2. What are the peculiarities of mixed system?

3. What kinds of institutions should be controlled by the state?

4. What are the fields of nature monopolies?

5. Is the transport natural monopoly? Why?

6. Do the natural monopolies include nationalized institutions, municipal authorities, which provide the services required at reasonable price?

2. Find in the text English equivalents for the following Ukrainian phrases:

Можуть бути визначені як; розподіляти рідкі ресурси; забезпечувати збільшення вкладів до основного капіталу; проводиться приватними фірмами; решта видів діяльності проводяться державними підприємствами; бути привабливими для бізнесменів; соціально-передбачене обслуговування; обслуговування для користі громадян; занадто великі, щоб конкуренція була можлива; було б не економічно прокладати.

 

Checking facts and ideas.

1. The main task of economic system work does not include the definition what goods and services are to be produce.

2. The thought about fully utilizing the resources of society is false by itself.

3. In market economy such activities as supplying gas, electricity and water are conducted by state –owned enterprises.

4. Natural monopolies including transport are controlled by the state.

 

10. Single out the main points of the text. Use the following opening phrases:

The text looks at (the problem of…)

The text deals with the issue of..

It is clear from the text that…

Among other things the text raises the issue of…

The problem of…is of great importance

One of the main points to be singled out is

Great importance is also attached to…

In this connection, I’d like to say…

It further says that…

I find the question of…very important because…

We shouldn’t forget that…

I think that…should be mentioned here as a very important…mechanism of….

 

Grammar exercises

UNIT 3

 

provision забезпечення

saver вкладник

turnover оборотність

borrower позичальник

to comprise включати, охоплювати, утримувати

estimate оцінка, кошторис

tax податок

forecasting прогнозування

intermediary посередник

economic entity економічний суб’єкт

unit of government державна організація

surplus надлишок

thrift institution ощадна установа

mutual fund взаємній фонд

financial flows фінансові потоки

encouragement підтримка, стимулювання, заохочення

implementation здійснення

adequate planning розумне планування

 

Student A: scarce

Student B: raw materials

Put the missing letters.

Prov.s..n, tu..n..ver, econom..c ent.ty, su..pl..s, b..rrower, interm..d..ry, t..r..ft instit….n, m..tual f..nd, c..mpr..se, enco..rag..ment, impl..m..ntat…n, fo..casting, ade….ate pl..nning.

 

9. Work in pairs. One student has to name all the words he\she memorized from the word list

Exercises

1. Answer these questions:

1. What is finance and financial system?

2. What parts does finance comprise?

3. What functions does public finance perform?

4. What is a country's budget?

5. What does the process of budget preparation include?

 

2. Find in the text English equivalents for the following Ukrainian phrases:

Надання фінансових коштів; система грошових відношень; створення, розподілення та використання коштів; оборот коштів між суб’єктами економіки; мережа організацій: примусити зайві кошти працювати; бути зв’язаними фінансовими посередниками: включати дві складові частини; здійснення соціальної політики; основний інструмент фінансової системи; розрахунок прибутків та видатків; підготовка бюджету; планування поточних та капітальних видатків; макроекономічний вплив на бюджетно-податкову політику.

Checking facts and ideas.

1. An accurate forecast of revenue availability determines the adequate planning of recurrent and capital expenditure.

2. The budget has a deficit, when expenditure is higher than the revenue.

3. Public finance and finance of economic entities are two parts of economics.

4. Finance of economic entities is the provision of money to be spent by national and local authorities.

5. The encouragement of the growth of economy as a whole is one of the function of budget.

 

10. Single out the main points of the text. Use the following opening phrases:

The text looks at (the problem of…)

The text deals with the issue of..

It is clear from the text that…

Among other things the text raises the issue of…

The problem of…is of great importance

One of the main points to be singled out is

Great importance is also attached to…

In this connection, I’d like to say…

It further says that…

I find the question of…very important because…

We shouldn’t forget that…

I think that…should be mentioned here as a very important…mechanism of….

 

Grammar exercises

a) Supply the articles where necessary.

b) Write down 3-5 questions about the text.

c) Open the brackets putting the verbs in the correct form.

 

The World's Major Financial Centre

The financial heart of England (to be) the City. It (to be)... square mile in London on the bank of... Thames. In the centre there (to be) the Bank of England, and the head offices and foreign departments of other English banks.

It is... home of commodity, financial, and insurance markets that (to be) all concentrated in the narrow streets, which form the financial core of... City.

The position that the City holds is due in no small measure to the integrity of its members. The City (to be) jealous of its honour, punctilious in fulfilling its obligations and, where deals of thousands of pounds (to be) made merely by a word, is proud to make its word its bond.

The population of the City (to be) almost entirely... daytime one. Each morning about half a million people come in from north, south, east and west, and then as evening comes and business finishes they hurry home by... train, bus, car or... underground. Prior to 1914 this population (to be) almost completely

... male one, with top hat, black tail coat, black and white striped trousers, stiff-fronted shirt and stiff white collar. Two wars have changed all that. There (to be) probably as many women employed in the City as there are men these days.

From... earliest times the City has been ruled by its own elected Lord Mayor and Aldermen, and to this day... king or queen of England may not pass the bounds of the City until he or she has had permission of... Lord Mayor, and then he or she comes only as... guest.

Generally speaking, the City performs four financial functions:

a) the City gathers in... country's savings and provides channels and machinery for their investment;

b) it provides... safe, speedy and convenient means of payment without the actual use of banknotes or coins;

c) through the medium of... Foreign Exchange Market it makes it possible to exchange one currency for another;

d) it provides the organization to finance, transport, and insure foodstuffs, manufactures and raw materials on their way from producer to consumer.

 

Words you need:

core серцевина

jealous of its honour який ретельно захищає свою честь

punctilious пунктуальний

bond зобов’язання

stiff накрохмалений

striped смугастий

bound границя

medium засіб

 

Unit 4

 

expectations види на майбутнє, очікування

compile складати

cash готівка

expenses видатки, витрати

projection проектування, план

assets активи, капітали, фонди

to occur відбуватися

disbursement оплата, сума, яку сплачено

master budget підсумковий бюджет

cash budget касовий бюджет

capital budget бюджет капіталовкладень

 

Student A: scarce

Student B: raw materials

3. Find the word combinations and make up sentences starting with the phrases:

I know…, It is very important to...

 

Put the missing letters.

Exp..ct..tion, c..mp..le, exp..n..es, pro..ect, as..ets, to oc…ur, disb…rs..ment, b..dg..t.

 

Exercises

Answer the questions.

1. What is the budget?

2. In what ways do short-term and long-term financial forecasts differ?

3. What is the organization’s purpose in preparing budget?

4. Can you identify at least three different types of budget?

5. What is an operating budget?

6. What is a capital budget?

7. What is a cash budget?

8. What is a master budget?

9. What is the role of financial planning?

 

2. Find in the text English equivalents for the following Ukrainian phrases:

Фінансовий план; фінансові види на майбутнє; ретельно спланований бюджет; керівництво для фінансової діяльності; складати річний бюджет; фінансові прогнози; визначається робочим бюджетом; касовий бюджет; встановлення фінансового контролю; відбуватися на протязі тривалого періоду часу.

Checking facts and ideas.

1. Final step in financial planning is to establish financial control.

2. A cash budget includes current expenses on supplies, travel, rent, advertising, salaries.

3. A master budget summarizes the proposed financial activities of the firm.

4. Any firm can operate without compiling a budget.

5. A capital budget directs to the receiving of profit from long-term capital investment.

6. Financial planning shows how to allocate funds to get revenue.

 

Grammar exercises

Use the correct verb form.

1. Financial planning (to play) an important role in the operation of the firm.

2. The finance manager must also be sure, that the company (do not) lose so much money to bad debts.

3. This function (to be) critical to all types of business.

4. Chrysler Corporation (to have) a lot of problems in late 1970s.

5. We (to be) future financiers.

6. Taxes (to represent) an outflow of cash from the business and must be paid.

 

Unit 5

 

to be treated трактуватися

offsetting changes зміни, які компенсують

excessive надмірний

to roll forward переносити

to negotiate вести переговори

to facilitate полегшувати, сприяти

to impact впливати

to levy обкладання податком, стягування

fine пеня, штраф

donation дар, грошове пожертвування

to outlay витрачувати

requited зворотний

multiyear budget багаторічний бюджет

 

Student A: scarce

Student B: raw materials

Put the missing letters.

Of…set, neg..ti…te, exce..sive, faci…te, don..on, re…u…ted, out…y, rol.., lev…, f..ne.

Read the text and say what you know about the use of multiyear budgeting and budget classi­fication.

Multiyear Budgeting and Types of Budget Classification

It has become quite common for ministries of finance around the world to practice some variety of multiyear budgeting. For example, Canada, Germany and the United Kingdom all have multiyear expenditure plans which get reviewed and approved every year. In these countries, the starting point for the next year's budget is the expenditure level approved for this year in the multiyear expenditure plan. Any changes to these previously approved levels have to be treated as additions to the budget, to be financed by raising total spending or by making offsetting changes in other programs. In Germany, the annual budget is integrated in a multiyear financial plan, which is presented to parliament at the same time the annual budget is presented.

The most important objective of the multiyear financial plan is to monitor the possible existence of excessive demands on public resources.

In Canada, each year the federal government reviews and rolls forward the Fiscal Plan which comprises in more detail the current fiscal year and three more years. Each spending unit develops its own multiyear expenditure plan with the levels needed to keep the current level of services running for the next three years, which are then negotiated with the Treasury Board.

In the United Kingdom, the multiyear public expenditure survey also covers the next three fiscal years.

Even when they do not have multiyear expenditure plans other countries carry out forecasts of the financial consequences of current expenditures (for example, the future liabilities implied by increases in pension plans) or capital investment projects (such as future expenditure on maintenance and operation). For example, in Denmark, there is an appendix to the annual budget showing the expenditure level for the next three years.

A system of budget classification enables the myriad government operations and transactions to be organized into relatively homogeneous categories that facilitate the analysis of the impact, nature, and composition of revenues, expenditures, and other financing activities of government.

On the revenue, taxes are classified by the type of activity on which the tax is levied (income, sales, property and so on). Other current non-tax revenues are classified by the nature of the inflow, such as income from government property, sales proceeds, fines, and donations. Capital revenues are classified by the type of asset sold.

Grants are distinguished by whether they come from domestic or foreign governments and international institutions and whether they are for current or capital purposes.

On the expenditure, outlays are frequently classified by the responsible institution or organization. The two most useful types of classifications of government expenditures are the functional classification and the economic classification.

In functional classification, expenditures (and lending) are classified according to the main purpose or function, such as defense, education, and health. The three-level Classification of the Functions of Government published by the Statistical Office of the United Nations is commonly accepted. The value of functional classifications is that they permit analysis of trends in government expenditures even when the organizational structure of government changes.

The economic classification groups expenditures into current and capital and by whether they are requited or unrequited; if requited, for what kind of goods and services, and if unrequited, by the type of person or institution receiving the payment. The objective is to show the kinds of transactions through which the government performs its functions and their impact on markets, financial conditions, and the distribution of income. These transaction categories are wages and salaries, purchases of goods and services, interest on the debt, subsidies to enterprises, transfers to households and other gov­ernments, and lending.

One of the most useful ways to analyze government outlays is by means of a cross-classification by economic character and function. This classification reveals the means by which government performs its functions and the impact these activities will have on the rest of the economy.

Words you may need:

functional classification функціональна класифікація

economic classification економічна класифікація

cross-classification перехресна класифікація

Exercises

1. Answer the questions:

1. How often are the multiyear expenditure plans reviewed and approved?

2. What is the starting point for the next year’s budget?

3. How can we call changes to the previously approved levels?

4. What is the most important objective of the multiyear financial plan?

5. What are the differences between the multiyear financial plan of Germany, Canada and Great Britain?

6. What is the aim of budget classification system?

7. How are taxes classified?

8. What are the most useful types of government expenditures classification?

9. What are the differences between functional and economic classifications?

 

Checking facts and ideas.

1. It should be stressed that country can’t develop successfully without multiyear budget.

2. The annual budget must be reviewed and approved.

3. In Germany, the annual budget is integrated in a multiyear financial plan and it is presented to parliament before the studying of multiyear plan.

4. It would not be true to affirm, that forecast of the financial consequences of current expenditures is the same as a multiyear financial plan.

5. A system of budget classification has only a theoretical meaning and nothing else.

6. Functional classification has the same theoretical meaning as economic classification.

 

9. Single out the main points of the text. Use the following opening phrases:

The text looks at (the problem of…)

The text deals with the issue of..

It is clear from the text that…

Among other things the text raises the issue of…

The problem of…is of great importance

One of the main points to be singled out is

Great importance is also attached to…

In this connection, I’d like to say…

It further says that…

I find the question of…very important because…

We shouldn’t forget that…

I think that…should be mentioned here as a very important…mechanism of….

 

Grammar Exercises

 

1. a) Fill in each gap with a suitable word from the box.

repaid supply occur reliance adversely reduced leads bank limit

b) Find in the text Participle I and the ing-form of a verb. Define their functions in the sentences.

c) Sum up the text in 5-7 sentences and present your summary in class.

Financing the Deficit

Since the early 1970s quite a number of countries have been experiencing serious financial problems which have caused growing budget deficits.

Trying to find solutions to swollen budget deficits, governments undertake austerity programmes, work out harsh budgets, implement macroeconomic stabilization, establish priorities for government spendings, analyse effects of different ways of financing their budget deficits.

In principle, budget deficits may be….. by borrowing from domestic bank and nonbank sources, and from the rest of the world. Excessive…. on any of these methods of finance may be dangerous because:

• Government borrowing from the central….directly affects the monetary base and the money……. Excessive growth in the money supply leads to high inflation rates and balance-of-payments problems.

• Substantial borrowing from the nonbank sector may ….affect the structure of demand and growth potential. In particular, this borrowing may…..the availability of resources to finance private investment. Such "crowding out" of private investment may….through the impact of government borrowing on domestic interest rates.

• Reliance on external finance….to the accumulation of debt, which needs to be serviced and eventually…….

A prudent fiscal policy permits a public deficit, but it must be maintained at a level consistent with other macroeconomic objectives: controlling inflation, promoting private investment, and maintaining external credit worthiness.

Words you may need:

austerity programme програма жорстокої економії

harsh жорсткий, суворий

"crowding out" витиснення приватних інвестицій державними витратами

Unit 6

 

 

to enable надавати можливість

coin монета

bill банкнота

currency валюта, гроші

account рахунок

deposit вклад, депозит

to store зберігати

to measure вимірювати

transaction угода

demand deposit безстроковий вклад

to withdraw вилучати, забирати

the supply запас

1. Find the nouns and put them in alphabetical order.

Student A: scarce

Student B: raw materials

3. Find antonyms to the following words:

To spend, to give, to buy, quickly, to build, to receive, similar, possible, heat, ancient, rare.

 

Put the missing letters.

To..n..ble, bil, c..r..enc.., c..n, ac…nt, withd…w, d..p..sit, to m..sure, tr..s..tion.

 

Exercises

Answer the questions.

1. What do we understand under the term “money”?

2. What does money do for people?

3. What were the analogues of money?

4. What do we understand under the term “currency?”

5. What are the functions of money? Describe them.

6. What is liquidity?

7. Money is said to have a time value. What exactly does it mean?

2. Find in the text English equivalents for the following Ukrainian phrases:

Загальноприйнятий; засіб сплати; гроші надають нам можливість; на протязі усієї історії; серед багатьох ранніх культур; хутра та шкіра; коштовні метали; сплата, яка прийнята; засіб обміну; вимірювання відносної вартості; засіб накопичування; отримати гроші за свої послуги; може у свою чергу; двом різним товарам; на однаковій основі; грошова маса; кількість грошей; концепція ліквідності; безстроковий вклад; терміновий депозит.

 

Checking facts and ideas.

1. The concept of liquidity underlies in the measuring of money supply.

2. Barter is a modern form of the society existing.

3. A medium of exchange means that money can serve as a way of exchanging without using barter.

4. Any thing can realize the function of money.

5. Money determines the real value of things.

6. We can define money as currency.

 

Grammar exercises

Unit 7

 

 

fiscal management керування державним бюджетом

fiscal sphere бюджетно-податкова політика

major guidelines основні напрямки

long-term довгостроковий

attainment досягнення

to exacerbate погіршуватися

unsustainable постійний; який важко ліквідується

fiscal policy бюджетно-податкова сфера

fiscal deficit дефіцит бюджету

revenue-raising powers повноваження з збирання прибутків

to justify виправдовувати, вважати доцільним

to create створювати

to administer taxes керувати збиранням податків

to define визначати

 

Student A: scarce

Student B: raw materials

3. Find antonyms to the following words:

Destroy, short-term, improve, unjust, unimportant, unemployment, worst, universal, decline, wealth, simple.

 

Put the missing letters.

s..ere, r...fuse col..ect..on, exa..erbate, unsust….nable, gu…del..nes, ju..tify, at..a..nment, cre..te.

 

Exercises

1. Answer these questions:

1. What does the notion "financial policy" mean?

2. Do many countries face financial problems these days? What are they?

3. What is fiscal policy?

4. What fiscal trends have been registered in the industrial countries since the early 1970s?

5. What does the effectiveness of fiscal management imply?

6. What is fiscal federalism?

7. What has been done in Ukraine so far in the field of fiscal relations?

8. What expenditure responsibilities are practiced in Ukraine?

9. What measures should countries facing unsustainable fiscal deficits take?

 

2. Find in the text English equivalents for the following Ukrainian phrases:

Заходи,які направлені на…; створити відповідний механізм; направляти діяльність; забезпечити досягнення основних економічних показників; ефективне використання ресурсів; проблеми загострилися; рівень, який держава не може більше підтримувати; роздутий бюджетний дефіцит; прийняти політику; фінансова стабілізація; керування державним бюджетом; інформаційні потоки; повноваження з збирання прибутків; контроль за витратами.

 

Checking facts and ideas.

1. Tax and expenditure policy issues are central to an effective fiscal policy.

2. Fiscal policy is the system of taxation and public expenditure in which revenue-raising powers and control over expenditures are vested in various levels of government within a nation.

3. Fiscal federalism is a system adopted by a government for raising revenue to meet expenditures.

4. Public debts make to stimulate efforts by policymakers to find solutions to swollen budget deficits.

 

10. Single out the main points of the text. Use the following opening phrases:

The text looks at (the problem of…)

The text deals with the issue of..

It is clear from the text that…

Among other things the text raises the issue of…

The problem of…is of great importance

One of the main points to be singled out is

Great importance is also attached to…

In this connection, I’d like to say…

It further says that…

I find the question of…very important because…

We shouldn’t forget that…

I think that…should be mentioned here as a very important…mechanism of….

 

Grammar exercises

 

1. a) Supply the articles where necessary.

b)Write down 3-5 questions about the texts.

c) Compare the problems the two countries are trying to solve.

 

 

a) Financial Policy

"... term is broad and its definition is likely to differ somewhat from country to country. On the widest definition, it covers... fiscal policy (budgetary policy, i.e. policy on government revenues and expenditures), monetary policy, credit policy and management of government debt. The core of financial policy is fiscal policy. Some economists believe that fiscal policy is synonymous with... state budgetary policy. There exists, however,... wider definition that would cover the policy on the level and composition of all central and local government revenues and expenditures.

Financial policy whose main goal is provision of financial resources for... implementation of... state programmes of economic and social development is part of... complex of economic policies influencing... level and pattern of economic activity and income distribution.

The economic policy of... Ukraine is aimed at creating conditions for sustained economic growth by reducing... inflation, by ensuring... free operation of markets of goods and factors of production, by achieving... balance of payments stability. These goals can be achieved mainly by elaborating and implementing... adequate fiscal policy.

The fiscal policy implemented these days in Ukraine presupposes first of all the reform of... budget. The ongoing budget reform includes... shift to the new budget classification, introduction of... better system of interbudgetary relations, changes of budget planning principles, shift to... treasury system of budget execution. Over... last few years the collection of tax revenue has tended to fall. Thus the Government's fiscal adjustment programme provides for a package of measures aimed at increasing revenue collection through the reform. Attention is being paid to improvement of... tax legislation. The new tax administration system shall meet... following requirements: broad tax base, well-balanced system, equitabable and transparent character, symplicity of administration. The main aim of... tax reform is to strengthen... budget, to provide financial resources for the budget system in the amount necessary to

finance... state spendings for... state apparatus, for defence, health care, and... culture.

Words you may need:

management of government debt керування державним боргом

core серцевина

treasury system of budget execution казначейська система виконування бюджету

 

 

b) Fiscal Policy in the UK

Fiscal policy in... UK is guided by two strict rules:

·... Government will borrow only to invest and not to fund current spending; and

· net public debt as... proportion of GDP will be held at...stable and prudent level.

· These rules mean that... taxpayers pay for... current spending and require public borrowing to be kept under firm control.

· The Finance Act 1998 established a new Code for Fiscal Stability, which requires fiscal and debt management policy to be carried out in accordance with five key principles:

· transparency in setting fiscal policy objectives, the implementation of fiscal policy and the publication of the public accounts;

· stability in... fiscal policy-making process and in... way that fiscal policy affects... economy;

· responsibility in the management of the public finances;

· fairness, including between... generations; and

· efficiency in the design and implementation of fiscal policy, and in managing both sides of... public sector balance sheet.

· In practice it means that the public finance and fiscal strategy in... UK will be aimed at setting overall spending limits for individual departments and planning and controlling public expenditure more strictly within... framework of capital and current budgets.

2. Open the brackets putting the verbs in the correct form:

Transition economies recently (to make) impressive steps towards reducing fiscal imbalances. Cuts of cash expenditure (to bring) about a decline of fiscal deficits for the CEE countries as a whole to about 4 per cent of GDP in 1995 from 10 per cent in 1994 on average. This was mainly the result of large reductions in enterprise subsidies, military spending, and capital expenditures. Despite these spending cuts, however, outlays for social services (such as schools and hospitals) and social security (to remain) relatively stable, relative to GDP. Over the same period, general government expenditures (to fall) on average to 30 per cent of GDP from 38 per cent. While the economies in transition (to make) solid progress over the past few years toward fiscal consolidation, macroeconomic stabilization (to require) additional reduction of inflation and successful implementation of:

• structural reforms, including reform of the tax system and the public expenditure system;

• improved revenue collection through elimination of loophole, tax evasion and exemptions, broadening of the tax base;

• greater political leadership of the reform process - especially by formulating long-term fiscal adjustment policies.

Words you may need:

transition economies країни з перехідною економікою

on average у середньому

loophole лазівка

tax evasion відхилення від сплати податків

leadership керування

 

Unit 8

 

visible trade видима торгівля

invisible trade невидима торгівля

transfer payments трансфертні платежі

remittance переказ (грошовий)

unrequited exports некомерційний експорт

to settle a debt урегулювати борг

balancing збалансованість

invisible earnings надходження від невидимого експорту

merchantile marine торгівельний флот

to offset компенсувати, зводити на ні

balance of payment платіжний баланс

current account поточний рахунок

capital account рахунок руху капіталу

tangible матеріальний

 

Student A: scarce

Student B: raw materials

3. Find word combinations and make up sentences starting with the phrases:

Touching the problem, taking into consideration

 

Put the missing letters.

a)B..lance of p..ment, of..set, trans…r, p..ment, v..s..ble tr..de, inv..s..ble e..nings, m..ch..nt m..r..ne.

Make word combinations.

b)Merchantile …., invisible …., capital …, account …, balance of …., ….. a debt, …. Earnings, unrequited …., transfer ….

 

Read the text and find the definition of a country's balance of payments and the explanation of what the "current account" and "capital account" are.

Balance of Payments

Balance of payments is a country's set of accounts with the rest of the world, reflecting the relation between the payments of all kinds made from one country to the rest of the world and its receipts from all other countries. The accounts can be divided into the current account and the capital account. The current account is that part of the balance-of-payments account which shows all payments made or received in respect of goods and services, including payments of interest on past lendings or borrowings.

Thus, the current account or the balance of trade consists of several items:

• Visible trade is the imports and exports of tangible goods such as plant and machinery, consumer goods, raw materials.

• Invisible trade is trade in services such as banking, insurance, transportation and tourism.

• Transfer payments are things like the remittances of migrant workers to their homeland and the payment of dividends and interest to foreign companies, governments and international organizations.

• Unrequited exports are exports which are not exchanged for current imports, but the value of which pays interest on loans raised abroad, or profits on investment made in the home country by foreigners.

The capital account is that part of the balance of payments account which shows all payments made or received by way of settling old debts or creating new debts. It deals with financial transactions. The capital account consists of long-term investment - either direct foreign investment (e.g. a company in one country buying a company in another), or portfolio investment (e.g. a foreigner buying shares on Wall Street) - and short-term capital flows of "hot money".

Many countries are faced with a severe balance-of-payments problem which arises from different local circumstances.

Britain, for instance, is a densely populated island and it has few natural resources left. Britain has problems to supply industry with its requirements. They have to import large quantities of food, minerals, timber, etc. In exchange, they sell large quantities of manufactured goods. Thus, the balancing of imports and exports is a permanent problem to the Government. The Treasury keeps the balance of imports and exports constantly under review.

The visible trade balance is almost always an adverse one and they should be permanently in debt to other countries were it not for the invisible items which are a second source of foreign earnings.

Britain's surplus on invisible earnings arises partly from their traditional skills and services, particularly in commerce, banking, insurance and finance. It also arises from Britain's overseas holdings of property and business enterprises. Besides, in Britain, with its large merchantile marine the earnings from shipping are an important source of foreign revenue.

In the US, exports of manufactured goods and farm goods are more than offset by imports of raw materials, especially oil.

Governments may influence the balance of payments through measures of fiscal policy or monetary policy designed to affect levels of domestic demand or interest rates.

 

Exercises

1. Answer the questions:

1. Explain the meaning of the word combination “balance of payment”.

2. What types of account do you know?

3. What is the current account?

4. Is it true, that the current account and balance of trade have the same meaning?

5. What does the current account consist of?

6. How do you understand the meaning of the word combination “unrequited exports”?

7. What is the capital account?

8. What is the difference between capital account and current account?

9. What is the visible trade?

 

2. Find in the text English equivalents for the following Ukrainian phrases:

Взаємовідносини, які відображають; надходження матеріальних товарів; які включають відсоткові платежі; відправлення іноземних працівників додому; шляхом виплати старих боргів; довгостроковий вклад; стоять обличчям перед жорсткою; місцеві обставини; постійна проблема; у полі зору; за допомогою засобів бюджетно-налогової політики.

 

Checking facts and ideas.

1. The definition of current account has the same meaning as the definition of capital account.

2. The current account shows all payments dealing with debts.

3. The capital account shows all payments made or received in respect of goods and services, including payments of interest on past lendings or borrowings.

4. Visible trade is trade in services.

5. Invisible trade is the imports and exports of intangible goods.

6. Many countries are faced with a severe balance of payments problem which arises from different external circumstances.

7. The balancing of imports and exports is a constant problem of the Government.

8. Visible trade is the imports and exports of pecuniary goods.

9. Single out the main points of the text. Use the following opening phrases:

The text looks at (the problem of…)

The text deals with the issue of..

It is clear from the text that…

Among other things the text raises the issue of…

The problem of…is of great importance

One of the main points to be singled out is

Great importance is also attached to…

In this connection, I’d like to say…

It further says that…

I find the question of…very important because…

We shouldn’t forget that…

I think that…should be mentioned here as a very important…mechanism of….

 

Grammar Exercises

Translate sentences.

 

1. Виробництво може бути рентабельним, якщо як матеріальні так і нематеріальні активи знаходяться у правильному співвідношенні.

2. До довгострокових матеріальних активів відносяться такі речі, як земля, нерухомість та обладнання, тому що вони приймають участь у процесі виробництва на протязі тривалого часу.

3. Можна використовувати поточні матеріальні активи, наприклад, рахунки дебіторів, як засіб сплати.

4. Рахунок руху капіталу є частиною рахунку платіжного балансу, який показує всі виплати, які були зроблені або отримані шляхом сплати старих богів або створенням нових.

5. Невидима торгівля це торгівля послугами, такими як туризм, страхування, перевозка.

 

Unit 9

 

 

central banking system система центрального банку

money supply грошовий обсяг, кількість грошей у обігу

lender кредитор

lender of last resort останній кредитор у критичній ситуації, центральний банк

exchange rate курс обміну

to intervene втручатися

foreign exchange market ринок іноземної валюти

reserve requirements резервні вимоги

to oblige зобов’язувати, примушувати

deposit вклад

"prudential ratios" «коефіцієнт розсудливості»

liquid ratio відношення ліквідних активів банків до сумарних депозитів

target ціль, контрольна цифра

open market operations операції на відкритому ринку

term of office термін повноважень

money in circulation гроші в обігу

to make sure забезпечувати, гарантувати

to accept акцептувати (дати згоду)

check clearing кліринг чеків (взаємозалік)

worn currency старі банкноти

security цінний папір

to maintain accounts вести рахунки

transfer of funds грошовий переказ

to prevent попереджувати

broad powers широкі повноваження

regulation(s) правила, інструкції

to be aimed at doing smth.. бути направленим на…

sound business practice чесна практика ділових відносин

fraction частина, доля

to lend позичати

government bond державна облігація

stock market crash крах фондової біржі

Student A: scarce

Student B: raw materials

4. Find word combinations and make up sentences starting with phrases:

It seems to me that…; It is difficult to give answer….

 

Put the missing letters.

m..ney s..pply, res..rv.. re..u..rements, li..uid r..tio, a..ept, t..rm of of..ce, re..ulat..on, ex..ange r..te, s..curity, w..rn c..r,,ency, to ma..nta..n ac..unts, pr..vent, fr..ction, cr..sh.

 

Exercises

1. Answer these questions:

1. What is the major sector of any modern monetary system?

2. What are central banks responsible for?

3. What functions do central banks perform?

4. What is done to ensure the safety of a banking system?

5. Why are "prudential ratio