Using the example change the underlined part of sentences.

a) I think they can get a loan. – They are likely to get a loan.

1. With a financial panic, you can be sure \ certain that most depositors will want to withdraw their deposits all at one time.

2. It seems, banks are able to offer interest on checking accounts in some countries.

3. Each individual’s expenditure necessarily adds to some other individual’s income.

4. It seems to me that banks started offering trust services in the early 1980s.

 

b) We expect the banks to make the transaction within a day. – The bank is expected to make the transaction within a day.

1. Everyone knows computer technology to have had a great effect on the work of the Stock Exchange.

2. It is said that Simons and Co. have settled all their debts.

3. Everyone believes the firm’s debts to have reached an unacceptable level.

4. Financial policy is based on strategic guidelines which set long-term and medium-term prospects for using financial resources and ensure attainment of major economic targets and solution of goals in the social sphere.

 

balance of payments платіжний баланс

current account поточний рахунок

capital account рахунок руху капіталу

 

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

 

Arrange the words 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

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

Touching the problem, taking into consideration

 

Read and translate sentences only with new lexis.

1. The visible trade balance is almost always an adverse one.

2. It also arises from Britain’s overseas holdings of property and business enterprises.

3. The accounts can be divided into the current account and the capital account.

4. At a practical level, macroeconomics attempts to accomplish three tasks.

5. Invisible trade is trade in services.

6. Unrequited exports are exports which are not exchanged for current imports.

7. It is usually done with the help of macroeconomics research.

8. Economic laws can be changed.

 

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.