Money and economic relations

Key Words and Phrases:

1. money – гроші 2. price – ціна 3. value – цінність 4. wage – заробітна плата 5. fee – гонорар 6. exchange – обмін, розмінювати 7. relations – відносини 8. co-operation – співробітництво 9. activity – діяльність 10. partner – партнер 11. credit – кредит 12. offer – пропозиція 13. negotiations – переговори 14. cheque – чек 15. banknote – кредитний білет, банкнот 16. to sell things – передавати речі

17. to buy things – купувати речі 18. to keep money – тримати гроші 19. to put money – вкладати гроші 20. means of storing up – засіб накопичення 21. to be heavy with orders –мати багато замовлень 22. to clarify some details – з’ясовувати деякі деталі 23. a repeat order – повторне замовлення 24. to settle prices –домовитися про ціни 25. to establish trade contacts – встановити торговельні контакти 26. barter relations – бартерні стосунки 27. to deal with a bank – користуватися послугами банку 28. recipient country – країна, яка одержує допомогу 29. aid-giving country – країна, яка надає допомогу

Read and translate the text:

In the modern world money has various uses. For selling and buying things, all modern people use money. Money gives us a useful means of measuring the value of things. Money is also of very great use as a means of exchanging goods and services. Money is a way to store up buying power that one can use later. If we consider money as a means of storing up buying power, it has good and bad points. Money can more easily be kept a long time than such things as food, buildings and machines. Food spoils, buildings fall to pieces and machines rust. Money takes up very little space and if we want we may put it in a bank.

But modern money has some very serious disadvantages if we use it as means of storing up buying power. In earlier times when money was in the form of gold and silver coins, the metal in each was really worth the amount stamped on the coin. But the paper in modern paper money is worth much less than the amount written on it. In a short time the buying power of modern money can change very greatly and because of that, some people are doubtful about the wisdom of saving money.

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Exercises in Reading and Comprehension.

 

1. Make up sentences:

 

Money

is has

The root of all evil A measure of the value of goods A means of exchanging goods The guarantee of security A way to store up buying power Various uses in the modern world Good and bad points Some very serious disadvantages

 

2. Fill in the blanks with the necessary words:

 

1. Synthetic materials have become cheaper, since the … of production are lower now. (value, cost, price) 2. Sometimes it is easy to make plans but difficult … them. (to find, to show, to carry out) 3. The money which he … from his parents did not arrive. (expected, respected, avoided) 4. It is obvious that a primitive system of exchanging goods for goods cannot … the needs of a highly developed economic system. (satisfy, occupy, justify) 5. He was known for his … to solve most complicated problems very quickly. (opportunity, ability, difficulty)

 

3. Compose questions and let your fellow-students answer them:

 

Price Money Cost Market Currency Purchase

Is

a measure of the value of goods money for which a thing is bought or sold price to be paid for a thing place where people meet to buy and sell goods a particular type of money used in a state quantity of smth given in return for the money paid

 

4. Complete the following sentences:

 

1. Has money various …? 2. Money is a means of …. 3. By means of money things can be …. 4. Time is …. 5. Money is the root ….

 

 

5. Translate into English:

 

1. Прямий обмін товарами неможливий у розвинутому суспільстві. 2. Для того, щоб розвивалася торгівля, мають існувати гроші. 3. Купівельна спроможність грошей у наш час дуже швидко змінюється. 4. Ми успішно провели переговори з цього питання. 5. Монети виготовляють із різних металів.

 

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6. Give synonyms to the words in bold type:

 

1. Some countries have agreed to reduce oil production to keep the price on the same level. 2. The purchasing power of the dollar is falling. 3. We agree to the terms of your contract. 4. If some problems arise in the process of work we shall deal with them. 5. The cost of living has risen, whereas wages have remained the same.

 

Unit 3.

 

ACCOUNTING

Key Words and Phrases:

1. accounting – бухгалтерія 2. record – запис, документ 3. to record – записувати 4. to measure – вимірювати 5. transaction – угода 6. firm’s financial condition – фінансовий стан фірми 7. to provide data – надавати дані 8. independent analysts – незалежні аналітики 9. income statement – прибутковий звіт 10. balance sheet – балансовий звіт

11. ratio analysis – аналіз коефіцієнтів 12. profitability – прибутковість 13. return on Investment Ratio – аналіз повернення інвестицій 14. efficiency – продуктивність 15. to evaluate – оцінювати 16. value – ціна, вартість 17. ownership – власність 18. overall financial structure – загальна фінансова структура

 

 

Read and translate the text:

 

Accounting shows a financial picture of the firm. An accounting department records and measures the activity of a business. It reports on the effects of the transactions on the firm’s financial condition. Accounting records a very important data. It is used by management, stockholders, creditors, independent analysts, banks and government.

Most businesses prepare regularly the two types of records. That is the income statement and balance sheet. These statements show how money was received and spent by the company.

One major tool for the analysis of accounting records is ratio analysis. A ratio analysis is the relationship of two figures. In finance we operate with three main categories of ratios. One ratio deals with profitability. For example, the Return on Investment Ratio. It is used as a measure of a firm’s operating efficiency.

The second set of ratio deals with assets and liabilities. It helps a company to evaluate its current financial position. The third set of ratio deals with the overall financial structure of the company. It analyses the value of the ownership of the firm.

 

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Exercises in Reading and Comprehension.

 

Choose the necessary word and put it on the sentence.

 

1. An accounting helps … the activity of a business.

2. Do you know the effect of your last … on financial condition of the firm?

3. Accounting records provide … for stock-holders, independent analysts.

4. The second type of ratio helps the company … its current financial position.

5. … is one of two main records which most of the businesses prepare regularly.

6. The … of the company includes the real estate in California.

7. I am sure of the … of this transaction.

8. Our company’s current … is very high.

9. They … from the association with that corporation.

______________________________________________________________

To profit, profit, efficiency, ownership, to evaluate, transaction, data, income statement, to measure

Unit 4.

 

BOOKKEEPING

Key Words and Phrases:

1. company’s daily transactions – щоденні угоди компанії 2. a purchase – купівля 3. a debt – борг 4. expenses – витрати 5. a separate account – окремий рахунок 6. double-entry bookkeeping – подвійна бухгалтерія 7. a deduction – віднімання

8. raw materials – сировина 9. a corresponding increase – відповідне зростання 10. to owe – боргувати 11. a consumer – споживач 12. a customer – клієнт, покупець 13. to be equal – дорівнювати

Read and translate the text:

 

Zaheer Younis works in the accounting department of a trading company:

‘I began my career as a bookkeeper. Bookkeepers record the company’s daily transactions: sales, purchases, debts, expenses, and so on. Each type of transaction is recorded in a separate account – the cash account, the liabilities account, and so on. Double-entry bookkeeping is a system that records two aspects of every transaction. Every transaction is both a debit – a deduction – in one account and a corresponding credit – an addition – in another. For example, if a company buys some raw materials – the substances and components used to make products – that it will pay for a month later, it debits its purchases account and credits the supplier’s account. If the company sells an item on credit, it credits the sales account, and debits the customer’s account. S this means the level of the company’s stock – goods ready for sale – is reduced, it

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debits the stock account. There is a corresponding increase in its debtors – customers

who owe money for goods or services purchased – and the debtors or accounts payable account is credited. Each account records debits on the left and credits on the right. If the bookkeepers do their work correctly, the total debits always equal the total credits’.

Exercises in Reading and Comprehension.