Write the transcription and train the pronunciation of the following words. Memorize them.

receipts advantage approach repair predictable although higher

load figure typically mortgage range overall establish

installment necessary utilities enough quality shoot entire

Practice the reading of the following groups of words.

last six months for all your bills is that it factors need to get

for a total debt get a better rate in unexpected certain amount

rent and utilities at a high-enough level since this figure whatever’s left toward

Compose your own sentences using the following models and the words from helpful vocabulary. Mind the tenses.

1. __________________ before ______________.

2. __________________ after ________________.

3. __________________ when _______________.

4. _________________ if ___________________.

5. _________________ till __________________.

6. _________________ until _________________.

7. _________________ as soon as _____________.

Using the following models compile sentences of your own. Don’t forget to use vocabulary words.

1. You probably know how to ______________________.

2. You probably know that _________________________.

3. Generally speaking ______________________________.

4. ________________________ in stead of _____________.

5. Since _________________________________________.

6. It’s possible to __________________________________.

7. It’s impossible to ________________________________.

8. It is not possible _________________________________.

9. It may be necessary to _____________________________.

Translate the sentences, define the tense form of the predicate and compose special questions.

1. One advantage of this approach is that it factors in unexpected expenses.

2. Lenders look for a total debt load of no more than 36 percent of income.

3. You need to get the rest of installment debt down to between 8 percent and 10 percent of your total income.

4. You’ll probably see some great ways to save.

5. It has been possible to get a mortgage with only 5 percent down.

6. He always made payments by the due date.

7. This figure includes your mortgage, which typically ranges between 25 – 28 percent of income.

8. She has decided on a certain amount a month she wants to save.

9. We will have got a better rate and a lower overall cost.

10. At that moment they were writing down everything they spent for one month.

Guess what is meant.

1. A piece of paper that you are given which shows that you have paid for something.

2. A person or organization that lends money to people on condition that they pay it back.

3. The sum total of all the money you owe: mortgage, student loans, credit cards, even loans from friends and family.

4. A legal arrangement by which you borrow money from a bank or similar organization in order to buy a house, and pay back the money over a period of years.

5. A service (such as a supply of electricity or water) that is provided to the public.

6. A first payment that you make when you buy something with an agreement to pay the rest later.

7. A small plastic card that is used to buy things that you agree to pay for later.

8. The day by which something must be done or paid.

9. A document that says how much money you owe for something you have bought or used.

10. Money that is earned from work, investments, business, etc.

 

Fill in the gaps with the appropriate word. Translate the sentences.

lenders, down payment, total debt load, mortgage, interest rates, utilities, bill, income, bills, bill, earns, due date, job

1. Farming is his main source of …….

2. Even on two incomes, we're having a hard time keeping up with our …..

3. He ….. a good income as a consultant.

4. He paid the telephone …..

5. I've been having a hard time paying the bills since I lost my ….

6. The waiter gave us our …..

7. Add the amount I now owe to what I already owe and I will pay the … later.

8. Tomorrow's the …. for our electricity bill. (the bill must be paid by tomorrow)

9. She made a 10 percent … on the car.

10.Many of these people are in danger of having their … shut off for nonpayment. (of no longer getting electricity, water, etc., in their homes because they have not paid their bills)

11.They've taken out a 30 year …. (they will pay for their house over a period of 30 years).

12.Several … are offering very attractive …. at the moment.

Translate into English.

1. Маргарет собирает чеки, чтобы составить бюджет того, что она потратила за последние три месяца. Она точно (for sure) знает сколько платит за аренду и коммунальные услуги.

2. Джек ищет вторую работу. Он хочет увеличить свой доход.

3. Сергей оплатил свои счета до установленной даты.

4. Невозможно разобраться со своим бюджетом.

5. Кэйт добилась снижения процентной ставки.

6. Света создала хорошую кредитную историю, так как всегда своевременно платила.

7. Я внесу б о льшую сумму, если получу стипендию вовремя.

8. Они не смогли внести очередной взнос по кредиту, который брали на обучение.

9. К предсказуемым затратам добавляются еще и непредвиденные расходы.

10. У тебя более высокая процентная ставка по кредиту, потому что ты работаешь здесь всего полгода.

 

Answer the questions.

1. What one should do to develop a budget?

2. What is an advantage of creating a budget of what one has spent?

3. What is the difference between unexpected expenses and predictable costs?

4. What is the highest percent of one’s income the lenders look for for a total debt load?

5. How much of total income does installment debt usually constitute?

6. What is the way to find where you can save?

7. How can you increase your income?

8. What are the ways of getting a better rate and a lower overall cost?

9. Is it possible to create a house fund? What can you do to save? Do you have your own way of saving money?

10. Why is it important to make payments by the due date and to pay off the entire balance promptly?

 

Overview of Techniques and Sectors of the Financial Industry

An entity whose income exceeds its expenditure can lend or invest the excess income. On the other hand, an entity whose income is less than its expenditure can raise capital by borrowing or selling equity, decreasing its expenses, or increasing its income. The lender can find a borrower, a financial intermediary such as a bank, or buy notes or bonds in the bond market. The lender receives interest, the borrower pays a higher interest than the lender receives, and the financial intermediary earns the difference for arranging the loan.

A bank aggregates the activities of many borrowers and lenders. A bank accepts deposits from lenders, on which it pays interest. The bank then lends these deposits to borrowers. Banks allow borrowers and lenders, of different sizes, to coordinate their activity.

Finance is used by individuals (personal finance), by governments (public finance), by businesses (corporate finance) and by a wide variety of other organizations, including schools and non-profit organizations. In general, the goals of each of the above activities are achieved through the use of appropriate financial instruments and methodologies, with consideration to their institutional setting.

Finance is one of the most important aspects of business management and includes decisions related to the use and acquisition of funds for the enterprise.

In corporate finance, a company's capital structure is the total mix of financing methods it uses to raise funds. One method is debt financing, which includes bank loans and bond sales. Another method is equity financing - the sale of stock by a company to investors. Possession of stock gives the investor ownership in the company in proportion to the number of shares the investor owns. In return for the stock, the company receives cash, which it may use to expand its business or to reduce its debt. Investors, in both bonds and stock, may be institutional investors - financial institutions such as investment banks and pension funds - or private individuals, called private or retail investors.

Vocabulary

overview – обзор

entity – юридическое лицо

to exceed – превышать

excess – дополнительный, излишний, избыточный

on the one hand – с одной стороны

on the other hand – с другой стороны

to raise – повышать, увеличивать

to borrow – занимать, одалживать

borrowing – заемные операции, заем, кредит

borrower – заемщик

financial intermediary – финансовый посредник

bond market – рынок ценных бумаг с фиксированной ставкой

receive – получать, принимать

to arrange – договариваться, устраивать

to aggregate - cобирать, объединять, соединять, группировать

to accept – принимать, признавать, акцептировать

a wide variety – широкий выбор

to achieve the goal - добиваться цели

appropriate - соответствующий, подходящий

with consideration to – учитывая

consideration – рассмотрение, рассуждение

institutional setting – общественный институт

business management – управление коммерческими предприятиями

relate to – установить связь, определять соотношение между

acquisition – приобретение

capital structure –структура капитала

debt financing – финансирование путем получения займов, погашение долга путем займа

equity financing – финансирование путем выпуска акций, финанс-е за счет собственных средств

possession – владение, обладание

ownership – собственность, владение, право собственности

to expand – расширять, развивать, увеличивать

institutional investors – учреждения-вкладчики, инвестор – юридическое лицо

private investors – частный инвестор

pension funds – пенсионный фонд

retail investors – мелкий инвестор