I. Read and remember the words and expressions:

Difficult — трудный Possible — возможный

To be interested – интересоваться чем -либо

To affect — влиять, воздействовать (на что-либо)

Price — цена Necessary необходимый, нужный

To sell — продавать Seller — продавец

To buy — покупать, закупать

Buyer — покупатель

Behaviour — поведение

Market mechanism – рыночный механизм

Market of services — рынок услуг

Relationship — взаимоотношение, отношение

To develop — разрабатывать, развивать, совершенствовать

Development – развитие, разработка, совершенствование

Area — район, территория

Labour — труд, рабочая сила

Prediction — предсказание, прогноз

To predict — предсказывать, прогнозировать

To follow smth—следовать (за кем-либо)

Essential — обязателный, необходимый, существенный

Particular — конкретный, частный, отдельный

To choose — выбирать

Actual — фактический

To make a decision — принимать решение

Data — данные datum — данная величина

Text 1. Read and translate the text:

What is economics?

It is difficult to give a full and accurate definition of economics, but it is possible to indicate what problems economists are interested in. They are factors that affect prices of goods and services and also resources necessary to produce them. Economists are also interested in seller’s and buyer’s behaviour in the market, in the relationship between price system and market mechanism. Now economics is more complex. There are three main approaches to economics: microeconomics, macroeconomics, and development economics. There are also several specialized areas of study. Among them are money economics, international economics, labour economics, industrial economics agricultural economics, growth economics, mathematical economics, etc. Like many other sciences, economics uses models to understand economics problems. A model often helps an economist to make correct prediction. The economist usually follows several rules when he makes a model of economic behaviour. First, real life is complex and it is not possible for an economist to include all the details in a model. So, a model is an abstruction from real life. A model usually includes only essential element and relationship of a particular economic situation. Second, if an economist has two different models of one phenomenon, he always chooses the model that predicts the results of a particular phenomenon more accurately. Third, although models are helpful in economic analysis, an economist always studies the actual economic situation before he makes decisions. It is not enough to make models, it is also necessary to collect and study actual data in order to know how accurate a model is.

Трудно дать полное и точное определение экономики, но можно указать, какие проблемы интересуют экономистов. Это факторы, которые влияют на цены товаров и услуг, а также ресурсы, необходимые для их производства. Экономистов также интересует поведение продавца и покупателя на рынке, взаимосвязь системы цен и рыночного механизма. Сейчас экономика более сложная. Существует три основных подхода к экономике: микроэкономика, макроэкономика и экономика развития. Есть также несколько специализированных направлений обучения. Среди них экономика денег, международная экономика, экономика труда, экономика промышленности, экономика сельского хозяйства, экономика роста, математическая экономика и т. д. Как и многие другие науки, экономика использует модели для понимания экономических проблем. Модель часто помогает экономисту сделать правильный прогноз. Экономист обычно следует нескольким правилам, когда создает модель экономического поведения. Во-первых, реальная жизнь сложная, и экономист не может включить в модель все детали. Итак, модель — это отвлечение от реальной жизни. Модель обычно включает только существенный элемент и взаимосвязь конкретной экономической ситуации. Во-вторых, если у экономиста есть две разные модели одного явления, он всегда выбирает ту модель, которая более точно предсказывает результаты конкретного явления. В-третьих, хотя модели полезны в экономическом анализе, экономист всегда изучает реальную экономическую ситуацию, прежде чем принимать решения. Недостаточно делать модели, необходимо также собирать и изучать фактические данные, чтобы знать, насколько точна модель.

III. Questions to the text:

1. What problems are economists interested in? They are factors that affect prices of goods and services and also resources necessary to produce them. Economists are also interested in seller’s and buyer’s behaviour in the market, in the relationship between price system and market mechanism.

2. What are three main approaches to economics.? There are three main approaches to economics: microeconomics, macroeconomics, and development economics.

3. What specialized areas of economics do you know? There are also several specialized areas of study. Among them are money economics, international economics, labour economics, industrial economics agricultural economics, growth economics, mathematical economics, etc.

4. Why do economists use economic models? A model often helps an economist to make correct prediction.

5. Why is it not possible to include all the details in a model? It is not possible for an economist to include all the details in a model. So, a model is an abstruction from real life. A model usually includes only essential element and relationship of a particular economic situation.

6. What does a model usually include? A model usually includes only essential element and relationship of a particular economic situation.

7. Which of the models does an economist always choose? If an economist has two different models of one phenomenon, he always chooses the model that predicts the results of a particular phenomenon more accurately.

8. Why is it necessary for an economist to collect and study actual data? It is not enough to make models, it is also necessary to collect and study actual data in order to know how accurate a model is.

IV. Give the Russian equivalents:

market, analysis, labour economics, labour market study, goods and services, growth economics problems, actual economic situation details, consumer behaviour, future prediction, growth mechanism, agriculture and manufacturing relationship, mineral resources prices, area development, trade growth prediction

рынок, анализ, экономика труда, изучение рынка труда, товары и услуги, проблемы экономики роста, детали реальной экономической ситуации, поведение потребителей, прогнозирование будущего, механизм роста, отношения между сельским хозяйством и производством, цены на полезные ископаемые, развитие территории, прогнозирование роста торговли

V. Give the English equivalents:

Точное определение, показать, товары и услуги, подход, наука, следовать правилам, создать модель, включать, собирать данные.

Precise definition, to show, goods and services, approach, science, to follow the rules, to create a model, to include, to collect data.

VI. Fill in the blanks:

Prompts: to develop, to buy, enough, prediction, to affect, to be interested, relationship

1. Trade develops well in this area.

2. It is necessary to have correct prediction to make a correct decision.

3. He does not have enough money to to buy the radio.

4. Economists study the relationship between prices of different goods in the … .

5. The economist are interested in industrial economics.

6. The growth of industry and agriculture affects the life of all the people in the

  country.

VII. Translate into Russian:

1. People get resources from the Earth.

2. Consumers buy goods from munufacturers.

3. We studied economics.

4. The economists study consumers’ behaviour in the service markets.

5. The plant processes agricultural products, it uses machines.

6. Industry and agriculture use fuel.

7. It is possible to predict prices for essential goods.

8. Mining gets minerals from the Earth as it must provide resources for

  manufacturing.

9. The development of markets is important for an economist.

10.Managers study the situation in the market to know how many goods to

  produce.

 

1. Люди добывают ресурсы с Земли.

2. Потребители покупают товары у производителей.

3. Мы изучали экономику.

4. Экономисты изучают поведение потребителей на рынках услуг.

5. Завод перерабатывает сельхозпродукцию, использует машины.

6. Промышленность и сельское хозяйство используют топливо.

7. Можно прогнозировать цены на товары первой необходимости.

8. Горнодобывающая промышленность получает полезные ископаемые из земли, поскольку она должна обеспечивать ресурсы для производства.

9. Развитие рынков важно для экономиста.

10.Менеджеры изучают ситуацию на рынке, чтобы знать, сколько товаров нужно

  производить.

VIII. Summarize all the information from the text and speak on it

The title of the text is “What is economics?” The author of the text is not mentioned. The main idea of the text is to tell us about economics and economists.

The author starts by telling that economists are interested in seller’s and buyer’s behaviour in the market, in the relationship between price system and market mechanism. It os noted that there are three main approaches to economics: microeconomics, macroeconomics, and development economics. However, there are also several specialized areas of study. Among them are money economics, international economics, labour economics, industrial economics agricultural economics, growth economics, mathematical economics, etc. Moreover, like many other sciences, economics uses models to understand economics problems. In addition, a model often helps an economist to make correct prediction.

I find the text interesting and worth reading.

 

Задание 2.

Areas of economics

I. Terms and expressions to remember:

1. Unit – единица, блок.

2. either… or… — или…или, либо… либо.

3. distribute – распределять, распространять

4. distribution— распределение, распространение

5. income – доход, прибыль

6. force — сила

7. to consider – рассматривать, полагать, считать.

8. both…. and… — и…и, как… так и

9. to supply (smb with smth) – поставлять (кому-либо, чтолибо)

10. supplier — поставщик

11. employment – работа по найму, занятость (рабочей силой)

12. to employ – предоставлять работу, нанимать

13. to require – нуждаться (в чём-то), требовать (чего-либо)

14. achievement — достижение

15. to achieve – достигать, успешно выполнять

16. proper – правильный, точный

17. living standard – жизненный уровень

  II. Text 2. Read and translate the text:

  Areas of economics

There are three main approaches to economics: microeconomics, macroeconomics, and development economics. Microeconomics focuses on individual economic units. The economic behaviour of either individual consumers or firms or industries is studied by microeconomics. The distribution of products and income among these units is also analyzed by microeconomics. In this field of economics individuals are considered both as suppliers of labour and consumers of goods. Firms are also studied both as suppliers of products and as consumers of labour and capital. There was a long period on the 19th and early in the 20th centuries when microeconomic questions dominated in economics. In the 20^th

century economists’ interest in forces that affect income, employment and prices grew. They considered economy in all its relationships. The term “macroeconomics” was first used in the 1930s. The world depression that began in 1929 required the study of such macroeconomic questions as achievement of full employment and economic growth by means of proper government policies. This area of economics was developed by the British economist John Maynard Keynes. The third main field of economics, that is development economics studies the factors of economic growth and how these factors are used by governments in order to achieve high living standards.

Существует три основных подхода к экономике: микроэкономика, макроэкономика и экономика развития. Микроэкономика фокусируется на отдельных экономических единицах. Экономическое поведение либо отдельных потребителей, либо фирм, либо отраслей изучается микроэкономикой. Распределение продуктов и доходов между этими единицами также анализируется микроэкономикой. В этой области экономики люди рассматриваются и как поставщики труда, и как потребители товаров. Фирмы также изучаются и как поставщики продукции, и как потребители труда и капитала. Был длительный период в 19 и начале 20 вв., когда в экономической науке доминировали микроэкономические вопросы. В 20-м веке экономисты интересовались силами, влияющим ина доход, занятость и цены, возрос. Они рассматривали экономику во всех ее отношениях. Термин «макроэкономика» впервые был использован в 1930-х годах. Мировая депрессия, начавшаяся в 1929 г., потребовала изучения таких макроэкономических вопросов, как достижение полной занятости и экономического роста посредством соответствующей государственной политики. Эту область экономики разработал британский экономист Джон Мейнард Кейнс. Третья основная область экономики, то есть экономика развития, изучает факторы экономического роста и то, как эти факторы используются правительствами для достижения высокого уровня жизни.

III. Questions to the text:

1. What does microeconomics study? Microeconomics focuses on individual economic units.

2. Whose economic behaviour is studied by microeconomics? The economic behaviour of either individual consumers or firms or industries is studied by microeconomics.

3. How are individuals considered by microeconomics? In this field of economics individuals are considered both as suppliers of labour and consumers of goods.

4. When did microeconomic approach dominate in economics? There was a long period on the 19th and early in the 20th centuries when microeconomic questions dominated in economics.

5. When did economists’ interest in macroeconomics grow? The world depression that began in 1929 required the study of such macroeconomic questions as achievement of full employment and economic growth by means of proper government policies.

6. How is economy considered in macroeconomics? They considered economy in all its relationships.

7. What stimulated the development of macroeconomics? This area of economics was developed by the British economist John Maynard Keynes.

8. What problems were analyzed in the 1930’s? The term “macroeconomics” was first used in the 1930s. The world depression that began in 1929 required the study of such macroeconomic questions as achievement of full employment and economic growth by means of proper government policies.

9. What does development economics study? Development economics studies the factors of economic growth and how these factors are used by governments in order to achieve high living standards.

IV. Find equivalents:

A

1. экономическое поведение, Economic behaviour

2. Область, Field

3. Поставщик, Supplier

4. Потребитель, Consumer

5. Преобладать, Dominate

6. Влиять на, Affect

7. Использовать, Use

8. Полная занятость, Full employment

9. Посредством, by means of

10. Рост, growth

11. Достигать Achieve

V. Change the sentences using the verbs in the Passive voice:

1. New services for consumers are provided by banks.

2. Models are used by economists in order to study actual relations in an economy.

3. The growth of unemployment was predicted by the economists.

4. Individuals are considered as suppliers of labour and capital.

5. High employment was achieved by the government.

6. Correct methods and models for his analyses are chosen by the economist.

7. Many workers are employed in service sector.

8. Mining industry was developed in the 19th century in Great Britain, but

  in the 20th century many mines were closed down.

9. The book was written in 1968.

10. These principles in the analyses of the economic situation were followed.

VI. Fill in the blanks:

Prompts: to employ, income, proper, distribution, achievement, living standards, forces, either… or…, to distribute, to consider.

1. Goods and services are distributed by government decisions in the country.

2. Agricultural products are either bought by consumers or processed into other

  goods.

3. Not many works were employed in the depression years.

4. There is no proper agricultural policy in Russia now.

5. Many factors affect the distribution of income in an economy.

6. The government considers a proper policy to achieve high living standards.

7. We know they have great income in their work.

8. People use their income to buy food, clothes, and other things.

9. The living standards are very high in some European countries.

10. What forces affect income , employment and prices?

VII. Summarize all the information from the text and speak on it.

 

  The tile of the text is “Areas of economics”. The auther tells that there are three main approaches to economics: microeconomics, macroeconomics, and development economics. Microeconomics focuses on individual economic units. The economic behaviour of either individual consumers or firms or industries is studied by microeconomics

In the 20^th century economists’ interest in forces that affect income, employment and prices grew. They considered economy in all its relationships. The term “macroeconomics” was first used in the 1930s. The world depression that began in 1929 required the study of such macroeconomic questions as achievement of full employment and economic growth by means of proper government policies. This area of economics was developed by the British economist John Maynard Keynes.

However, the third main field of economics, that is development economics studies the factors of economic growth and how these factors are used by governments in order to achieve high living standards.

I find the text interesting and worth reading.

 

I. Задание 3.

  Monetarism

I. Terms and expressions to remember:

1. Monetarism – монетаризм

2. Exсessive money supply – денежная масса в обращении

3. Ultimately government securities – государственные ценные бумаги

4. Expand – расширять

5. Contract – сокращать

6. Government units – правительственные подразделения

7. Demand deposit – вклад до востребования

II. Text 3. Read and translate the text:

  Monetarism

  Monetarism as an economic theory states that inflation is caused by an excessive supply of money. Thus the best way to manage and control a country’s economic system is to limit the amount of money in circulation. If there is too much money it will cause the price of goods to rise, i.e. the value of money will fall. The concept of money supply (all the money that exists in a country’s economic system at a particular time) plays an important role in economic policymaking, because many economists believe that it is the quantity of money within the economy that ultimately, determines real price levels, the rate of economic growth, and the rate of inflation.. The Federal Reserve Banks in the USA and the Bank of England in the United Kingdom regulate the money supply to stabiliser their respective economies. The Federal Reserve Banks, for example, can buy or sell government securities, thereby expanding or contracting the money supply. Monetary systems are today very much alike in all the major countries of the world. Monetary system consists of three levels:

1) the holders of money (the “public”) – individuals, businesses, governmental units;

2) commercial banks, which borrow, by way of demand deposits (=bank deposits that can be withdrawn without advance notes), form the public and make loans to individuals, firms, or governments; and 3) central banks, which have a monopoly on the issue of money, serve as the bankers for the central government and the commercial banks, and have the power to determine the quantity of money in circulation.

Монетаризм

  Монетаризм как экономическая теория утверждает, что инфляция вызвана избыточным предложением денег. Таким образом, лучший способ управлять экономической системой страны и контролировать ее — это ограничить количество денег в обращении. Если денег слишком много, это вызовет рост цен на товары, то есть стоимость денег упадет. Концепция денежной массы (всех денег, которые существуют в экономической системе страны в определенное время) играет важную роль в разработке экономической политики, поскольку многие экономисты считают, что именно количество денег в экономике в конечном итоге определяет реальный уровень цен. , темпы экономического роста и темпы инфляции. Федеральные резервные банки в США и Банк Англии в Соединенном Королевстве регулируют денежную массу для стабилизации своей экономики. Федеральные резервные банки, например, могут покупать или продавать государственные ценные бумаги, тем самым увеличивая или сокращая денежную массу. Денежные системы сегодня очень похожи во всех крупных странах мира. Денежная система состоит из трех уровней:

1) держатели денег («общественность») – физические лица, предприятия, государственные единицы;

2) коммерческие банки, занимающие в виде депозитов до востребования (= банковские депозиты, которые могут быть изъяты без авансовых расписок), формируют население и предоставляют ссуды частным лицам, фирмам или правительствам; и 3) центральные банки, обладающие монополией на выпуск денег, служат банкирами для центрального правительства и коммерческих банков и имеют право определять количество денег в обращении.

III. Questions to the text:

1. What does monetarism state? Monetarism as an economic theory states that inflation is caused by an excessive supply of money.

2. What is the best way to manage an economy? Thus the best way to manage and control a country’s economic system is to limit the amount of money in circulation.

3. What will cause the price of goods to rise? If there is too much money it will cause the price of goods to rise, i.e. the value of money will fall.

4. What plays an important role in economic policymaking? The concept of money supply (all the money that exists in a country’s economic system at a particular time) plays an important role in economic policymaking, because many economists believe that it is the quantity of money within the economy that ultimately, determines real price levels, the rate of economic growth, and the rate of inflation.

5. What do economists believe in? Many economists believe that it is the quantity of money within the economy that ultimately, determines real price levels, the rate of economic growth, and the rate of inflation.

6. What might be done to expand or contract the money supply? The Federal Reserve Banks, for example, can buy or sell government securities, thereby expanding or contracting the money supply.

7. What is the first level of monetary system? The first level is the holders of money (the “public”) – individuals, businesses, governmental units.

8. What is the second level of monetary system? The second level are commercial banks, which borrow, by way of demand deposits (=bank deposits that can be withdrawn without advance notes), form the public and make loans to individuals, firms, or governments.

9. What is the third level? The thirsd level are central banks, which have a monopoly on the issue of money, serve as the bankers for the central government and the commercial banks, and have the power to determine the quantity of money in circulation.

IV. Find the English equivalents:

монетаризм, стабилизировать, соответственный, регулировать, темп экономического роста, инфляция, быть причиной, денежная масса в обращении, чрезмерный, стоимость, мнение, управлять, контролировать, количество, разработка политического курса, полагать, в конце концов, определять, уровень, государственные ценные бумаги, таким образом, расширять, фирма, держатель, денежный, главный, правительственные подразделения, занимать, темп развития инфляции, Федеративный резервный банк, общественность.

monetarism, to stabilize, appropriate, to regulate, economic growth rate, inflation, to be the cause, money supply in circulation, excessive, cost, opinion, to manage, control, quantity, policy development, to believe, in the end, to determine, level, state valuables paper, thus, to expand, firm, holder, monetary, main, government departments, borrow, inflation rate, Federal Reserve Bank, public.

V. Fill in the blanks

Prompts: Lack, to borrow, prices, growth, to rise, economy, policymaking

1. Deflation is caused by lack supply of money.

2. Too much money in circulation caused the price of goods to rise.

3. To limit the amount of money in circulation is the best way to control prices.

4. Money supply plays a significant role in economic growth.

5. The quantity of money in circulation has a strong influence on real economy.

6. The quantity of money in circulation has a strong effect on the rate of economic policymaking.

7. Commercial banks borrow money from the public.

VI. Summarise all the information from the text and speak on it.

The title of the text is “Monetarism”.The author is not mentioned. It is stated in the text that monetarism as an economic theory states that inflation is caused by an excessive supply of money. Thus the best way to manage and control a country’s economic system is to limit the amount of money in circulation. The concept of money supply (all the money that exists in a country’s economic system at a particular time) plays an important role in economic policymaking, because many economists believe that it is the quantity of money within the economy that ultimately, determines real price levels, the rate of economic growth, and the rate of inflation. The Federal Reserve Banks in the USA and the Bank of England in the United Kingdom regulate the money supply to stabiliser their respective economies. The Federal Reserve Banks, for example, can buy or sell government securities, thereby expanding or contracting the money supply. Monetary systems are today very much alike in all the major countries of the world.

Monetary system consists of three levels: the holders of money, commercial banks and central banks.

 

I. Задание 4.

  Banking in Britain.

 I. Terms and expressions to remember:

1. to overdraw (drew, drawn) – превысить кредитный лимит

 2. overdraft facility — услуга овердрафт

3. applicant — кандидат на должность

4. application — заявление

5. to apply for — предоставлять

6. advantage over smth – иметь преимущество над чем-то

7. disadvantage — недостаток

8. discount market — розничный рынок

9. to mature — подлежать погашению

10. maturity — срок платежа

 

 

II. Text 4. Read and translate the text:

  Commercial banks

Commercial banks offer commercial services to a wide range of customers. Customers can open current accounts and deposit accounts. A current account is very popular. It pays no interest but it has other advantages. Firstly, it enables people to keep their money in a safe place. Secondly, it allows them to withdraw it at any time. Thirdly, it provides them with a cheque-book so that they do not have to carry a lot of cash. To open a current account it is necessary to see the branch manager. He has to decide whether the applicant is likely to keep the account in credit. A current account holder can only overdraw with the manager’s permission. The manager will therefore want to meet the applicant to get the necessary background information. For example, he will want to know the applicant’s occupation and his place of work. He will also probably want a reference from his or her employer. If, after the interview, the manager is satisfied with the applicant he will approve the application, arrange for the applicant to be given a cheque-book and arrange for a monthly statement to be sent to him/ her. A deposit account is another popular kind of account. It has advantages over a current account. First of all, it is easier to open than a current account. There is no need to see the manager. A customer only has to fill in a form and then deposit the minimum amount of money required by the bank. The customer is then given a pass book which he must bring to the bank every time he wishes to withdraw or deposit money. The pass book is the customer’s record of the account. Secondly, a deposit account earns interest for the customer. The bank invests the money that the customer pays in and, in return, the bank pays the customer interest. The rate of interest in the UK is not fixed but it is usually between 5—10%. However, a deposit account has certain disadvantages too. In the UK the maximum a customer can withdraw in one day varies from bank to bank. Another disadvantage is that the customer receives no cheque-book and therefore he cannot pay bills so easily.

Коммерческие банки

Коммерческие банки предлагают коммерческие услуги широкому кругу клиентов. Клиенты могут открывать текущие счета и депозитные счета. Текущий счет очень популярен. Здесь не выплачивают проценты, но здесь есть другие преимущества. Во-первых, это позволяет людям хранить свои деньги в надежном месте. Во-вторых, позволяет отозвать его в любой момент. В-третьих, он дает им чековую книжку, чтобы им не приходилось носить с собой много наличных денег. Для открытия расчетного счета необходимо обратиться к заведующему отделением. Он должен решить, может ли заявитель оставить счет в кредит. Владелец текущего счета может перерасходовать средства только с разрешения управляющего. Поэтому менеджер захочет встретиться с заявителем, чтобы получить необходимую справочную информацию. Например, он захочет узнать род занятий соискателя и место его работы. Ему также, вероятно, понадобится рекомендация от его или ее работодателя. Если после собеседования менеджер удовлетворен заявителем, он утверждает заявку, организует выдачу заявителю чековой книжки и организует отправку ему/ей ежемесячного отчета. Депозитный счет — еще один популярный вид счета. Он имеет преимущества перед текущим счетом. Во-первых, его проще открыть, чем текущий счет. Нет необходимости видеть менеджера. Клиенту нужно только заполнить форму, а затем внести минимальную сумму денег, требуемую банком. Затем клиенту выдается сберкнижка, которую он должен приносить в банк каждый раз, когда хочет снять или внести деньги. Сберкнижка — это учетная запись клиента. Во-вторых, депозитный счет приносит проценты для клиента. Банк инвестирует деньги, которые платит клиент, а взамен банк выплачивает клиенту проценты. Процентная ставка в Великобритании не фиксирована, но обычно составляет от 5 до 10%. Однако у депозитного счета есть и определенные недостатки. В Великобритании максимальная сумма, которую клиент может снять за один день, варьируется от банка к банку. Другим недостатком является то, что покупатель не получает чековой книжки и поэтому не может так легко оплачивать счета.

III. Questions to the text:

1. What are the advantages (disadvantages) of a current account? Firstly, it enables people to keep their money in a safe place. Secondly, it allows them to withdraw it at any time. Thirdly, it provides them with a cheque-book so that they do not have to carry a lot of cash.

2. What is necessary to do to open a current account? To open a current account it is necessary to see the branch manager.

3. What information on the current account holder does the manager need? For example, he will want to know the applicant’s occupation and his place of work. He will also probably want a reference from his or her employer.

4. What are the advantages (disadvantages ) of a deposit account? A deposit account is another popular kind of account. It has advantages over a current account. First of all, it is easier to open than a current account. There is no need to see the manager. A customer only has to fill in a form and then deposit the minimum amount of money required by the bank. The customer is then given a pass book which he must bring to the bank every time he wishes to withdraw or deposit money. The pass book is the customer’s record of the account. Secondly, a deposit account earns interest for the customer.

5. What makes certificates of deposit popular? A deposit account is another popular kind of account. It has advantages over a current account.

6. What interest do CDs pay to the holders? A current account holder can only overdraw with the manager’s permission.

7. How does the secondary CD market function? It allows them to withdraw it at any time.

IV. Find equivalents:

A.

1. a wide range of customers, Широкий круг клиентов

2. 2. Deposit account, Вклад в банке

3. 3. Interest, Процент

4. 4. To keep money, Хранить деньги

5. 5. To withdraw, Снимать со счёта

6. 6. To carry a lot of cash, Носить много наличных денег

7. 7. Permission, Разрешение

8. 8. Background, Биография

9. 9. Reference, Рекомендация

10. 10. To approve, Одобрять

11. 11. Monthly statement, Ежемесячный отчёт

12. 12. Current account, Текущий счёт

13. 13. To fill a form, заполнить анкету

14. Pass book, Сберкнижка

15. 15. To pay bills Оплатить счета

V. Fill in the blanks:

Prompts: to present, consult, to find out, to block, possibilities, acquired.

1. I have recently acquired a small amount of capital and I’d like to find out about

investing it.

2. You could consult our Investment Department for a long –term investment.

3. You seem to have more possibilities than most other banks.

4. I don’t want to block my money for too long.

5. You see, 5 years seems to present a difficulty.

VI. Match each word or phrase on the left with the correct definition on the right:

1. bank- a business that keeps and lends money and provides other

  financial services.

2. Bank account – the amount of money someone has in their bank account

3. Bank balance – the rate of interest decided by a country’s main bank.

4. Bank book – a book in which a record is kept of the money you put into and take out of your bank account.

5. Bank card – a credit card provided by your bank.

6. Banker – someone who works in a bank in an important position.

7. Banks holiday – a day of the week when banks are closed by law.

8. Banking – the business of a bank.

9. Bank manager – someone who is in charge of a local bank.

10. Bank note – a piece of paper money of a particular value that you use to

  buy things.

11. Bank rate – a document sent regularly by a bank to a customer that lists the amount of money taken out of and paid into their bank account.

12. Bankrupt – someone who has officially said that they cannot pay

  their debts.

13. Bankruptcy – the state of being unable to pay your debts.

14. Bank statement – an arrangement between a bank and a customer that allows the customer to pay in and take out money.

VII. Summarise all the information from the text and speak on it.

  The title of the text is “Commercial banks”. The author is not mentioned.

It is stated that commercial banks offer commercial services to a wide range of customers. Customers can open current accounts and deposit accounts. A current account is very popular. It pays no interest but it has other advantages. Firstly, it enables people to keep their money in a safe place. Secondly, it allows them to withdraw it at any time. Thirdly, it provides them with a cheque-book so that they do not have to carry a lot of cash.

A current account holder can only overdraw with the manager’s permission. The manager will therefore want to meet the applicant to get the necessary background information. For example, he will want to know the applicant’s occupation and his place of work. He will also probably want a reference from his or her employer.

A deposit account is another popular kind of account. It has advantages over a current account. First of all, it is easier to open than a current account. There is no need to see the manager. A customer only has to fill in a form and then deposit the minimum amount of money required by the bank. The customer is then given a pass book which he must bring to the bank every time he wishes to withdraw or deposit money.

However, a deposit account has certain disadvantages too. In the UK the maximum a customer can withdraw in one day varies from bank to bank. Another disadvantage is that the customer receives no cheque-book and therefore he cannot pay bills so easily.

I find the text interesting and worth reading.

 

I. Задание 5.

  Bank loans.

I.Terms and expressions to remember:

credit cards – кредитные карточки charge cards – кредитные карточки debit cards – кредитные карточки to charge — взимать процент to lend – давать деньги в долг to link – соединять, связывать to safeguard — защищать advance — аванс to underestimate costs — недооценивать to keep the venture afloat- держать предприятия на плаву to recover money – возвращать деньги balance sheet – балансовай отчёт feasibility study – обосновать изучение

II. Text 5. Read and translate the text.

Bank loans.

Recently banks have started to offer many new facilities to their customers. There are new types of accounts, credit cards, charge cards, debit cards, insurance cover, investment services. However, one of the most important services banks offer is that they lend money to their customers. The methods available for a customer to borrow from his bank and the rate of interest he is charged, very from country to country and bank to bank. One way of borrowing is to overdraw on your account. This is useful if you only wish to borrow a small amount for a short time. The interest rate on overdrafts depends on the bank rate. It is usually 10-12% over base rate. Of course you can only have an overdraft with your manager’s permission. Another way is to arrange a “ personal loan”. A personal loan is for a fixed period of time, usually 3-5 years. Each month the customer makes a payment on the loan to the bank. The main advantage of a personal loan is that the interest rate is fixed. In many countries it is possible to borrow money for longer periods e.g. up to 25 years. This is often necessary when buying a house or a business. The interest rate on long-term loans depends upon the base rate. It is usually 1.25-1.5% over base. Of course for both a personal loan and a long-term loan the bank requires some kind of security. The lending proposition must state exactly how much the customer wants to borrow. This might seem self-evident, but there are four important points to consider. It is not for the banker to suggest how much he/she would be willing to lend the customer. The banker should check that the customer isn’t asking for too much, and more that he or she needs for the particular purpose. This is especially important with requests for an overdraft facility. Clearly this consideration is linked in with the customer’s wealth and ability to repay.

The banker must also check that customer has not asked for less than he or she really needs. Otherwise the bank may later have to lend more, purely to safeguard the original advance. The customer’s own financial stake should usually be sufficient, when compared with the amount the bank is being asked to lend. Has the customer asked for enough? The banker ought to consider whether the customer has asked for as much as he really needs. Suppose, for example, that a bank agrees to advance ₤15,000 to a small business customer, only to find that the customer comes back several months later asking for more money, say a further ₤10,000, because he underestimated his costs, or the amount of working capital he needed to invest. The bank might then be faced with the choice between lending even more money, to keep the customer’s venture afloat, or to take action against the customer to recover its money. It would have been far preferable for the bank to have considered the customer’s initial proposition as a request for an advance of ₤25.000, and to have made a decision accordingly. The most suitable methods of trying to decide whether a business customer has asked for an advance for as much as he really needs are: — studying the budgets and cash flow forecasts prepared by the customer; — studying the balance sheet of a customer, and his likely working capital position and liquidity after the advance has been made; — examining the feasibility study for the proposed project; — if the banker suspects that the customer will be short of liquid funds, he should suggests to the customer that he might have estimated his borrowing requirements incorrectly.

Банковские кредиты.

В последнее время банки стали предлагать своим клиентам множество новых услуг. Есть новые типы счетов, кредитные карты, платежные карты, дебетовые карты, страховое покрытие, инвестиционные услуги. Тем не менее, одна из наиболее важных услуг, предлагаемых банками, заключается в том, что они ссужают деньги своим клиентам. Методы, доступные клиенту для получения кредита в своем банке, и процентная ставка, которую он взимает, очень варьируются от страны к стране и от банка к банку. Одним из способов заимствования является перерасход на вашем счете. Это полезно, если вы хотите взять небольшую сумму на короткое время. Процентная ставка по овердрафту зависит от ставки банка. Обычно это на 10-12% больше базовой ставки. Конечно, вы можете получить овердрафт только с разрешения вашего менеджера. Другой способ – оформить «личный кредит». Личный кредит на фиксированный период времени, как правило, 3-5 лет. Каждый месяц клиент вносит платеж по кредиту в банк. Основным преимуществом потребительского кредита является то, что процентная ставка является фиксированной. Во многих странах можно занять деньги на более длительный срок, т.е. до 25 лет. Это часто необходимо при покупке дома или бизнеса. Процентная ставка по долгосрочным кредитам зависит от базовой ставки. Обычно она составляет 1,25-1,5% от базовой. Конечно, как для личного кредита, так и для долгосрочного кредита банк требует некоторого обеспечения. В кредитном предложении должно быть точно указано, сколько клиент хочет занять. Это может показаться самоочевидным, но следует учитывать четыре важных момента. Банкир не должен предлагать, сколько он/она готов одолжить клиенту. Банкир должен убедиться, что клиент не просит слишком много и больше, чем ему или ей нужно для конкретной цели. Это особенно важно при запросах на овердрафт. Ясно, что это соображение связано с богатством клиента и его платежеспособностью.

Банкир также должен проверить, не просил ли клиент меньше, чем ему действительно нужно. В противном случае банку, возможно, впоследствии придется ссудить больше, просто чтобы защитить первоначальный аванс. Собственная финансовая доля клиента обычно должна быть достаточной по сравнению с суммой, которую банк просит предоставить взаймы. Клиент попросил достаточно? Банкир должен учитывать, запросил ли клиент столько, сколько ему действительно нужно. Предположим, например, что банк соглашается выдать аванс в размере 15 000 фунтов стерлингов клиенту из малого бизнеса только для того, чтобы обнаружить, что клиент возвращается через несколько месяцев и просит еще денег, скажем, еще 10 000 фунтов стерлингов, потому что он недооценил свои расходы или сумму. оборотных средств, которые он должен был инвестировать. В этом случае банк может оказаться перед выбором: предоставить еще больше денег взаймы, сохранить предприятие клиента на плаву или принять меры против клиента, чтобы вернуть его деньги. Было бы намного предпочтительнее, если бы банк рассмотрел первоначальное предложение клиента как запрос аванса в размере 25 000 фунтов стерлингов и принял соответствующее решение. Наиболее подходящими методами, позволяющими решить, запросил ли бизнес-клиент аванс в той сумме, которая ему действительно нужна, являются: — изучение бюджетов и прогнозов движения денежных средств, подготовленных клиентом; — изучение баланса клиента, его вероятного состояния оборотного капитала и ликвидности после выдачи аванса; — рассмотрение технико-экономического обоснования предлагаемого проекта; — если банкир подозревает, что у клиента будет не хватать ликвидных средств, он должен намекнуть клиенту, что он мог неправильно оценить свои потребности в заемных средствах.

III. Questions to the text.

1. What does the bank lending policy depend on? The interest rate on overdrafts depends on the bank rate.

2. What are the principles of good lending? It is not for the banker to suggest how much he/she would be willing to lend the customer. The banker should check that the customer isn’t asking for too much, and more that he or she needs for the particular purpose. This is especially important with requests for an overdraft facility. Clearly this consideration is linked in with the customer’s wealth and ability to repay.

3. What happens to bad debts? As a result, you write off the debt as uncollectible.

4. What considerations should the banker be guided by when he/she considers

  the request for a loan? The banker must also check that customer has not asked for less than he or she really needs.

 5. What importance is attached to the customer/s stake? The customer’s own financial stake should usually be sufficient, when compared with the amount the bank is being asked to lend.

6. What should be studied to determine the adequacy of the borrowed capital? The income should be studied to determine the adequacy of the borrowed capital

IV. Find the equivalents:

 A.

1 account, Счёт

2. To offer, Предлагать

 3. Facilities, Услуги

4. Insurance, Страховка

5. To lend, Давать в долг

6. To borrow, Занимать

7. Rate of interest, Процентная ставка

8. To overdraw, Превышать кредит

9. Long-term loans, Долгосрочная ссуда

10. Security. Безопасность

V. Fill in the blanks

Prompts: capital, increased, to borrow, conditions, covered, residence, expenses, restrictions, absorb, estimate

1. Under those conditions I’m afraid we can’t give you a loan.

2. I need 10,000, but I’ve only got 2,000 in my account. So, I’ll have borrow the

  rest from the bank.

3. We’d have to be entirely covered before we could help you.

4. Business is very good. My turnover has increased by 200%.

5. I’ve built up a reserve capital of some 7,000.

6. Just to cover the initial expenses of setting up the office, I’ll need 3,000.

7. Because of the tightening up restrictions on loans, we’ll need a better guarantee than

  you’ve got.

8. He doesn’t make a lot of money, and he offers such high discounts that

  they absorb all his profit.

9. I’m afraid we aren’t able to estimate the value of your paintings.

10. Have you got a permanent residence in this country, or are you a visitor?