UNIT III
FINANCE
1. BANKING
Vocabulary
| accountant | бухгалтер |
| account | счет |
| board of directors | совет директором |
| capital | капитал |
| clerk | служащий |
| current account | текущий счет |
| deposit account | депозитный счет |
| depositor | вкладчик |
| dividend | дивиденд |
| draw upon an account (v) | снимать со счета |
| invest (v) | инвестировать |
| interest | процент, процентный доход |
| joint stock | акционерный капитал |
| loan | ссуда, заем, кредит |
| profit | прибыль |
| reserve | резерв, запас |
| run the hank (v) | управлять банком |
| shares | акции |
| shareholder | акционер |
| saltine | выписка из банковского счета |
| standing order | постоянное поручение клиента банку |
Ex.1 Read the text.
The English commercial banks have branches in all the major towns and a similar structure and mode of working is common to them all. The owners are the shareholders. At the outset they provide the necessary capital. They are all organized on the joint stock principle and are registered public companies. The Chairman and Board of Directors are elected by the ordinary shareholders at the Annual General Meeting and are responsible for the efficient management of the bank. The Board is concerned with the overall policy of the bank and the major decisions which put that policy into effect. The Board will appoint a Managing Director who is directly responsible to them and a member of the Board. They will also appoint the most senior executives who in turn appoint the rest of the clerical staff who will be responsible in different capacities for the day to day running of the bank. The essence of a bank's activities is the collection of deposits through current accounts and deposit accounts and the use of these funds to provide loans or funds for investment. The current account is the one commonly held and is drawn upon by cheques and standing orders. The deposit account is more in the nature of a savings account. The pattern of investments which a bank decides upon is crucial because, on the one hand, the bank must use the funds wisely to make a profit and, on the other, funds must be available for depositors to withdraw when they wish to do so. At the end of each business year the Directors recommend and the Annual General Meeting decides how much of the profit should be distributed to the shareholders as dividend, and how much should be retained in the business. In preparation for the Annual General Meeting, a bank publishes its Report and Accounts. These must be sent to every share holder and are also available for anyone with an interest in the affairs of the bank. From the published accounts shareholders can easily determine the total profits the bank has earned and how much is available for distribution,
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Ex.2 Answer the questions:
1. Who owns the English commercial bank?
2. How does a bank start?
3. Who chooses the Board?
4. What is the Board's task?
5. Who hires the employees?
6. What are the bank's main activities?
7. How are the profits distributed?
8. How are the shareholders kept informed?
Ex. 3Using suffixes -er, -or, -ier, -ent, -ial, etc., give nouns which are related to the following:
bank invest direct office execute work cash manage deposit own hold
Ex.4 Explain the following:
1. to raise capital
2. to become a public company
3. to put money into business
4. an account in a bank from which money can be drawn by cheque ! -
5. profits not paid out as dividends
Ex.5. Match the method of payment with the definition.
| Credit card | a. A piece of paper which transfers money from your account to somebody else's account. |
| 2. Debit card | |
| 3. Charge card | b. Similar to a credit card, but usually operated by a chain of shops or other retailer. |
| 4. Cheque | |
| 5. Traveller's cheque | c. The money is deducted from your bank account almost immediately. |
| 6. Charge account | d. These can be exchanged for foreign currency, or in some cases |
CURRENCY AND OTHER FORMS OF EXCHANGE
| accept a bill (v) | акцептовать вексель |
| bank draft | банковская тратта |
| bank money order | банковский денежный перевод |
| bank knoll, note, bill (US) | банкнота |
| bearer | предъявитель, держатель |
| bill of exchange | переводной вексель |
| cash (v) | получать наличные, обналичивать |
| cashier's check (US) | кассирский чек |
| certificate | сертификат, свидетельство |
| certified check;.- | удостоверенный чек |
| certify (v) i | заверять, удостоверять |
| cheque, check (US) | чек |
| traveller's cheque | дорожный чек |
| coin | монета |
| creditor | кредитор |
| credit standing | кредитоспособность |
| currency | денежное обращение, деньги, валюта |
| denomination | достоинство, ценность; деноминация |
| discount a bill (v) endorse/indorse (v) | дисконтировать вексель, индонсировать, делать передаточную надпись |
| forms of exchange | формы обмена |
| identification in lieu of issue (v) | идентификация ценных бумаг |
| legal tender mature (v) | выпускать в обращение законное платежное средство |
| negotiable payee | ремитент, получатель платежа по кредитным обязательствам |
| payer sight | наступать (о сроке платежа) плательщик, но кредитным обязательствам |
| draft | вексель на предъявителя |
Ex 1. Read the text
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The work of bank centers on money and financial services. Virtually any actively involving money or advice about financial matters is undertaken by all the commercial banks. The immediate service offered by the bank is the receipt for deposit of coins, notes and cheques and the cashing of cheques, through current accounts. Coins and notes in circulation have the status of "legal lender" that is to say they must be taken in payment of a debt although the extent to which this applies in the case of coins is deliberately restricted for the sake of convenience. The most common means of payment, particularly for significant sums of money, is the cheque since it is both safer and more convenient than using cash. However, it is not legal tender and creditors can refuse to accept it if they wish. Normally both national cheques and traveller's cheques are readily negotiable if the bearer has some means of proving his identity and the creditor can be sure that the cheque will be «honored». To assist the use of cheques, banks now provide their customers with bankers cards which, when used in association with a cheque, will guarantee it up to a stated maximum. If a customer wishes to make payments of large amounts of money by cheque and is not known to the creditor, then he may obtain a «certified cheque» from his bank. Such a cheque is signed by the bank and therefore payment is guaranteed. Those trading overseas, or in conditions where there may be a significant time lapse between sending out goods and their receipt by the customer, may use a Bill of Exchange as a means of payment. This is really a post dated cheque which assures the creditor payment but also gives the buyer opportunity to inspect the goods before the transaction is completed. Those whose credit standing is unknown may have to get the Bill «accepted» before a creditor will take it. Such a process guarantees payment and most work of this kind is undertaken by the merchant banks. Because Bills are post dated creditors may have to wait some time for their money. They can overcome this problem by endorsing the Bill and then either discounting it with a Discount House or a bank or passing it on to another trader in settlement of a debt of their own. By the time it comes to maturity a Bill may have passed through several hands and on each occasion it must be endorsed. The commercial banks participate in this activity in two ways: in part by lending money to the discount houses and in part by discounting bills for their own customers.
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Ex. 2 Answer the questions on the text:
1. What forms of money are called legal tender?
2. Why are cheques a common form of exchange?
3. What is the main purpose of a banker's card?
4. What is the special feature of a certified cheque?
5. What is the main use of a Bill of Exchange?
6. Why does a Bill sometimes have to be "accepted"?
7. In which two ways might a creditor who needed the money
dispose of a Bill?
Vocabulary Exercises
Ex.3 List all the forms of money mentioned in the passage and match them with the following definitions:
1. A bank's unqualified guarantee to pay a specified sum to a specified individual or organization.
2. A negotiable instrument issued only by the Bank of England and signed by the -Chief Cashier of the Bank.
3. A written order to a bank to pay a slated amount of money.
4. A negotiable instrument issued by a bank in exchange for cash and readily usable in most parts of the world.
5. Taken money largely used for small purchases and transactions.
6. A written order to a bank to pay a staled amount of money to a slated person or, after endorsement, to the bearer on or within a staled time after a given date.
Ex.4 Say what is true and what is false. Correct the false sentences:
1. Coins and bills of every denomination are called legal tender.
2. Cheques are rarely accepted in lieu of currency.
3. To cash a traveller's cheque the bearer need only present proper identification.
4. Bills of Exchange are not legal lender.
5. A cheque is always guaranteed by a bank.
6. Certified cheques are always guaranteed by a bank.
Ex.5 For each of the following phrases find another one in the text that explains it:
1. Idiocy issued by the central bank of a country.
2. A piece of currency made of metal.
3. Unit of the bank note's value.
4.A document in settlement of a large debt guaranteed by the bank.
5.A document which establishes the identity of a person settling by cheque.
6. Cashing in a Bill of Exchange before it is due for payment.
7. The bank's readiness to accept a cheque for payment.
Ex.6 Fill in the blanks with proper words or phrases:
bank notes honored bearer identification coins issued currency traveller's cheques
1. While travelling I do not like to carry large amounts of………
2. I prefer to have...... which arc immediately negotiable.
3. Traveller's cheques are..... in different denominations.
4. To cash the traveller's cheque the.. should present proper identification.
5.However, there are merchants who will not accept traveller's cheques even though you present proper
6.I collect........... of every denomination.
Ex.7 Write sentences of your own:
1. to sign a cheque
2. to accept a cheque
3. to cash a cheque
4. to make payment by cheque
5. to certify a cheque
6. to endorse a cheque
7. to make out a cheque
8. to accept liability for
9. to present your identification document
10. to settle business accounts