respond the following sentences:
Model: It takes a month to sell the bonds. You need a month to sell
the bonds.
1. It will take half of the year to pay off the debts.
2. It takes her several days to count up net assets.
3. It won't take the company much time to repay the loan.
4. It will take him the rest of his life to learn how to run the corporation.
5. It takes them two days to sell the goods.
6. It will take them much time to decrease the outflow.
7. It will take him a month to raise the capital.
Ex.3. Answer the questions:
1. What kind of funding is preferable: equity or debt?
2. What shares of what enterprises of your town would you buy? Explain
why.
3. Imagine that your business is going to get capital funds by borrowing.
What bond interest would you charge? Explain why.
4. What should you do to produce more inflow of capital?
5. How can you calculate the net assets of your enterprise?
6. What traits of character does a stockbroker need?
Ex.4. Translate from Russian into English:
1. Нашему предприятию нужны денежные фонды для покупки
оборудования.
2. Я предпочитаю акционерный способ образования денежного фонда
предприятия. Он привлекает большее количество капитала.
3. Акции и облигации могут быть переуступлены, куплены, проданы.
4. Я хочу купить десятипроцентные облигации.
5. Мы намерены выплатить все долги к началу финансового года. Ты
получишь хорошую прибыль при продаже этих товаров.
6. Он является совладельцем компании SONY.
7. Покупка акций этой компании - хороший долгосрочный вклад.
8. Если речь идет о моих деньгах, я изучу годовой отчет компании.
Grammar Exercises
Ex.1. Make the sentences negative:
Model: This bank was making loans to corporations during two
months last year. - This bank wasn't making loans to
corporations during two months last year.
1. They were discussing the possibility of the purchase of inventory from 5
till 6 p.m. yesterday.
2. He was running the corporation during two months.
3. During our last class the lecturer was speaking about equity funding.
4. Our accountant was calculating assets, liabilities and net worth two days
before yesterday.
5. They were electing the new Board of directors for two hours at their
annual meeting.
Ex.2. Put up four questions of different types (general, special,
disjunctive, alternative) to each sentence:
Model: The company was doing extremely well when he was the
manager.
1. Was the company doing extremely well when he was the
manager?
2. When was the company doing extremely well?
3. The company was doing extremely well when he was the
manager, wasn't it?
4. Was the company doing well or badly when he was the
manager of the company?
1. I was examining the Annual Report when Mr. Stevenson called on me.
2. She was making a profit on the sale of the goods till she could get them.
3. He was holding a position of a stockbroker when I met him last year.
4. The shop was attracting many customers when it was supplied by
famous companies.
5. They were investing money in this business for two years.
LESSON 8
BANKS AND BUSINESS
Text
Banks are different in different countries. Let's speak about the banks in
the United States of America. There, commercial banks are classified into two
main groups. Firstly, there are national banks. They are charted and
supervised by the Federal Government. Secondly, there are state banks. They
are charted and supervised by the state in which they are operated. All
commercial banks can make loans to borrowers.
Major commercial banks in such cities as Tokyo, Paris, and Rio cooperate
with each other. In this way they finance imports and exports between countries.
An importer buys merchandise from another country using the currency
of that country. For that purpose he buys this currency from the foreign
exchange department of his bank. And in the same way if an exporter receives
foreign money from sales to other countries, he sells this currency to his bank.
By this method the currency of any country can usually be exchanged.
Active Vocabulary
commercial bank
national bank
to charter
to supervise
state bank
merchandise
currency
foreign exchange department
to exchange currency
коммерческий банк
национальный банк
учреждать, создавать
заведовать, контролировать
зд. банк штата
товары
валюта, деньги
отдел обмена валюты
обменивать валюту
Comprehension Questions
1. What do all commercial banks do?
2. What kinds of commercial banks in the USA do you know? What are they
called?
3. Who supervises the operations of a national bank?
4. What kind of currency does an importer generally use when he buys
goods from another country?
5. What do you know about the ‘international exchange’?
6. What is the currency of this country called?
7. What is the exchange rate between your currency and the currency of the
USA and Germany? How can you find it out if you don't know it?
Vocabulary Practice
Ex.1. Choosethenecessaryword andputitinthesentence:
1. Federal government … and … all national banks.
a. merchandise
2. International cooperation between banks makes it
possible … imports and exports.
3. It is possible to convert American dollars to Euros in …
department.
4. The … of Germany was the mark.
5. All … banks make loans to borrowers.
6. If the importer buys … from another country he will pay
for it in the currency of this country.
Dialogue
b. currency
c. commercial
d. foreign
exchange
e. to finance
f. to supervise
g. to charter
A banker's office in New York City. Mr. Smith, a Vice President, is
speaking to Bill Wilson.
Smith: O.K, Bill. As a secretary you ought to know certain things about
banking.
Bill: That's what I want. I hope to make my career in banking.
Smith: And what bank services are you familiar with?
Bill: Oh, let me see. I am familiar with checking and savings accounts, safety
deposit boxes, insurance and things like that.
Smith: It is something.
Bill: But I don't have a clear idea of the services which banks offer to
business.
Smith: O.K. Let's discuss it then. In fact it is more directly concerned with
what passes over my desk.
Bill: I think businesses come to the banks for loans.
Smith: You are right. Banks make loans to corporations, to organisations, to
individuals and to small companies. For this service, we always
charge interest.
Bill: But how can a bank decide whether a business should receive a loan.
Smith: First of all we request a financial statement. It shows what the
company has in inventory, accounts receivable and other assets and
liabilities. Profit and loss statement shows the company's income
and expenses.
Bill: In other words you look over the financial situation of a business.
Smith: Exactly. If the company is eligible for a loan, it may choose a long-
term loan or a short-term loan.
Bill: I see. And how much interest does the bank charge on these loans?
Smith: It can be different. We have so-called prime-rate, that is the lowest
interest rate available at the particular time. Only preferred
customers can have it.
Bill: Who decides on prime-rate then?
Smith: Major lending banks do.
Bill: Oh, I must know that. And very often I hear the term ‘a line of credit’. I
have a vague idea what it is.
Smith: A line of credit is the maximum amount of money that a company
can borrow from a bank. This top amount of customer's credit is
based on the profits and earnings of a business.
Bill: Well. Then it is very important to have a good line of credit, isn't it?
Smith: Sure. A bank also issues letters of credit. Such letter says that its
holder can borrow up a certain sum of money. Or a bank can also
issue a letter of credit for a person who goes to the other country
where another bank is involved. Then there is the credit reference
letter which recommends a company to its suppliers, and well - I
could go on all morning.
Bill: Thank you. It's very useful information.
Smith: O.K. Then we can pass on to a more complicated subject. That is tax
service.
Active Vocabulary
banking
to make a career in
smth
bank services
checking account
savings account
safety deposit box
insurance
to make a loan to smbd
to be eligible for a loan
long-term loan
short-term loan
prime-rate
банковское дело
сделать карьеру в чем-либо
банковские услуги
чековый счет
сберегательный счет с установленным
процентом
сейф для депозитов, предоставляемый
частным лицам в банке
страхование
давать заем кому-либо
подходить для займа (т.е. признаваться
платежеспособным)
долгосрочный заем
краткосрочный заем
наименьший процент со ссуды,
preferred customer
available
line of credit
to borrow
letter of credit
credit reference letter
установленный в определенное время и в
определенном месте
привилегированный клиент
наличный, имеющийся в распоряжении
ограничение по сумме кредита, «потолок»
занимать
кредитное письмо, аккредитив
рекомендательное кредитное письмо
Vocabulary Exercises
Ex.1. Change the sentences according to the model:
Model: We use the safety deposit boxes (sometimes). We sometimes
use the safety deposit boxes.
1. All the banks provide credit services. (usually)
2. Banks give investment advice. (sometimes)
3. Banks charge interest. (always)
4. You can borrow money quickly. (rarely)
5. Businesses want to borrow money. (frequently)
6. The amount of interest depends on the prime-rate. (generally)
7. Companies need a line of credit. (seldom)
8. A line of credit is available. (occasionally)