Banks and business

Task 1. Suggest the Russian equivalents for the words with international roots:

manufacture; financial services; credit card; central bank; banking system; prime function; regulation; commercial bank; deposit; bill.

Helpful Words and Expressions

1. a loan – заём, ссуда, кредит

2. mortgage – ипотека (залог недвижимого имущества для получения ссуды)

3. to charter – учреждать, создавать

4. to supervise – контролировать

5. currency – валюта, деньги

6. merchandise – товары

7. a foreign exchange department – отдел обмена валюты

8. to exchange currency – обменивать валюту

9. a joint stock – акционерный капитал

10. a deposit – вклад (в банк)

11. a customer – клиент

12. an account – банковский счёт

13. to lend – одалживать

14. to borrow – занимать

15. savings – сбережения

Task 2. Read and translate the text.

A bank is a financial institution and a business. But banks do not manufacture products. Banks sell financial services such as car loans, home mortgage loans, business loans, checking accounts and credit card services.

Most countries have a central bank, which is responsible for the operation of the banking system. The central bank in the UK is the Bank of England. The central bank in the USA is called the national bank. A central bank is charted and supervised by the Government. A central bank has one prime function – the regulation of money and credit in the economy.

Commercial banks are businesses that trade in money. Commercial banks are organized on the joint stock principle. The owners are the shareholders. Commercial banks receive and hold customers’ deposits, lend money, offer investment advice, exchange foreign currencies, open accounts, issue letters of credit and so on.

Banks may offer a variety of different functions.

All commercial banks make loans to borrowers. People use banks for different purposes. Some have extra money to save; others need to borrow. Banks help their customers to meet those needs by offering a variety of accounts. Savings accounts are for people who want to keep their money in a safe place and earn interest at the same time.

Checking accounts offer safety and convenience. You keep your money in a checking account and write a check when you want to pay a bill.

When you keep your savings in a bank, the bank pays you extra money, which is called interest. The interest is added to your account on a regular basis – usually once a month or once every three months. When someone borrows money from a bank, the bank charges interest.

Most people have to buy some things on credit. Very few people can afford to buy a house or a new car with cash. People often borrow for large purchases. When you take out a loan to buy a car or to pay for the college or a mortgage, a long-term loan to buy a house, you pay interest. Commercial loans are taken by business people and usually involve large sums. Personal loans are taken by individuals for personal reasons and usually are for small sums.

Major commercial banks in such cities as Tokyo, Paris, Rio, Moscow 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/she buys this currency from the foreign exchange department of the bank. And in the same way if an exporter receives foreign money from sales to other countries, he/she sells this currency to the bank. By this method the currency of any country can usually be exchanged.

Task 3. Match the Russian words and expressions to English ones:

1) кредит ипотека для покупки дома; 2) нести ответственность за работу банковской системы; 3) принимать и хранить вклады клиентов; 4) предлагать различные функции; 5) заёмщик; 6) удовлетворять нужды; 7) получать проценты; 8) оплачивать счёт; 9) покупать в кредит; 10) позволить себе

купить

1) a borrower; 2) is responsible for the operation of the banking system; 3) afford to buy; 4) home mortgage loan; 5) receive and hold customers’ deposits; 6) to buy on credit; 7) offer different functions; 8) to meet needs; 9) earn interest; 10) to pay a bill.

Task 4. Fill in the gaps with the words from the right column.

1. Government charters and … the central | 1. currency

bank. | 2. merchandise

2. International cooperation between banks 3. loans

makes it possible to … imports and exports. 4. foreign exchange department

3. It is possible to convert American dollars

to British pounds in the … . 5. finance

4. The … of German is euro. 6. supervises

5. All commercial banks make…to borrowers.

6. If the importer buys … from another

country he will pay for it in the currency of

this country.

Helpful Words and Expressions

1. banking – банковское дело

2. bank services – банковские услуги

3. a checking account – чековый счёт

4. a savings account (deposit account) – сберегательный счёт (с установленным процентом)

5. to make a loan to smb. – давать заём (кредит)

6. insurance – страхование

7. a long - term loan – долгосрочный заём (кредит)

8. a short-term loan – краткосрочный заём

9. to charge interest – взимать процент

10. a line of credit – кредитный лимит

11. a letter of credit – аккредитив (кредитное письмо)

12. a stock exchange – фондовая биржа

13. a commodity exchange – товарная биржа

14. a currency exchange (market) – валютная биржа