3. Answer the following questions:

1. What are the main types of banks?

2. What are their functions?

3. What is the difference between commercial and investment banks?

4. What is trust companies?

4. Match the following words and phrases in a meaningful way:

	letters		loans
	short-term		of credit
	to accept		checking deposits
	trust		of large issues of stocks
	long-term		of funds
	sale		credit instruments
	depository		company
	entrust money		withdrawals
	to meet		of bank
	development		to goldsmiths
	to manage business		in the interests of others

5. Discussion Points:

1. Why do people need banks?

2. Banks and business.

3. Risks involved in banking.

6. Read, translate and retell the text.

Selecting a bank

The most important thing in the choice of a bank is its integrity. The size and the type of the bank must be taken into consideration too.

If you are going into business, there is an advantage for a small business to place an account in a small bank. The staff of such a bank know each customer and can estimate your business better.

However, there are advantages of a larger bank. It is true, that dealings with a large bank are more impersonal. But, it is also true, that a large bank can offer more facilities. Large banks can make a loan at more favourable interest rate. They can also make as large a loan as it is desired.

In any case, selecting a bank people learn as much information about the reputation of a bank as possible.

As a summary the following six guides are suggested:

1. Choose a bank whose officers possess character, leadership, and the willingness to assume a risk provided, there is a reasonable chance of repayment.

2. Choose a progressive bank – one whose officers are alert to current industrial trends and are willing to make loans for new products and more efficient processes.

3. Choose a bank that stresses an attitude of friendliness to a small business.

4. Choose a bank that has confidence in the future of your community and thus is willing to invest in it.

5. Choose a bank that quotes reasonable interest rates.

6. Choose a bank that gives good service.

7. Fill each blank in the text with the correct word or phrase. Choose from the following list. Use each item once only.

issued	commission	statement
debited	outstanding	withdraw
in full	salaries	banker's draft
interest	slip	cash dispenser
credit rating	credit transfer	financial institutions
standing order

Banks offer many services to businesses and their customers. Here are some of the most common:

Many people now have a card which enables them to 1. ......... money from a 2. ......... You feed your card into the machine and key in your PIN" (personal identification number) and the amount of money you want. If you have enough in your account, the money requested will be3 .......... to you up to a daily limit. Your account is automatically4 .......... for the amount you have drawn out.

Provided you have a sound 5 .........., you can get a credit card from a bank and other 6. .......... To obtain goods or services, you present your card and sign a special voucher. When it receives the voucher, the credit card company pays the trader (less a 7..........) and then sends you a monthly 8. .......... Depending on the type of card you have, you will either have to pay9 .......... or be able to pay part of what is owed and pay10 .......... on the balance left 11. .........

If you need to make fixed payments at regular intervals, e.g. for insurance premiums, you can arrange a 12 .......... (sometimes known as a banker's order) so that the bank will do this for you.

If you have several bills to pay, you can do this by 13. .......... You write one cheque for the total sum involved, fill in a14 .......... for each bill and hand everything to the bank cashier.

The transfer system is also used by employers to pay 15 .......... directly into employees' bank accounts.

If you are dealing with a supplier for the first time, a 16 ......... may be used as payment. This is a cheque guaranteed by a bank and therefore it is not likely to 'bounce'.