Comprehension check

I. Give English equivalents to the following:

Центральный банк, международный банк, учетная ставка, государственный банк, резервные требования, операции на открытом рынке, долгосрочное финансирование, краткосрочное финансирование, обязательный резерв, проценты, процентная ставка, банковская ссуда, денежная наличность, кассовый резерв, страховая компания, доверительный сберегательный банк, открыть депозит, срочный вклад, бессрочный вклад, эмиссионный банк, брокерские операции с недвижимостью, трастовое управление, депозит до востребования, операции банков с крупными промышленными предприятиями.

II. Read and translate the definitions of the basic banking terms:

1. Central bank — a bank for banks. America’s central bank is the Federal Reserve System.

2. National banks — commercial banks that are chartered by the federal government.

3. State banks — commercial banks that are chartered by state governments.

4. Discount rate — the interest rate charged to banks for borrowing from the Federal Reserve System.

5. Reserve requirements — the portion of demand deposits that banks must keep as cash in the vault or as deposits with a Federal reserve bank.

6. Open market operations — the purchase and sales of the U. S. government securities by the Federal Reserve banks intended to change the economy’s supply and demand.

7. The required reserve (legal reserve) — the specified minimum percentage of its deposit liabilities which member bank must keep on deposit at the Federal Reserve bank in its district or in vault cash.

8. The required reserve ratio — the proportion of deposits that a depository institution must hold in the form of reserves.

9. Excess reserves — the amount by which a member bank’s actual reserve exceeds its required reserve; actual reserve minus required reserve.

10. Credit — immediate purchasing power that is exchanged for a promise to repay it, with or without interest, at a later date.

11. Creditor — a person or organization to whom money is owed.

12. Interest — payment for using someone else’s money (from the debtor’s perspectives); income derived from allowing someone else to use one’s capital (from the creditor’s perspective).

13. Interest rate (interest) — the price of borrowing money or the price received for lending money, expressed as a percentage.

14. Simple interest — a fixed rate on a stated sum; the same amount is paid or accumulated each year irrespective of the amount borrowed.

15. Compound interest — the interest that is calculated each year on capital plus interest already accumulated.

16. Bank loan — a fixed amount lent by a bank to a customer for an agreed time and on specified terms.

17. Short-term financing — money that will be used for a period of one year or less and then repaid.

18. Long-term financing — money that will be used for longer than one year.

19. Vault cash — the currency a bank has in its safes (vault) and cash drawers.