Structure and functions of a bank in the u.S.

4. Dialogue

Customer: Who really owns the bank?

Banker: The stockholders own it. In the beginning they put up the necessary capital and were granted a charter from the government.

Customer: Are the members of the board of directors stockholders?

Banker: Oh, yes. They're chosen by the other stockholders to operate the bank.

Customer: And the board hires president and the vice-presidents to manage it.

Banker: That's right along with the cashier, the tellers, and the clerical workers.

Customer: I guess most of your work has to do with checking and savings accounts and making loans.

Banker: Yes. But we invest money, too. Planning the bank's investments is also very important.

Customer: Do you divide all the profits among the stockholders?

Banker: Not all of them. The stockholders receive regular dividends. But some of our earnings are held in reserve accounts.

Customer: I suppose that would be necessary.

Banker: Here's a copy of our last published statement you see, the reserves are shown here as surplus and undivided profits.

Currency and other forms of exchange in the u.S.

5. Dialogue

Student: The bank must use just about every form of exchange in a day's work.

Cashier: Just about. Of course, we constantly handle coins and bills of every denomination.

Student: They're what you call legal tender? Cashier. Yes. Of course. A nation's currency is its legal tender. Student: But a check isn't a legal tender.

Cashier: No. However, checks are a very common form of exchange, and they're generally accepted in lieu of currency.

Student: Are traveler's cheeks currency?

Cashier: Not in a strict sense. But they're immediately negotiable everywhere. For instance, even merchants will cash them under most circumstances.

Student: The bearer need only present proper identification. Cashier: That's right.

Student: Well, what's a bank note? is that currency?

Cashier: Definitely. Bank notes are issued by the banks of the Federal Reserve System, and they're legal tender just as silver certificates are.

Student: That's what I thought. But getting back to checks, why are bank drafts sometimes preferred over checks?

Cashier: Well, in the case of a check, the party who signs it is the only one who guarantees payment. But a bank draft is issued and guaranteed by a bank

Student: Is that true of cashier's checks, too? Cashier: Yes. And also of certified checks and money orders. Student: What about sight drafts?

Cashier: Now, sight drafts are different. They're a form of request for payment through a bank

1. Прочтите диалоги, которые могут иметь место в банке.

2. Запишите, переведите и запомните выделенные предложения, которые вы можете использовать в своих беседах.

Block 8. Financial Reports Consolidated financial report of the large financial holding company

1. Consolidated statements of income of Citicorp and subsidiaries

In millions of dollars	1999	1998
Interest revenue
Loans, including fees	22927	22545
Deposits with banks	1002	1070
Federal funds sold and securities purchased under resale agreement	402	738
Securities, including dividends	3670	3028
Trading account assets	692	1059
Loans held for sale	549	533
	29242	28973
Interest expense
Deposits	10775	11511
Trading account liabilities	88	269
Purchased funds and other borrowings	1984	2146
Long-term debt	1853	1745
	14700	15671
Net interest revenue	14542	13302
Provision for credit losses	2837	2751
Net interest revenue after provision for credit losses	11705	10551
Fees, commissions, and other revenue
Fees and commissions	7547	6457
Foreign exchange	1569	1628
Trading account	888	265
Securities transactions	332	524
Other revenue	3270	2502
	13606	11376
Operating expense
Salaries	6270	6028
Employee benefits	1333	1403
Total employee	7603	7431
Net premises and equipment	2505	2207
Restructuring-related items and merger-related costs	154	1011
Other expense	6756	6362
	17018	17011
Income before taxes	8293	4916
Income taxes	3098	1820
Net income	5195	3096