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XIII. Read and remember some English idioms useful for businessmen:

  1. Take a different tack - to use a different approach; піти іншим шляхом; застосовувати інший підхід.

  2. Take a leaf out of someone's book - to follow someone's example; наслідувати кого: брати приклад з кого.

  3. Cut-throat competition - ruthless competition by any method; безжалісна конкуренція.

Lame ducks - companies in trouble and needing outside help; "кульгаві каченята", тобто компанії, що потребують фінансової допомоги.

Lesson 11

I. Read the following words and word combination and learn their meanings by heart:

Negotiable instrument - обіговий документ (що передається шляхом вручення або індосаменту); endorsement -індосамент, підтвердження, передавальний напис (на чеку), підпис на звороті (документа); endorse - індосувати, підписуватися, робити передавальний напис; endorsee - індосатор, жират; maker - особа, що видала грошове зобов'язання; commercial paper -короткотерміновий комерційний вексель, (цінні папери); promissory note - простий вексель, боргове зобов'язання; promise - обіцянка; notation - нотація, зображення умовними знаками; mortgage - заставна; note - авізо (письмове повідомлення банку); certificate of deposit - депозитний сертифікат; to acknowledge - визнавати, підтверджувати; draft - трата, переказний вексель; drawer - трасант; drawee payee - одержувач грошей по чеку (векселю), ремітент; designated - призначений; to issue - випускати, пускати в обіг; credit instruments - боргові [кредитні] зобов'язання (векселі,чеки, акцепти, облігації).

II. Read and translate the text: negotiable instruments

The relation of borrowing and lending centers largely around a negotiable instrument. A negotiable instrument is a written evidence of some contractual obligation and is ordinarily transferable from one person to another by endorsement. It is frequently referred to as negotiable paper or commercial paper.

The person who endorses a negotiable instrument and transfers it to someone else is known as the endorser. The person to whom he transfers the negotiable instrument is referred to as the endorsee.

The most common forms of negotiable instrument are (a) promissory notes and (b) checks. Other forms of negotiable instruments include certified checks, bank drafts, cashier's checks, and bank money orders.

Promissory Notes. The promissory note is the simplest form of commercial paper; it is simply a promise to pay money. In a promissory note, one person (known as the maker) makes an unconditional promise in writing to pay another person (the payee), or a person specified by the payee, a specified sum of money either on demand or at some particular time in the future.

The promissory note is primarily a credit instrument. It is used in a wide variety of transactions in which credit is extended. For example, if you purchase an automobile on credit, the dealer will probably have you sign a promissory note for the unpaid balance of the purchase price. Similarly, if you buy a house, the lender who takes a mortgage on the house will have you sign a promissory note for the amount due on the mortgage. The note will probably have a notation on it that it is secured by a mortgage. The terms of payment of your note should correspond with the terms of your sales contract for the purchase of the car or the house.

Certificates of Deposit. The certificate of deposit that your bank or savings and loan association may give you when you make a deposit of money is a form of commercial paper and a type of note. Like the promissory note, the certificate of deposit is a promise to pay money. When a bank issues a certificate of deposit (CD), it acknowledges that it has received a deposit of a specific sum of money. It also agrees to pay the owner of the certificate the sum of money plus a stated rate of interest at some time in the future.

Draft. A draft is a form of commercial paper that involves an order to pay money rather than a promise to pay money. The most common example of a draft is a check. A draft has three parties to it: One person (known as the drawer) orders a second person (the drawee) to pay a certain sum of money to a third person (the payee). Drafts other than checks are used in a variety of commercial transactions. However, they are used much less frequently than checks.

Checks. A check is a draft that is payable on demand and on which the drawee is always a bank. The check is the most widely used form of commercial paper. By issuing a check, you are ordering the bank at which you maintain an account to pay a specified person, or someone designated by that person, a certain sum of money from your account.

III. Retell the text according to the following questions:

1. What is the promissory note? 2. Where is the promissory note used?

3. What is the certificate of deposit? 4. What is a draft and where is it used?

5. What is the most common example of a draft? 6. Where are drafts used?

7. What is a check and where is it used?

IV. Learn the following groups of:

  1. synonyms:

Paper - document, to purchase - to buy, probably - possibly, price - cost, amount - sum, to issue - to publish, widely - extensively, specific - special, simple - common, payee - receiver, specified - certain - particular, fraud -deception.

  1. antonyms:

To purchase - to sell; frequently - seldom, rarely; include - exclude; maker - payee; endorser - endorsee; to pay - to receive; simple - complex; sufficient - insufficient; to submit - to return.

V. Translate the following words and word combinations:

a promise, the promissory note, payee, demand, transaction, to purchase, dealer, the purchase price, mortgage, the certificate of deposit, savings, loan to issue, rate of interest, payable, to maintain an account.

VI. Translate into English:

1. Батьківщиною векселя є Італія часів середньовіччя. 2. Простий вексель - це найбільш поширена форма короткотермінового комерційного векселя. 3. Виписуючи чек, ви наказуєте банку, в якому тримаєте рахунок, виплатити певній особі зазначену суму грошей з вашого рахунку. 4. Найпростішим прикладом переказного векселя є чек. 5. В борговому зобов'язанні в письмовій формі одна особа зобов'язується заплатити іншій зазначену суму грошей. 6. До обігових документів входять прості векселі, чеки, посвідчені чеки, чеки касирів, трати, виставлені банком на інший банк, і банківські грошові перекази.

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