I. Find answers in the text.

1. Where do you keep your money?

2. Have you a bank account?

3. Why isn`t it sensible to keep one`s money at home?

4. Does money lose its value?

5. Why does money lose its value?

6. What financial services do banks offer?

7. What is ATM?

8. How do banks make a living?

9. What is defaulting on a loan?

10. How does government control the amount of money circulating in the economy?

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II. Complete the sentences as in the text.

1. Money in a bank saving account will earn… 2. Banks offer different financial services. Most of these are… 3. They give customers cheque books and… 4. Sometimes people do not pay back money… 5. The reserve must be a certain percent of all the…

III. Complete each sentence with a word or phrase from the box:

accessible, ATM, compensates, deposit, make a living, reliable, security, sensible, transfer, withdrawal.

1. As against possible burglaries, they installed alarms.

2. Some people aren’t very with their money and they

waste it on useless things.

3. If you are injured at work, you may get money to for

losing your salary.

4. If something is you can trust it to work properly.

5. . things are easy to reach or to get.

6. When you things, you move them from one place to

another.

7. An is a machine that gives customers money when

the bank is closed.

8. Most people have to work in order to …………………………..

9. When you make a ,you put money into your

account.

10. When you make a ………………., you take money out of your account.

IV. Now read the text again and answer these questions in your own words.

1. What two reasons are given for saving your money in a bank account?

2. Why do people prefer to borrow money from banks?

3. Do banks do anything else for their customers other than store and lend money?

4. How do banks earn money?

5. Who decides how much money the bank keeps in reserve?

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V. Discuss the following with your partner.

What do banks do? Work with a partner to make a list of all the services that banks provide. Then compare your list with others in the class.

If a bank-note is not real, we call it a fake or counterfeit note.

• How do you know if a bank-note is real or not?

• What can banks do to make people trust their notes and coins?

VI. Say what you have learned about:

• different ways of keeping money

• financial services of banks

• borrowing and lending money

• controlling money circulating in the economy

Think and give extensive answers.

Grammar exercises

VII. Translate the sentences. Practise the use of Past Participle (§ 15).

1. Exports are goods and services sold to other countries. 2. In free market economics changes in price are never results of regulations imposed by government. 3. Consumers couldn`t get goods and factories, couldn`t buy inputs at prices held low by governments. 4. At prices above equilibrium we have a situation known as excess supply. 5. A decrease in input prices makes the production less expensive. 6. As income rise, the quantity of goods bought will rise but only a little. 7. Production is the entire quantity of the goods produced. 8. The quantity demanded is influenced by changes in consumer’s incomes. 9. As the quantity supplied increases with an improvement in technology, firms seek to produce more at the same price level. 10. Boom is a period of increased business activity.

VIII. Supply the correct forms of the verbs (§11). Translate the sentences.

1. Our economists (to choose) another level of output for the next year as the situation at the market (to change). 2. The demand for a commodity (to affect already) by a change in price. 3. The African

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countries already (to buy) large quantities of food from the European countries and the USA. 4. The present director of the company (to know) the way of running a business efficiently. 5. Recently the increase in consumers` income (to follow) the increased demand for normal goods.

6. This American company (to sell) its computers very successfully.

7. New economical methods of transporting fruit and vegetables (to develop) in future. 8. Prices (to regulate) production and consumption in a market economy.