Mortgage

A mortgage is a type ... finance used ... individuals to purchase property. A loan is made ... a building society, bank or insurance company, covering a proportion ... the purchase price ... that property to be paid ... over a set period ... time (often 25 years). The institutions making that loan retain ownership ... the property as security ... the loan until the loan is repaid.

(of (5), by (2), back, for)

Study the vocabulary:

banking	банківська справа
be engaged in (v)	займатися
Central bank	Центральний банк
the Federal Reserve System	Федеральна резервна система
(the Fed)
commercial bank	комерційний банк
accept deposits (v)	приймати депозити (вклади)
make a loan (v)	одержати позику, надавати
	позику
manage customers' accounts (v)	вести рахунки клієнтів
	(у банку)
merchant bank	торговельний банк
investment bank	інвестиційний банк
savings bank	ощадний банк
savings account	ощадний рахунок

Read and translate the text:

Types of Banks

A bank is an institution that deals in money and provides other financial services. Banks are at the heart of any financial system.

Banking is the business a bank is engaged in.

There exist different types of banks but their names may vary from one country to another.

Central banks such as the National Bank (Ukraine), the Bank of England (UK) or the Federal Reserve System (US) look after the government's finance and monetary policy, act as bankers for the state and for commercial banks, and are responsible for issuing banknotes.

Commercial banks deal directly with the public. They offer a wide range of services such as accepting deposits, making loans and managing customers' accounts. The aim of commercial banks is to earn profit.

Merchant banks don't deal with the public. They provide services for companies. They specialize in raising capital for industry, arranging flotations, takeovers and mergers, and investment portfolios.

Investment banks are firms that control the issue of new securities (shares and bonds).

Savings banks are financial institutions that specialize in providing services such as savings accounts as opposed to general banking services.

Answer the following questions:

1. What is the bank?

2. What is banking?

3. What types of banks exist in most countries?

4. What functions do central banks perform?

5. What kind of institution is a commercial bank?

6. What is the difference between a national bank and a commercial bank?

7. Who are the clients of a merchant bank?

8. What do merchant banks specialize in?

9. What are investment banks?

1. What is characteristic of a savings bank (as opposed to a merchant bank)?

10. What are the potential advantages of large banks?

11. What is the Federal Reserve System?

Form nouns from the following adjectives:

banking, financial, national, governmental, commercial, profitable, industrial, monetary.

Give the English for:

установа, яка має справу з грошами; надавати фінансові послуги; банківська справа; Національний банк України; піклуватися про монетарну політику; відповідати за емісію грошей; комерційний банк; приймати депозити; надавати позику; заробляти прибуток; торговельний банк; придбання контрольного пакета акцій; злиття (підприємств); інвестиційний банк; ощадний банк; ощадний рахунок.

Match words from list A with words from list В that have a similar meaning:

A	В
savings account	service an account
make д loan	get money by working
engage in	take care of
exist	differ
vary	people
look after	be
public	be involved in
earn	extend a loan
manage an account	thrift deposit

The words in the box frequently occur after "bank".

Find combinations that mean:

1. a book that lists all payments into and withdrawals from a customer's bank account;

2. the amount of money paid by a customer to the bank for its services;

3. a person who serves customers, keeps accounts and does other work in a bank;

4. a sum of money left with a bank for safe keeping or to earn interest;

5. a cheque that guarantees payment by a bank;

6. money mat has been lent by a bank to a customer for a fixed period;

7. a person employed by a bank to control a particular branch or department;

8. (UK) a day, not a Saturday or Sunday, when banks are closed and which is also a general holiday;

9. an arrangement with a bank that allows the customer to pay in and take out money;

10. a printed report that shows all the money paid into and out of a customer's bank account within a certain period and the total amount left in the account;

Look at the words and phrases in the box. Match them with the correct definition from the list below:

1. the business of running or working in a bank;

2. the most important bank in a country because it issues and manages currency and helps to carry out the government's financial policy;

3. a bank that provides many different services for its customers, e.g. providing bank accounts and credit cards, arranging loans, etc.;

4. a bank that specializes in raising capital for industry. It advises companies on flotations, manages investment portfolios;

5. a bank that provides finance for companies, especially by buying stocks and securities and selling them in smaller units to the public;

6. a financial institution that specializes in providing services such as savings accounts;

7. an organization that holds money, important documents and other valuables in safe keeping, and lends money at interest;

8. a sum of money paid into a bank or savings account;

9. an account with a bank for personal savings;

10. something lent, usually money, on the condition it will be paid back after an agreed period with interest;

11. the central banking system of the USA;

12. offering company shares for sale to the public or on a stock exchange for the first time.

Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian.

1. She opened her ... with the Midland Bank last year.

2. She works in ....

1. Her monthly salary was paid into the ....

2. I made a ... at the bank mis morning.

3. I applied at the bank for a ... at 7% interest.

4. Lloyd's is one of the major ... banks in the UK.

5. The firm has taken advice from a ... bank on the flotation.

6. I put $600 in my ... account last year and earned 5 percent annual interest.

7. The company has had a difficult time since its ... in 2001.

10.The company decided to increase its ... and bought shares in Smith.

11. A ... card allows you to buy goods and pay for them later.

Portfolio; flotation; savings; merchant; commercial; loan; deposit; bank; banking; account, credit.

Fill in the missing prepositions.

The central bank ... the UK has a number ... important functions ... the economy. It is the government's bank, which means that it issues and refunds government loans and securities and looks ... the National Debt. It is the only bank allowed to issue bank notes ... England and Wales. It implements the monetary policy ... the government ... its control ... the money supply and interest rates. It also controls the provision ... international exchange ... trading. It is a publicly owned organization, largely controlled ... the Treasury.

(of (4), in (2), after, through, over, for, by)

Translate into English:

1. Банк - це установа, яка має справу з грошами та надає різні фінансові послуги.

2. Банківська справа - це бізнес, яким займається банк.

3. Нацбанк України піклується про державні фінанси та монетарну політику.

4. Центральні банки відповідають за емісію грошей.

5. Головна мета комерційного банку - одержання прибутку.

6. Торговельний банк надає послуги компаніям. Він не працює з населенням.

7. Інвестиційний банк - це фірма, яка контролює випуск нових цінних паперів.

8. Ощадний банк спеціалізується в наданні таких послуг, як ощадні рахунки.

1. Комерційні банки це головна ланка в кредитній системі держави.

1. Федеральна резервна система, яка включає 12 федеральних банків та їх філії, контролює американську державну банківську систему.

Study the vocabulary and new phrases:

to be defined – визначати;

success – успіх;

failure – невдача;

depend on – залежати від;

wholesale – оптова торгівля;

retail – роздрібна;

reason – причина;

customers – клієнти;

to earn – заробляти;

otherwise – з іншого боку;

purchase – покупка;

Legal basis – правова основа;

Commersial banks – комерційні банки;

Legal entity - юридична особа;

Issuing centre – емітент, емісійний центр;

Money turnover – грошовий обіг;

Monetery unit – грошова одиниця;

The hryvnia – гривня;

Presious metal – дорогоцінний метал;

Liquidity – ліквідність;

Any types and forms of property – будь-який тип та форми власності;

The Savings Bank of Ukraine – Ощадний банк України;

Cash and settlement services – готівкові та розрахункові гроші;

Subjects of economic activity – суб’єкти економічної діяльності.

Read and translate the texts: