Vocabulary Notes:

organizational (організаційний) - showing the way a company is organised.

Managing Director (генеральний директор) - director who is in

charge of a whole company.

assist (допомагати) - to help

executive (виконавчий; адміністративний) - having authority to carry out decisions, laws, decrees, etc.

accountable (підзвітний) - expected to give an explanation.

personnel (персонал, особливий склад) - staff.

training (навчання) - teaching employees how to do something.

rationalization (раціоналізація) — making more efficient.

region (район, область) — part of a country.

split (розподіляти) — to divide.

matrix (basis) (матрична база) — organized according to two sets of criteria, e.g. geographical and functional.

section (секція, відділ) — part of a company.

subsidiary (дочірня компанія) — company which is owned by a parent company.

the Board (правління, рада директорів) — committee; group of persons controlling a business.

UNIT 2

Topic

“Credit”

Key Words and Phrases:

(to) affect	зачіпати; уражати; (по)діяти
(to) assign	асигнувати; визначати; доручати
acquisition	придбання
(to) be ganged (from)	вимірювати, вивіряти, оцінювати
(to) be bound	бути обмеженим; стриманим;
	пов'язаним; зобов'язаним
(to) be secured (by)	бути забезпеченим заставою;
	надійним
bill of exchange	перевідний вексель
(to) comprise	містити (в собі)
consumption	споживання, витрати
(to) decline	зниження (цін); схил (життя)
depression	зниження; депресія
deferred-payment basis	на основі відстрочки виплати
draft	вексель, трата
(to) expand (money supply)	розширювати, збільшувати (гро-
	шовий потік)
(to) extend	поширювати, продовжувати
extent	розмір, відстань
to some extent	певною мірою
fluctuation	коливання, нестійкість
(to) grant (a loan)	надавати (позику)
hence	звідси; отже
(to) handle (syn. to manage, to	мати справу; справлятися з
deal with, to deal in)
indebtedness	заборгованість
indispensable	необхідний; обов'язковий
(to) initiate	покласти початок; посвячувати
interest	відсотки
(to) He idle	знаходитися без ужитку
legal (ly)	законний; правовий; легально
merchant	торговець; купець
(to) meet expenses	оплачувати; оплатити витрати
	(борги)
negotiable	який передається третій особі
prosperity	процвітання, добробут
promissory note	боргове зобов'язання
real-estate	нерухомість
resources	ресурс, засіб, можливість
(to) rest on	спиратися (спертися), лежати
rehabilitation	реабілітація
temporary	тимчасовий
tangible (assets)	1. матеріальний;
	2. відчутний (активи)
whereas	тоді як; оскільки

Credit

All banking operations, and the methods for controlling them, are part of the credit system of a country. The state of business activity within a country at any given moment may be gauged from the condi­tion of the credit system. Expanding credit generally reflects a period of business prosperity, whereas contracting credit usually reflects a period of declining economic activity or depression. Fluctuations in the credit system may affect the level of prices; that is, as credit ex­pands the money supply increases, lending causes prices to rise.

To the definition of credit given in the previous unit it can be added the following: credit is the term used to denote transactions in­volving the transfer of money or other property on promise of repay­ment, usually at a fixed future date. The transferor becomes a creditor, and the transferee, a debtor, hence credit and debt are simply terms describing the same operation viewed from opposite standpoints.

There are different classes of credit:

1 mercantile or commercial credit, which merchants extend to one another to finance production and distribution of goods;

2. investment credit used by business firms to finance the acquisition of plant and equipment and represented by corporate bonds, long-term notes, and other proofs of indebtedness;

3. bank credit, consisting of the deposits, loans, and discounts of depository institutions;

4 consumer or personal credit, which comprises advances made to individuals to enable them to meet expenses or to purchase, on a deferred-payment basis, goods or service for personal consumption; providing credit cards;

5. real-estate credit, composed of loans secured by land and buildings (mortgage);

6. public or government credit, represented by the bond issues of national, state, and municipal governments;

7. international credit, which is extended to particular governments by other governments, by the nationals of foreign countries, or by international banking institutions, such as the International Bank for Reconstruction and Development.

The principal function of credit is to transfer property from those who own it to those who wish to use it, as in the granting of loans by banks to individuals who plan to initiate or expand a business venture. The transfer is temporary and is made for a price, known as interest, which varies with the risk involved and also with the demand for, and supply of, credit.

Credit transactions have been indispensable to the economic de­velopment of the modern world. Credit puts to use property that would otherwise He idle, thus enabling a country, to more fully employ its re­sources. One of the most significant differences between some nations of Africa, Asia, and South America and the advanced Western nations is the extent to which the use of credit permits the latter to keep their savings continuously at work. The presence of credit institutions rests on the readiness of people to trust one another and to make business contacts. Without credit, the tremendous investments required for the development of the large-scale enterprise on which the high living standards of the West are based would have been impossible.

Thanks to credit we have modern business without the constant handling of money. Credit operations are carried out by means of documents known as credit instruments, which include bills of ex­change, money orders, checks, drafts, promissory notes, and bonds. These instruments are usually negotiable; they may legally be trans­ferred in the same way as money. When the party issuing the instru­ment desires to prevent its use by anyone other than the party to whom it is issued, he or she may do so by inscribing the words «not negotia­ble» on the instrument.

Insurance of credit is very important. Creditors sometimes re­quire no other assurance of repayment than the debtor's credit stand­ing. Sometimes more tangible security, such as the guarantee of a third part}', is required. Also, the debtor may be obliged to assign the rights to some other property, which is at least equal in value to the loan, as collateral security for payment.

The depositing of funds in a bank for safekeeping may also be regarded as a form of credit to the bank, as such funds are used for loan and investment purposes, and the bank is legally bound to repay them as an ordinary debtor.

Loans for the restoration of international trade and rehabilitation of industries have been arranged through the International Bank for Reconstruction and Development and the International Monetary Fund. These financial institutions made credit available to Ukraine contributing to its economic growth.

Find the following words and phrases in the text, translate sentences containing them into your mother tongue. Use these words to make up your own sentences:

credit system, to be gauged, business prosperity, fluctuations in the credit system, transferor, transferee, commercial credit, investment credit, consumer credit, to meet expenses, deferred-payment basis, mortgage, collateral, pledging, interest rate, living standards, promis­sory notes, financial instruments.

Using the words in brackets explain the meaning of the following terms and phrases:

1. credit system to be gauged from (condition, state of business activity, country, moment)

2. fluctuation in the credit system may affect the level of prices (to expand, money supply, lending, to rise, to increase)

3. the mortgage is being amortized (regular payments on, the principal, me interest, make)

4. to make a loan on an open note (grant, the repayment, not guaranteed collateral security)

5. deferred-payment basis (consumer credit, to enable, to meet expenses, individuals)

6. the main function of credit (transfer property, to own, to use, banks, individuals, to expand a business venture)

7. inhabitants of developing countries hoard their savings (lack of credit facilities, necessary, to put them to, profitable use)

8. credit instruments (credit operations, to carry out, by means of, bill of exchange, money order, check, draft, promissory note)

1. tangible security (guarantee, third party, to require, property)

Match the words/expressions on the left with their best synonyms on the right:

1. operation a. merchandise, product

2. credit	b. real estate, owning
3. negotiable	с buying, purchasing
4. property	d. transaction, dealing
5. acquisition	e. loan, lending; trust
6. expenses	f. (to) grant, issue, extend
7. deferred-payment basis	g. mortgage, security, pledging
8. goods	h. by installment
9. providing credit cards	i. expenditures, spending, costs
10. collateral	j. transferable

Explain the following:

1. to make regular payments on the borrowed money

2. to guarantee the payment of the loan

3. to sign a promissory note

4. investment credit

5. credit card

6. real-estate credit

7. transferor and transferee

8. debt and credit

9. to keep smb's savings at work

10. to handle money

Fill in the gaps with suitable prepositions: