Credit Card

Credit card that identifies its owner ... one who is entitled ... to credit when purchasing goods ... services ... certain establishments. Credit cards were originated ... the USA ... the 1930s. They are is­sued ... many businesses serving the consumer, such ... oil compa­nies, retail stores, restaurants, hotels, airlines and banks. Some credit cards are honored ... a single store, but others are general-purpose cards, ... use ... a wide variety of establishments. When a credit card is used, the retailer records the name and account number ... the purchaser and the amount... the sale, and forwards this record ... the credit card billing office. ... intervals, usually monthly, the bill­ing office sends a statement ... the card holder listing all the

charged purchases and requesting payments immediately or ... install­ments. The billing office reimburses the retailer directly.

Most... the work involved ... credit card operations is now han­dled ... computers. Charges ... the use of a credit card are sometimes paid directly ... the card holder, and sometimes borne ... the retail establishments that accept them. ... the latter case, the cost is absorbed ... the price ... the merchandise. Department stores usually charge interest ... credit customers who do not settle their bills within a month, but certain credit plans do not charge interest ... a bill has been outstanding for several months. Interest rates ... overdue bal­ances are regulated ... state law.

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Here is below a list of financial terms. List all terms-phrases you can associate with them:

1. Credit 6. Discount

2. Leasing 7. Mortgage

3. Interest 8. Loan

4. Rate 9. Purchase

5. Overdraft lO.Payment

Answer the following question:

1. What does the credit system of any country consist of?

2. What does the state of business activity within a country at any point of time depend on? Why?

3. Picture the interrelation between two parties: transferor and transferee.

4. List all different classes of credit.

5. What is the difference between commercial and consumer credit?

6. If you received commercial credit terms of 3/10, net 25. exactly what would this mean?

7. Why should businesses use commercial credit? Since the seller obviously faces a greater risk in giving credit, why should he ever agree to it?

8. Do you keep your savings continuously at work? In what way?

10.List finance facilities when credit is required for more than one year.

11 .Why do financial institutions make loans?

12. What does the presence of credit institutions rest on?

13. Why must there be a relationship between the amount of a credit, the term, and the purpose?

14.List all functions of credit.

15.What is credit made for?

16.How does the value of interest vary and what does it depend on?

17. Why is insurance of credit important? What kind of security is re­quired when extending credit?

18.What is the difference between an unsecured loan and a loan se­cured with collateral?

19.What function is served by «in case of indebtedness»?

20.What is meant by factoring? Is it a form of secured loan? What are some of the considerations set in establishing a discount rate in fac­toring?

21.Why does a creditor usually ask for a customer's financial state­ments? What can a creditor determine from the balance sheet?

22.What do we call credit instruments?

UNIT 3

Topic

“Marketing”

Study the vocabulary:

involve (v)	містити в собі, мати на увазі
demand	попит, потреба
appropriate	відповідний, підхожий
achieve (v)	досягати, успішно виконувати
objective	мета, завдання
marketing strategy	стратегія маркетингу
take into consideration (v)	брати до уваги
marketing mix	формула маркетингу, комплекс
	маркетингу
promotion	сприяння у продажу (товару)
support	підтримка, допомога
reliability	надійність
charge (v)	призначати, вимагати плату
distribution	розподіл; розповсюдження;
	розміщення
package (v)	пакувати

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