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финансы уроки1-12.doc
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Exercises

1. Answer these questions:

1. What is the major sector of any modern monetary system?

2. What are central banks responsible for?

3. What functions do central banks perform?

4. What is done to ensure the safety of a banking system?

5. Why are "prudential ratios" imposed on commercial banks?

6. What is the structure of the Federal Reserve System?

7. How are members of the board appointed?

8. What functions does the "Fed" perform?

9. What services does the "Fed" perform for banks and the government?

10. How does the "Fed" contribute to the stabilization of the banking system?

11. What role does the "Fed" play in the making of economic policy?

2. Find English equivalents for the following Ukrainian phrases from the texts:

Система центрального банку, бути важливим, бути відповідальним за проведення кредитно-грошової політики, контролювати грошову масу, установлювати відсоткову ставку, проблеми нестачі ліквідних засобів, проводити емісію грошей, надійність банківської системи, депонувати засоби у центральному банку під нульовий відсоток, бути відомим у фінансових кругах, рада керівників, це є результатом тривалого строку повноважень, члени ради призначаються, голова ради обирається, чеки, які виписані на банк, депонувати чеки у банку; реалізовувати кліринг чеків через Федеральну Резервну Систему; вести рахунки; основна причина організації ФРС; покупати державні облігації; операції на відкритому ринку; багато банків збанкрутувало.

3. Find and read sentences explaining the title of the text.

4. Find in the text sentences expressing such ideas.

  1. The central banking system plays an important role in the life of society.

  2. The functions of central banks are very complicated.

  3. There is a difference between central bank and commercial bank.

  4. Central banks are responsible for the safety of the banking system.

  5. Central Bank in Ukraine has been pursuing moderately tight monetary policy aimed at further reduction of inflation and putting an end to direct budget deficit crediting.

  6. The Federal Reserve System has strictly organized structure.

  7. The Fed performs three major functions.

5. Checking facts and ideas. Decide if these statements are true or false.

1. The central banking system is of great importance only for the private sector.

2. Central banks function for the government and other banks, not for private customers.

3. Private banks control the money supply, fix the minimum interest rate, act as lenders of last resort to commercial banks with liquidity problems, issue coins and bank notes, influence exchange rates by intervening in foreign exchange markets.

4. Central banks impose different requirements on commercial banks which are aimed at ensuring of safety of the banking system.

5. The Federal Reserve System or "Fed", as it is known in financial circles, is an independent agency of Congress.

6. Members of the Fed's board of governors are appointed by the Senate of the United States and confirmed by president of the United States.

7. The most important service of the Fed is to provide currency to banks and collects worn currency.