Exercises

1. Answer the questions:

1. What services do banks offer?

2. What is the nature of banking?

3. How do banks earn a living?

4. Do commercial banks play a very important role in an economy?

5. What are the more recent developments in banking?

6. What banking policy can guarantee stability?

2. Find in the text English equivalents for the following Ukrainian phrases:

По визначенню, приймати гроші на збереження, позичати гроші, давати позики, фінансовий посередник, депозитний рахунок, поточний рахунок, на різних умовах, задовольняти потреби, одержувати досвід, оцінювати перспективи, виступати у ролі посередника, покривати витрати, різниця між відсотковими ставками, відсоткова ставка на позичений капітал, ставку позикового відсотка, економія, яка обумовлена ростом масштабів діяльності, відчувати вплив, інкасувати та оплачувати чеки, обліковувати векселі, відкривати акредитиви, виписувати дорожні чеки, надавати овердрафт, проводити операції з іноземною валютою, надавати сейфові послуги, за дорученням клієнта, зберігати у сейфі, відшкодовувати за повну вартість, мати резерви, операції банків з широкою клієнтурою, операції крупних банків між собою, злиття банків, задовольняти потребам, зняття грошей з рахунків, з короткостроковим повідомленням, норма касових резервів, коефіцієнт ліквідності, гроші до запитання, казначейські векселі.

3. Find synonyms for the words underlined.

1. Banks are institutions which accept money from people for safe keeping, lending it out to others.

a) to take b) to give c) to redeem

2. Banks mediate between these borrowers and savers to achieve a profit.

a) to work b) to intermediate c)to assess

3. Offshore banking, which is part of a country's banking business that is denominated in foreign currencies and transacted between foreigners, is developing too.

a) to do a deal b) to redeem c) to acquire

4. In this intermediation process costs are incurred which must be met out of the bank's margin between the borrowing and lending interest rates.

a) to need b) to require c) to reduce

5. By pooling risks, by studying the experiences of many individuals and by acquiring the expertise to assess the prospect of profit and loss inherent in lending, banks are able to provide their savers with a combination of interest.

a) to gain b) to evaluate c) to cut

4. Match the verbs from (a) with the nouns from (b) below:

a) To discount b) needs

To accept bill

To provide travellers` cheques

To issue service

To achieve profit

To pay letter of credit

To acquire interest rate

To withdraw deposits

To satisfy money

To meet loans

To grant demand

To open expertise

5. Think of the verbs that are most commonly used with:

Loan, bank, check, interest, bill, money, deposit, payment, service.

6. Think of the nouns that are most commonly used with:

To pay, to charge, to improve, to increase, to offer, to achieve, to expand, to provide.

7. Make up your own sentences with any five word combination from 5 and 6.

8. Say how the following words are formed:

banker — banking — bank

to serve — service — servant

to act — actor — active

reliable — reliability — to rely

employer — employee — to employ — employment — unemployment -the unemployed

to invest — investor — investment

issue — to issue — issuer — issuance

receiver — receipt — reception — to receive — receivable

to satisfy — satisfaction — satisfactory — satisfied — dissatisfied

9. Write down the Ukrainian equivalents:

current account

to deposit

depositor

deposit account_______________________

savings account_______________________

cash dispensers________________________

free of charge _________________________

10. Make up the sentences putting the words in the correct order.

1. Banks, which, institutions, are, money, from, accept, for, it , safe, keeping, people, out, lending, to, others.

2. They, variety, offer, of, and, intermediaries, they, as, act, services, financial, a.

3. Banks, between, these, mediate, borrowers, a, profit, savers, to, achieve, and.

4. They, their, profit, make, rate, paying, by, a, lower, interest, of, they, money, for, the, lend.

5. Banks, with, write, depositors, and, borrowers, contracts, type, “insurance”.

6. Retail, involves, banking, with, and, businesses, business, individuals, small.

7. Wholesale, involves, primarily, banking, business, other, banks, with, large, and, governments, with, and, companies, multinational.