Exercises

Ex.1. Find where in the text it is said about the points given below.

1. the meaning of investing.

2. three steps in any investment program.

3. five criteria of selecting an investment option.

4. two conflicting aims of the investment policy of a bank.

5. two things a bank should do to make its investment safe.

Ex.2. Find the terms in the text which designate the following:

1. committing capital with an expectation of making a profit;

2. increase in the value of an investment;

3. action of depositors concerning with taking their money back from bank`s assets;

4. the period of time for which assets are commited.

5. the ease with which an asset or investment can be converted to cash;

6. economic resources owned by a legal entity.

Ex.3. Say if the following statements are true or false:

1. The first step in any investment program is to select general investment options.

2. The chance that an investment and all its accumulated yields will be worth less at some future time than when the investment is made is often referred to as investment risk.

3. There exist six main criteria of selecting an investment option.

4. A bank must keep a proportion of its assets in the form of cash to meet demands of its depositors.

5. Advances by a bank to its customers are the most liquid of its assets.

6. Banks are willing to provide mostly fixed capital.

Ex. 4. Answer the following questions:

1. What does the term “investing” mean?

2. What does the analysis of an investment situation contain?

3. What should investors decide when choosing an investment option?

4. What are five criteria of its selecting?

5. What two conflicting aims should a bank reconcile?

6. What must a bank do to lessen the risk of investing?

7. What are the most profitable of a bank`s assets?

8. Do banks lend to industry for long periods of time or for investment projects? Why?

Ex. 5. Describe the process of an investment analysis.

Ex. 6. Explain the meaning and the main steps of the investment policy of a bank.

Ex. 7. Prove the importance of each of five criteria in selecting an investment option.

Ex. 8. Make up a plan covering the main ideas. Discuss the text according to the plan.

Ex. 9. Discussion points:

1. Do you or anyone in your family have any experience in investing? What was the project? What were the objectives and what was the profit if any?

2. Think about spheres of Ukrainian economy that are the most perspective for investing either domestic or foreign. Give your reasons and ideas.

Unit 2 Economy as a System

Read and memorize the following words, words combinations and word-groups:

Generate – виробляти, творити

Counter-flow – рух у зворотньому напрямку

Household - домогосподарство

Expenditure – витрата

Inject into – додавати, вводити

Leak out of – витікати з

Income - прибуток

Surplus – надлишок

Inevitably – неминуче

Survive – виживати

Prosper – процвітати фінансово

Seek to do smth – намагатись; шукати засоби

Be aware of – знати, усвідомлювати

Threat – загроза

Economic policy – економічна політика, план дій

Economic indicator – економічний показник

Value - цінність

Gross Domestic Product (GDP) – валовий внутрішній продукт

Boundary - межа

Rate – ставка, рівень, норма

Recession – спад економічного розвитку

Induce smth – спонукати, стимулювати

Hitherto – до сих пір, до теперішнього часу

Unexploited natural resource – нерозвідане родовище

Surge in growth – раптовий період економічного зростання

Spin-off in activity – згортання діяльності

Accumulation – збільшення, накопичування

Cumulative - накопичувальний

Promote – сприяти, заохочувати