- •Рецензенты:
- •Ю.А. Башкатова;
- •А.В. Колегаева
- •Предисловие
- •Lesson 1
- •1.2 Read and translate the text Financial institutions
- •1.3 Answer the questions to the text:
- •1.11 Read the dialogue
- •1.12 Role play. Work in pairs. Make up dialogues of your own.
- •1.13 Translate into English
- •1.14 Fill in the blanks with proper words given below:
- •Correspondent banking relationship
- •1.15 Comprehension questions
- •Lesson 2
- •2.1 Study the following words and phrases:
- •2.2 Read and translate the text Federal Reserve System
- •2.3 Answer the questions to the text:
- •2.8 Choose the correct answer
- •2.9 Choose one phrase that expresses the main idea of the text
- •2.10 Substitution Drill
- •2.11 Read the dialogue
- •2.12 Role play. Work in pairs. Make up dialogues of your own.
- •2.13 Describe the procedures of the Fed and their effect on the economy.
- •2.14 Translate into English
- •Lesson 3
- •3.1 Study the following words and phrases:
- •3.2 Read and translate the text Developments in banking
- •3.3 Answer the questions to the text:
- •3.8 Choose the correct answer
- •3.9 Choose one phrase that expresses the main idea of the text
- •3.10 Substitution drill
- •3.11 Read the dialogue
- •3.12 Role play. Work in pairs. Make up dialogues of your own.
- •3.13 Translate into English
- •3.14 Fill in the blanks with proper words given below:
- •Transferring funds abroad
- •3.15 Comprehension questions
- •Lesson 4
- •Study the following words and phrases:
- •4.2 Read and translate the text Financial management
- •4.3 Answer the questions to the text:
- •4.8 Choose the correct answer
- •4.9 Choose one phrase that expresses the main idea of the text:
- •4.10 Substitution drill
- •4.11 Read the dialogue
- •4.12 Role play. Work in pairs. Make up dialogues of your own.
- •4.13 Fill in the blanks with proper words given below:
- •International movement of currency
- •4.14 Comprehension questions
- •Lesson 5
- •5.1 Study the following words and phrases:
- •5.2 Read and translate the text How funds flow through a business
- •5.3 Answer the questions to the text:
- •5.8 Choose the correct answer
- •5.9 Substitution drill
- •5.10 Read the dialogue
- •5.11 Role play. Work in pairs. Make up dialogues of your own.
- •5.12 Translate into English
- •5.13 Fill in the blanks with proper words given below:
- •Letters of credit
- •5.14 Comprehension questions
- •Lesson 6
- •Study the following words and phrases:
- •6.2 Read and translate the text Starting - up financing
- •6.3 Answer the questions to the text:
- •6.8 Choose one phrase that expresses the main idea of the text
- •6.9 Substitution drill
- •6.10 Read the dialogue
- •6.11 Role play. Work in pairs. Make up dialogues of your own.
- •6.12 Translate into English
- •6.13 Fill in the blanks with proper words given below:
- •Commercial bank lending I
- •6.14 Comprehension questions
- •Lesson 7
- •7.1 Study the following words and phrases:
- •7.2 Read and translate the text Sources of funds I
- •7.3 Answer the questions to the text:
- •7.8 Choose the correct answer
- •7.9 Choose one phrase that expresses the main idea of the text
- •7.10 Substitution drill
- •7.11 Read the dialogue
- •7.12 Role play. Work in pairs. Make up dialogues of your own.
- •7.13 Translate into English
- •7.14 Fill in the blanks with proper words given below:
- •Commercial bank lending II
- •7. 15 Comprehensive questions
- •Lesson 8
- •8.1 Study the following words and phrases:
- •8.2 Read and translate the text Sources of funds II
- •8.3 Answer the questions to the text:
- •8.4 Find the English equivalents to the following phrases in the text:
- •8.5 Make up ten English sentences using words from the active vocabulary of the lesson
- •8.6 Which passage of the text contains information on:
- •8.7 Are these statements true, false, or not mentioned in the text?
- •8.8 Choose the correct answer
- •8.9 Choose one phrase that expresses the main idea of the text
- •8.10 Substitution drill
- •8.11 Read the dialogue
- •8.12 Role play. Work in pairs. Make up dialogues of your own.
- •8.13 Translate into English
- •Lesson 9
- •9.1 Study the following words and phrases:
- •9.2 Read and translate the text Long term financing (common stock, preferred stock)
- •9.3 Answer the questions to the text:
- •9.4 Find the English equivalents to the following phrases in the text:
- •9.10 Read the dialogue
- •9.11 Role play. Work in pairs. Make up dialogues of your own.
- •9.12 Fill in the blanks with proper words given below:
- •Foreign exchange I
- •9.13 Comprehension questions
- •Lesson 10
- •10.1 Study the following words and phrases:
- •10.2 Read and translate the text
- •Investors
- •10.3 Answer the questions to the text:
- •10.10 Read the dialogue
- •10.11 Role play. Work in pairs. Make up dialogues of your own.
- •10.12 Translate into English
- •Bibliography
- •Dictionaries
- •Содержание
- •Демиденко Ксения Анатольевна
- •650992, Г. Кемерово, пр. Кузнецкий, 39. Тел 75-74-16.
8.2 Read and translate the text Sources of funds II
1. When a business needs funds to construct a new assembly line or to do extensive research and development which may not begin to bring in revenues for several years, short term financing wouldn’t work. In this case, business will need long term sources of funds. Firms may meet long term needs by increasing the company’s debt either by getting loans or by selling bonds.
2. A long term loan is a loan that has a maturity of from one to ten years. Within this period of time the firm pays interest on the debt. Sometimes the lender protects its financial position by requiring that the company obtain the lender’s permission before taking on any additional long term debt. If the loan is particularly risky, the lender may even require the firm to limit or eliminate dividends to stockholders.
3. If the firm wants to be free of lender’s restrictions, it may issue bonds. These are long term debts with a maturity date of 20 to 30 years in the future. Governments issue government bonds. Corporations issue corporate bonds which may be secured or unsecured. If a company wants to sell bonds it can offer some collateral. It is difficult, if not impossible, to find investors who are willing to buy bonds which are not backed up by collateral. Only huge corporations can successfully issue unsecured bonds, which are called debentures. Most bonds carry a face value of $1000 and pay a predetermined interest rate (the coupon rate). The company pays this interest regularly according to the indenture agreement which specifies the terms of a bond issue. The company may retire bonds before they mature if the indenture agreement contains a call provision. In this case the firm pays the bondholders a redemption premium.
4. Another flexible feature in some agreements is the conversion privilege. It allows bondholders to convert their investment into a stated number of shares of common stock. If the price of the company’s common stock is going up, the investors can profit from conversion. Convertibility makes the bond issue more attractive to potential investors.
8.3 Answer the questions to the text:
When does a business need long term sources of funds?
What are two ways of increasing the company’s debt?
What is a long term loan?
How can a lender protect its financial position?
What can a lender require of the borrower if the loan is risky?
What does a company do if it wants to be free from the lender’s restrictions?
What is the bond’s maturity date?
What is a secured bond?
Why is it difficult to sell debentures?
What is the face value of most bonds?
What documents specify the terms of a bond issue?
What makes it possible to retire bonds before they mature?
What is a redemption premium?
What does conversion privilege allow the bondholders to do?
When do the investors profit from conversion?
8.4 Find the English equivalents to the following phrases in the text:
обширные исследования; приносить доход; удовлетворять долгосрочные потребности; выплачивать проценты по долгам; защищать финансовое положение; ограничить или прекратить выплаты дивидендов акционерам; выпускать облигации; дата погашения обязательства; купонная ставка (гарантированная ставка процента на облигацию); условия выпуска облигаций; погашать облигации; выкупная премия; конверсионная льгота; обыкновенная акция; получить прибыль от конверсии; более привлекательный для потенциального инвестора.