Unit XI

WORD-STUDY

Exercise 1. Check the translation in a dictionary, read and translate the words listed below.

Nouns

incentives, expansion, commodity, individual, notice.

Verbs

encourage, effect, regulate, charge.

Adjectives

totalitarian, interchangeable, short-term.

Adverbs

therefore, whenever, basically, worldwide, likewise.

Exercise 2. Make different parts of speech from the following words:

a)Model: (noun+ate)=verb: (graduation – gradu(ate); stimulation, registration, legislation.

b)Model: (verb+able)=adjective (predict – predict(ab)le; pay, note, eat, refuse, suit, value, change.

Exercise 3. Match the Russian equivalents to the given collocations.

a)free-market economy, the cost of money, interest rate, through a variety of economic incentives, the amount of money, available for business expansion, can be affected by.

b)рыночная экономика, стоимость денег, посредством разных экономических воздействий, доступный для расширения бизнеса, процентная ставка, согласуются, могут быть подвергнуты, количество денег.

UNDERSTANDING A PRINTED TEXT

HOW ARE INTEREST RATES USED TO CONTROL AN ECONOMY?

In free-market economies, consumers and businesses can do almost anything they want as long as they pay for it. Therefore, by controlling the cost of money-its interest rate-central banks are able to influence economic growth.

In a totalitarian country the government can simply tell its citizens what it wants them to do. But in free-market countries, consumers and businesses are encouraged to increase or reduce their economic activity through a variety of economic incentives. By increasing short-term interest rates, for example, a central bank discourages bank lending, reducing the amount of money available for business expansion and consumer spending. Likewise, by lowering these interest rates, a central bank acts to encourage economic activity.

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