1. Прочитайте та перекладіть українською мовою весь текст. Перепишіть та письмово перекладіть з 1-го по 6-й абзаци тексту:

Finance

Finance is the function in a business that is responsible for obtaining funds, managing funds within it and controlling them. Most organizations have finance managers or financial departments in charge of financial operations. Financial management performs the following finance functions:

Planning Collecting funds (Credit management)

Budgeting Auditing

Obtaining funds Managing taxes

Controlling funds Advising top management on financial matters

So, the main task of finance manager is to obtain money, then plan it, use and control money effectively.

You must be sure that without a carefully calculated financial plan and budget the firm has little chance for success.

Obtaining funds - is a very important finance function, because the amount of money needed for various time periods and its sources are fundamental questions in sound financial management.

Financial control means that the revenues, costs and expenses are periodically reviewed and compared with projection.

Credit management gives a firm chance to earn money having an interest on credits and loans given. But you must be sure that the firm doesn't lose too much money to bad debt losses. So, collecting funds is a very important task of a finance manager.

Managing taxes means tax implications of various financial transactions. Remember that tax computation is under strict scrutiny of tax authorities. Then comes auditing, that is reviewing and checking on the journals, ledgers and financial statements to be sure that everything was done according to accounting rules and procedures.

And finally, financial people help management in decision making. All these functions depend greatly on the information provided by the accounting statements.

2. Дайте відповідь на запитання:

1. Explain the role and importance of finance.

2. What are the main finance functions ?

3. Explain the meaning of every finance function.

4. What do taxes represent?

5. What is auditing? It's objectives?

3. Перекладіть наступні словосполучення на українську мову та складіть із будь-якими з них 5 власних речень англійською мовою:

Managing funds; finance managers; collecting funds; obtaining funds; a carefully calculated financial plan; various time periods; sound financial management; revenues, costs and expenses; tax implications; financial transactions.

4. Підкресліть Complex Object та використайте Passive Voice де необхідно:

1. We lay in the shade of the tree, waiting for our friends to come.

2. A railway line connects the village with the town.

3. I don’t like you to say such words.

4. A famous architect designed this theatre.

5. Put on a thicker coat, I don’t want you to catch a cold.

6. This plant had fulfilled the plan by the 15^th of November.

5. Передайте наступні речення у Passive Voice та перекладіть їх:

1. The hostess said that one more guest (to expect).

2. The newspaper said that an interesting exhibition (to open) in the Hermitage the next week.

3. This new dictionary (to sell) everywhere now.

4. All the texts (to look) through yesterday and not a single mistake (to find).

5. A manager looked through these papers this morning.

Варіант 3

1. Прочитайте та перекладіть українською мовою весь текст. Перепишіть та письмово перекладіть з 1-го по 2-й абзаци тексту:

Taxation of Multinational Enterprises

The taxation of corporate income varies intricately from one country to another. The differences lie not only in the levels, of the tax rates. They are found also in definitions of taxable profits, net royalties, interest, and other taxable items, and above all in the allocation of a firm's world-wide income among the taxing jurisdictions, in which it does business, receives income, or engages in some other taxable activity. Home countries differ in the degree to which they make allowance for host country taxes. A separately incorporated foreign subsidiary is often, but not always, treated differently from a foreign branch of the home country corporation. A depressingly large number of possible different tax outcomes are therefore faced by any one multinational corporation. From a government's point of view there are a depressingly large number of more or less legal patterns from which a multinational corporation can choose, to try to minimize its world-wide tax bill.

Differences in the rates of tax on corporate profits are perhaps not so great as the layman might expect, though still large enough to cause trouble. In most countries, developed and developing, the rate of corporate income tax stipulated in the tax law seems to fall within a range of 35 to 50 per cent. The dispersion of rates, however, is somewhat greater among the developing countries than among the developed. A zero tax rate for the first few years of a new corporation's life is common in developing countries, for approved or "pioneer" industries. This is the so-called "tax holiday". The existence of only a few countries with very low corporate rates is enough to threaten the revenue of other countries, not to mention the influence of certain taxing jurisdictions that offer themselves as tax havens.

These differences in corporate income tax rates are sometimes exacerbated and sometimes softened by differences in rates of withholding taxes on dividends, interest, and other remittances by a subsidiary to a parent company elsewhere. They are termed "withholding" taxes because, although legally imposed on the recipient abroad, they are collected from the domestic corporation (the payer) by requiring it to withhold the tax when paying dividends, interest, and the like. The host country is of course unable to reach the foreign recipient directly, in contrast to the recipient who resides within its borders.

2. Дайте відповідь на запитання:

1. How does taxation of corporate income vary from one country to another?

2. What is the distinction between a foreign subsidiary and a foreign branch of the home country corporation?

3 What is called "tax-holiday"?

4. What is a "parent company"?

3. Перекладіть наступні словосполучення на українську мову та складіть із будь-якими з них 5 власних речень англійською мовою:

Corporate income; taxable profits; net royalty; taxing jurisdiction; multinational corporation; to minimize one's world-wide tax bill; lay man; dispersion of rates; a zero tax rate; to pay dividends.

4. Підкресліть Complex Object та використайте Passive Voice де необхідно:

1. We knew him to be very brave.

2 He asked for a telegram to be sent to his son.

3. The students read the text aloud.

4. The teacher will correct the student’s composition.

5. We expected the steamer to arrive yesterday.

6. The director has just signed the letter.

5. Передайте наступні речення у Passive Voice та перекладіть їх:

1. A friend of his has shown me an interesting magazine.

2. They have recently built a huge plant in the town of N.

3. We must finish the work by tomorrow.

4. He gave his patient some good advice.

5. Manager has told me the news as to promotion campaign.

Варіант 4

1. Прочитайте та перекладіть українською мовою весь текст. Перепишіть та письмово перекладіть з 1-го по 6-й абзаци тексту:

The Economics of Dumping

Dumping is traditionally defined as selling at a lower price in one national market than in another.

The rationale for dumping products in a foreign market is analogous to that for price discrimination within a domestic market: the discriminating firm can maximize its profits by charging different customers different prices for essentially identical products. For example, if some customers are willing to pay no more than $ 7, when others will pay $ 15, for an item, it would be advantageous for the seller to be able to charge the higher price to those customers prepared to pay more. Only when sectorization of markets obtains, however, can goods be sold to the low-price customers without sacrificing the benefits to be obtained from the high-price customers.

The opportunities for profits from dumping will depend upon the interaction of three variables: the demand for the firm's product in its own country and abroad, the barriers to reentry into the exporting market, and the nature of the firm's cost structure.

The firm in the exporting country can profit from dumping under certain demand, reentry, and cost conditions. Whether or not a net benefit will accrue to the exporting country is, however, another matter. First, other firms in the dumping country may not benefit from the dumping situation, as foreign fabricators having received dumped goods can undersell the home price for finished goods and, thus, underbid home producers in third-country export markets.

In the importing country, the most obvious problem caused by dumping is the harm inflicted upon competing producers of the dumped goods. The degree of harm will depend largely upon the quantity of dumped goods and the margin of dumping involved, i.e., the amount by which the dumped goods were underselling the home-market goods. Under the traditional Commission analysis, if a foreigner increased his U.S. market share by 5 percent through his less-than-fair-value (LTFV) exports, the domestic competitors normally would suffer a corresponding loss.

Competing producers in third countries will be injured by dumping in the same manner as suppliers in the importing country. As the demand for their goods declines, so will their profits. In contrast to importing countries, however, competing third countries receive none of the potential benefits of dumping, such as lower consumer prices and increased efficiency in the operations of domestic manufacturers. Indeed it would appear that it is the competing third countries that bear the brunt of the disadvantages caused by dumping.

2. Дайте відповідь на запитання:

1 How is dumping traditionally defined?

2. What are the common reasons for price discrimination within a domestic market?

3. Whom do we call low-price customers and high-price ones?

4. What problems are raised by dumping in the importing country?

5. Why is dumping so disadvantageous for third countries markets?

3. Перекладіть наступні словосполучення на українську мову та складіть із будь-якими з них 5 власних речень англійською мовою:

Price discrimination; low-price; customers; cost conditions; domestic competitors; domestic manufactures; increased efficiency; an importing country; price discrimination.

4. Підкресліть Complex Object та використайте Passive Voice де необхідно:

1. I want you to explain this rule once more.

2. They did not see me enter the room.

3. The customs officer is counting the cases.

4. When he entered the room, the legal adviser was checking the contract.

5. The skilled workers packed the cases.

6. I know him to be an honest man.

5. Передайте наступні речення у Passive Voice та перекладіть їх:

1. The people looked at the little boy with interest.

2. They examined the paper attentively.

3. We shall finish this work in time.

4. They were selling new children's books in that shop when I entered it yesterday.

5. A large group of young people joined us on our way to the station.

Варіант 5

1. Прочитайте та перекладіть українською мовою весь текст. Перепишіть та письмово перекладіть з 1-го по 5-й абзаци тексту:

Leadership Styles

Leadership, the most visible component of manager's responsibilities, is the act of motivating or causing others to perform activities designed to achieve specific objectives. Thousands of studies have been made just to find leadership traits. Researchers found, that leaders tend to have more such traits than nonleaders.

Leadership involves the exercise of power - the ability of one person to influence the behaviour of another. The way in which a leader uses available power to lead others is referred to as leadership style. There are three basic styles of leadership.

Autocratic leaders make decisions on their own without consulting others, and implies power over others.

Democratic leaders, the second type, involve their subordinates in making decisions. Democratic leadership means that managers and employees work together to make decisions. A democratic sales manager for example, allows sales personnel to participate in setting sales quotas, while an autocratic sales manager simply assigns quotas for each sales person. The most democratic style belongs to free-rein leaders, who believe in minimal supervision and leave most decision to their-subordinates.

Hundreds of research studies have failed to answer the questions of which leadership style is the best. Researchers now realize that a number of factors should affect a manager's choice of the most appropriate leadership style. The choice can be expressed as follows: "Appropriate leadership is a function of the leader, the subordinates, and the situation".

Some managers use a variety of leadership styles as the situation demands.

2. Дайте відповідь на запитання:

1. What is leadership?

2. What does leadership involve?

3. What are the basic styles of leadership?

4. Which leadership style is the best?

5. What kind of leadership style do you think you would use in a business situation? Why?

3. Перекладіть наступні словосполучення на українську мову та складіть із будь-якими з них 5 власних речень англійською мовою:

Visible component; act of motivating; leadership traits; available power; a democratic sales manager; free-rein leaders; minimal supervision; appropriate leadership; to set sales quotas.

4. Підкресліть Complex Object та використайте Passive Voice де необхідно:

1. They want us to call on them today.

2. He wants his son to become a doctor.

3. I want his article to be published.

4. I would like you to find out the exact address of this firm.

5. I would like you to wait for me here.

6. Hearing the bell ring he went to see who was at the door.

5. Передайте наступні речення у Passive Voice та перекладіть їх:

1. A young office-manager started to work in our firm.

2. They are translating this article now.

3. Thousands of people attended this meeting.

4. I shall finish my work about seven o'clock.

5. The children have scattered about a lot of things.

Варіант 6

1. Прочитайте та перекладіть українською мовою весь текст. Перепишіть та письмово перекладіть з 1-го по 4-й абзаци тексту:

The Money Supply and the Demand for Money

The narrowest measure of the money supply is currency in circulation outside the banking system plus the sight deposits of commercial banks against, which the private sector can write cheques. Thus the money supply is partly a liability of the Bank (currency in private circulation) and partly a liability of commercial banks (checking accounts of the general public).

The demand for money is the quantity of liquid assets people are willing to have in hand at any given moment. It depends on the income they gain and the opportunity costs connected with the interest rate. But why do people hold money at all?

Money is a stock. It is the quantity of circulating currency and bank deposits held at any given time. Holding money is not the same as spending money when we buy a meal or go to the cinema. We hold money in order to spend it later.

The distinguishing feature of money is its use as a medium of exchange, for which it must also serve as a store of value. It is in these two functions of money that we must seek the reasons why people wish to hold it.

In a monetary economy we use money to purchase goods and services and receive money in exchange for this goods and services we sell. Without money, making transactions by direct barter would be costly in time and effort. Holding money economizes on the time and effort involved in undertaking transactions. We need to hold money between receiving payments and making subsequent purchases.

How much money wee need to hold depends on two things, the value of transactions we wish to make and the degree of synchronization of our payments and receipts? We do not know how much $100 will buy until we know the price of goods. If all prices double, we will need to hold twice as much money to make the same transaction as before.

2. Дайте відповідь на запитання:

1. What is the narrowest measure of the money supply?

2. What is money?

3. Why do we use money in a monetary economy?

4. How much money wee need to hold?

5. Shall we need to hold twice as much money to make the same transaction as before, if all prices double?

3. Перекладіть наступні словосполучення на українську мову та складіть із будь-якими з них 5 власних речень англійською мовою:

Currency in circulation, the opportunity costs, to undertake transactions, receipts, subsequent purchases, monetary economy, quantity of circulating currency, medium of exchange, liquid assets, bank deposits.

4. Підкресліть Complex Object та використайте Passive Voice де необхідно:

1. Tell me what you would like me to do.

2. Scientists are making wonderful discoveries.

3. We lay in the shade of the tree, waiting for our friends to come.

4. A railway line connects the village with the town.

5. We knew him to be very brave.

6. He asked for a telegram to be sent to his son.

5. Передайте наступні речення у Passive Voice та перекладіть їх:

1. I don't think we shall finish our preparations today.

2. She always invites me to her dinner parties.

3. She showed me the dress which her daughter had made.

4. They did not invite her to the party.

5.I did not leave the window open.

Варіант 7

1. Прочитайте та перекладіть українською мовою весь текст. Перепишіть та письмово перекладіть з 1-го по 3-й абзаци тексту:

The Money Market

The money market comprises the demand for money and the money supply. The equilibrium in the money market is such a state of balance when the demand for money from households and businesses is satisfied by till quantity of the money supplied. The equilibrium in the money market is reached by changing bond prices.

People can hold their wealth in various forms - money, bonds, equities, and property. For simplicity we assume that there are only two assets: money, the medium of exchange that pays no interest, and bonds, which we use to stand for all other interest-bearing assets that are not directly a means of payment. As people earn income, they ad to their wealth. As they spend, they deplete their wealth. How should people divide their wealth at any instant between money and bonds to gain the best profits possible and not to incur losses?

There is an obvious cost of holding money. The opportunity cost of holding money is the interest one would have gained if he (she) had held bonds. It naturally follows that people will hold money rather than bonds only if there is a benefit to offset this cost, only if holding money is more profitable than holding bonds. It may happen only when interest rates on bonds are too low to make it profitable to hold bonds.

Suppose the money market is in equilibrium when the interest rate on interest-bearing assets (e.g. treasury bills and other securities) is 6% and the amount of money demanded is $200 mln. Now suppose the interest rate goes down, say, to 4%. In this case interest-bearing assets are no longer profitable as they can't earn a sufficient return. Hence the demand for money will rise and will lead to a temporary lack of money in the money market. If they lack money, households and businesses are likely to sell bonds they possess for cash, which will cause an increase in the bond supply, which lowers bond prices and raises interest rates on interest-bearing assets. With a higher interest rate the amount of money people are willing to have in hand will decrease again. Consequently, the money supply will adjust to a current demand to reflect a new higher interest rate.

2. Дайте відповідь на запитання:

1. What does the money market comprise?

2. What is the equilibrium in the money market?

3. How is the equilibrium reached?

4. How people can hold their wealth?

5. When are the interest-bearing assets no longer profitable?

3. Перекладіть наступні словосполучення на українську мову та складіть із будь-якими з них 5 власних речень англійською мовою:

Equities, obvious cost, interest rate, current demand, amount of money, money supply, bond supply, lack of money, interest-bearing assets, wealth in various forms.

4. Підкресліть Complex Object та використайте Passive Voice де необхідно:

1. Glinka composed the opera “Ivan Susanin”

2. Hearing the bell ring he went to see who was at the door.

3. I don’t like you to say such words.

4. A famous architect designed this theatre.

5. The students read the text aloud.

6. The teacher will correct the student’s composition.

5. Передайте наступні речення у Passive Voice та перекладіть їх:

1. They did not turn off the light.

2. I have invited some friends to tea.

3. She has given me an English book.

4. Have you written the letter yet?

5. They have told us a lot of interesting things.

Варіант 8

1. Прочитайте та перекладіть українською мовою весь текст. Перепишіть та письмово перекладіть 1-й абзац тексту:

Markets and Interest Rates

For each type of investment and for many of their derivatives there is a market. There is a market in money in London. It is not a physical marketplace: dealings take place over the telephone, and the price a borrower pays for the use of money is the interest rate. There are markets in commodities. And there is a market in government bonds and company shares: the stockmarket. The important thing is that no market is entirely independent of the others. The linking factor is the cost of money (or the return an investor can get on money). If interest rates rise or fall there is likely to be a ripple of movement through all the financial markets. Money will gravitate to where it earns the best return, commensurate with the risk the investor is prepared to take and the length of time for which he can tie up his money. This is the most important mechanism in the financial sphere. As a general rule:

- The more money you have to invest, the higher the return you can expect.

- The longer you are prepared to tie your money up, the higher the return you can expect,

- The more risk you are prepared to take, the higher the return you can expect if all goes well.

In either type of market, the buyers and the sellers may deal direct with each other or they may deal through a middleman known as a marketmaker. If there is a marketmaker, a seller will sell instead to the marketmaker, who buys on his own account in the hope that he will later be able to find a buyer to whom he can sell at a profit. Marketmakers make a book in shares or bonds. They are prepared to buy shares in the hope of finding somebody to sell to or sell shares (which they may not even have) in the expectation of finding somebody from whom they can buy to balance their books. Either way, they make their living on the difference between the prices at which they buy and sell.

2. Дайте відповідь на запитання:

1. Is a market in money in London a physical marketplace?

2. What kind of markets are there in the text?

3. What is an important thing about the markets?

4. How may the buyers and the sellers deal with each other?

5. What is a marketmaker?

3. Перекладіть наступні словосполучення на українську мову та складіть із будь-якими з них 5 власних речень англійською мовою:

The linking factor, to tie up, to deal through a middleman, to buy shares, to deal direct with each other, financial sphere, the best return, the length of time, markets in commodities, a physical marketplace.

4. Підкресліть Complex Object та використайте Passive Voice де необхідно:

1. Did you feel the bridge shake?

2. This mine will produce large quantities of coal this year.

3. Put on a thicker coat, I don’t want you to catch a cold.

4. This plant had fulfilled the plan by the 15^th of November.

5. We expected the steamer to arrive yesterday.

6. The director has just signed the letter.

5. Передайте наступні речення у Passive Voice та перекладіть їх:

1. The students have written the paper without mistakes.

2. We discussed the matter some days ago.

3. Someone wants you on the phone.

4. They have built excellent shelters for tourists in these mountains.

5. The doctor prescribed her new medicine.

Варіант 9

1. Прочитайте та перекладіть українською мовою весь текст. Перепишіть та письмово перекладіть 2-й та 3-й абзаци тексту:

Primary and Secondary Markets

Fixed-interest securities and ordinary shares are the main stock-in-trade of the securities markets and the Stock Exchange is the main securities market in the UK (and the New York Stock Exchange is the largest in the USA). By buying one or the other, investors are helping - directly or indirectly - to provide the finance that government or industry needs. Why "directly or indirectly"? Because the stockmarket is two markets in one: a primary market and a secondary market.

A primary market is one in which the government, companies or other bodies can sell new securities to investors to raise cash.

A secondary market is a market in which the investors can buy and sell these securities among each other. The buying and the selling in the secondary market do not directly affect the finances of government and companies. But if investors did not know they could buy and sell securities in the secondary market they might well be reluctant to put up cash for the government or companies by buying securities in the primary market when they were first issued. And the prices established by the buying and selling by investors in the secondary market help to determine the price that government and companies will have to pay next time they need to issue further securities for cash in the primary market. A reasonably liquid secondary market is normally considered vital for a healthy primary market.

2. Дайте відповідь на запитання:

1. What is the main stock-in-trade of the securities markets?

2. What is the Stock Exchange?

3. What is a primary market?

4. What is a secondary market?

5. What is normally considered vital for a healthy primary market?

3. Перекладіть наступні словосполучення на українську мову та складіть із будь-якими з них 5 власних речень англійською мовою:

Stock-in-trade, the Stock Exchange, to be reluctant to do something, a healthy primary market, a secondary market, fixed-interest securities, ordinary shares, directly or indirectly, to raise cash, to put up cash.

4. Підкресліть Complex Object та використайте Passive Voice де необхідно:

1. I want you to explain this rule once more.

2. They did not see me enter the room.

3. They want us to call on them today.

4. He wants his son to become a doctor.

5. What are the basic styles of leadership?

6. I want his article to be published.

5. Передайте наступні речення у Passive Voice та перекладіть їх:

1. We have been looking for you the whole morning.

2. We shall insist on strict discipline.

3. We received his letter after his departure.

4. The storm drove the ship against a rock.

5. They are selling delicious fruit ice cream there now.

Варіант 10

1. Прочитайте та перекладіть українською мовою весь текст. Перепишіть та письмово перекладіть 1-й та 3-й абзаци тексту:

Monetary Policy

Monetary policy is one of the main instruments of macroeconomics. It is based on the ability of the Central bank to control the money supply, which leads to changes in interest rates and the exchange rate, and therefore in the amount of investment, which influences directly the national output. This method of controlling the economy centers on adjusting the amount of money in circulation in the economy and so the level of spending and economic activity. Monetary policy was first employed as a means of control in the 1950s, but has been more widely used since the 1970s. The Central Bank plays a major role in the implementation of a nation's monetary policy. In some countries (for example, Germany) the Central Bank operates monetary policy independent of government policy. However, the UK's Central Bank, the Bank of England, implements monetary policy on behalf of the government. Monetary policy has three main aspects:

• Controlling the money supply

• Controlling interest rates

• Managing the exchange rate

In this section we study the ways in which a Central bank can control the supply of money in the economy. The aim of the authorities when controlling the money supply is to limit the amount borrowed, and hence spent, by businesses and individuals during an inflationary period. It is hoped in this way to limit the level of overall demand in the economy and thus to remove or reduce inflationary pressure. During a recession monetary policy is aimed at increasing the money supply to encourage spendings. We now describe the three most important instruments available to affect the money supply: open market operations, reserve requirements and the discount rate.

Open market operations are the most important way of controlling the money supply. It refers to the Bank trading government bonds in the open market - that is when they are bought from and sold to commercial banks and individuals.

2. Дайте відповідь на запитання:

1. What is the main instrument of macroeconomics?

2. What is monetary policy based on?

3. When monetary policy was first employed?

4. What are the aspects of monetary policy?

5. What is the most important way of controlling the money supply?

3. Перекладіть наступні словосполучення на українську мову та складіть із будь-якими з них 5 власних речень англійською мовою:

Money supply, the exchange rate, to implement policy, open market operations, discount rate, inflationary pressure, overall demand, the amount borrowed, national output, economic activity.

4. Підкресліть Complex Object та використайте Passive Voice де необхідно:

1. I would like you to find out the exact address of this firm.

2. I would like you to wait for me here.

3. When he entered the room, the legal adviser was checking the contract.

4. The skilled workers packed the cases.

5. I know him to be an honest man.

6. Tell me what you would like me to do.

5. Передайте наступні речення у Passive Voice та перекладіть їх:

1. The old man showed us the way out of the wood.

2. They offered her some interesting work-

3. Не stole a lot of money from the shop.

4. By six o'clock they had finished the work.

5. At twelve o'clock the workers were loading the trucks.

Варіант 11

1. Прочитайте та перекладіть українською мовою весь текст. Перепишіть та письмово перекладіть з 1-го по 3-й абзаци тексту:

Reserve Requirements

To understand the way a central bank can influence the money supply we should consider the creation of money by commercial banks and in this connection introduce the money multiplier.

Banks have to hold a proportion of their assets as a reserve in case customers demand repayment of their deposits. This required reserve has to be in a liquid form that is easily convertible into cash. Many banks indeed hold a significant proportion of this reserve as notes and com either in their vaults or at the central bank. A required reserve ratio (%) is a minimum ratio of cash reserves to deposits that the central bank requires commercial banks to hold. Commercial banks can hold more than the required cash reserves (this amount of money is called excess reserves and is used to create new money), but they cannot hold less. If their cash falls below the required amount, they must immediately borrow cash, usually from the central bank, to restore their required reserve ratio.

The money multiplier (m) shows the maximum amount of money, which can be created by one dollar of excess reserves, the required reserve ratio given. The money multiplier is inversely proportional to the required reserve ratio, or

m = 1 / R, where

m - a money multiplier

R - a required reserve ratio.

So we can see that the larger the required reserve ratio is the smaller the money multiplier is; the less money can be created and the less the money supply is.

Now suppose the commercial banking system has $1 million in cash and for strictly commercial purposes would normally maintain cash reserves equal to 5% of sight deposits. Since sight deposits will be 20 times cash reserves, banking system will create $20 million of sight deposits against its $1 million cash reserves:

cash reserves $1 mln — 5%

sight deposits x - 100%

x = $1 mln x 100% : 5% = $20 mln.

2. Дайте відповідь на запитання:

1. What have banks to hold?

2. What is a required reserve ratio?

3. What does the money multiplier show?

4. Can Commercial banks hold more than the required cash reserves?

5. What is an excess reserve?

3. Перекладіть наступні словосполучення на українську мову та складіть із будь-якими з них 5 власних речень англійською мовою:

Money multiplier, required reserve ratio, a liquid form, excess reserves, commercial banking system, sight deposits, cash reserves, the creation of money, a proportion of the assets, easily convertible.

4. Підкресліть Complex Object та використайте Passive Voice де необхідно:

1. Did you feel the bridge shake?

2. This mine will produce large quantities of coal this year.

3. A railway line connects the village with the town.

4. I don’t like you to say such words.

5. The students read the text aloud.

6. The teacher will correct the student’s composition.

5. Передайте наступні речення у Passive Voice та перекладіть їх:

1. By three o'clock the workers had loaded the trucks.

2. They are building a new concert hall in our street.

3. He wrote this book in the 19th century.

4. They have made a number of important experiments in this laboratory.

5. By the middle of autumn we had planted all the trees.

Варіант 12

1. Прочитайте та перекладіть українською мовою весь текст. Перепишіть та письмово перекладіть з 1-го по 3-й абзаци тексту:

The Discount Rate

The discount rate is the interest rate that the Bank charges when the commercial banks want to borrow money.

Suppose banks think the minimum safe ratio of cash to deposits is 10%. Say their cash reserves are 12% of deposits. How far dare they let their cash reserves fall towards the minimum level of 10%?

Banks have to balance the interest rate, they will get on extra lending with the dangers and costs involved if there is a sudden flood of withdrawals, which push their cash reserves below the critical 10% figure. This is where the discount rate comes in. Suppose market interest rates are 8% and the central bank makes it known it is prepared to lend to commercial banks at 8%. Commercial banks may as well lend up to the hilt and drive their cash reserves down to the minimum 10% of deposits. The banks are lending at 8% and, if the worst comes to the worst and they are short of cash, they can always borrow from the Bank at 8%. Banks cannot lose by lending as much as possible.

Suppose however that the Bank announces that, although market interest rates are 8%, it will lend to commercial banks only at the penalty rate of 10%. Now a bank with cash reserves of 12% may conclude that it is not worth making the extra loans at 8% interest that would drive its cash reserves down to the minimum of 10% of deposits. There is too high a risk that sudden withdrawals will then force the bank to borrow from the Bank at 10% interest. It will have lost money by making these extra loans. It makes more sense to hold some excess cash reserves against the possibility of a sudden withdrawal.

Thus, by setting the discount rate at a penalty level in excess of the general level of interest rates, the Bank can induce commercial banks voluntarily to hold additional cash reserves. Since banks have to hold more cash as reserves, the money multiplier is reduced, less money can be created and the supply is over.

2. Дайте відповідь на запитання:

1. What is the discount rate?

2. May Commercial banks lend up to the hilt their cash reserves?

3. Where can Commercial banks borrow the money?

4. How can the bank loose money?

5. In what way can the Bank induce commercial banks voluntarily to hold additional cash reserves?

3. Перекладіть наступні словосполучення на українську мову та складіть із будь-якими з них 5 власних речень англійською мовою:

The discount rate, to lend up to the hilt, penalty rate, the money multiplier, additional cash reserves, excess cash reserves, worth making, fall towards the minimum level, to borrow money, a sudden flood of withdrawals.

4. Підкресліть Complex Object та використайте Passive Voice де необхідно:

1. The customs officer is counting the cases.

2. When he entered the room, the legal adviser was checking the contract.

3. I would like you to find out the exact address of this firm.

4. I would like you to wait for me here.

5. We expected the steamer to arrive yesterday.

6. We knew him to be very brave.

5. Передайте наступні речення у Passive Voice та перекладіть їх:

1. They have told us a lot of interesting things.

2. The students have written the paper without mistakes.

3. We discussed the matter some days ago.

4. Someone wants you on the phone.

5. They have built excellent shelters for tourists in these mountains.