3.Depositinsurancesystemsinsureeachdepositoruptoacertain

amount,sothattheirsavingsareprotectedevenifthebankfails.Thisremovestheincentivetowithdrawdepositssimplybecauseothersarewithdrawingtheirs.

ManyoftherecessionsintheUnitedStateswerecausedbybankingpanics.TheGreatDepressioncontainedseveralbankingcrises

consistingofrunsonmultiplebanksfrom1929to1933.

Thefinancialcrisisof2007–2009wascenteredaroundmarket-liquidityfailuresthatwerecomparabletoabankrun.Thecrisis

containedawaveofbanknationalizations.Itwascausedbylowrealinterestrates.Theystimulatedanassetpricebubblefueledbynew

financialproductsthatwerenotstresstestedandthatfailedinthedownturn.

Vocabulary

abankrun(arunonthebank)–массовоеизъятиевкладовизбанка

towithdraw–сниматьсосчета

towipeout–уничтожать

recession–падение,спад,рецессия

tosuspend–приостанавливать,временнопрекращать

convertibility–обратимость,конвертируемость(валюты,ценныхбумаг)

toimpose–облагать(налогом),налагать(обязательство)

reserveratio–нормарезерва

tofail–обанкротиться

failure–банкротство,несостоятельность

interestsrate–ставкапроцентаassets–активы,средства,фондыbubble–бум

downturn–спадделовойактивности

8.GiveRussianequivalents:

anincentive

chainofbankruptcies

tocause

topreventtosatisfytoinsure

9.Choosewordsfromthelisttofillinthegaps,thenusethemtomakesentences:

_{price,financial,bank,interest,economic}

1. rates

2. bubble

3. recession

4. crises

_{5. customer}

10.Correctthestatementsthatarefalse:

1.Abankrunoccurswhensomebankcustomerswithdrawtheir

deposits.

2.Nothingcanhelptopreventbankruns.

3.Tostoparunbankscantemporallysuspendwithdrawals.

4.Depositors’savingscannotbeprotectedwhenthebankfails.

11.Answerthequestions:

1.Whatisabankrun?

2.Whendoesabankpanicoccur?

3.Isitpossibletopreventbankruns?How?

4.Whatwasthefinancialcrisisof2007-2009causedby?

12.Usewords/phrasesfromthelisttohelpyouretellthetext:abankrun,insolvent,abankingpanic,sufferruns,topreventbankruns,suspensionofconvertibility,impose,areserveratiorequirement,depositinsurancesystems,interestrates.

Unit3 Bankaccount

1.Discussthequestions.

1.Whatadvantagesarethereinopeningabankaccount?

2.Whatdoesabankgainfromhavingyouasacustomer?

2.Lookatthebrochureandanswerthequestions.

1.Whatsortofbrochureisthis?

2.Haveyouevercomeacrosssimilarmaterials?Where?

3.Whoisitdesignedfor?Whydoyouthinkso?

_Newwords:

mutualbenefits	взаимнаявыгода
entrepreneur	предприниматель
torunownbusiness	вестисобственноедело
collateral	залог
loan	ссуда
withdrawmoney	сниматьденьги
bankcharge	банковскийсбор
monthlystatements	ежемесячныеуведомления
tokeeptrack	следить
income	доход
expenses	издержки
ATM (automated teller machine = autotellermachine)	банкомат, автоматический кассовыйаппарат
localbranch	местноеотделениебанка
bill	счетнаоплатууслуги
driver’slicense	водительскиеправа