Федеральное агентство по образованию

Государственное образовательное учреждение

высшего профессионального образования

Уфимский государственный авиационный технический университет

А.А. Авакян, И.В.Кирсанова

АНГЛИЙСКИЙ ЯЗЫК:

ФИНАНСЫ, КРЕДИТ, ФИНАНСОВЫЙ МЕНЕДЖМЕНТ

Учебное пособие

Уфа 2011

Федеральное агентство по образованию

Государственное образовательное учреждение

высшего профессионального образования

Уфимский государственный авиационный технический университет

А.А. Авакян, И.В.Кирсанова

АНГЛИЙСКИЙ ЯЗЫК:

ФИНАНСЫ, КРЕДИТ, ФИНАНСОВЫЙ МЕНЕДЖМЕНТ

Учебное пособие

Уфа 2011

УДК

ББК

Рецензенты:

д-р филол. наук, проф. кафедры

А.А. Авакян, И.В. Кирсанова. Английский язык: Финансы, кредит, финансовый менеджмент: Учебное пособие по дисциплине «Профессиональный иностранный язык» / Уфимск. гос. авиац. техн. ун-т. – Уфа: УГАТУ, 2011. – 120 с.

Учебное пособие предназначено для студентов второго курса и элективных курсов высших учебных заведений, обучающихся по специальностям «тттттттттттттттттттттттт» .

Цель пособия заключается в ллллллллллллллллллллллллл

Пособие включает 13 разделов, ьььььььььььььььььььььььььььььььььььььььььььььььььььььььТематика включенных в пособие текстов соответствует направлению подготовки специалистов экономического профиля.

Табл. 1. Илл. 2. Библиогр. 20 назв.

ÓУфимский государственный авиационный

технический университет, 2011

Contents

ВВЕДЕНИЕ
UNIT 1. MONEY
UNIT 2. THE DEMAND FOR MONEY AND MONEY SUPPLY
UNIT 3. BANKING SYSTEM
UNIT 4. BANKING BUSINESS
UNIT 5. ACCOUNTING
UNIT 6. TYPES OF ACCOUNTS
UNIT 7. INTEREST RATES
UNIT 8. FINANCIAL ANALYSIS
UNIT 9. FINANCIAL MANAGEMENT
UNIT 10. FINANCIAL MARKETS
UNIT 11. BANK INVESTMENTS
UNIT 12. ECONOMIC POLYCY
UNIT 13. INFLATION AND ITS FEATURES

Unit 1

Pre-reading

1. What comes to mind when you hear the word ‘money’?

2. How can you explain the proverb ‘Money is what money does’?

3. What characteristics of money do you know?

1. Read and translate the text money

Characteristics of money

Over the centuries, different economies have used many different items as money. Some items have worked better than others. Those items that tend to work best as money have the following characteristics:

Durability: Items that work best as money tend to durable. Durability allows a money item to store value, and especially to retain value in exchange transaction after transaction.

Divisibility: The more easily an item can be divided into small increments, the better it can perform the medium of exchange function.

Transportability: Because market transactions take place at different locations, items that function best as money must be easily moved from market to market. If it takes more time, effort, and resources to move money to the market than what they money can buy, then the money is not very useful.

Noncounterfeitability: Items that function best as money are those that are difficult to duplicate or counterfeit. Money that is easily counterfeited quickly loses its value in exchange because anyone can create their own money.

Money is generally considered to have the following characteristics, which are summed up in a rhyme found in older economics textbooks: "Money is a matter of functions four, a medium, a measure, a standard, a store." That is, money functions as a medium of exchange, a unit of account, a standard of deferred payment, and a store of value.

There have been many historical arguments regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. One of these arguments is that the role of money as a medium of exchange is in conflict with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate. Others argue that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time. 'Financial capital' is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender.

Liquidity describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognized and accepted as the common currency. In this way, money gives consumers the freedom to trade goods and services easily without having to barter.

Functions of money

There are three functions of money.

A medium of exchange. Money is used as an intermediary for trade, in order to avoid the inefficiencies of a barter system, which are sometimes referred to as the 'double coincidence of wants problem'. Such usage is termed a medium of exchange.

The use of money as a medium of exchange makes possible a great extenuation of the principle of specialization. In an advanced society the use of money allows us to exchange hours of labour for an amazing variety of goods and services. We can exchange, for example, two weeks' labour for a holiday abroad just as eas­ily as we can exchange it for a piece of furniture or a year's rent on a television set. Such exchanges are taken for grant­ed yet they would be inconvenient without the use of money.

Unit of account. The first step in the use of money was probably the adoption of some commodity as a unit of account or mea­sure of value. Money, most likely, came into use within the barter system as a means whereby the values of different goods could be compared. The direct exchange of goods for goods would raise all sorts of problems regarding valuation. The problem of exchange rates is easily solved when all other commodities are valued in terms of a single commodity. Money now serves as such a standard and when all economic goods are given money values (i.e. prices), we know, immediately, the value of one commodity in terms of any other commodity.

A unit of account is a standard numerical unit of measurement of the market value of goods, services, and other transactions. A unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt.

A store of value. To act as a store of value, a commodity, a form of money, or financial capital must be able to be reliably saved, stored, and retrieved — and be predictably useful when it is so retrieved. Fiat currency like paper or electronic money no longer backed by gold in most countries is not considered by some economists to be a store of value.

Once a commodity becomes universally acceptable in exchange for goods and services, it is possible to store wealth by holding a stock of this commodity. It is a great conve­nience to hold wealth in the form of money. In addition, its money value may fall when it is being stored. The great disadvan­tage of holding wealth in the form of money has become very apparent in recent years — during periods of inflation its exchange value falls.

A means of making deferred payments. An important function of money in the modem world, where so much business is conducted on the basis of credit, is to serve as a means of deferred payment. When goods are supplied on credit, the buyer has immediate use of them but does not have to make an immediate payment. The goods can be paid for three, or perhaps six, months after delivery.

A complex trading organization based upon a system of credit can only operate in a monetary economy. Sellers would be most unlikely to accept promises to pay in the future which were expressed in terms of commodities other than money.