5. Using the information in the passage, say what is true and what is false. Correct the false sentences

1. A note is a corporate debt whose original maturity is ten years or more.

2. The negotiable certificate of deposit is one of the largest of all money market instruments.

3. There are three main branches of the market for trading corporate shares (equities).

4. Money market loans are used to help corporations and governments pay taxes and meet payrolls.

5. Secondary markets are markets in which existing, already outstanding, securities are traded among investors.

6. The principal buyers of large negotiable CDs include only financial corporations.

6. What kind of risk do inventors face in the financial market?

Try to match the terms and the definitions.

Use the model: “_____ risk refers to the danger that ____”

Currency risk - Default risk - Inflation risk - Market risk - Political risk - Reinvestment risk -

a) the prices of securities will fall. b) the interest rates will fall c) the borrower will fail to meet his promised capital or interest payments d) the average level of prices for all goods and services will increase e) there will be unfavorable changes in the value of foreign currency f) there will be unfavorable changes in laws or government regulations

7. Analyze the financial terms in the box. Match them with the definitions below

a bill, bond, broker, security, futures, hedging, stock exchange

1. An organized market in which securities are bought and sold.

2. An agent who buys or sells goods and services for someone.

3. A statement of the amount of money that has to be paid for goods or services.

4. A legal written document issued by a company or government promising to pay money at a certain time.

5. Protecting oneself against loss due to price changes, especially by buying at a fixed price for future delivery.

6. A certificate of ownership of stocks, bonds, etc. for which repayment is guaranteed.

7. Contracts made for the purchase or sale of goods or currencies on specified future date.

8. Revise the following conjunctions. Read and translate the examples:

if – если // provided – при условии, что

1. A demand loan may be revoked at any time if banks need cash in a hurry.

2. Each shareholder can get dividends, provided the company makes profit enough.

after – после того как // before – прежде чем

3. After the bills are bought, many of them will be sold right away.

4. CDs may be sold before they reach maturity.

until – (до тех пор) пока …не

5. Most buyers hold CDs until they mature.

as// since// because – так как/ потому что/ поскольку

6. As brokers turned more and more to the money market, it expanded considerably.

7. Further innovations are expected since banks face increasing competition.

8. Because the dollar has been the chief international currency, the market for Eurodollars dominated the Eurocurrency market.

because of – вследствие, из-за

9. Because of recession tax revenues have been reduced.