Exercise 7. Fill in the missing in the text below and then translate into Ukrainian. Use Vocabulary-2 and Exercise 2A.

The (1) banks hold (2) at the Bank of England in (3) accounts.

These deposits are counted as part of the banks’ (4) reserves because cash can be

(5) from them at any time. Any change in the level of these deposits at the Bank of

England will change the level of the banks’ cash reserves, and hence affect their ability to make (6) and create (7) deposits.

If the Bank of England sells (8) in the open (9) to (10) and firms,

the buyers will pay for them with (11) (12) on their accounts at the commer­cial banks. These banks, therefore, will now (13) money to the Bank of England.

This (14) will be settled by taking (15) out of the commercial banks’ depos­its at the Bank of England. This will reduce the commercial banks’ cash reserves, so their ability to create deposits will be reduced.

If the Bank of England (16) securities in the open market, it will pay for them

with checks drawn on itself. The households and firms which sold these securities will pay

these (17) into their (18) at the commercial banks. The Bank of England will

now owe money to the commercial banks. The debt will be settled by (19) money

into the commercial banks’ accounts at the Bank of England. This will increase the com­mercial banks’ cash reserves, and enable them to increase their (20). The level of

total bank deposits will tend to increase.

The Bank of England has the power to order the commercial banks to make (21)

into a special account at the Bank of England. These special deposits do not count as part

of the banks’ cash reserves. Payments into these special deposits reduce the banks’

_(22) of (23) assets, which means that their ability to lend and create bank deposits

is also reduced. If the Bank of England (24) these special deposits, the commercial

banks’ cash reserves will be increased.

Exercise 8. Work in pairs. Translate the following two texts into Ukrainian. Use Vocabulary 3-4 and Exercises 3A-4A in case of difficulties.

Text 3

The quantity of money in an economy is central to determining the state of that eco- n°my - it affects the level of prices, the rate of economic growth and the level of employ­ment. It is a medium of exchange that people will accept for their goods or services and a unit of account for prices or debts. In addition, it can be used like property or precious metals - as a store of wealth that people can save for future purchases.

Money in the United States consists of coins and paper currency. According to federal law, only the U.S. Treasury and the Federal Reserve System can issue U.S. currency. The Treasury issues all coins, while the Federal Reserve and the Treasury each issue a type °f paper money - Federal Reserve notes and United States notes, respectively. All U.S. cur- ^rency carries the nation’s official motto, “In God We Trust.”

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Coins come in various denominations based on the value of a dollar: the penny, one cent or one-hundredth of a dollar; the nickel, five cents or five-hundredths of a dollar; the dime, 10 cents or ten-hundredths of a dollar; the quarter, 25 cents or one-fourth of a dollar; the 50-cent piece or half-dollar; and the one-dollar coin.

Text 4

The money supply in the United States consists of more than just coins and paper money. Checking account deposits are considered a form of money because they are spent when people write checks. In fact, in the United States, about three-fourths of all payments are made by check. When commercial banks make loans, they can create checking deposit money by giving the borrowers additional credit in their deposit accounts. The Federal Reserve System maintains control over this money creation by administering reserve requirements, rules which require that commercial banks hold currency in their vaults

• or deposits with Federal Reserve Banks - in a set minimum proportion to their deposit liabilities. By controlling the dollar amount of the reserves, the Federal Reserve thus con­trols the dollar volume of bank loans.

Economists measure the money supply in several ways that differ according to which assets are included in the measurements. One measure includes deposits in all interest- bearing accounts that can be used like checking accounts. Another includes savings ac­counts that cannot automatically be converted to make purchases.

Exercise 9. Translate the following texts into English. Work in pairs.

Text 5

Федеральна резервна система, або ФРС - це незалежна урядова установа, най­головнішим завданням якої є регулювання грошово-кредитної маси Сполучених Штатів.

Федеральна резервна система складається з 12 регіональних резервних банків та 25 філій Федерального резервного банку. Закон вимагає, щоб усі загальнонаціональ­ні комерційні банки були членами ФРС, в той час як для банків, створених у штатах, членство є добровільним. Загалом можна сказати, що банк-член ФРС користується послугами резервного банку в своєму регіоні подібно до людини, що користується послугами районного банку.

Федеральною резервною системою керує Рада керівників Федерального резерву, до якої входять сім членів, що їх призначає президент Сполучених Штатів терміном на 14 років кожного. Хоча Федеральна резервна система підпорядковується безпо­середньо Конгресу, згідно з законом, на її керівників не може здійснюватися політич­ний тиск Конгресу або президента. Незважаючи на це, рада має узгоджувати свої Д¹¹ з політикою президентської адміністрації та Конгресу.

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