2. Match each of the words on the left with the correct explanation on the right:

security	stock exchange for newer and smaller companies, and those that do not wish to meet all the major stock exchanges’ rules
capital market	a merchant such as a shopkeeper who sells to the final customer
secondary market	remained to be paid
over-the- counter market	the banks and financial institutions from which companies and governments can raise long term finance
negotiable instrument	a market on which second-hand bearer shares and bonds can freely be traded by their first and subsequent owners
dealer	salable papers, traded on stock exchanges, that yield an income
bond	an instrument the right to receive payment of which may be transferred by one person to another
retailer	an interest-bearing security, redeemed after a fixed period
outstanding	a person who buys and resells merchandise or services to make a profit
fluctuations	large organizations such as insurance companies, unit trusts, pension funds that have large sums of money to invest
institutional investor	upward and downward movements in the economic system
voucher	a receipt that supports or proves an item in an account

3. Speak on:

1. The function of a financial market.

1. Financial markets in Russia.

1. Exchanges and OTC markets.

1. Exchanges, money and capital markets in Russia.

1. Globalization of financial markets.

1. Protecting customers of financial intermediaries.

4. Make written translation of the text into Russian:

All financial intermediaries have the ability to create credit and, therefore, augment the total supply of loanable funds. Ordinarily, when commercial banks create credit (acquire loans and invest­ments), they expand their liabilities in the form of demand deposits. NFIs (nonbank financial institutions) such as savings and loans and mutual savings banks (MSBs) also add to the supply of loanable funds when they create credit. The ability of financial intermediaries to create credit and expand the supply of loanable funds contributes greatly to the smooth func­tioning of the economy. Stated differently, they help to bridge the gap between production and consumption. The excess demand by credit­worthy borrowers is translated into effective demand for goods and services by intermediaries who expand the supply of loanable funds to augment current income available for purchases.

One of the reasons that financial intermediaries have been suc­cessful in attracting funds is that they reduce the exposure to risk that savers ordinarily would have to face. Without intermediaries, savers would have to evaluate the credit risk (the chance of nonpayment at maturity) for each borrower to whom they have entrusted funds. This, of course, would take time and specialized knowledge.

By employ­ment of experts in credit analysis, through diversification, and through economies of scale, financial intermediaries reduce the risk exposure to the individual saver.