In what countries is there large difference between gdp and gnp? Why?

в) Напишите 10 вопросов к тексту и задайте их другим студентам.

TEXT B

а) Прочитайте текст без словаря. Найдите слова, имеющие одинаковый корень с глаголом to assess (оценивать).

б) Догадайтесь о значении слова to make.

в) Найдите в тексте синоним к to result in.

г) Ответьте на вопросы, следующие за текстом.

Uk Local Government Reforms

Until the late 1980s, local government in the United Kingdom was financed from three sources. First, households paid domestic rates, that is a property tax assessed on hypothetical house prices. Second, local firm paid business rates on their property. The third, the largest source was from central government.

The Thatcher government believed this system resulted in overspending by local governments. Many poor households did not pay rates but still had a vote (право голоса) and voted for high-spending programmes. Firms paid rates but had no vote at all. Only about 20 percent of local government revenue came from households paying rates. Most firms were against raising property assessment, the basis of the property tax, as market prices were rising.

The reform of local government in 1990 made three changes. First, education in state schools was moved from local to central government. Second, instead of local business rates a national business rate was imposed. Business property re-assessment corresponding to market prices led to great increases in the taxed property. Whereas before the reform each local government could use its own business rate revenue, now the central government collected all this revenue and distributed it to local governments in proportion to the local population. Money from the rich south, where property prices were high, moved to the poorer north. Third, domestic rates gave way to poll tax, that is, a tax per head with some relief (налоговая льгота) for the poorest households.

1. What were the three sources of financing British local governments before 1990?

2. What did this system result in ?

3. Why was there a protest against raising property assessment?

4. Was all taxed property re-assessed during the reform ?

5. How did financial position of different regions of the UK change?

д) Подумайте и скажите:

1. Did those households that paid rates vote for high spending programmes'' Why?

2. Why was school education moved from local to central government?

3. How did the British population take the reform?

4. Which of the problems shown in the text are characteristic of Russia?

TEXT C

Переведите текст со словарем.

Calculating Interest on Loans

Depending upon the amount of money borrowed, interest can become a significant cost. The borrower should be familiar with the commonly used methods of calculating interest. The three principal methods are: (1) flat in­terest rate, (2) interest on the unpaid balance, and (3) discount method.

With the flat interest rate method, a specified rate of interest is paid on the original amount of the loan.

Interest may also be charged on the unpaid balance. In this case, interest is paid only on the amount owed.

With the discount method, interest is deducted in advance. Assume $500 is borrowed to be repaid in one year. If the lender discounts the loan in ad­vance at 8 per cent, he will make the loan for $500 but will only extend $460. By the use of this method $40.00 interest will be paid.

Often loans are amortized. That is, the interest and principal payment are repaid in such a way that there is an equal payment each month or each year. When this method is used, the interest payment is high in the early years of the loan and then declines. The principal payment, on the other hand, is low in the early years of the loan and then it increases.

The term "amortization" is also used to refer to loans which have equal principal payments. The periodic interest payments are based on the unpaid balance. Under this plan the principal payment is the same each period but the amount of interest and, hence, the total payment declines. This type of repayment plan is common in the farm mortgage field and is preferred by some lenders to the type of amortized repayment plan.

With short or intermediate credit it is advisable to be in a flexible position. Therefore, one of two conditions is desirable: (1) either the loan should be written for a long enough period of time; or (2) the borrower should be as­sured the lender is willing to make an extension if one becomes necessary. Many commercial bankers like to make loans for relatively short periods. They may do this knowing the loan will not be repaid in full when it falls due. When