III. Answer the questions:
Where does most of the money used by business come from?
What do we call internal funds?
What does depreciation represent?
How do you understand the term “external funds”?
What is the reason for investing in mutual funds?
IV. Fill in the blanks with appropriate words:
… is the difference between assets and liabilities.
Similarly, firms need … to begin operation, to meet their day-to-day expenses and to expand.
… charge purchases to their accounts for payment at a later date.
… is money that will be used for a year or more.
Many large corporations raise long-term capital through the sale of their … .
Corporations sell stocks and bonds as a way of raising … .
… is a market where brokers meet to buy and sell stocks and bonds for their customers.
Those who buy stocks to share in the profits and growth of a corporation over a long period of time are described as … .
“investors”, capital, money, net worth, customers, bonds, a security exchange, long-term financing
V. Translate into English:
1. Найбільша кількість грошей, що використовується бізнесом, надходить з продажу продукції та різних послуг.
2. Оскільки фірма продає товари або послуги, вона одержує гроші та використовує їх з метою покриття своїх витрат.
3. Бізнесові позики зазвичай класифікуються як довгострокові та короткострокові.
4. Короткострокові позики використовуються для фінансування повсякденних вартостей фірми, таких як платіжні відомості, сировина, товари.
5. Фондова біржа – це ринок, де зустрічаються посередники для купівлі і продажу акцій своїм клієнтам.
VI. Make up your own dialogue using the following expressions:
to meet one’s expenses;
to cover the cost of something;
security exchange;
overproduction;
long-term loans;
to have voting rights;
to be in demand.
Unit 6. International Finance
Remember the words:
exchange rate - валютний курс
supply of foreign exchange - пропозиція іноземної валюти
demand for foreign exchange - попит на іноземну валюту
appreciation of currency - підвищення валютного курсу
foreign exchange market - ринок іноземної валюти
balance-of-payment deficit - дефіцит платіжного балансу
balance-of-payments surplus - активне сальдо платіжного балансу
gold reserve - золотий запас
Read and translate the text:
International trade would be inefficient without foreign exchange markets. We are able to exchange dollars for any national currency we desire. Thus an exchange rate is simply the price of one currency in terms of another.
Depreciation of a currency refers to the fact that one currency has become cheaper in terms of another. The other side of depreciation is appreciation, an increase in value of one currency as expressed in another country’s currency. Whenever one currency depreciates, another currency must appreciate.
Exchange rates change for the same reasons that any market price changes. Among the important sources are:
relative income changes;
relative price changes;
changes in product availability;
speculation.
All of these kinds of changes are taking place every minute of every day. Places
where foreign currencies are bought and sold are foreign exchange markets.
Government may buy and sell foreign exchange for the purpose of narrowing rather than eliminating exchange rate movements.