Unit 8. Foreign Exchange Rates

1. Remember the words:

• fixed rate - фіксований курс

• flexible rate - гнучкий курс

• managed rate - керований курс

• to peg - підтримувати

• to determine - визначати

• to intervene - здійснювати інтервенцію

• to smooth out fluctuations - пом’якшувати коливання

• constant (permanent) - постійний

• to seek - шукати, намагатися

2. Read and translate the text: Foreign Exchange Rates

The foreign exchange market is the market in which the currencies of different countries are exchanged for one another. The foreign exchange market is made up of thousands of people all over the world – importers and exporters, specialists in buying and selling of foreign exchange called foreign exchange brokers.

The foreign exchange market opens on Monday morning in Tokyo, when it is still midnight on Sunday in London. As the day advances, the foreign exchange market also opens in Zurich, Frankfurt, London, New York and finally in Vancouver and Los Angeles.

Before these last two markets have closed, Tokyo is open again for the next day of business.

The price at which one currency exchanges for another is called a foreign exchange rate. In the UK there are three possible foreign exchange rate regimes. They are:

• Fixed exchange rate

• Flexible (or floating) exchange rate

• Managed exchange rate

Under a fixed exchange regime, the value of the pound would be pegged by the Bank of England. Under a flexible exchange regime, the value of the pound would be determined by market forces with no intervention by the Bank of England. Under a managed exchange regime, the Bank of England would intervene in the foreign exchange market to smooth out fluctuations in the value of the pound but it would not seek to maintain the pound at an absolutely constant value for a long period of time.

3. Find in the text the terms of these determinations:

1. A person who buys and sells stocks and shares, bonds etc for others.

2. A market engaged in the selling and buying of currencies.

3. The price of one currency expressed in terms of some other currency.

4. An exchange rate regime when a central bank may buy or sell currencies to fix them at particular rates.

5. An exchange rate system when the foreign exchange market is unregulated by governments with the rates determined by the free interplay forces of demand and supply.

6. An exchange rate mechanism when rates are managed by the central bank buying and selling currencies in the foreign exchange market.

4. Find in the text the definitions of these terms:

• the foreign exchange market

• a foreign exchange rate

• a fixed exchange rate

• a flexible exchange rate

• a managed exchange rate

5. Answer the questions:

1. What institutions and people are involved in the foreign exchange market operations?

2. What are the centres of these market in the world?

3. Are all of them open at the same time?

4. Is Moscow one of these centres?

6. Complete the sentences:

1. The foreign exchange market is the market where one currency can be … .

2. The foreign exchange market is made up of … .

3. The price at which one currency exchanges for another is called … .

4. Under a fixed exchange rate regime, the value of the pound would be pegged … .

5. Under a flexible exchange rate regime, the value of the pound would be determined … .

7. Translate into English:

1. Тут відбувається обмін різних валют.

2. Ці спеціалісти називаються брокерами.

3. Курс контролюється центральним банком.

4. Ціни зберігаються на колишньому рівні.

5. Товари експортуються до багатьох країн світу.

Unit 9. Accounting

1. Remember the terms:

• annual report - річний звіт

• balance sheet - балансова відомість

• income statement - звіт про прибутки

• assets - активи

• liabilities - пасиви

• revenue - надходження

• net worth - власний капітал

2. Read and translate the text: