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2. Match the phrases to their definitions:

Functions of banking may be classified as the followings:

  1. issue of money

2) settlement of payments

3) credit intermediation

4)credit quality improvement

a) banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), but are high quality borrowers

b) banks borrow and lend their own accounts as middle men

c) banks act as both collection and paying agents for customers, participating in interbank clearing and settlement systems

d) provision of banknotes

3. Provide definitions of the following terms. Use your business dictionary to check.

balance, 2) bank charges, 3) branch, 4) сheck US (cheque UK), 5) credit, 6) current account, 7) debit

4. Complete the passage below using the terms from the box.

lenders investments to make machinery reservoir securities financial rates

Banks borrow from individuals, businesses, (1)… institutions, and governments with surplus funds (savings). They then use those deposits and borrowed funds (liabilities of the bank) (2)… loans or to purchase (3)… (assets of the bank). Banks make these loans to businesses, other financial institutions, individuals, and governments. Interest (4)… provide the price signals for borrowers, (5)… , and banks. The bank possesses the necessary men, (6)… and experience. By obtaining deposits from many people, it acquires a large (7)…of funds. From this supply, which is constantly being increased by additional deposits and decreased by withdrawals according to the needs and circumstances of the depositors, the bank can now make loans and other (8) … from time to time.

5. Fill in the correct type of conditionals.

1. If Mr Brown …(deposit) some money last year, he would have got more of it now.

2. Unless you … (have) cash in hand, you’ll need some type of auto loan.

3. If you were a millionaire, how you …..(spend) all your money?

4. If I (have) good luck I would have won the lottery. 5. If you …(work) longer than your usual working day you would have been paid overtime.

6. If banks didn’t use their depositors’ funds , they … (to be able) to make loans and buy securities.

6. Choose the correct term to complete the sentence.

1. Here is a small ...... . You'll get the rest of the money after the job is finished.

a) benefit

b) advance

c) loan

2. "Here's a ten-pound ...... ". "Your change, Sir".

a) money

b) bill

c) note

3. "What is the ......... in Poland". "It's the Polish Zloty".

a) money

b) currency

c) notes

4. He has money problems. He is ...... .

a) wealthy

b) broken

c) broke

5. At the end of each month, my employer pays my ......... into the bank.

a) savings

b) funds

c) salary

6. I don't get paid in cash. My salary is paid into my bank ....... .

a) deposit

b) debt

c) account

7. The long-term loan you take from a bank to buy a house or flat is called a…...

a) mortgage

b) overdraft

c) deposit

8. There's a ......... at the bank if you need some money.

a) credit card

b) cheque

c) cash machine

9. Alan's parents must be ......... . They've just bought him a new car.

a) penniless

b) wealthy

c) broke

10. I don't have any cash on me. Can I pay with my .......... card?

a) deposit

b) credit

c) expenditure

____________________

Read the text and comment on the following statements:

  • Financial technologies have allowed banks to extend their reach all over the world.

  • The banking industry is less globalized than some other industries.

  • It is more convenient to have local banks provide loans to small business and individuals.

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