Text 3 banks

Exercise 3.1 Study the vocabulary:

1) to be concerned	бути пов’язаним
2) an effort	спроба
3) to prevent	запобігати
4) to originate	брати початок
5) current account	поточний рахунок
6) a profit	прибуток
7) an interest	відсоток
8) liabilities	пасиви
9) assets	активи
10) to lend excess fund	надавати кредит

Exercise 3.2 Read and translate the text:

Banks are closely concerned with the flow of money into and out of the economy. They often co-operate with governments in efforts to stabilize economies and to prevent inflation. They are specialists in the business of providing capital, and in allocating funds on credit. Banks originated as places to which people took their valuables for safe-keeping, but today the great banks of the world have many functions in addition to acting as guardians of valuable private possessions.

Banks normally receive money from their customers in two distinct forms: on current account, and on deposit account. With a current account, a customer can issue personal cheques. No interest is paid by the bank on this type of account. With a deposit account, however, the customer undertakes to leave his money in the bank for a minimum specified period of time. Interest is paid on this money.

The bank in turn lends the deposited money to customers who need capital. This activity earns interest for the bank, and this interest is almost always at a higher rate than any interest which the bank pays to its depositors. In this way the bank makes its main profits.

Exercise 3.3 Decide if the statements are true or false. Correct the false ones.

1. Nearly everyone deals with a bank.

2. Banks help circulate money.

3. Banks accept deposit from individuals and business.

4. Banks pay interest to depositors.

5. Banks do not receive interest from borrowers.

6. All people understand how banks make the economy grow.

7. Bank often co-operate with governments in efforts to stabilize economies and to prevent inflation.

8. Banks receive money from their customers in two distinct forms: on current account, and on deposit account.

9. The bank lends the deposited money to customers who need capital.

10. Banks are concerned with the flow of money into and out of the economy.

Exercise 3.4 Match the first part of the sentence (1-5) with the second one (a-e):

1	The bank lends the deposited money	a	took their valuables for safe-keeping.
2	Banks normally receive money from their customers in two distinct forms:	b	on current account, and on deposit account.
3	Banks originated as places to which people	c	to customers who need capital.
4	Banks often co-operate with governments in efforts	d	with the flow of money into and out of the economy.
5	Banks are closely concerned	e	to stabilize economies and to prevent inflation.

Exercise 3.5 Put the words and phrases into their correct place in the text below:

(account; debtor; interest; safekeeping; bank; deposit; loan; save; bank income; depositors; paid; spend; credited; funds; pocket; withdraw; creditor; hide; record)

People 1)______ money in banks for future use. A man may be 2)______ each week for his work. He probably will not want to spend all his pay the day he receives it. It may be risky for him to carry all his unspent money in his 3)____, or to 4)_____ it at home. So he may decide to put some of his money in a bank for 5)______. The money he puts in the bank is called a 6)______. This money is 7)______, or added, to his 8)______. An account is a 9)_____ of the money a depositor has in the bank. When the depositor wants to 10)_____, or take out, part of his deposit, the bank must be ready to pay him.

Banks use the money of 11)______ for loans to those who need 12)_______. The 13)______ that makes the loan is called a lender, or 14)______. The bank charges the borrower, or 15)_______ interest for the use of the 16)______ Charging 17)_____ for the use of money is the chief source of 18)_______.

Exercise 3.6 Choose the correct answer:

1. Miss Positive _____ the bank manager that she would be able to repay the loan.

a) assured b) insured c) certified

2. The debt should be paid _____ within 30 days of receiving this statement.

a) all over b) in full c) as a whole

3. I have just _____ an account in this bank.

a) made b) opened c) registered

4. Miss Thrifty _____ only $15 out of the bank every week.

a) removes b) pulls c) draws

5. Please complete the ______ form and return it to the branch manager.

a) enveloped b) inserted c) enclosed

6. We ______ to inform you that settlement of your account is three months overdue.

a) regret b) dislike c)apologize

7. $1 is _______ to 1.6 German marks.

a) equivalent b) variable c) comparable