Vocabulary focus

Ex. 1. Choose from B words with similar meaning to the following words in A.

1. Multilateral, convertible, payable, crucial, appropriate, ratification, elimination, restriction, fluctuation, realignment, collapse, income, reserve, protagonist, benefit.

2. Profitable, changeful, approval, many-sided, decisive, suitable, removal, vibration, limitation, reconstruction, supply, fighter, fall, revenue, advantage.

Ex. 2. Complete the sentences with the words from the box below.

Fixed exchange rates, relies upon, tranche policies, to encourage, floating, quota, purchases, surveillance.

1. One of the purposes of the International Monetary Fund is … ... international monetary cooperation.

2. International monetary system established by the fund was based upon a policy of ... ... ... .

3. The European Community member countries introduced a joint system of..... their currencies against the dollar.

4. The fund ... ... members' contributions and borrowing arrangements to finance its operations.

5. A quota system assigns each member a .... related to its national income, monetary reserves and other economic indicators.

6. A number of credit regulations, known as ... ... , control members' access to the fund's general resources.

7. The tranche policies limit .... of foreign currencies by a member of IMF.

8. One of the main functions of the IMF is the ... of the exchange rate policies of members.

COMPREHENSION

Ex. 1. Read the text again and decide which of these statements are correct.

1. The International Monetary Fund was established in May 1945.

2. The United Nations Monetary and Financial Conference was held at Bretton Woods, New Hampshire in 1940.

3. One of the purposes of the fund is to promote foreign exchange stability.

4. International monetary system was based upon the policy of fixed exchange rates.

5. Countries of the European Community introduced a joint system of floating their currencies against the dollar after its devaluation in 1973.

6. The fund is financed by members' contributions and borrowing arrangements.

7. Members’ drawing rights and voting power don't depend on a members’ quota.

8. Until 1983 the Group of Ten plus Switzerland had no right to borrow money from IMF.

9. A borrower has to accept special terms named conditionality.

10. Special Drawing Rights were accepted to decrease international liquidity.

11. One of the main functions of the IMF is the surveillance of the exchange rate policies of members.

Ex. 2. Choose the best endings to the following statements.

1. The fund became a specialized agency of....

a) the European Community;

b) the United Nations in 1947;

c) the European Free Trade Association in 1947.

2. The United Nations Monetary and Financial Conference was held at Bretton Woods, New Hampshire in....

a) 1944;

b) 1941;

c) 1950.

3. One of the purposes of the fund is to promote ....

a) foreign exchange instability;

b) fall of international trade;

c) foreign exchange stability.

4. International monetary system was based upon a policy of....

a) fixed exchange rates;

b) unfixed exchange rates;

c) exchange restrictions.

5. Member contributions are determined by ....

a) a quota system;

b) the governments;

c) the United Nations Organization.

6. In 1980s the developing countries were unable to service their debts because of....

a) the collapse of primary product prices;

b) improvements in economy;

c) new reforms.

7. Credit regulations, known as tranche policies, control members' access to the fund's ....

a) ideas;

b) general resources;

c) position.

8. The terms, which have to be accepted by a borrower, are known as ....

a) possibility;

b) ratification;

c) conditionality.

9. A draft outline for a scheme of Special Drawing Rights (SDRs) was produced in ....

a) 1967;

b) 1980;

c) 1972.

10. Floating exchange rates emerged in ....

a) 1990;

b) 1973;

c) 1984.

11. The value of the Special Drawing Right was based upon a weighted basket of....

a) 2 currencies;

b) 1 currency;

c) 16 currencies.

12. According to the Jamaica Agreement in May 1976 the role of gold in the international monetary system ....

a) was increased;

b) was limited;

c) was reduced..

Ex. 3. Complete the unfinished questions in column A that are answered in column B.

A B

1) When... ? In December 1945.

2) When ... ? In 1944.

3) When ... ? In 1947.

4) When...? In December 1971.

5) When ... ? In 1972.

6) When ... ? In 1962.

7) How... ? To SDR 17 billion

8) Why... ? Because of the oil price hike of 1975-80.

9) What... ? 440 per cent.

10) When ... ? In 1967.

11) When... ? In 1969.

12) What... ? ... upon a weighted basket of 16 currencies.

13) When... ? In May 1976.

Ex. 4. Identify the paragraph in the text that talks specifically about members' contributions and borrowing arrangements and translate it into Russian.

Ex. 5. The text contains 6 paragraphs, which of them gives the main point?

Ex. 6. Write down possible headlines which best express the main idea of each paragraph.

Ex. 7. Write down key words and phrases from each paragraph which best describe the atmosphere and its meaning.

Ex. 8. Write down a summary describing the main idea and the questions of the text.