Vocabulary focus

Ex. 1. Explain the meaning of the following terms.

Financial intermediaries, deficit-spending individuals, loan, surplus-spending individuals, current expenditures, lender, saver, securities, liquidity. borrower, depositor.

Ex. 2. Give a word for each of the following definitions.

1. The total amount of money that an organization or person spends during a particular period of time.

2. An amount of money that you borrow from a bank.

3. An amount of money that is collected and kept for a particular purpose.

4. Someone who puts money in a bank or other financial organization.

5. The value of a coin or note.

6. The money that people or organizations have put into a bank in order to get a profit.

7. More than what is needed or used.

8. The difference between the amount of something that you have and the higher amount that you need.

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Words for reference: denomination, surplus, expenditure, fund, deficit, investment, depositor, loan.

Ex. 3. Think of the nouns that are most commonly used with the following a) adjectives; b) verbs.

a) current, surplus, ongoing, efficient, competitive, negligible, profitable, trustworthy;

b) issue, sell, perform, save, cover, accumulate, flow, afford, meet, recover, incur, claim.

Ex. 4. Think of the verbs and adjectives that are most commonly used with the following nouns.

Fund, income, service, loan, flow, deposit, borrower, claim, fee.

Ex. 5. Make up your own sentences with any ten word-combinations from exercises 3 and 4.

Ex. 6. Fill in the gaps with the suitable prepositions.

1. The current expenditures … consumption exceed the current receipts … income.

2. In a perfectly efficient financial system pertinent information is available … all … negligible cost.

3. All loans and securities are available … denominations anyone can afford.

4. Bank satisfy the strong need of many customers … liquidity.

5. Banks satisfy this need … offering high liquidity … the deposits they sell.

6. Pertinent data … financial investments is both limited and costly.

7. Most depositors prefer to keep their financial records shielded … competitors and neighbors.

Ex. 7. Translate the following sentences. Pay attention to the italicized words.

1. Don’t bank on going abroad this summer, we may not have enough money.

2. The morning began fine, but now clouds are banking up.

3. I have always banked with the Royal Bank.

4. They have an access to huge banks of public data or library information.

5. The only way out is to ask your bank for a loan.

6. I am not sure if I should buy this suit. – Come on! It won’t break the bank.

7. Mr. Smith had bankrolled them when they had nothing.

Comprehension

Ex. 1. Answer the following questions.

1. What does the term “financial intermediary” mean?

2. What task do banks perform?

3. Why do banks exist?

4. What contributions do banks make?

5. What do you know about the delegated monitoring theory?

Ex. 2. Write down key words and phrases from-each paragraph which best describe its meaning.

Ex. 3. Write down possible headlines which best express the main idea of each paragraph.

Ex. 4. Give the main points of the text in 7 – 10 sentences using the following clichés: ‘The text is concerned with …’, ‘… are considered’, ‘It should be noted that … ’, ‘It should be remembered that …’, ‘The fact that … is stressed’.