8. Write down the names of the general bank financial products in your exercise books:

Bank’s financial products

loan credit card mortgage savings account

9. Read the following definitions:

ATM (automatic teller machine) an automatic machine by means of which one can get some cash.

Bank an organization that holds money, important documents and other valuables in safe keeping, and lends money at interest.

Bank account money held at a bank for a client’s use whenever he wishes to withdraw it.

Bank charges interest on an overdraft, or for handling a client’s affairs while abroad, etc.

Bank rate the rate of interest charged by a central bank for loans.

Bank statement a record of withdrawals and payments of a client’s account, including charges made by the bank sent at the end of each month.

Branch the local office of the bank.

Cheque a means of paying money by writing a request to a bank to pay a person a sum of money.

Current account money lodged with a bank which can be withdrawn on demand by means of cheques. No interest is paid by a bank on current account.

Deposit account used for saving money. There has to be given a notice some time in advance before money can be withdrawn.

Duty a government levied, put on goods entering a country.

Interface a connecting link between two computer systems.

Long credit (also long-term credit) bills need not be paid for a certain period of time.

Mortgage money lent at a rate of interest to enable a property, or

(fixed rate m./ variable business, to be bought.

rate m.)

Network a number of computers in different places.

Night safe provides a useful means of putting cash or cheques into safety after banking hours by opening a small steel door or letter-box in the outer wall of a bank.

Outstanding account money which has been owned to smb or smth for a long time.

Overdraft money lent by a bank, who normally charge interest, to enable a client to draw cheques from his current account up to an agreed amount.

Short credit (also short-term credit) bills must be paid very soon after receipt of goods

To give a credit to give a time allowance before payment is due.

10. Now check the knowledge of your partner! In Ex.10 close the left column with the left hand. Read the definitions from the right column. Your partner should guess the term.

11. In the following text you will find the information about the usage of the banking services. Read the text carefully and give a summary of it in pen: Banking Services

Nowadays banks perform the main part of the work of transferring money from a customer to a seller by operating the system of payments in the economy. Almost everyone in the world uses or has ever used banking services. Families keep their savings there, and banks pay them interest rates on their deposits and give them loans to buy expensive goods. Companies conduct payments through them. Commercial organizations which work at the market and in production take loans for their needs and conduct all payments with buyers and sellers through them. Landowners and owners of real estate take loans from the banks to buy an estate or to make use of it and pay back loaned money.

There are a great number of services provided by banks:

1) The provision of safe deposit facilities for money and valuables.

2) The lending of money: this is the most profitable activity of the banks and the one which provides most of their income.

3) The issuing of banknotes: in England and Wales this right is restricted to the Bank of England. But some banks in Scotland and Northern Ireland retain the right to issue their own banknotes.

4) The provision of efficient money transmission services (e.g. cheques, credit cards).

In addition to these basic functions modern banks provide a wide range of other financial services. For instance, establishing a bank account. One of the first things you should do after arriving the United States is to establish a bank account. It is not a good idea to carry large amounts of cash or keep it in your living quarters.

Most banks have main offices in the center of cities and towns, and also have smaller offices called “branches” in other parts of the city or town as well as in suburban locations.

Bear in mind that banks are private businesses. They are all different and each wants to get your business. You should check with several banks in order to determine which bank offers the best services for your needs.

You should also plan to open both a checking and savings accounts at the same bank, simply because it will be more convenient for you. For example, if you have a savings account and a checking account in the same bank you can often make a call and ask to transfer funds from your saving account to your checking account. Interests rates on saving and checking accounts vary from bank to bank. Investigate and compare various banks and their rates of interests on accounts before you decide where to open an account.

Cashier’s cheques. A cashier’s cheque is a cheque written for you by your bank. You give the bank the money (or it is taken from your account) and the clerk writes a cashier’s cheque charting a small fee for the service. Usually cashier’s cheques are written for large amounts to transfer money from one place to another.

A cashier’s cheque is easier to cash than a personal check, and it is safer than carrying a large amount of cash. You are not to cash a cashier’s cheque at a branch of your bank – it can be cashed at any bank or business.

It is vital to remember that everything in the economy is controlled by money, and banks are a tool-kit for the economy – controlling the money circulation between firms, depositors and loaners, and offering services to make that circulation easier for them.

12. Let’s play the game. You are a bank employee. Clients will come and ask you information about financial products that your bank offers, such as loans, credit cards, mortgages, and savings accounts.

a) First, you will explain your bank’s financial products. Then when the client opens an account or applies for a loan, mortgage, or a credit card, you will write down their credit profile.

As a bank employee you should ask your clients the following questions:

What do you do for a living? How much is your monthly salary? What was your gross income last year?

Do you have any credit cards? How much debt do you have on your credit card?

Do you own a car? How much is it worth? Do you make monthly payments on it? How much do you owe?

Do you have any outstanding loans? What are your monthly payments? How much do you owe?

Do you own a house? What is your house appraised at?

Do you have a mortgage? What is your monthly mortgage payment?

Are you renting? How much is your monthly rent payment?

b) To begin with, let’s read the dialogue as an example of your dialogue with a client:

BE: Please have a seat. How can I help you?

C: Well, I’m interested in taking out a mortgage, but I would like some information first.

BE: I’d be happy to answer any questions you have. What would you like to know?

C: What kind of mortgages do you offer?

BE: We have a variable rate mortgage and a fixed rate mortgage.

C: Could you explain the difference please?

BE: Sure. (Explains different mortgages)

Do you have any questions regarding what I just told you?

C: No. I’d like to apply for a fixed mortgage.

BE: Ok. I’ll need to set up a bank profile list. So I’ll need to ask you some questions about your personal finances. Can you spell your name for me?

(Bank employee starts a credit evaluation and asks questions about the client’s personal finances).

c) The list of clients is for the bank employee, the cards with roles – for the clients. If you are ready to play, let’s start.