Assignments

I. Answer the questions.

1. What are two general reasons for using a bank account?

2. Who is a deposit account especially appropriate for?

3. What can regular payments into a deposit account be made through?

4. How often is interest calculated?

5. What happens if the current account is overdrawn?

II. Translate the following sentences into Ukrainian. Put questions to any two of them.

1. The first and most common reason for using a bank account is the convenience and safety provided by a current account at a bank.

2. The second is that small and perhaps regular surpluses are available to be saved, and for this purpose a bank provides deposit accounts.

3. A deposit account is especially appropriate for those who may save small amounts from time to time without any planned regularity or for those who wish to save for a particular purpose in the immediate future, for example for annual holidays or for the purchase of a major item such as a car.

4. Regular payments into a deposit account can be made through a standing order to the bank that will automatically transfer the agreed amount according to your instructions.

5. Since money in a current account does not attract interest, it is not a good idea to maintain large cash balance, these would be better transferred to a deposit account or to an alternative form of saving.

III. Translate the following sentences into English.

1. Оскільки депозитний рахунок не пропонує високої відсоткової ставки, він не є найкращим способом заощадження великих сум коштів на будь-який довгий період часу.

2. Більшість клієнтів банку, які відкрили депозитний рахунок, також матимуть поточний рахунок, що робить переказ грошових сум з одного на інший простою справою.

3. Більшість платежів усе ще здійснюється за допомогою чеків, хоча використання постійного доручення клієнта банку чи прямого дебіту стає більш традиційним.

4. Оскільки гроші на поточному рахунку не приносять високих відсотків, не варто утримувати великий залишок готівки, краще переказати її на депозитний рахунок чи обрати альтернативну форму заощаджень.

IV. Name the following definitions.

1. An account, which does not offer a high rate of interest and would not be the best way to save large sums of money for any long period of time, but designed to make saving simple, convenient and safe.

2. An account, where money is being paid into and paid out of as often as the customer finds convenient.

3. An account, which enables small savers to put money away for particular purposes, for example for holidays.

V. Fill in the following table.

Type of a bank account	Main features

VI. Choose the right answer.

1. A current account is

A – one which is available for the time being;

B – one in which savings are held;

C – one which is used all the time for day-to-day transactions.

2. A deposit account is

A – one from which regular payments are made;

B – one in which savings are held;

C – one from which withdrawals can be made by cheque.

3. Rate of interest is

A – the percentage of each unit money paid for its use;

B – rate of profitability;

C – portion of an investment on which the interest is calculated.

4. An overdraft is

A – an amount by which the balance in a current account exceeds the value of a cheque drawn from it;

B – an amount by which the value of a cheque exceeds the balance in the current account;

C – an excessive balance in a current account.

VII. Work in chain. Ask your neighbour a question based on the text. He or she has to report your question, answer and ask his one to the next student to continue chain work.

VIII. Sum up what the text says about depositing money with a bank:

1) reasons for using a bank account,

2) types of bank accounts,

3) overdrafts.

1.2. INTERNATIONAL BANKING

Text 1

Warm-up

1. Translate the following word combinations: gold coins, city-states, comparative value, international exchange, national money, international banking, balance of payments, short-term fluctuations, prudent businessman, no matter what happens.

2. What do we understand by 1) city-states, 2) national money, 3) international banking, 4) floating rates, 5) trade?

Vocabulary

foreign exchange – обмін валют; обмен валют

par value – номінальна вартість; номинальная стоимость

rate of exchange – обмінний курс; обменный курс

floating rate – курс, що коливається; плавающий курс

foreign exchange market – валютний ринок; валютный рынок

speculator – біржовик; биржевик

mutually acceptable rate – взаємно прийнятний курс; взаимоприемлемый курс

verbal commitments – усні зобов’язання; устные обязательства

spot trading – термінова торгівля, „спот”; срочная торговля, „спот”

futures contract – ф’ючерсний контракт; фъючерсный контракт

forward contract – форвардний (строковий) контракт; форвардный (срочный) контракт

hedge – страхувати ризик; страховать риск

arbitrage – арбітраж, арбітражні операції (одночасні купівля та продаж валюти); арбитраж, арбитражные операции

cross-rate – крос-курс; кросс-курс

prompt delivery – миттєва, негайна доставка; немедленная доставка

demand – попит; спрос

supply – пропозиція; предложение

foreign exchange trader – торговець іноземною валютою; торговец иностранной валютой

broker – брокер, комісіонер, маклер; брокер, комиссионер, маклер

settlement – оплата, угода; оплата, договор

handling – обробка; обработка

storage – зберігання; хранение