English for Economists. Практикум

Exercise 2. Choose one of the words from Exercise 1 to make sentences complete:

1.They share a single … — the Euro — but taxation and public financing are done differently in every country.

2.They needed better ways to … information about the best practices so they can learn from each other what works.

3.Britain and Germany found themselves in before World War I, and said that having strong … relationships was not enough to deter strategic differences.

4.The effort has focused on helping people in Colombia and other developing countries find markets for … they can make or grow at home.

5.And every baby born to an employee of The Endicott Johnson company got a bank book with a $10 … .

6.You'd rather wave your smartphone at a store register than pull out a debit card, … or cash.

7.The Spokesman-Review reported that two employees and a … were bound inside the store while the robbery occurred.

Exercise 3. Discussion.

Give your opinion to the following statements. Express your ideas to your partner:

1.He that is of the opinion money will do everything may well be suspected of doing everything for money. — Benjamin Franklin.

2.Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game. — Donald Trump.

3.A penny saved is a penny earned. — Benjamin Franklin.

4.Money frees you from doing things you dislike. Since I dislike doing nearly everything, money is handy. — Groucho Marx.

5.Never spend your money before you have it. — Thomas Jefferson.

6.There is only one thing for a man to do who is married to a woman who enjoys spending money, and that is to enjoy earning it. — Edgar Watson Howe.

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UNIT 3

1. Discussion.

– Which of the following banking products or services do you find the most useful and necessary? Why?

–What banking services do you use?

–What is a bank?

According to Britannicaccounting.com, a bank is: an institution that deals in money and its substitutes and provides other financial services. Banks accept deposits and make loans and derive a profit from the difference in the interest rates paid and charged, respectively.

When you deposit your money in the bank, your money goes into a big pool of money along with everyone else's, and your account is credited with the amount of your deposit. When you write checks or make withdrawals, that amount is deducted from your account balance. Interest you earn on your balance is also added to your account.

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Banks create money in the economy by making loans. The amount of money that banks can lend is directly affected by the reserve requirement set by the Federal Reserve. The reserve requirement is currently 3 percent to 10 percent of a bank's total deposits. This amount can be held either in cash on hand or in the bank's reserve account with the Fed. To see how this affects the economy, think about it like this. When a bank gets a deposit of $100, assuming a reserve requirement of 10 percent, the bank can then lend out $90. That $90 goes back into the economy, purchasing goods or services, and usually ends up deposited in another bank. That bank can then lend out $81 of that $90 deposit, and that $81 goes into the economy to purchase goods or services and ultimately is deposited into another bank that proceeds to lend out a percentage of it.

In this way, money grows and flows throughout the community in a much greater amount than physically exists. That $100 makes a much larger ripple in the economy than you may realize!

Vocabulary

Accept — воспринимать.

Loan — заем.

Profit — прибыль.

Withdrawal — изъятие, снятие.

Deduct — вычитать, удерживать.

Account — счет.

Reserve — запас.

Proceed — продолжать.

Exercise 1. Match the words as they occur together in the text:

Exercise 2. Compose sentences of your own using the words-combinations given in Ex. 1.

Exercise 3. Role-play:

Work in groups of three.

First group discusses advantages of keeping money in a bank. The second one speaks about dangers of keeping money in a bank. Use the table:

Exercise 4. Writing:

Write a short report (10–12 sentences) explaining and justifying your opinion.

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UNIT 4

1. Find the words that derived from the words given in the table? What part of speech do they belong to?

Educate, restrict, require, save, arrange, retire, tradition, count

2. Work with the dictionary. Find words that are built with the suffixes:

-tion; -ment.

3.Read the text and match the headings to the correct paragraph:

1.Certificates of deposit.

2.Savings accounts.

3.Individual retirement accounts and education savings accounts.

4.Money market accounts.

Loans, checks and savings

Aside from checking accounts, they offer loans, certificates of deposits and money market accounts, not to mention traditional savings accounts. Some also allow you to set up individual retirement accounts (IRAs) and other retirement or education savings accounts. There are, of course, other types of accounts being offered at banks across the country, but these are the most common ones.

The most common type of account, and probably the first account you ever had. These accounts usually require either a low minimum balance or have no minimum balance requirement, and allow you to keep your money in a safe place while it earns a small amount of interest each month. In standard practice, there are no restrictions on when you can withdraw your money.

It is an interest-earning savings account with limited transaction privileges. You are usually limited to six transfers or withdrawals per month, with no more than three transactions as checks written against the account. The interest rate paid on a money market account is usually higher than that of a regular passbook savings rate. It also has a minimum balance requirement.

These are accounts that allow you to put in a specific amount of money for a specific period of time. In exchange for a higher interest rate, you have to agree not to withdraw the money for the duration of the fixed time period. The interest rate

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changes based on the length of time you decide to leave the money in the account. You can't write checks on certificates of deposit. This arrangement not only gives the bank money they can use for other purposes, but it also lets them know exactly how long they can use that money.

These types of accounts require that you keep your money in the bank until you reach a certain age or your child enters college. There can be penalties with these types of accounts, however, if you use the money for something other than education, or if you withdraw the money prior to retirement age.

Vocabulary

Retirement account — пенсионный счет.

Savings account — сберегательный счет.

Require — требовать.

Restriction — ограничение.

Transaction — сделка.

In exchange — в обмен.

Duration — длительность.

Arrangement — договоренность.

Penalty — неустойка.

Exercise 1. Work on the vocabulary of the text and find the words with the same meaning of the following:

Limitation, usual, to demand, normal, to hold, particular, to take away, to let, target, customary.

Exercise 2. Mark the sentences T (true) or F (false). Correct the false sentences:

1.There are only three types of accounts being offered at banks.

2.Savings accounts require a high minimum balance and it earns a big amount of interest each month.

3.A money market account is an interest earning savings account with not limited transaction privileges.

4.Money market accounts have a minimum balance requirement.

5.Certificates of deposit allow you to put in a specific amount of money for a not limited period of time.

6.Individual retirement accounts require that you keep money in the bank until you reach a certain age.

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Exercise 3. Role-play.

Play in three groups. The first group advertises customers to open a savings account. The second group agitates to open money market account. And the third one insists on individual retirement accounts.

Act out your reaction to this situation.

Exercise 4. Writing.

Write a short report (10–12 sentences) explaining and justifying your opinion.

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UNIT 5

1. Find the words that belong to the topic “Money” and their translation. Divide them into two columns according to the part of speech:

2. Compose word-combinations using these words. What are mortgages?

In legal terms, a mortgage is "the pledging of property to a creditor as security for the payment of a debt". In plain English, a mortgage is a loan. For many people, it's the biggest loan they will ever borrow. With a regular loan, there's no explicit collateral. The lender looks at your credit history, your income and your savings, and determines if you're a good risk. With a mortgage, the collateral for the loan is the house itself. If you don't pay back the loan (along with all of the fees and interest that are included with it), then the lender can take your house.

Banks are the traditional mortgage lender. You can either apply for a mortgage at the bank you use for your checking and savings accounts, or you can shop around to other banks for the best interest rates and terms. If you don't have the time to shop around yourself, you can work with a mortgage broker, who sifts through different lenders to negotiate the best deal for you. Banks aren't the only source of mortgages, though: Credit unions, some pension funds and various government agencies also offer mortgages.

Like other loans, mortgages carry an interest rate, either fixed or adjustable, and a length or "term" of the loan, anywhere from five to 30 years. Unlike most other loans, mortgages carry a lot of associated costs and fees. Some of those fees only happen once, such as closing costs, while others are tacked onto the mortgage payment every month.

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Vocabulary

Property — имущество.

Payment — платеж.

Borrow — заимствовать.

Lender — кредитор.

Determine — устанавливать.

Collateral — косвенный.

Income — доход.

Fee — плата.

Interest — процент.

Exercise 1. Answer the questions to the text:

1.What is the synonym for the term “mortgage”?

2.How does lender determine if you are a good risk?

3.What can be collateral for mortgage?

4.What can happen if you are unable to pay back the loan?

5.What organizations can you apply for mortgage?

6.How can mortgage broker help you?

Exercise 2. Fill in the gaps using the words and expressions given in the

table:

Loan, lender, savings account, interest rate, a mortgage broker, payment, debt

1.A … helps potential home owners with the financial side of things.

2.As federal grants decreases and student … use increases, the financial responsibility of obtaining a college education is increasing.

3.… is one of the most commonly known types of bank account.

4.Any type of … that is made ahead of its normal schedule, such as paying for a good or service before you actually receive the good or service.

5.If you have attractive financing a pre-approved loan from a reliable … or a large down payment say so.

6.He managed to pay off his … in two years.

7.The … on this credit card is 29.9%. I think it’s too high.

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Exercise 3. Role play:

Play in pairs.

Students role-play a bank client or a banking officer. The bank clients will visit the bank and talk to the banking officers about mortgage. After the bankers explain the financial product, the clients will select it and apply. The bankers will then open up a bank profile and start a credit evaluation.

Compose a dialogue between a bank client and a banking officer.

Exercise 4. Discussion:

Give your opinion to the following questions. Express your ideas to your group-mates:

1.How easy is it to get a mortgage in your country?

2.Do banks tend to lend people who might not be able to repay?

3.Does government support any mortgage programs for young people in your

country?

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