12 Answer the questions.

1. What are the main reasons for~saving money?

2. What are the advantages of depositing money?

3. Why does a financial institution lend money?

4. What economic factors affect saving rate?

5. What types of savings accounts do you know?

6. What are the main reasons for borrowing money?

7. How can people profit by using credit?

8. Why does the borrower put up collateral?

9. What is the most common type of mortgage?

10. What kind of applicants receive a high credit rating?

13* Say if the statements are true or false. Prove your point.

1. The fee that a financial institution pays for the use of depositors' money is collateral.

2. Credit is the purchase of goods and services without the actual transfer of money on the promise to pay later.

3. The shorter the loan period is, the smaller the month­ly amount the consumer must pay.

4. A financial institution charges interest on loans to make money.

5. The money borrowed is called the interest.

6. The mortgagee must repay the mortgage in install­ments for fixed number of years, usually between 15 and 30 years.

7. A financial institution makes a profit by charging more interest on loans than it pays on deposits.

8. When consumer goods are adequate to meet consumer demand and prices are lower, the savings rates are high.

9. When consumer demand is greater than the supply of consumer goods and prices are high, the savings rates are low.

10. A credit rating is an estimation of the probability of repayment.

14* Complete the sentences matching the beginning of the sentence with one of the endings.

l. A financial institution pays interest on savings deposits______________________.

2. A common type of savings accounts among financial institutions is_________________________.

3. The length of repayment of the loan is important in_____________________

4. Even wealthy consumers consider the use of credit necessary_______________.

5. Credit payments for televisions, major appliances, and other expensive items__________________________.

6. The amount paid by the borrower for the privilege of using the money________________.

7. The money market account offers variable interest rates_________________.

8. If the loan is not repaid according to the terms of the agreement________________.

9. The loan is secured by the property, which is forfeited if___________________.

10. The creditor evaluates information about the purchas­er and .__________.

a. usually run from one to five years

b. the loan terms are not met

c. determining the amount of the monthly pay­ment

d. assigns that person a credit rating accordingly

e. when purchasing expensive items such as houses and automobiles

f. to attract a pool of money it can lend

g. that are usually higher than those of regu­lar savings or NOW accounts

h. the lender may take the borrower's collateral

i. is called the interest

j. a regular savings account, or a passbook account

2. Money is a terrible master but an excellent servant. However

_________________________________________________________________

3. Before you start up a new business I'd advise you to write a business plan.

You should

_________________________________________________________________

4. As long as the company does well the profits will be very high. If

_________________________________________________________________

5. Money is the same as promises - easier made than kept. Like

_________________________________________________________________

6. Personal selling will be very effective if the promotional efforts are well planned. Provided

_________________________________________________________________

7. You should persuade banks, not me, that your business is worthy of a loan. had better

_________________________________________________________________

8. Although money can't buy happiness it will get you a bet­ter class of memories. But

_________________________________________________________________

9. Getting money is like digging with a needle. the same as

_________________________________________________________________

11On condition that the price is reasonable the travelers will be using this airline. as long as

_________________________________________________________________

ll.Money spends in the same way as water soaks into sand. Like

_________________________________________________________________

12. Doing business is like making war. the same as

_________________________________________________________________

13. My great wealth was acquired with no difficulty, whereas my small wealth, my first gains, with much labor. Yet

_________________________________________________________________

14. Why don't you make financial analysis of monthly profit and loss forecast? if i were you I would

_________________________________________________________________

15.The advertisers try to persuade the customers in the same way as the politicians try to persuade their electors. in a similar way

_________________________________________________________________

17 Read what famous people said about the role of money in the society. Discuss the position of the authors. Support your point of view with reasons and examples from your reading, your observations or your own experience. Use the expressions from the Useful Language box.

1. The chief value of money lies in the fact that one lives in a world in which it is overestimated.

H. L. Mencken (1880-1956), American author

2. The only people who claim that money is not important are people who have enough money so that they are relieved of the ugly burden of thinking about it.

Joyce Carol Oates (Ъ. 1938), American author

3. Money is an article, which may be used as a universal passport to everywhere except Heaven, and as a univer­sal provider of everything but happiness.

George S. Clason (1874-1940), American author

4. There is no fortress so strong that money cannot take it.

Marcus T. Cicero (106-43 ВС), great Roman orator, politician

5. Money is power, freedom, a cushion, the root of all evil, the sum of blessings.

Carl Sandburg (1878-1967), American poet

6. Money is a singular thing. It ranks with love as man's greatest source of joy. And with death as his greatest source of anxiety.

John Kenneth Galbraith (b. 1908), American economist

18 Read what famous people said about the knack of han­dling money. Discuss the extent to which you agree or disagree with the opinion stated below. Support your point of view with reasons and examples from your read­ing, your observations or your own experience. Use the expressions from the Useful Language box.

1.Wealth is not his that has it, but his that enjoys it.

Benjamin Franklin (1706-1790), American scientist, publisher, diplomat

2. It isn't enough for you to love money - it's also neces­sary that money should love you.

Baron Rothschild (1840-1915)

3. If we command our wealth, we shall be rich and free; if our wealth commands us, we are poor indeed.

Edmund Burke (1729-1797), British political writer, statesman

4. Money alone is only a means; it presupposes a man to use it. The rich man can go where he pleases, but per­haps please himself nowhere. He can buy a library or visit the whole world, but perhaps has neither patience to read nor intelligence to see... The purse may be full and the heart empty. He may have gained the world and lost himself; and with all his wealth around him... he may live as blank a life as any tattered ditcher.

Robert Louis Stevenson (1850-1895), Scottish essayist, poet, novelist

5. Money is of no value; it cannot spend itself. All depends on the skill of the spender.

Ralph Waldo Emerson (1803-1882), American poet, essayist

6. To acquire wealth is not easy, yet to keep it is even more difficult... It is said that wealth is like a viper which is harmless if a man knows how to take hold of it; but, if he does not, it will twine around his hand and bite him.

Frank K. Houston

ChapterTEN

BUSINESS SUCCES STORIES OF ALL TIME

Unit 1. READING AND TRANSLATION PRACTICE