VI. Match the equivalents of the following words.

1. government securities a) гроші на вимогу (до сплати)

2. sum on demand b) сплачувати відсоток

3. high rate c) емісія банкнот

4. to pay interest d)цінні державні папери

5. to deposit money e)депоновані гроші (перший внесок)

6. a banking department f) забезпечити позику

7. issue notes g) висока ставка

8. to provide a loan h) відділ банку

VII. Fill the gaps with the words from the list.

goldsmith, government securities, vanished, a high rate of interest, on demand, financial institutions, notes, moneylender.

1. Banks are among the most important _____________ ___________ in the economy.

2.______________ made loans to people in ancient Babylon.

3.The first bankers were ______________.

4.The goldsmiths issued a note promising to pay the bearer a certain sum ____________.

5.With the collapse of the Roman Empire trade slumped and banks temporarily ______________.

6. Goldsmiths began to lend money deposited with them in return for ______________________.

7.The bank of England became the only bank in England that could issue ____________.

8.The bank of England could only issue notes if they backed up by gold or _____________________.

VIII. Answer the following questions.

1. What is the etymology of the word “bank”?

2. When and where did the first bank appear?

3. Who were the first bankers?

4. Speak on the development of the banking system in England.

5. When did the modern bank begin?

6. What are the new departments according to the charter act?

7. What does the Bank Charter Act forbid new banks?

IX. Read and memorize the words and word-combinations.

credit unions – спілка (союз) кредитної взаємодопомоги, кредитна спілка

thift institutions – економічні, заощаджу вальні інститути

in order to provide – з метою забезпечення

to share a common bonds – бути пайовиком облігацій (акцій, бонн)

emergency loans – надзвичайні (резервні) кредити

large volume – великий обсяг (кількість)

letter of credit – грошові акредитиви (для виплати невідвантажених товарів)

line of credit (credit line) – авансові кошти, короткостроковий кредит

certificates of deposit (CDs) – депозитний сертифікат

safe deposit box – клієнтський сейф

mortgage – застава, заклад, іпотечна застава

revolving loan – відновлюваний кредит

stocks – акції, сертифікати

claim – платіжна вимога, заявка, позов

to claim – вимагати, претендувати на щось

overheads – накладні витрати

saving account – ощадний рахунок (відсотковий)

XI. Text b

Types of Banks

There are several types of banking institutions, and initially they were quite distinct. Commercial banks were originally set up to provide services for businesses. Now, most commercial banks offer accounts to everyone.

Commercial Banks

A commercial bank works with businesses. Businesses have unique needs that consumers do not have. For example, some businesses need a commercial bank that can accommodate a large volume of credit card payments and cash deposits. Commercial banks often also function as retail banks, serving individuals along with businesses.

Commercial banks usually provide basic services such as savings and checking accounts, loans for real and capital purchases, lines of credit, letters of credit, payment and transaction processing, and foreign exchange.

Savings banks, savings and loans, cooperative banks and credit unions are actually classified as thrift institutions. Each originally concentrated on meeting specific needs of people who were not covered by commercial banks. Savings banks were originally founded in order to provide a place for lower-income workers to save their money. Savings and loan associations and cooperative banks were established during the 1800s to make it possible for factory workers and other lower-income workers to buy homes. Credit unions were usually started by people who shared a common bond, like working at the same company (usually a factory) or living in the same community. The credit union's main function was to provide emergency loans for people who couldn't get loans from traditional lenders. These loans might be for things like medical costs or home repairs.

Now, even though there is still a differentiation between banks and thrifts, they offer many of the same services. Commercial banks can offer car loans, thrift institutions can make commercial loans, and credit unions offer mortgages!

Retail Banks

A retail bank works with consumers, otherwise known as retail customers, providing basic banking services to the general public, including checking and savings accounts; certificates of deposit (CDs); safe deposit boxes; mortgages; auto, boat, and miscellaneous home-improvement loans; and unsecured and revolving loans such as credit cards. You most often see retail banks on urban street corners; you probably use a retail bank for your personal checking account. In addition to helping consumers, retail banks often serve businesses, so they can also serve as commercial banks.