Unit II

Banking and Finance

Vocabulary

Exercise 1. Read and memorize the following words and word- combinations.

1. banking	банківська справа
2. finance	фінанси
3. merchant bank syn. investment bank (G.B.)	торговельний банк
4. to receive and hold deposits	отримувати та володіти вкладами
5. to exchange foreign currencies	обмінювати іноземні валюти
6. to deal with	мати справу з
7. to manage customers’ accounts	керувати рахунками клієнтів
8. to deposit money	покласти в банк гроші
9. interest	процент
10. to charge	призначати
11. margin	маржа
12. intermediary	посередник
13. fee	плата
14. merger	злиття (підприємства)
15. to issue government bonds	випускати урядові облігації
16. insurance company	страхова компанія
17. full range of	повний ряд
18. to fluctuate	коливатися
19. to develop confidence	проявляти довір’я
20. sound	надійний
21. principal	основна сума
22. to apply for a loan	звертатися за позикою
23. to estimate	оцінювати
24. precautions	застереження
25. to collect money	збирати гроші
26. costs syn. expenditures, expenses; charges	витрати
27. physical asset	матеріальні активи; майно
28. debenture capital	зайомний капітал
29. preference shares	привілейована акція
30. ordinary (deferred)shares	звичайна акція
31. Financial Department	фінансовий відділ
32. capital budgeting	кошторис капіталовкладень
33. equity	інвестиційний капітал
34. to finance operations syn. to finance activities	фінансувати операції
35. working capital	оборотній капітал
36. accessible	доступний
37. treasurer	казначей
38. controller	контролер, бухгалтер0аналітик
39. cost accounting	виробничий облік
40. to forecast revenues	передбачати річний дохід
41. to take into account	приймати до уваги
42. net profit	чистий прибуток
43. balance sheet	баланс

Exercise 2. Find the odd one in each group:

1. to lend; to borrow; to estimate; to receive.

2. expenditures; cost; expenses; equity.

3. client; debtor; borrower; principal.

4. operations; activities; acts; account.

Exercise 3. Give the Ukrainian/Russian equivalents for the following words and word-combinations without using a dictionary:

Central bank; investor; depository institution; transaction; financial service; trust company; personal finance; corporate finance; margin; financial supermarket; adequate; project; liquid capital; process; machinery; structure; inventory; mixture.

II Reading and Speaking

Exercise 4. Skim the text A and be ready to answer the following questions:

1. What is banking?

2. What types of banks are there?

3. What does banking consist of?

4. What are depository institutions?

5. What is finance?

6. What is the key point of finance?

7. What sub categories can finance be broken?

Notes:

savings bank –ощадний банк

facilitating loans – сприяти позикам

creditworthiness – кредитоспроможність

depository institution – депозитна установа

mutual savings bank – взаємно ощадний банк

rate of return – ставка доходу

Text A Banking and Finance

Banking is the transactions carried on by any person or firm engaged in providing financial services to consumers or businesses. For these purposes there exist commercial banks, central banks, savings banks, trust companies, finance companies and merchant banks. Banking consists of safeguarding and transfer of funds, lending or facilitating loans, guaranteeing creditworthiness and exchange of money. In other words, banking is the acceptance, transfer, and creation of deposits. The depository institutions are central banks, commercial banks, savings and loan associations, building societies, and mutual savings banks.

Finance is the study of how investors allocate their assets over time under conditions of certainty and uncertainty. A key point in finance, which affects decisions, is the time value of money, which states that a unit of currency today is worth more than the same unit of currency tomorrow. Finance aims to price assets based on their risk level, and expected rate of return. Finance can be broken into three different sub categories: public finance, corporate finance and personal finance.