Text: glimpses of history of money

glimpses of history трохи про історію

to serve as smth. служити як будь-що

fairly досить

durable надійний, тривалого користування

divisible поділений

portable портативний, компактний

to supersede заміщати

goldsmith ювелір

face value номінальна ціна

token coin розмінна монета

At different periods of time and in different parts of the world many different commodities have served as money. These commodities were: cattle, sheep, furs, leather, fish, tobacco, tea, salt, shells etc. The experts underline that to serve effectively as money, a commodity should be fairly durable, easily divisible, and portable. None of the above-mentioned commodities possessed all these qualities, and in time they were superseded by precious metals.

First they were superseded by silver and later by gold.

When a payment was made the metal was first weight out. The next stage was the cutting of the metal into pieces of definite weight and so coins came into use.

Paper money first came into use in the form of receipts given by goldsmiths in exchange for deposits of silver and gold coins. After goldsmiths became bankers their receipts became banknotes. That's how the first banknotes came into existence. At first coins were worth their face value as metal. But later token coins of limited value as legal tender were issued.

1. Answer the questions:

1. What commodities have served as money in the past?

2. What are the requirements of a commodity to serve as money?

3. Why did precious metals start to serve as money?

4. What precious metal was used first to serve as money?

5. How did coins come into existence?

6. How paper banknotes come into existence?

TEXT: MONEY AND CURRENCY

purchasing power купівельна здатність

constant store of value постійний запас цінностей

Money is a medium of exchange. All values in the economic system are measured in terms of money. It is anything that is accepted as a payment for goods or services. It may be pieces of gold or silver, sheets of printed paper (bills or notes), shells, stones, cattle, or anything else that is regarded as a legitimate basis of exchange for something else.

Money differs from cash. Cash is a form of money that consists of paper currency and coins. So, currency is money in use in a country. Currency is usually backed by gold and silver. National currency is "backed" by the store of gold which the government maintains (gold standard). Nowadays national currencies are considered to be as strong as the national economies, which support them. For example, today our Ukrainian currency "hryvna" has value only because the Ukrainian government stands behind it.

But most money is not in the form of cash. It is in the form of demand deposits, which is money held in checking accounts. Almost all businesses and most families keep the money they need to pay their bills in a bank checking account. Then, instead of cash, they use checks to pay their bills. A check is a piece of paper that orders a bank to give the payee a specified amount of money. Checks, credit cards, and money orders are not legal tender. They perform the function of substitute money and are known as "instruments of credit". A credit card gives you possibility to buy goods or services without using cash or a check.

1. Study the following expressions:

Money - is a medium of exchange that functions as unit of account and store of value.

Currency

1. Any kind of money that is in circulation in an economy.

2. Anything that functions as medium of exchange, including coins, banknotes, cheques, bills of exchange, etc.

3. The money in use in a particular country.

Hard currency - is a currency that is commonly accepted throughout the world; they are usually those of the western industrialized countries.

2. Translate into English:

Засіб обміну, вимірювати, платіж, готівка, монети, обмін валют, тверда валюта, національна економіка, мати цінність, сплачувати рахунки, чеки, кредитні картки, законний платіжний засіб, інструмент кредитування.

TEXT: ENGLISH BANKNOTES AND COINS

to issue випускати

issue випуск

to mint чеканити

denomination номінал

circulation кругообіг

figure цифра

in figures цифрами

to authorize уповноважувати

The official currency of the United Kingdom is the pound sterling which is equal to one hundred pence.

English banknotes are issued by the Bank of England. As to they are minted also by this state bank.

There are banknotes of the following denominations*: Ј 5, Ј10, Ј20, Ј 50 and Ј 100.

The following coins are in circulation: one penny, two pence, five pence, ten pence, fifty pence and also one and two pounds.

On the face of English banknotes one can read the denomination given both in figures and in words.

Then the inscription on the face of the banknote reads: I promise to pay the bearer on demand the sum of... And then there are two signatures.1 The first signature is that of the person authorized by the Government and the Bank of England.

The second signature is that of the Chief Cashier.

The back of English banknotes, like many other banknotes, feature portraits of different famous people.

1. Answer the questions:

What is the official currency of the United Kingdom?

What is the pound sterling equal to?

What coins are there in circulation?

What can we see on the face of English banknotes?

What are there on the back of English banknotes?

TEXT: AMERICAN MONEY

to subdivide підрозділяти (ся)

legal tender законні платіжні засоби

debt борг

treasurer казначей

slave раб

statesman державний діяч

The American dollar is subdivided into one hundred cents. The dollars are issued by the Federal Reserve System, established by Congress in 1913. Here is the text on the face of an American dollar banknote:

Federal Reserve Note

The United States of America

this note is legal tender for all debts, public and private

Washington, D.C.

Treasurer of the United States

Secretary of the Treasury dollars

On the face of American dollars one can also see the portraits of the following famous persons:

George Washington (1732 - 1799), the first President of the United States of America, who gave his name to the capital of the country.

George Washington became the first President after the successful war of 13 British colonies for independence. After they won the war they formed 13 states and united to make the United States of America. Thus Independence was proclaimed on July 4, 1776.

Abraham Lincoln (1809 - 1865) who was the President from 1861 to 1865 after the war between the northern and southern states.

It was he who proclaimed freedom of slaves of the south.

Alexander Hamilton (1755 - 1804), a famous American statesman, who fought in the Independence War together with general George Washington. Later he became the first Secretary of the Treasury.

Andrew Jackson (1767 - 1845) who was the President of the U.S.A. from 1829 to 1837, when Texas won independence from Mexico.

Ulysses Grant (1822 - 1885) who was the President of the U.S.A. from 1869 to 1877.

Benjamin Franklin (1706-1790)a very popular public figure, writer, diplomat and scientist. It was he who invented bifocal spectacles among many other things.

On the back of banknotes various famous buildings are featured, such as:

• Lincoln Monument, one of the monuments in Washington

• U.S. Treasury Building, in Washington

• White House, house of every President, except George Washington, who only planned the capital of the U.S.A.

• U.S. Capitol, which houses the Senate and the House of Representatives

• Independence Hall, in Philadelphia, where Independence of the 13 British colonies was proclaimed.

• All the banknotes bear the words: in God We Trust.

TEXT: HRYVNIA-THE OFFICIAL CURRENCY OF UKRAINE

replace заміняти

bill банкнота

authorized bank уповноважений банк

legal tender законний платіжний засіб

to ensure забезпечувати

forgery підробка

Hryvnia was introduced on September 2, 1996 right after the celebration of Ukraine Independence Day. It replaced the old "Coupon" (or "Karbovanets") which was a temporary bill in Ukraine for the period it was leaving the rouble zone.

The name of "hryvnia" is very old - at least seven centuries old. In the 17th century Hetman Bohdan Khmelnytsky tried to introduce new hryvnia currency but not with much success. Hetman Mazepa, in the 18th century made another attempt that also failed. Two centuries have passed since then and now we have hryvnas in circulation. Now it is the only legal tender in Ukraine and since August 1995 all business transactions are required to be in hryvnia. Hryvnia can be freely converted to hard currency in any authorized bank or exchange point.

There are several protection layers in Hryvnia bills to ensure their safety. Ukrainian hryvnia bills of all denominations are made of special white paper with watermarks in all parts of each bill. On the face side of bills of all denominations one can see portraits of prominent figures of history and culture of Ukraine. In the centre of the backside one can see historical and architectural monuments of Ukraine. Protection from forgery is achieved through the design. Watermarks, seen if one looks at the bill putting it against the light. Nowadays national currencies are considered to be as strong as the national economies, which support them. For example, today our Ukrainian currency "hryvnia" has value only because the Ukrainian government stands behind it.

1. Answer the questions:

When was hryvnia introduced?

What was the name of a temporary bill in Ukraine?

How old is the name of "hryvnia"?

Who and when tried to introduce new hryvnia currency?

What do you know about hryvnia protection?

What is there on the face side of bills of all denominations?

What can you see on the backside of hryvnia?

2. Translate into English:

День Незалежності, рубльова зона, валюта, зробити спробу, обіг, вільноконвертована валюта, пункт обміну валют, захисні шари, захист від підробки, водяні знаки, номінал, мати цінність.

TEXT: THE EURO

the European Union (the EU) Європейський союз

benefit перевага; користь,

abolish (v) скасувати; усувати

transaction cost вapтіcть угоди

transparent прозорий; очевидний

transfer of funds переказ грошей

purchasing power купівельна спроможність

sustainable усталений

The single European currency, the euro, was launched on 1 January 1999. Since that time the € sign has become as familiar as the $ or Ј.

A stable currency whose owners are as big in world trade as the European Union is attractive to a lot of international investors who want to be less dependent on the dollar.

A single currency has potential benefits for the economy of every European Union's country, in particular, as well as for all member states in general. Among the advantages the following can be pointed out:

• lower transaction cost: the euro makes commerce within the EU easier by abolishing the currency exchange mechanism. This, in turn, provides for lower transaction cost.

• transparent price differences: the single currency makes price differences in different countries of the Euro zone more obvious.

• reduced costs: for customers, in particular, to travel to other countries; easier and less expensive transfer of funds to other countries; secured purchasing power owing to lower inflation; more sustainable economic growth, which will increase employment.

1. Answer the questions:

When was the single European currency launched?

Why is the euro attractive to international investors?

Does a single European currency have any benefits?

How does the euro make commerce within the EU easier?

What costs does the euro reduce?

What will increase employment in the EU?

2. Translate into English:

Єдина європейська валюта, стабільна валюта, всесвітня торгівля, приваблива для інвесторів, перевага, вартість угоди, прозора різниця в цінах, скасувати механізм обміну валюти, знижувати вартість, купівельна спроможність, переказ грошей, економічне зростання.

TEXT: TYPES OF BANKS

Banking банківська справа

be engaged in (v) займатися

Central bank Центральный банк

the Federal Reserve System Федеральна резервна система

commercial bank комерційний банк

accept deposits (v) приймати вклади

make a loan (v) надавати позику

manage customers' accounts (v) вести рахунки клієнтів

merchant bank торговельний банк

investment bank інвестиційний банк

savings bank ощадний банк

savings account ощадний рахунок

A bank is an institution that deals in money and provides other financial services. Banks are at the heart of any financial system.

Banking is the business a bank is engaged in.

There exist different types of banks but their names may vary from one country to another.

Central banks such as the National Bank (Ukraine), the Bank of England (UK) or the Federal Reserve System (US) look after the government's finance and monetary policy, act as bankers for the state and for commercial banks, and are responsible for issuing banknotes.

Commercial banks deal directly with the public. They offer a wide range of services such as accepting deposits, making loans and managing customers' accounts. The aim of commercial banks is to earn profit.

Merchant banks don't deal with the public. They provide services for companies. They specialize in raising capital for industry, arranging flotations, takeovers and mergers, and investment portfolios.

Investment banks are firms that control the issue of new securities (shares and bonds).

Savings banks are financial institutions that specialize in providing services such as savings accounts as opposed to general banking services.

1. Answer the questions:

What is the bank?

What types of banks exist in most countries?

What functions do central banks perform?

What kind of institution is a commercial bank?

What is the difference between a national bank and a commercial bank?

What is characteristic of merchant bank (Investment bank, savings bank)?

2. Translate into English:

Установа, надавати фінансові послуги, банківська справа, Національний банк України, піклуватись про монетарну політику, приймати депозити, надавати позику, прибуток, торговельний банк, придбання контрольного пакета акцій, Злиття, ощадний рахунок.

TEXT: BANKING SERVICES

banking facilities банківські послуги, банківські операції

repay (v) розрахуватися; повертати (борг)

rate of interest позиковий процент

overdraft перевищення кредиту; овердрафт

direct debit пряме дебетування

standing order постійне доручення

transfer (v) переказувати (гpoшi)

diversify (v) різноманітити (діяльність);

insurance страхування

Modern banks offer many services to businesses as well as to individual customers. The service menu of banks does not remain unchanged as new services are constantly being introduced.

Here are some of the most widely used banking facilities:

A credit card enables the holder to buy goods and repay the credit card issuer at a later date.

A loan is an amount of money borrowed from the bank which must be repaid at a fixed rate of interest.

A mortgage is a loan to buy property.

An overdraft is a loan made by a bank to a customer so he/she may take out more money than is actually in a bank account.

As well as offering credit facilities, banks provide services to allow customers to make payments:

Direct debit is a system of paying bills, etc. by having money automatically transferred from a bank account.

A standing order is an arrangement with a bank to pay a certain amount to another person or organization at regular intervals.

Most banks offer a foreign exchange service - the facility to change money from one currency to another.

In recent years banks have diversified, and now offer such services as insurance, investment advice and home-banking (telephone and Internet) facilities.

1. Answer the questions:

Whom do modern banks offer their services?

What does the credit card enable the holder?

What is a mortgage?

What is an overdraft?

What is Direct debit?

What kind of an arrangement is a standing order?

TEXT: BUSINESS LETTER

Letter-writing is an essential part of business. In spite of the development of telephone, telex and telegraphic communication the writing of letters continues. In fact most telephoned and telegraphed messages have to be confirmed by letters.

So every good businessman should be competent in writing effective business letters in English. Business letters are usually typed on notepaper bearing a specially designed heading which provides the reader of the letter with essential information about the organization sending it.

The ordinary business letter consists of the following principle parts:

1. the heading which includes: the company's name and address, its telephone numbers and telegraphic addresses, the type of business it is engaged in, its telex code etc.;

2. the date (day, month and уear) in English business letters is typed on the right-hand side. It is customary to type the date in full, not just in figures e.g.2nd Apr, 2006which is pronounced, "the second of April twenty zero six".

3. the inside address is the name and address of the company you write to. They are typed on the left-hand side against the margin. The order is following:

• the name of the addressee or his position

• the name of the company

• the number of the house and the name of the street

• the name of the city (town)

• the name of the country

The use of the code as a part of the address speeds delivery.

4. the salutation is below the address the words "Dear Sirs" are typed when a letter is addressed to a company. If the letter is addressed to an individual, the most usual forms are: "Dear Sir" for a man and "Dear Madam" for a woman (it includes both married and single women). These are the usual greetings in English business letters. Americans prefer "Gentlemen" and if they use "Dear Sirs" or "Dear Madam", they use them with a colon instead of a comma.

If this correspondent is known to you personally, or if your firm has traded with his firm for some time, you may use a warmer and more friendly greeting "Dear Mr. Brown".

5. the subject heading indicates the subject-matter of the letter (its topic), thus enabling the reader to see immediately what the letter is about.

6. the opening paragraph will often state the subject-matter of the letter by giving the date of the letter, which is being answered, and the writers feelings on the subject: pleasure, regret, surprise or gratitude. A short opening sentence will often attract attention more successfully than a longer one.

e.g.: a) In reply to your letter of2^nd Mar. this year vie would like to inform you...

b) With reference to your Order No. 256 ...

7. the body of the letter it is text, its message. A letter should only deal with one specific subject. Business letters should be simple, clear, polite and brief. That means using simple, natural, short words and sentences, avoiding repetition or needless words and information. To make a letter easier to read, divide it into paragraphs, each paragraph dealing with one aspect of the subject. If the letter is lengthy, the paragraphs may be given hedings. If more pages than one are written, they should be numbered.

8. the dosing paragraph serves as a summary of what has been discussed before and what is going to be the next step.

e.g.: a) We hope to establish fruitful business relations with your company,

b) We look forward to hearing from you soon.

9. the complimentary dose it is a polite way of ending a letter.

10.the signature. Business letters are signed by hand in ink, clearly and legibly. The same style must always be adopted. The writer's name and title are typed below the signature.

11. Enclosure (Enc., Encl.,) If there is an enclosure to the letter, it should be indicated by typing the word "Enclosure" or its abbreviation "Enc." in the bottom left-hand corner of the page below the Signature. You should write the number of enclosures if there is more than one, and the names of the documents in them, and the number of pages.

The Secretary, 2^ndFebr, 2006

The Western Wheat Co.Plc, (The date)

64, Darwin Road,

LIVERPOOL.16

England

(The inside address)

Dear Sir,

(The opening Salutation)

Abt: ORDER No.1367

(The Subject Heading)

We thank you for your letter of 23^rd of January and are writing to inform you that....

(The Opening paragraph)

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(The body of the Letter)

We hope to establish fruitful business relations with your company and expect your reply as soon as possible.

(The Closing Paragraph)

Yours faithfully,

(The Complim entary Closing)

per pro, THE ORIENTAL TRADING CO.

J. Brown

Manager

(The Signaturе)

Enc: Invoice (2 pages)(Enclosures and postscripts)

TEXT: TELEPHONING

People engaged in trade with foreign countries have to use various means of Communication: telephone conversations, personal contacts (meetings, business talks), letters, telexes, telegrams (cables), telecopies (facsimiles).

Telephoning is the quickest way of communication. It is used, as a rule, to get or pass on information. Important telephone conversations, e.g. concerning prices, terms of payment or claims, are to be confirmed by letter.

If you want to ring somebody up, you pick up the receiver, wait for the dialing tone and then dial your number (or press the button 0- If you are not sure of the number, you look it up in the telephone directory (book).

There are some rules which will help you to become a successful telephone user:

• identify yourself and your company

• ask the caller to identify himself / herself

• explain the reason for die call and ask for a connection

• take or leave a message if necessary

• make an appointment

• end the call (sign off)

In the telephone conversation the speakers folk wed a number of steps when handling and exchanging information in particular:

• clarifying information

• asking for repetition

• asking for spelling

• showing understanding

• correcting information

• confirming information

DIALOGUE 1

A: MGL Company. Can I help you?

B: Can I speak to Mr Edwards, please?

A: I'm afraid he is very busy now, he is having a meeting. Can I take a message?

B: Well, this is John Rey speaking. I'm calling from my Ukrainian office. I'm visiting our suppliers here. Can you ask Mr Edwards to call me back?

A: Certainly. Could you tell me the telephone number of your Ukrainian office, please?

B: Yes, it is 332 223. Thank you. Good-buy.

DIALOGUE 2

A: Black and white Company. What can I do for you?

B: This is Pete Edwards from MGL Company. Could I speak to Mrs. Phillips?

A: Just a moment, I'll put you through.

C: Susan Phillips speaking,

B: Hello, Susan. This is Pete Edwards. How are you?

C: Fine. I'm just phoning to see if we could fix a meeting for next week.

C: Yes, of course. We've got to discuss next year's order. Just a moment. I'll get my diary... Right, next week...?

B: Could you manage Tuesday?

C: I'm sorry. I'm out all day on Tuesday.

B: What about Friday then?

C: Yes, Friday in the morning would suit me fine.

B: Good, that suits me too. Shall we say 10 o'clock?

C: Fine. So at 10 o'clock here then?

TEXT: TELEPHONE ETIQUETTE

to call/to ring up телефонувати, дзвонити по телефону

to answer the call відповісти на дзвінок

to call back передзвонити

busy / engaged зайнятий

free /clear вільний

buzzing гудок

to connect (to put through) з'єднати

dial диск, циферблат; набирати номер

receiver слухавка

to pick ар брати, знімати (трубку)

switchboard комутатор

to cut off роз'єднати

to hang up (to put down the receiver) вішати слухавку

to hold the line тримати трубку, не вішати слухавку

The techniques of telephoning are very much the same in all countries. Only remember your good telephone manners:

1. When talking on the telephone - speak clearly. Don't shout and take your cigarette out of your mouth.

2. Make sure that your conversation with a busy person is as brief as possible.

3. When calling a friend who does not recognize your voice - don't play: "Guess who?" Announce yourself promptly.

4. When you get a wrong number don't ask: "What number is this?" It is good manners to ask: "Is this two-three-four-five-six?" If not - apologize.

5. If wrong-number call comes through don't lose your temper. Simply say: "Sorry, wrong number' - and hang up. Don't bang the receiver.

6. Always identify yourself when making a call, especially if you are calling on business, e.g. 'This is Mr Volkov of the Ukrainian Trade Mission. Could I speak to Mr Johns...?"

7. If yon have a visitor, do not carry on a long chat while your visitor tries hard to avoid listening to your conversation. The best thing to do is to say you are busy at the moment and... "May I call you back in a little while?" But don't forget to do so.

8. When inviting friends to a party do not ask: "What are you doing Saturday night?" or "Will you be busy on Saturday night?" The correct way is to say: "We'd like to have you over for dinner on Saturday."

9. If you don't understand or hear the other person properly say: "Sorry, I didn't quite catch that" or just, "I'm sorry?" or "Sorry, I don't understand." Remember that it is not polite to say: "Please repeat!"

10. Finally, remember: if you make the call, you should terminate it yourself. Do not "drag it out"

Remember: before starting a telephone conversation smile, that will make your voice sound friendly.

TEXT: АРРLICATION OF COMPUTERS

storage пам'ять, зберігання даних

datastorage база даних

to compute обчислювати

to count рахувати

to process data обробляти дані

to do weather forecasting зробити прогноз погоди

The computer is no doubt the most amazing achievement of mankind. It is a data storage system created by man. A human tells the machine what to do, when to do it and how it should be done.

The word "computer" comes from a Litin word which means "to count". The first programmed computer which operated successfully was built in 1939 by professor of Harward University.

Nowadays computers are getting deeper and deeper into our life. Hundreds of computers are already in daily use. They penetrate almost into all spheres of our modern society, from nuclear energy production and missile design to the processing of bank checks, weather forecasting, manufacturing, research and medical diagnoses. Many countries have introduced computers into agriculture, education, transport and many other spheres. Computers provide security and safety of various processes, diagnose numerous cases and do a lot in monitoring different developments.

In short, they help to carry out increasingly complex tasks and their application sometimes helps to prevent disasters, tragedies and accidents.

Many people have a high degree of computer literacy. Computer games are also now very popular among children, young men and grown-ups.

1. Complete as in the text:

Computers are getting deeper...

... amazing achievement of mankind.

"computer" comes from...

Many countries have introduced computers into agriculture...

Computers provide security ..., and do a lot in monitoring...

Many people have a high degree ... Computer games

Computer games...

TEXT: INTERNET. WWW

network мережа

browser броузер (програма)

surf the Net мандрувати по мережі

download завантажувати

the World Wide Web (WWW) всесвітня мережа

web page веб-сторінка

The Internet opens up vast resources and business opportunities for millions of users around the world and makes communication the easiest it has ever been.

The Internet is a worldwide network of computers, holding vast quantities of data that you can access directly from a PC.

An intranet is a network which uses the same technology as the Internet. However, an intranet is private, and can only be accessed by a particular group of people who have permission to look at the intranet pages. Intranets are often used in business and educational contexts.

A piece of software called a browser is needed to access the Internet. Once you are connected, you can surf the Net i.e. move from one place the another, looking for information on the Internet. If you find something of interest you can download it, i.e. copy a file from an online service to your computer.

The World Wide Web, also referred to as the Web (WWW), is considered by many users to be the most exciting aspect of the Internet. It is a universe of pages containing text, images, sounds, and video clips. The pages of the Web cover a vast range of topics, presented in an attractive, interesting, and easily accessible form.

The information on the Web is displayed in websites. A website can consist of one or many web pages. Websites are written in HTML, a special programming language.

1. Give the English for:

величезні ресурси; всесвітня мережа; велика кількість даних; мати дозвіл; мова програмування; веб-сторінка; в легко доступній формі; мандрувати по мережі в пошуках інформації.

2. Answer these questions:

1. What is the Internet?

2. What possibilities does the Internet open up for millions of users around the world?

3. What is the Intranet?

4. What is WWW?

TEXT: E-MAIL

transmission передача

subscriber абонент

identify розпізнавати

domain домен

The most widely-used function on the Internet is e-mail (electronic mail).

E-mail is the transmission and distribution of information through personal computers linked to the telephone system, which allows subscribers to send a message directly to another subscriber that will appear in their electronic mail box.

Using e-mail, you can send messages to anyone with an Internet account, and most businesses today have an electronic mailing address.

E-mail is cheap and easy to use. In business, e-mail provides cheap and rapid communication between the employees of an organization, and between a company and its clients and suppliers.

An e-mail address contains an identifier, i.e. the user name. After that comes the symbol "@" (pronounced "at"), followed by the domain name, which identifies the server that is used to send your mail, the category of organization and the country code. The different elements of the domain name are separated by dots. There is no full stop at the end.

1. Give the English for:

електронна пошта; передача та розповсюдження інформації; абонент; посилати повідомлення; електронна поштова скринька; електронна адреса; дешевий та швидкий зв'язок; постачальники; працівники; сервер; код країни.

2. Answer these questions:

1. What is the e-mail?

2. Whom can we send messages by e-mail to?

3. What does the e-mail address consist of?

TEXT: CONTRACTS

to come to an agreement домовлятись

transaction угода

to sign підписувати

signature підпис

to contain містити

After the prospective buyer receives the offer he carefully ents: studies it. Then, very often, he has a few talks or exchanges letters with the prospective seller. After the two parties come to an agreement about terms and conditions of the transaction they sign a contract.

Contracts usually contain the following information:

• date of the contract

• place or city

• reference number

• names of the buyer and the seller

• subject of the contract

• description of the goods

• price and the total value

• terms of delivery

• terms of payment

• technical documentation

• guarantee of the quality

• packing

• marking

• shipping instructions and notifications

• insurance

• sanctions

• force majeure

• arbitration

• legal address of the parties

1. Sum up what the text says about:

The preparatory work before the contract is signed

The usual information the contract specifies

TEXT: Buying property

building society будівельна ощадна каса

conveyance передача права власності

estate agent ріелтор

exchange contracts підписання договору купівлі-продажу

fixed interest rate фіксована відсоткова ставка

joint annual income загальний річний дохід

mortgage іпотека

mortgage repayments іпотечні взносы

negative equity негативний особистий капитал

outbid smb перебити комусь ціну

owe smb бути комусь винним

property buyer покупець нерухомості

solicitor адвокат; тут: нотаріус

survey тут: незалежна оцінка (экспертиза) нерухомості

Simon and Kelly Hawkes are first-time property buyers in Britain. Buying a house is probably the biggest investment they’ll ever make, so they must plan carefully. What are the steps they have to go through before they have the keys to their own home?

First, they’ll spend time finding a suitable property. They’ll most likely deal with an estate agent, who represents the seller, and who usually works on a commission basis of about one to three per cent of the property value.

Once the Hawkes have found a house that they like, they make an offer. End of the story? No, not yet. They now need to arrange a mortgage to pay for it. As both of them are working, they should be able to get up to three times their joint annual income.

The average cost of a two-bedroom house in the south-east of England is now £300,000, so the bank or building society will want to make sure that potential buyers are earning enough to manage their mortgage repayments. A typical mortgage is lent for 25 years, and borrowers can either repay the money at a fixed interest rate or allow their payments to vary along with interest-rate changes.

Falling house prices in parts of the UK in 2008 may benefit new buyers – unless the value of their home then drops below the amount they owe on the mortgage, resulting in negative equity.

At some time, Simon and Kelly should have a survey done, which costs around £800. This will tell them if the building is in good condition. If the survey is satisfactory, a solicitor should handle the conveyance work, which is the legal transfer of the property from one owner to another.

But things can still go wrong. Firstly, the seller may decide to accept a better offer before the contracts are signed. This is called gazumping and can destroy all Simon and Kelly’s hard work. Secondly, house buyers in the UK are normally part of a property chain, in which a line of sellers and buyers all use the money from one house to buy their next property. If a chain breaks, it can ruin the chance to buy for everybody else in the chain.

If things go well, the Hawkes will be able to exchange contracts with the seller and move into their new home about six months from when they first saw the property.