3. Give English equivalents of the following:

• бути небезпечним для економіки

• високоякісний папір

• вартість грошей

• мірило цінностей

• бартерна економіка

• встановлювати ціну

• робити покупку

• засіб обміну

• валюта

4. Define the terms:

stability uniformity portability

divisibility durability recognizability

5. Answer the following questions:

1. What is money?

2. What qualities should the material for money possess?

3. What is the principal difference between a barter economy and a money economy?

4. What functions does money play in the society?

5. What is currency?

Unit 4. BANKS

1. Read and memorize the following words and word combinations:

• savings-bank – ощадна каса

• savings – заощадження

• a source of credit – джерело кредитування

• a depositor – вкладник, депозитор

• a depositary – депозитарій

• a withdrawal – вилучення

• a loan – позика

• a letter of credit (L/C) – акредитив

• a trust – траст

• an interest – процент

• interest-free – безпроцентний

• integrity – цілісність; чесність

• a rate – курс

• requirement – вимога

• an insurance – страхування

• indebtedness – заборгованість

• expenses – витрати

• in regard to – по відношенню до

• proof – доказ

• future prospects – перспективи на майбутнє

• a foreign exchange currency – валюта

• to give notice – повідомляти

2. Read, translate and retell the text.

There are different banks. They may be classified according to different services they perform.

Saving banks. These are institutions which accumulate savings in small accounts. They are also valuable sources of credit for businesses. Saving banks, as a rule, invest their funds in long-term credit instruments. That is why, most saving banks require their depositors to give notice before a withdrawal.

Commercial banks.In most countries commercial banks serve as a depository of funds and source of credit. Today they are active in giving short-term loans in business. A commercial banks is a profit-making organization that receives deposits from individuals and corporations in the form of checking and saving accounts and uses some of these funds to make loans. This is the kind of institution small businesses turn to for loans. It is important to note that commercial banks have two types of customers: 1. depositor, and 2. borrowers (those who take out loans). A commercial bank is equally responsible to both types of customers. Commercial banks try to make a profit by efficiently using the funds given to them by depositors. A commercial bank uses customer deposits as inputs (on which they pay interest) and invests that money in interest-bearing loans to other customers. Commercial banks make a profit if the revenue generated by loans exceeds the interest paid to depositors plus all other operating expenses.

Investment banks.They do not accept checking deposits. They promote industry through the sale of large issues of stocks to investors.

Trust companiesare such financial institutions which administer funds or property for the benefit of others. They serve as trustees for property or guardians of minors, or agents for stocks. In a word, they manage business in the interests of others.