Exercises

Ex.1. Answer these questions:

A. 1. What services do banks offer?

2. What is the nature of banking? How do banks earn a living?

3. Do commercial banks play a very important role in an economy?

4. What are the more recent developments in banking?

5. What banking policy can guarantee stability?

B. 1. What can prove the substantial progress made by the bank?

2. What can the success of the bank be attributed to?

3. What does the bank specialise in?

4. Are customers' service requirements changing? What are they now?

5. How does the bank respond to these changes?

6. Why and how was the bank restructured?

7. What is the biggest challenge for the bank at the moment?

Ex.2. Give derivatives of:

definition n advance n competition n contract n

accept v intermediary n activity n substantiate v

lend v deposit n collect v progress n

borrow v acquire v commitment n withdrawal n

Ex.3. Work on vocabulary and grammar.

a) Study the key words of the unit in the dictionary at the back of this book:

credit, loan, account, interest, bill check, maturity, deposit;

b) Think of the verbs that are most commonly used with:

loan, bank, check, interest, bill, money, deposit, payment, service;

c) Think of the nouns that are most commonly used with:

to pay, to charge, to improve, to increase, to offer, to achieve, to expand, to provide;

d) Make your own sentences with any five word combinations from (b) and (c).

e) Match the verbs from (a) with the nouns from (b) below:

a) to discount b) needs

to accept expertise

to provide bill

to issue travellers' cheques

to achieve service

to pay profit

to acquire letter of credit

to withdraw interest rate

to satisfy deposits

to meet money

to grant loans

to open demand

6. Write out from the main text international words like: agent, credit, etc. Transcribe them and read aloud.

Ex.4.

a) Supply the articles where necessary.

2. Write down 3-5 questions about the texts.

3. Say a few words about services provided by commercial banks.

1. A bank was originally … bench set up in the marketplace for … exchange of money. In a commercial sense, a bank is … establishment where money is received on deposit to the repaid on demand or at notice, as may be arranged, and where loans are negotiated, bills discounted, and general financial business transacted. The main functions of ... modern commercial bank are:

• to receive money on current accounts repayable on demand, or on deposit accounts repayable subject to an agreed notice;

• to lend money by granting ... loans and ... overdrafts or discounting bills of exchange and ... promissory notes.

Apart from these two chief functions - linking up lenders and borrowers of capital - the bank performs many other functions:

• ... obtaining and giving information as to ... financial standing of customers:

• transferring funds for ... payments or ... investments;

• making foreign currency transactions;

• issuing letters of credit, drafts and travellers' cheques;

• undertaking duties of... agents, trustees and guarantors;

• performing leasing and factoring operations and others.

A very important part of any efficient banking system is ... inter-bank market.

Some banks get more ... deposits than requests for loans, and vice versa. The interbank market smooths out these imbalances by providing ... way for ... bank with too many deposits to pass them on to ... bank with too many loan requests. In London there are different interbank markets for different currencies and for deposits with different maturities. Of these, ... Eurodollar interbank market is particularly important, and LIBOR (the London interbank offered rate) is ... key dollar rate for all the world's international borrowing and lending.

Words you may need:

Англійський варіант Російський варіант Український варіант

bench скамья лава

sense смысл сенс

establishment учреждение установа

on deposit на депозит на депозит

on demand по требованию за вимогою

negotiate вести переговоры вести переговори bill вексель вексель

repayable подлежащий оплате належний до оплати bill of exchange переводной вексель переказний вексель promissory note простой вексель простий вексель

apart from кроме, помимо крім того, окрім

link up связывать пов´язувати

financial standing финансовое положение фінансова

пропозиція to issue a letter of credit выставлять/выписывать виставляти/виписувати

аккредитив акредитив

draft тратта, переводной тратта, переказний

вексель вексель

trustee попечитель піклувальник guarantor гарант гарант

leasing and factoring операции по лизингу операції з лізінгу

operations и факторингу і факторингу

interbank market межбанковский рынок міжбанківський

ринок vice versa наоборот навпаки

to smooth out imbalances сглаживать, устранять згладжувати, усувати

диспропорции диспропорції

maturity срок погашения строк погашення

обязательства; срок зобов´язання;

платежа строк платіжа

LIBOR ставка предложения ставка пропозиції

(продавца) на (продавця)

лондонском на лондонському

межбанковском міжбанківському

рынке депозитов ринку депозитів

d) Explain the difference between current and deposit accounts.