- •Contents
- •Передмова
- •Financial system
- •Finance and financial system
- •II. Vocabulary exercises
- •Revenue sources and revenue-sharing arrangements in Ukraine:
- •A. Dialogue
- •1. Read and translate the dialogue in pairs:
- •Vocabulary list:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •Communicative situations
- •A) Supply the prepositions where necessary.
- •Budgetary policy
- •2. Read the text and name the facts from the text which are new to you: Treasury
- •3.Read the text and say what you know about the budget process in Ukraine:
- •III. Match what statements are true and what are false. Results write to the table:
- •Fiscal management
- •Financial policy. Fiscal sphere
- •A. Dialogue
- •Vocabulary list:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •Communicative situations
- •2.Express your attitude to the following:
- •3.Prepare a short talk on the following:
- •A) Supply the articles where necessary.
- •Financial Policy
- •A) Supply the articles where necessary.
- •Fiscal Policy in the uk
- •A) Fill each gap with a suitable word from the box.
- •A) Read and discuss the texts.
- •Write down five questions about each text.
- •A) Read and discuss the texts.
- •Say what you know about the use of multiyear budgeting and budget classification in Ukraine. Types of Budget Classification
- •A) Read the article quickly and underline the parts about the challenge the transition economies face and the constraints affecting the ability of the governments to meet the challenge.
- •I. Fill in each space with the appropriate words from a, b or c:
- •Taxation
- •What are taxes?
- •Column a
- •Tax system in Ukraine
- •A. Dialogue
- •1. Read and translate the dialogue in pairs: Taxation in Ukraine
- •Vocabulary:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •B. Communicative situations
- •4. Make a short essay on the following:
- •A) Supply the articles where necessary.
- •A) Supply prepositions where necessary.
- •What Is an Excise Duty?
- •Open the brackets putting the verbs in the correct form: Tax Reform in Developing Countries
- •Read the text below carefully and underline the parts of it giving basic ideas about the desired features of a tax system. Tax System Design
- •I. Mark the correct answers on the following questions:
- •II.Fill the tables:
- •III. Match what statements are true and what are false. Results write to the table:
- •Central banking system
- •A. Dialogue
- •1. Read and translate the dialogue in pairs: Banking system in Ukraine
- •Vocabulary:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •1. A) Supply the articles where necessary.
- •Credit Policy
- •A) Supply the prepositions where necessary.
- •3.A) Open the brackets, putting the verbs in the correct form.
- •The Bank of England
- •Fill each gap with a suitable word from the box. Sum up the text in 5-7 sentences. Present your summary in class.
- •Us Activities of Foreign Banking Organizations
- •A) Read and discuss the text.
- •Is Monetary Policy Needed?
- •A) Read and discuss the text.
- •Payment Systems
- •I. For each word or sentence choose the correct definition:
- •II.Match what statements are true and what are false. Results write to the table:
- •Banking system
- •Commercial banks
- •6To transact stock and share business – укладати угоди із цінними паперами
- •Column b
- •A. Dialogue
- •Vocabulary:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •3.Make up a dialogue on the following:
- •B. Communicative situations
- •Make a short essay on the following:
- •1. A) Supply the articles where necessary.
- •2. A) Supply the articles where necessary.
- •Bank Accounts
- •3.A) Supply the prepositions where necessary.
- •The Nature of Banking
- •4. A) Open the brackets putting the verbs in the correct form.
- •5.Look through the text and name the facts which are new to you.
- •Choose the word which best completes each sentence:
- •II.Match what statements are true and what are false. Results write to the table:
- •International monetary system
- •International monetary institutions
- •A. Dialogue
- •Imf’s support for ukrainian reforms
- •1. Read and translate the dialogue in pairs:
- •Vocabulary:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •3. Make up a dialogue on the following:
- •B. Communicative situations
- •A) Supply the articles where necessary.
- •International Monetary Fund
- •2.A) Supply the prepositions where necessary.
- •Your Partner ebrd
- •3. A) Fill each gap with a suitable word from the box.
- •Imbalances pur World Bank – International Bank for Reconstruction and Development (ibrd)
- •Match what statements are true and what are false. Results write to the table:
- •II. Fill the tables:
- •Foreign exchange market. Global financial markets
- •Trading in the foreign exchange market
- •A. Dialogue
- •1. Read and translate the dialogue in pairs: cornerstone of the global financial market
- •Vocabulary
- •2.Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •Communicative situations
- •Global Financial Markets
- •2. A) Fill each gap with a suitable word from the box.
- •The Eurocurrency Market
- •3.Read the text quickly to find the types of most widely used swaps: Foreign Exchange Swaps
- •4. Read the text quickly to find answers to the following questions:
- •Foreign Exchange Options
- •Choose the correct answer:
- •Match what statements are true and what are false. Results write to the table:
- •Financial markets. The stock market
- •Stock markets
- •A. Dialogue
- •The corporate securities market in ukraine
- •Vocabulary
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out.
- •B. Communicative situations
- •2.A) Supply the prepositions where necessary.
- •Equity Market
- •3.A) Open the brackets putting the verbs in the correct form.
- •4. A) Fill each gap with a suitable word from the box below.
- •The New York Stock Exchange
- •5. A) Read the text below quickly and name organizations involved in the issues.
- •The New Issue Market
- •I. Choose the correct answer:
- •II.Match what statements are true and what are false. Results write to the table:
- •III.Fill the tables:
- •Financial markets. The bond market
- •Trading in the bond market
- •A. Dialogue
- •Vocabulary
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •3.Make up a dialogue on the following:
- •B. Communicative situations
- •You have an exam. The question is: “What is the difference between debt and equity market?”
- •Prepare a short talk on the following:
- •1. A) Supply the articles where necessary.
- •The Eurobond Market
- •2. A) Supply the prepositions where necessary.
- •3. A) Read the text.
- •4. A) Look through the text below to say what types of securities are described in it.
- •Us Government Securities
- •I.Choose the correct answer:
- •II. Match what statements are true and what are false. Results write to the table:
- •III. Fill the tables:
- •Financial management
- •Financial function
- •Financial ratios
- •A. Dialogue
- •Ratio analysis
- •Vocabulary list:
- •Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •1. A) Supply the articles where necessary.
- •A) Read the text.
- •Corporate Governance
- •3. Read the text and say how investment risks can be reduced:
- •Investment Management
- •4. A) Supply the prepositions where necessary.
- •Financial Capital
- •5. A) Fill each gap with a suitable word from the box.
- •I. For each word or sentence choose the correct definition:
- •II. Match what statements are true and what are false. Results write to the table:
- •Accounting
- •Accounting principles and concepts
- •Book-keeping:
- •The double-entry bookkeeping:
- •A. Dialogue
- •1. Read and translate the dialogue in pairs: accountancy in a free-market economy
- •Vocabulary list:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •3. Speak about the work of public accountants, private accountants, and accountants who work for units of the government and non-for-profit firms. B. Communicative situations
- •1. A) Supply the prepositions where necessary.
- •2. A) Read the text and single out the main facts and present them in a short review.
- •Read the text that follows to find the answers to the following questions:
- •Financial Statements And Their Elements
- •Balance sheet
- •Liabilities
- •Revenues
- •Expenses
- •Gains and losses
- •Choose the correct answer:
- •II. Match what statements are true and what are false. Results write to the table:
- •Auditing
- •Performing an audit
- •Audit strategy:
- •Audit risk:
- •A. Dialogue
- •1. Read and translate the dialogue in pairs: auditing in ukraine
- •Vocabulary:
- •2. Read the dialogue, translate the Ukrainian remarks into English and act it out:
- •3.Make up dialogues on the following:
- •B. Communicative situations
- •Discuss with your friends:
- •1. A) Read the texts and do the tasks that follow.
- •2.A) Supply the prepositions where necessary.
- •Auditors’ Report
- •3.A) Open the brackets putting the verbs in the correct form.
- •Misuse of Public Funds
- •4.A) Supply the articles where necessary.
- •Fill in each space with the appropriate words from a, b or c:
- •II. Which is correct:
- •III. Match what statements are true and what are false. Results write to the table:
- •IV. Fill the tables:
- •Glossary
- •Phraseology of reports and speeches coherent and generalization phrases
- •Phrases that are used in admission expressions
- •Nouns: common and possessive case
- •Count and noncount nouns
- •Some common noncount nouns
- •Using nouns as modifiers
- •The indefenite aricle
- •The definite article
- •No article
- •Personal pronouns
- •Possessive pronouns
- •Reflexive pronouns
- •Indefinite pronouns
- •Quantitive pronouns
- •Demonstrative pronouns
- •Degrees of comparison of adectives and adverbs
- •Numerals
- •The functions of the verb «to be»
- •The functions of the verb «to have»
- •The functions of the verb «to do»
- •General questions
- •Tag questions
- •Question words when
- •More questions with how
- •Modal verbs can; could to be able to
- •May; might
- •Must; be to; have to; have got to
- •Should; ought to
- •Will; would
- •Indefinite pronoun «one»
- •The pronouns «both, either and neither»
- •Senquence of tenses
- •The infinitive
- •The prepositional infinitive complex
- •The objective infinitivecomplex
- •The subjective infinitive complex
- •The participle
- •Complexes with the participle the objective participle complex
- •The subjective participle complex
- •The gerund. Forms and functions
- •The gerundal complex
- •Conditional sentenses
- •Irregular verbs
- •Reference list
Foreign exchange market. Global financial markets
I. READING
Stress the first syllable:
monies, currency, forward, market, outright, arbitrage, clearing, tender, trader.
Stress the second syllable:
exchange, beyond, enable, occur, remainder, reliance, robustness, involve, transaction, existence, location, delivery, stability.
Stress the third syllable:
volatility, corporation.
Read the text:
Trading in the foreign exchange market
Any one country’s currency is a legal tender only within its national boundaries. To trade beyond these boundaries involves exchange of monies. Exchange of currencies is possible if national currencies are interchangeable. The terms on which one currency will exchange against another are referred to as rate of exchange. The rate of exchange is the value of one unit of the foreign currency expressed in the other currency concerned.
Currencies can be bought or sold in the Foreign Exchange Market. The Foreign Exchange Market is the oldest financial market in existence. It is also the largest international market in the world.
The Market performs two major functions: it facilitates the foreign exchange needs of exporters and importers, and it enables individuals, corporations and governments to obtain a desired currency mix of their portfolios.
Trading in the Market occurs 24 hours a day in various centres around the world. Deals are concluded bilaterally over telecommunications networks by different counterparties, some of whom serve as market makers or dealers.
The exchange market is global in character, it does not have one centralized location; trading is heavily concentrated in a handful of centres: London, New York, Tokyo, etc. the great majority of foreign exchange trading takes place in the interbank market between traders or market makers who represent large commercial banks or other financial institutions. Foreign exchange departments of large commercial banks are linked across the world through a sophisticated network of communication systems. The market consists of three major sectors: the spot market, the forward and futures markets and the currency options market.
Somewhat more than half of all transactions are spot deals. In other words, they are transactions which call for the delivery of the two currencies exchanged within two business days. The remainder of the deals can be classified as outright forwards, swaps, futures and options.
Such transactions are performed by customers who do not know when they will need foreign currency to overcome the growing exposure to currency risks in the conditions of foreign exchange rate volatility.
The cost of transacting in the wholesale market is reflected in the bid-ask (or bid-offer) spread. Prices in the market depend on the volume of transactions, exchange rate volatility, the availability of relevant information and the strength of competition in the Market.
As prices are different in different markets, professional dealers take advantage of it buying, say, US dollars for Yen in Singapore and selling them in London for sterling and then back into Yen in New York – all for a profit. The operation is called currency arbitrage.
The delivery of the individual currencies involved in a foreign exchange transaction typically takes place through the payment systems of the two countries whose currencies are traded.
The reliance on the domestic currency payment system of individual countries for the clearing and settlement of foreign exchange transactions means that the stability and integrity of the global exchange market depends on both the soundness of the individual counterparties and the robustness of national payment systems.
VOCABULARY LIST
foreign exchange market – валютний ринок
legal tender – законний платіжний засіб
national boundaries – державні кордони
involve – спричиняти, мати наслідком
beyond – за межами
monies – грошові суми
interchangeable – взаємозамінний, обмінюваний
exchange – обмінювати(сь), обмін
rate of exchange – обмінний курс
unit of currency – грошова одиниця
facilitate – полегшувати, сприяти
enable – дозволяти, давати можливість
currency mix – структура грошової маси
occur – відбуватися
bilaterally – двостороння
counterparties – протилежні сторони
sophisticated – удосконалений
interbank market – міжбанківський ринок
foreign exchange department – валютний відділ
spot market – спот ринок, ринок наявних грошей
forward market – форвардний ринок
futures market – ф’ючерсний ринок
currency options market – ринок валютних опціонів
somewhat more – подекуди
call for – вимагати, передбачувати
remainder – залишок
outright – звичайний
swap – своп, обмін
overcome – перемагати, побороти
bid-ask (bid-offer) spread – різниця між цінами (курсами) продавця і покупця
volatility – змінність, непостійність
relevant information – доречна інформація (що відноситься до справи)
settlement – сплата, розрахунок
currency arbitrage – валютний арбітраж
reliance – впевненість, довір’я
clearing – порівняння деталей фінансової угоди перед розрахунком
soundness – платіжеспроможність, надійність
integrity – цільність, чесність
robustness – міцність
II. VOCABULARY EXERCISES
Ex.1. Find equivalents:
rate of exchange
bid-ask spread
spot market
interchangeable
remainder
integrity
futures market
robustness
interbank market
currency arbitrage
currency options market
залишок
міцність
міжбанківський ринок
взаємозамінний
обмінний курс
ринок наявних грошей, спот ринок
ф’ючерсний ринок
ринок валютних опціонів
цілісність
валютний арбітраж
різниця між цінами продавця і покупця
Ex.2. Find English equivalents for the following Ukrainian phrases:
валютний ринок; бути законним платіжним засобом; в межах національних кордонів; обмін валюти; валюти можуть бути обміняні (одна на одну); виконувати функції; сприяти задоволенню потреби в іноземній валюті; домогтися бажаної структури грошової маси свого інвестиційного портфеля; угоди укладаються з використанням телекомунікаційних систем; торгівля зосереджена в …; ті, що представляють великі комерційні банки; форвардний ринок; ринок наявних грошей; ф’ючерсний ринок; більшість угод є угодами «спот»; угода передбачає поставку валюти протягом двох робочих днів; відображати різницю між ціною продавця та ціною покупця; валюти, що задіяні у валютній угоді; розрахунок за фінансовою угодою.
Ex.3. Fill in the blanks with prepositions, pronouns or conjunctions if necessary:
The terms … which one currency will exchange against another are referred to … rate … exchange.
The rate … exchange is the value … one unit … the foreign currency expressed … the other currency concerned.
Deals are concluded … bilaterally … telecommunications netwoks … different counterparties.
The great majority … foreign exchange trading takes place … the interbank market … trades or market makes.
Foreign exchange departments … large commercial banks are linked … the world … a sophisticated network … communication systems.
Spot deals are transactions … call … the delivery … the two currencies exchanged … two business days.
The cost … transacting … the wholesale market is reflected … the bid-ask spread.
Prices … the market depend … the volume … transactions, exchange rate volatility, the availability … relevant information … the strength … competition … the Market.
The delivery … the individual currencies involved … a foreign exchange transaction typically takes place … the payment systems … the two countries … currencies are traded.
The stability and integrity … the global exchange market depends … both the soundness … the individual counterparties and the robustness … national payment system.
Ex.4. Complete the following sentences:
Exchange of currencies is possible if … .
The rate of exchange is … expressed in … .
The Foreign Exchange Market is … .
The Foreign Exchange Market performs two major functions: … .
Deals in the Foreign Exchange Market are concluded … .
The Foreign Exchange Market consists of three major sectors: … .
The remainder of the spot deals can be classified as … .
Spot deals are transactions which … .
Prices in the Foreign Exchange Market depend on … .
The delivery of the individual currencies … .
Ex.5. Answer the following questions:
Why is exchange of currencies necessary?
What makes exchange of currencies possible?
What is Rate Exchange?
Where are the currencies traded?
What major functions does the Foreign Exchange Market perform?
How does the Forex operate?
What are the major sectors of the Forex?
What deals are transacted in the market?
Why does the market depend on payment systems of individual countries?
Ex.6. Translate into English:
Валюта будь-якої країни є законним платіжним засобом лише в межах державних кордонів.
Торгівля за межами кордонів вимагає обміну валютою, яка повинна бути взаємозамінна.
Обмінний курс – це вартість грошової одиниці іноземної валюти, яка виражена валютою, що зазначена у валютній угоді.
Валютний ринок – найстаріший та найбільший міжнародний ринок у світі.
Валютний ринок надає можливість окремим людям, корпораціям та урядам отримувати бажану структуру грошової маси свого інвестиційного портфеля.
Угоди на світовому валютному ринку укладаються цілодобово у різних містах світу за допомогою телекомунікаційних систем.
Валютний ринок складається з форвардного, ф’ючерсного ринків, з ринку валютних опціонів та ринку наявних грошей.
Угоди спот вимагають доставки двох валют, що обмінюються протягом двох робочих днів.
Ціни на ринку залежать від обсягу угод, змінності валютного курсу, наявності доречної інформації та сили конкуренції на ринку.
Стабільність та цільність світового валютного ринку залежить як від надійності окремих його учасників, так і від міцності національної платіжної системи.
Ex.7. Match each term in Column A with its definition in Column B:
C
Column B
a person, an organization or a country that
brings in goods or services from another country;
a person or an organization that earns money by buying goods and
selling them at a profit;
the coins and banknotes that belong to a
particular country;
a written offer to buy or sell securities, etc at a stated price;
a person or organization that buys and sells, esp shares or
insurance, for others;
the right to buy or sell a fixed quantity of a commodity, currency
or security on a particular date at a particular price.
a market that deals in commodities or foreign exchange for
immediate delivery.
a person, an organization or a country that sends goods or
services to other countries for sale;
the exchange of a product or business asset for another, instead
of money.
Currency
Importer
Exporter
Broker
Trader
Tender
Spot market
Option
Swap
Ex.8.Write several paragraphs on the following using given words and word combinations:
a) Foreign Exchange Market:
currencies; to buy; to sell; financial market; to facilitate; needs of exporters and importers; to enable; to obtain; mix of portfolios.
b) trading in the Foreign Exchange Market:
centralized location; to be concentrated; handful centres; foreign exchange trading; interbank; traders; market makers; to represent; foreign exchange departments; to be linked; network of communication systems.
c) spot market:
transactions; spot deals; to call for; delivery; currencies, to be exchanged; remainder; to be classified as; outright forwards; swaps, futures, options.
III. ORAL PRACTICE