- •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
II.Match what statements are true and what are false. Results write to the table:
The London Stock Exchange has the highest volume of trading in the world.
Women were allowed to deal on the Stock Exchange for the first time in 1973.
The London Bears and Bulls is a club for members of the Stock Exchange.
The Yakuza are a small group of brokers who operate in Kyoto.
Manhattan Island was once traded for beads.
The first members of the London Stock Exchange were evicted from their premises for bad behavior.
Table
|
1 |
2 |
3 |
4 |
5 |
6 |
True |
|
|
|
|
|
|
False |
|
|
|
|
|
|
III.Fill the tables:
a )
b) Characterize the following period by the processes which had place there:
17th – 18th centuries |
|
19th century |
|
The beginning of the 20th century |
|
1980s |
|
Unit 9
Financial markets. The bond market
I. READING
Stress the first syllable:
customer, borrow, surplus, primary, secondary, purchase, satisfy, debtor, syndicate, lender, government, equity, ownership, issue, uniform, domiciled, subsequently, nickname, issuer, Euro.
Stress the second syllable:
financial, maturity, investor, security, available, perspective, appropriate, external, municipal, offshore, denominate, certificate, distinguishing, simultaneously.
Stress the third syllable:
supranational, decompose, jurisdiction.
4. Read the text:
Trading in the bond market
People and organizations wanting to borrow money are brought together with those having surplus funds in the financial markets.
There are a great many different financial markets, each one consisting of many institutions, dealing with different instruments in terms of the instrument maturity1 and the assets backing it, and serving different types of customers.
Generally, financial markets are classified as money or capital markets and primary or secondary markets.
Money markets deal in short-term securities having maturities of one year or less. Capital markets deal in long-term securities having maturities greater than one year. An investor who purchases new securities is participating in a primary financial market/ an investor who resells existing securities is participating in a secondary financial market.
So, when businesses, units of government or individuals cannot satisfy their needs for funds by revenue from sales of goods and services, they can turn to either debt financing (any process by which the firm gets cash or some other assets in return for a promise to pay an agreed upon sum plus interest) or equity financing (any process by which a firm raises funds in return for a share in its ownership and management).
Some sources of funds available to businesses (like issuing stock) are not available to governments. When revenues fall short of expenditures2 governments go into debt3 – they borrow short-and-long-term funds by issuing bonds.
A bond is an instrument in which the issuer (debtor/borrower) promises to repay to the lender/investor the amount borrowed plus interest over some specified period of time. It should be stressed that one of the most important characteristics of a bond is the nature of its issuer. Issuers include federal (central) governments and their agencies supranationals (such as the World Bank, the Asian development Bank), municipal governments, and nonfinancial and financial corporations.
By far the largest issuers are central governments.
There is no uniform system for classifying the global bond markets. Quite a number of financiers consider it appropriate to use the following classification. From the perspective of a given country, the global bond market can be classified into two markets: an internal bond market and an external bond market. The internal bond market is also called the national bond market. The internal bond market is also called the national bond market. It can be decomposed into two parts: the domestic bond market and the foreign bond market.
The domestic bond market is where issuers domiciled in the country issue bonds and where those bonds are subsequently traded. The foreign bond market of a country is where bonds of issuers not domiciled in the country are issued and traded.
Bonds traded in the US foreign bond market are nicknamed Yankee bonds. In Japan, foreign bonds issued by non-Japanese entities are nicknamed Samurai bonds. Foreign bonds in the United Kingdom are nicknamed bulldog bonds, in the Netherlands – Rembrandt bonds and in Spain – matador bonds.
The external bond market, also called the international bond market, includes bonds with several distinguishing features:
they are underwritten by an international syndicate;
at issue they are offered simultaneously to investors in a number of countries;
they are issued outside the jurisdiction of any single country;
they are in unregistered form.
The external bond market is commonly referred to as the offshore bond market, or more popularity, the Eurobond Market. The Eurobond Market is divided into different submarkets depending on the currency in which the issue is denominated.
Computerization in bond markets has reduced costs of trading bonds and made them more convenient to hold and transfer: they are not issued in certificate form – they are only computer entries.
NOTES:
1 in terms of the instrument maturity – з строків погашення фінансового інструменту
2 When revenues fall short of expenditures – Коли доходи менші за витрати
3…governments go into debt – уряди здійснюють позики
VOCABULARY LIST
financial market – фінансовий ринок
bond market – ринок облігацій
maturity – термін боргового зобов’язання
back – гарантувати, підтримувати
to serve customers – обслуговувати замовників
money market – грошовий ринок, ринок короткострокового капіталу
capital market – ринок довгострокового позичкового капіталу
primary market – первинний ринок
secondary market – вторинний ринок
deal (in) – торгувати
short-term securities – короткострокові цінні папери
turn (to) – звертатися (до кого-небудь)
debt financing – фінансування шляхом отримання позик
in return for – в обмін на
equity financing – мобілізація капіталу за допомогою випуску акцій
raise funds – отримувати кошти, мобілізувати капітал
share – частка
ownership – володіння майном
to issue stock (bonds) – випускати акції (облігації)
long-term funds – довгострокові кошти
issuer – емітент цінних паперів
debtor – боржник, дебітор
lender – кредитор
supranational – наднаціональна організація
municipal government – муніципалітет
by far – в значній мірі
uniform – єдиний
appropriate – відповідний
from the perspective of – з точки зору
internal bond market – внутрішній ринок облігацій
external bond market – зовнішній ринок облігацій
decompose – розкладати на складові частини
domiciled – той, що постійно проживає
subsequently – потім, пізніше, згодом
trade – здійснювати угоди на ринку цінних паперів
nickname –давати прізвисько
distinguishing feature – відмітна риса
underwrite – гарантувати розміщення цінних паперів
jurisdiction – юрисдикція
in unregistered form – незареєстрований
offshore bond market – офшорний ринок облігацій
eurobond Market – ринок єврооблігацій
submarket – субринок
denominate – виражати у валюті різної вартості
readily – швидко, легко
in certificate form – у формі сертифіката
computer entry – комп’ютерні дані
ІІ. VOCABULARY EXERCISES
E
субринок
первинний ринок;
ринок облігацій;
ринок єврооблігацій;
зовнішній ринок облігацій
офшорний ринок облігацій
грошовий ринок, ринок
короткострокового капіталу;
вторинний ринок;
фінансування шляхом отримання позик;
внутрішній ринок облігацій;
фінансовий ринок;
ринок довгострокового
позичкового капіталу
financial market
submarket
bond market
money market
capital market
primary market
secondary market
external bond market
internal bond market
offshore bond market
eurobond Market
debt financing
Ex.2. Enter correct correspondences in English or in Ukrainian:
ENGLISH |
UKRAINIAN |
ownership |
|
|
єдиний |
debtor |
|
lender |
|
|
цінні папери |
long-term funds |
|
|
юрисдикція |
computer entry |
|
|
у формі сертифікату |
municipal government |
|
|
обслуговувати замовників |
to issue stock (bonds) |
|
maturity |
|
|
мобілізація капіталу за рахунок випуску акцій |
Ex.3. Find English equivalents for the following Ukrainian phrases:
мати справу з різними фінансовими інструментами; обслуговувати клієнтів; зі строком платежу менше (більше) одного року; брати участь в угодах на ринку; первинний та вторинний фінансові ринки; звертатись (до); фінансування шляхом отримання позик; мобілізація капіталу за допомогою випуску акцій; випускати облігації; обумовлений строк; емітент; єдина система класифікації; внутрішній та зовнішній ринки облігацій; емітент, що не проживає постійно в країні; облігації, якими торгують на ринку; випуск облігацій гарантований міжнародним синдикатом; випускати в незареєстрованій формі; офшорний ринок облігацій; скоротити витрати, що пов’язані з купівлею та продажем облігацій; випускати облігації у формі сертифікату; випускати облігації у формі запису у комп’ютері.
Ex.4. Fill in the blanks with prepositions, pronouns or conjunctions if necessary:
Financial markets are classified … money … capital markets … primary … secondary markets.
Money markets deal … short-term securities having maturities … one year … less.
When businesses cannot satisfy their needs … funds … revenue … sales … goods … services they can turn … either debt financing … equity financing.
Some sources … funds available … businesses are not available … governments.
A bond is an instrument … which the issue promises to repay … the lender the amount borrowed plus interest … some specified period … time.
One … the most important characteristics … a bond is nature … its issuer.
The foreign bond market … a country is where bonds … issuers not domiciled … the country are issued … traded.
Market is divided … different submarkets depending … the currency … which the issue is denominated.
The external bond market includes bonds underwritten … an international syndicate and offered … investors … a number … countries.
Computerization … bond markets has reduced costs … trading bonds … made them more convenient … hold … transfer.
Ex.5. Fill in the blanks below with the appropriate terms from the list:
nature; sources of funds; syndicate; issuers; securities; offshore;
maturities; domestic; offshore; jurisdiction; system.
Money markets deal in short-term securities having __________of one year or less.
An investor who purchases new _________ is participating in a primary financial market.
Some ___________ available to businesses are not available to governments.
A __________ of issuer is one of the most important characteristics of a bond.
_________ include federal governments and their agencies, supranationals, municipal governments, financial and nonfinancial corporations.
There is no uniform __________ for classifying the global bond markets.
The national bond market consists of the _________ and foreign bond markets.
The bonds in the international bond market are underwritten by an international _________ .
In the external bond market the bonds are issued outside the ____________ of any single country.
The external bond market is referred to as the _________ bond market.
Ex.6. Complete the following sentences:
Financial markets are classified as … .
Money markets deal in … but capital markets deal in … .
An investor who purchases new securities is … and an investor who resells existing securities is … .
A bond is an instrument in which … .
Issuers include … .
The global bond market can be classified into two markets: … .
The national bond market can be decomposed into two parts: … .
The domestic bond market is a market … .
The foreign bond market is where … .
The external bond market includes the bonds underwritten … used … .
The international bond market is referred to as … .
Ex.7. Answer the following questions:
What role do financial markets play?
In what ways do financial markets differ?
How are the financial markets classified?
What is the difference between a money market and capital one?
How do investors participate in the primary and secondary financial markets?
In what ways can capital be raised?
What ways of raising capital are available for government?
What is the difference between money and capital markets?
What is bond?
What is the domestic/foreign bond market?
What distinguishing features do the bonds offered in the external bond market have?
How can the global market be subdivided?
In what forms can government bonds be issued?
Ex.8. Translate into English:
Фінансові ринки можна класифікувати як грошові ринки або ринки довгострокового позичкового капіталу і як первинні або вторинні ринки.
Грошові ринки торгують короткостроковими цінними паперами, які мають при цьому cтрок боргового зобов’язання рік і менше.
На ринках довгострокового позичкового капіталу строк боргового зобов’язання більше одного року.
Інвестор, який купує нові цінні папери, є учасником первинного фінансового ринку.
Інвестор, який перепродує цінні папери, є учасником вторинного фінансового ринку.
Деякі джерела фінансування є доступними для підприємств, але не доступними для уряду.
Облігація – засіб, за допомогою якого емітент обіцяє повернути кредитору суму, яку він позичив, плюс відсоток в обумовлений строк.
З точки зору окремої країни світовий фінансовий ринок поділяється на внутрішній (національний) та зовнішній (міжнародний) ринки.
На ринку облігацій зовнішньої (іноземної) емісії випускаються і продаються облігації емітентів, які постійно не проживають в країні.
Акції міжнародного ринку облігацій мають певні відмінні риси.
Комп’ютерізація на ринку облігацій зробила більш зручніші для збереження та переказу.
Ex.9. Match each term in Column A with its definition in Column B:
Column A
Bond
Lender
Debtor
Investor
Capital market
Money market
Debt financing
Equity financing
Column B
the market in which short-term loans are arranged between banks,
the government; discount houses and accepting houses
a person or an organization that buys property, shares, securities
in order to sell again to make a profit or to receive money in the
form of interest dividends
any process by which the firm gets cash or some other assets in
return for promise to pay an agreed upon sum plus interest
a document from a government or a company that states that money
borrowed from an investor will be repaid
a place where deals are made relating to the long-term investment
needed by business and public authorities
any process by which a firm raises funds in return for a share in
its ownership and management
a person or an organization that owes money to another
a person or an organization that lends money and charges interest
on the repayments, but not a building society, a bank or insurance
company
Ex 10. Write several paragraphs on the following using given words and word combinations:
financial markets:
to consist of; institutions; to deal with; instruments; maturity; assets; to serve; customers.
the classification of the financial markets:
money market; capital market; primary market; secondary market; to deal in; short-term securities; maturity; capital market; long-term securities; investor; to purchase; to participate; primary financial market; to resell; secondary financial market.
a bond as a financial instrument:
to achieve priorities, to allocate, to distribute resources, revenue, expenditure, to exceed, to prepare, to forecast, macroeconomic impact.
the classification of the global bond market:
an internal bond market; an external bond market; the national bond market; to be decomposed; the domestic bond market; the foreign bond market.
III. ORAL PRACTICE