Words to be remembered

interest rate exchange rate current account savings account deposit branch loan share bond hire purchase raise funds securities takeover merger intermediary mortgage stockbroking installment credit portfolio

процентная ставка валютный курс текущий счёт сберегательный счет вклад филиал кредит акция облигация покупка в рассрочку мобилизовать средства ценные бумаги поглощение банка слияние банка посредник ссуда под залог операции с фондовыми ценностями кредит с погашением в рассрочку набор

Lexical exercises

Exercise 1. Дополните однокоренным словом из текста словообразовательную цепочку.

Вкладывать - to invest кредитор - lender

вкладчик - investor давать ссуду -

вклад - ссудный -

консультант - advisor хранить вклад - to save

совет - клиенты банка

консультативный - сбережения

Exercise 2. Найдите соответствующие определения каждому слову в столбце.

bank interest bankruptcy loan investment subsidiary merger shares

The situation where a company does not have enough money or property to pay its debts, and so a company closes These are bought by people wishing to invest in the company An attempt to spend money so that you have more money in future Where you go to borrow money or cash Two companies joining together to create one company The extra money a company or a person pays for borrowing money Money which is borrowed from a bank A company that is owned by a parent company

Text 3. Commercial banking

Complete the text using these words:

Accounts bank loan cheque customers’

current account return depositors deposits

lend liabilities wages overdraft standing orders salary withdraw

Commercial banks are businesses that trade in money. They receive and hold 1)…, pay money according to 2) … instructions,3) …money, etc.

There are still many people in Britain who do not have bank 4) … . Traditionally, factory workers were paid 5) … in cash on Fridays. Non-manual workers, however, usually receive a monthly 6) … in the form of a cheque or a transfer paid directly into their bank account.

A 7)… (US: checking account) usually pays little or no interest, but allows the holder 8) … his or her cash with no restrictions. Deposit accounts (in the US also called time or notice accounts) pay interest. They do not usually provide 9) … (US: check) facilities, and notice is often required to withdraw money. 10) … and direct debits are ways of paying regular bills at regular intervals.

Banks offer both loans and overdrafts. A 11) … is a fixed sum of money, lent for a fixed period, on which interest is paid; banks usually require some form of security or guarantee before lending. An 12)… is an arrangement by which a customer can overdraw an account, i.e. run up a debt to an agreed limit; interest on the debt is calculated daily.

Banks make a profit from the spread or differential between the interest rates they pay on deposits and those they charge on loans. They are also able to lend more money than they receive in deposits because 13) … rarely withdraw all their money at the same time. In order to optimize the return on their assets (loans), bankers have to find a balance between yield and risk, and liquidity and different maturities, and to match these with their 14) …(deposits). The maturity of a loan is how long it will last; the yield of a loan is its annual 15) … - how much money it pays - expressed as a percentage.

Answer the following questions:

1. What banks are called commercial?

2. What is the difference between wages and salaries?

3. What account do people use to receive some interest on the money thy save?

4. When do people use standing orders?

5. When interest in paid daily on a loan or a an overdraft?

6. How do the commercial banks make a profit?