Grammar test (к.Р. №1,2,3) banking

1. The work of bank centers around money and financial services.

2. Any activity involving money or advice about financial matters is undertaken by all the commercial banks.

3. The immediate service offered by the bank is the receipt for deposit of coins, notes and cheques and the cashing cheques, through current accounts.

4. Coins and notes in circulation have the status of “legal tender”.

5. The most common means of payment, particularly for significant sums of money is the cheque.

6. Cheque is safer and more convenient than using cash.

7. Cheque is not a legal tender and creditors can refuse to accept it if they wish.

8. Traveller’s cheques are readily negotiable if the bearer has some means of proving his identity

9. To assist the use of cheques banks now provide their customers with banker’s cards.

10. If a customer wished to make payments of large amounts of money by cheque he would obtain a “certified cheque” from his bank.

11. A cheque is signed by the bank and therefore payment is guaranteed.

12. Those trading overseas may use a Bill of exchange as a means of payment.

13. Those whose credit standing is unknown have to get the Bill “accepted” before a creditor will take it.

14. Because Bills are post dated creditors have to wait some time for their money.

15. They can overcome this problem by endorsing the Bill.

16. The commercial banks participate in this activity in two ways: in part by lending money to the discount houses and in part by discounting bills for their own customers.

17. There are two general reasons for using a bank account.

18. A deposit account will not offer a high rate of interest but it is designed to make saving simple, convenient and safe.

19. A deposit account will not be the best way to save large sums of money for any long period of time.

20. The most common reason for having a bank account is the convenience and safety provided by a current account at a bank.

21. When small and regular surpluses are available to be saved, a bank provides deposit accounts.

22. A deposit account is especially appropriate for those who may save small amounts from time to time without any planned regularity.

23. Most customers of bank who have opened a deposit account will also have a current account.

24. This makes the transfer of amounts of money from one account to the other an easy matter.

25. Regular payments can be made through a standing order to the bank that will automatically transfer the agreed amount according to your instructions.

26. The rate of interest is publicly advertised in any bank.

27. The bank uses money deposited with them to lend to others.

28. The banks are not likely to insist on 7 day intention and cash is often immediately available

29. to those who wish to withdraw it.

30. It is more common to have a bank account than to be without one.

31. Customers of the bank are often given the services of the bank without charge.

32. A small temporary overdraft has to be agreed with the bank manager.

33. Since money in a current account does not attract interest, it is not a good idea to maintain large cash balances.

34. Money in a current account does not attract interest.

35. Banks make their profits by lending money.

36. To be a borrower you must be a customer of the bank

37. The normal way of borrowing larger amounts or for a long period of time is the loan.

38. If a loan is granted it will be a fixed sum immediately available for a fixed period of time.

39. A separate account is opened to record the repayments as they are made.

40. Personal loans usually have to be repaid out of an income.

41. In deciding this, a manager will be considerably assisted by his knowledge of you and his estimate of your character.

42. Sometimes people do not ask for enough money because they are anxious about the burden of the repayments.

43. Personal loans are often secured by life insurance policies on which the bank is making regular payment for you.

44. In the case of a business loan the manager may want to see well prepared documents such as profit and loss accounts and balance sheets for the most recent years.

45. The bank wants to make as much profit as it can and for this reason it must take the risks of lending money.

46. Much of a bank’s investment is in short and medium-term government and local government bonds.

47. The second thing that the bank must do is to ensure that the investments it chooses are safe.

48. Advances by a bank to its customers are the least liquid of their assets.

49. Advances by a bank are also the most profitable of them yielding the highest rates of return.

50. In general the banks do not lend to industry for long periods of time or for investment projects.