VI. Explain the meaning of the following word combinations and use them in your own sentences:

1. To accept deposits

2. To make a loan

3. To earn interest

4. To place amounts of money in

5. To lend money to

6. To expand services

7. To face financial problems

8. To be chartered by

9. To catch on in

10. To be sponsored by

11. To provide a loan

12. To offer services

VII. Complete the table:

Verb	Adjective	Noun
accept	-	-
-	deposited	-
offer	-	-
-	acquired	-
-	-	expansion
originate	-	-
-	provided	-
-	-	generation
demand	-	-
-	expected	-
-	-	creator
sponsor	-	-
-	owned	-
-	-	consumer (-tion)
purchase	-	-
-	loaned	-
-	-	insurance
employ	-	-
-	invested	-

VIII. Do it in English making use of the active vocabulary: Кредитні спілки

Кредитні спілки - це малі кооперативні позичкові інститути, організовані певною групою людей (членами спілки або працівниками певної фірми). Ці спілки реєструються або штатами, або федеральним урядом, але понад половина зареєстровані федеральним урядом. Національне управління кредитних спілок дозволяє і регулює діяльність федераль­них кредитних спілок шляхом встановлення вимог до мінімального розміру їхнього капіталу, вимог періодичної звітності і перевірки діяльності кредитних спілок.

Федеральне страхування депозитів (до 100 000 дол.) забезпечується кредитним спілкам, зареєстрованим як штатами, так і філіалом Національного управління кредитних спілок—Національним фондом кредитних спілок. Оскільки, більшість позик кредитних спілок є споживчими позиками з досить короткими строками погашення, то кредитні спілки не відчули фінансових труднощів, з якими недавно зіткнулися ощадні та позичкові асоціації і взаємні ощадні банки.

Позаяк члени кредитних спілок мають спільні інтереси, то ці спілки, як правило, досить малі. Більшість з них володіє активами на суму до 10 млн. дол. Часто пайовики кредитних спілок перебувають в різних штатах чи й в різних країнах світу, так що відділення в інших штатах і в інших країнах дозволене для кредитних спілок, зареєстрованих федеральним урядом. Наприклад, Федеральна кредитна спілка військово-морського флоту, пайовиками якої є моряки і піхотинці Військово-морських сил США, має відділення в багатьох країнах світу.

IX. Make an overview of non-banking institutions. Use comprehension questions given below: Nonbanking Financial Institutions

Financial institutions act as sources and users of funds. Given this fact, many institutions that do not provide banking services qualify as financial institutions. These include insurance companies, pension funds, large brokerage houses, and commercial and consumer finance companies.

Insurance companies. Insurance companies were originally created by groups (such as trade unions and religious groups) who pooled their resources to provide some financial protection for members and families should the member become disabled or die. The first life insurance company in the United States, Presbyterian Ministers' Fund in Philadelphia, was established in 1759. Today insurance companies accept premium payments from policyholders and provide various types of protection. Insurance companies use the funds generated through premium payments to provide long-term loans to corporations, to provide commercial real estate loans, and to purchase government bonds. Property and casualty insurance companies are regulated by stats and operate in a similar fashion to life insurance companies.

Pension funds. Pension funds can be set up by a company, union or nonprofit organization to provide for the retirement needs of its members or employees. To meet these needs, the fund uses a pool of money created by contributions of the members, the employer or both. They invest these funds in long-term mortgages on commercial property, business loans, government bonds, and common stock in major firms. In addition, company pension funds will typically invest a portion of the fund in the company's own stock.

State, local, and federal governments have set up pension funds for their employees. A very important public pension plan is social security (Old Age and Survivors Insurance Fund), which covers virtually all individuals employed in the private sector as well as disabled persons and children under 18 whose parents are deceased. The fund was originally set up to supplement individual savings and other pension funds as a means of support for retired persons. It is administered through the federal government and applies to most employees. The federal government collects social security funds from employers and deducts them from employee checks. These funds are used to pay benefits to the retired, the disabled, and young children of deceased parents.

The social security system recently faced a serious crisis. Concerned that the fund would not be sufficient to pay current benefits, the government increased social security taxes for both employees and employers. This action appears to have solved the immediate problem, as the fund now has a sizable surplus. However, many experts fear there will not be sufficient funds to pay future benefits.

The reason for this concern is the change in the makeup of the American work force. The average age of U.S. citizens is increasing and, with the current, low birth rate, will continue to increase. As a result, the number of people requiring benefits (especially retirement benefits) is increasing, while the number of people contributing to the fund (working) is decreasing. This means that in the future fewer people will be paying into the social security fund and more people will be withdrawing funds from it. The result could be a serious shortfall.

Large brokerage houses. Brokerage firms buy and sell stocks, bonds, and other assets for their customers. They have also started to provide other financial services. Many brokerages have created accounts for their customers, such as Merrill Lynch's Cash Management Account and Paine Webber's Cash-Fund, which pay interest on deposits and allow clients to write checks, borrow money, and withdraw cash.

Commercial and consumer finance companies. By issuing commercial paper (large corporate promissory notes) or stocks and bonds, finance companies acquire funds. They use the funds to make loans appropriate to consumer and business needs. Finance companies typically charge a higher rate of interest because of the higher risk of the loans that they make. These companies also frequently require some sort of collateral for loans. Businesses may be required to pledge their inventory as security for the loan, and individual may have to put up an automobile or some interest in stocks as security.

Commercial and consumer finance companies get the money they lend by selling bonds in their corporation and through loans from other corporations. In recent years, finance companies, such as Household Finance Corporation and General Motors Acceptance Corporations, have become increasingly competitive with commercial banks. They are now often able to offer attractive loans with longer-term payback.

1. What institutions qualify as financial institutions without providing banking services?

2. What was the purpose of crediting the first insurance companies?

3. What organizations can set up pension funds?

4. What types of protection do insurance companies provide?

5. Explain how pension funds meet the retirement needs of their members or employees?

6. What can you say about pension funds set up by the state, local and federal governments?

7. How does federal government administer social security funds?

8. What problems did security system recently face?

9. What is the reason for them and what are the future perspectives?

10. What are the main services offered by brokerage firms?

11. In what way do commercial and consumer finance companies acquire funds and use them?

12. Why do you think finance companies have become increasingly competitive with commercial banks?