III.Translate from Russian into English

1. Экономическая жизнь пронизана неопределенностями.

2. Несмотря на то, что некоторые играют в азартные игры для развлечения, другие — потому что уже не могут не играть, большинство составляют люди, не расположенные к риску.

3. Большинство людей предпочитают платить за страховку, чтобы снизить риск, перед лицом которого они могут оказаться.

4. Акт страхования может увеличить вероятность того, что нежелательное событие произойдет на самом деле.

5. Комплектование портфеля ценных бумаг зависит от вкусов инвестора и тех возможностей, которые предоставляет рынок.

6. Что может считаться компенсацией за риск?

IV. Communicative practice. Situations

1. Role play a family row. The wife wishes her husband stopped gambling but he won’t. What might be there arguments?

2. Why is insurance business booming in Russia?

3. You are offered a position in an insurance firm. You’re reluctant to take it, but once you’ve been told how profitable the business is you agree.

4. You are sitting in a restaurant with a young girl and enjoy yourself. Suddenly you remember you left your car unlocked. Will you abandon your meal and rush outside to lock it? Why?

5. There is a difference between moral hazard and adverse selection. Which is which in the following examples? (a) A person with a fatal disease signs up for life insurance. (b) Reassured by the fact that he took out life insurance to protect his dependents, a person who has unexpectedly become depressed decides to commit suicide.

6. Are you a risk-lover? Why?

7. It is a rather common experience in Russia to have been cheated by a commercial bank or insurance company. Discuss the problem of reducing risk when planning to add to a bank account and holding wealth in general. Be sure to comment on Professor Tobin’s advice. Do you think it wise? Why? Have you ever entrusted your money to a bank? Were you rewarded for risk-bearing? Did you lose?

8. A fair coin is to be tossed. If it comes down heads the player wins 1 pound. If it comes down tails the player loses 1 pound. Person A doesn’t mind whether or not she takes the bet. Person B will pay 0.02 pound to play the game. Person C demands 0.05 pound before being willing to play. Characterize the three people’s attitude to risk. Which would be most likely to take out insurance for car theft?

9. It is sometimes said that the family is one of the main forms of insurance. Can you give several reasons why people might think so?

10. You hear a radio commercial for life insurance for anyone over 45 years old. No medical examination is required. Do you expect the premium rates to be high, low, or average? Why?

11. In which of the following are the risks being pooled: (a) life insurance; (b) insurance against the Thames flooding? (c ) insurance for a pop star’s voice?

Russian Experience

1. Think and say:

a) What is the criminal situation in Russia now? Give examples from TV news .

2. Read the interview and summarize it in the way of a monologue. Be sure to express your own attitude to the problem in question.