Vocabulary:

executive power – виконавча влада

to fulfill - виконувати

funds available – наявні фонди

foreign currency – іноземна валюта

out-of-budget funds – позабюджетні фонди

budget - бюджет

home and foreign debt – внутрішній та зовнішній борг

revenue - прибуток

expense - видаток

to forecast - передбачати

fee – збір, оплата

to deal with sth – мати справу з чимось

state securities – державні цінні папери

to check sth up – перевіряти щось

Questions:

1. What does the st consist of?

2. What does the ST maintain?

3. What functions are provided by the ST?

4. What is managing body of the State Treasury? What functions does it perform?

5. Who does the Head Administration report to?

6. What rights have the State Treasury's organs?

Financial institutions

There are different types of financial institutions. They are mostly the same in all countries and act as financial intermediaries between savers and borrowers and present a payment mechanism. They perform two central functions: create different financial assets and liabilities, and provide specific financial services.

At the centre of the financial structure of any country is its central bank (in Ukraine it is the National bank of Ukraine, in the USA – the Federal Reserve System, in Great Britain – the Bank of England). The main function of a central bank is to accept responsibility for advising the government to make the country's financial policy, issue national currency, regulate money supply and supervise other financial institutions such as commercial and savings banks and non-bank financial institutions.

The Ukrainian banking system consists of 2 levels: central bank (the National bank of Ukraine), and commercial banks and the State Savings bank.

Commercial banks receive deposits from their customers and give different loans and other financial services to businesses and individuals: checking and savings accounts, ATM's, credit cards, traveler’s checks, and others; finance industry and commerce, sell and exchange foreign currencies, invest great amounts of money for the price known as interest rate.

The American banking system consists of 4 types of organizations: Federal Reserve System as the central bank of the country, commercial banks, savings and loan associations (home mortgages), and Credit Unions (the same services as commercial banks' ones).

Non-bank financial institutions are the same in all countries. They do not accept customer deposits, but they do offer many of the same services as regular banks. In business world there are 4 main types of non-bank financial institutions: life-insurance companies, credit unions, pension funds, brokerage firms, and commercial / consumer financial companies. All of them using their own or customers' funds make secured loans for business purposes charging high interest rate, invest money into conservative securities (bonds) or speculate securities (stocks and bonds) at the Exchange.

Most financial transactions take place by check through checking account, so most of money is in checking account balances. One-fourth of any country's money is in cash bills (notes-GB) and coins. People also use money substitutes: different credit cards, accepted by hotels, department stores and restaurants.