I. Read and learn the following words and phrases:

enterprise – организация

valuables – ценности

the goldsmiths – золотых дел мастера

depositor – вкладчик

personal chequing account – личный/лицевой счет

savings account – сберегательный счет

passbook – сберегательная книжка

currency – волюта

issuing of bank-notes – выпуск банкнот

to cooperate – сотрудничать

interest – процент (от денег)

personal expenses – личные расходы

II. Read the text:

B A N K S A N D B A N K I N G

All banks are business organizations, usually limited companies that seek to earn profits for their owners. Banks are commercial enterprises, which gradually evolved from the old goldsmith establishments in which money and valuables were stored. So the provision of a safe deposit for money and valuables is the oldest and the most important banking function. Another earliest function is the issuing of bank-notes. In addition they move money from one place to another and trade in currency. The most profitable banking activity is lending of money. It is the major source of bank income.

Banks are different in different countries. There are many kinds of banks: commercial, saving, national, export – import banks and others. Major commercial banks in such cities as Tokyo, Paris, Rio cooperate with each other. In this way they finance imports and exports between countries.

Banks provide a wide range of financial services and different types of accounts. For example personal chequing account is used by individuals to pay for their personal expenses. The customers receive a cheque-book and the bank keeps the record of the bank balance. No interest is paid on a personal chequing account balance.

If you want to have some interest on the money in the bank you should use saving accounts. Then the customer is given a passbook in which all banking operations are entered.

A central bank stands at the apex and is responsible for the operation of the banking system.

III. Do the following exercises:

Exercise 1. Memorize the following pairs of derivatives.

N – Adj

commerce – commercial profit – profitable

nation – national grade – gradual

person – personal center – central

V – N

to provide – provision to organize – organization

to cooperate – cooperation to establish – establishment

to add – addition to operate – operation

Exercise 2. Read and translate the given word combinations from English into Russian.

Banking activity; the major source; gradually evolved; to cooperate with each other; to receive and hold deposits; to lend money at interest; to move money from one place to another; to earn profits; to provide financial services; to pay for expenses; to record banking operations; to issue banknotes; to give a passbook; to finance imports and exports.

Exercise 3. Translate the word combinations from Russian into English.

Сберегательная книжка; личные расходы; предлагать клиентам различные виды счетов; получать процент от денег; фиксировать банковские операции; основной источник дохода банка; широкий спектр финансовых услуг; личный счет; сберегательный счет; сотрудничать друг с другом.

Exercise 4. Complete the sentences.

1. Modern banks gradually evolved from … … … .

2. Banks are commercial enterprises that … … … .

3. Modern banks provide a …. … … of financial services.

4. … … … are used by individuals who wish to earn interest on the money in the bank.

5. The customer is given a passbook in which … … … .

6. … … … is the most profitable banking activity.

7. Major commercial banks in great cities … … ….

Exercise 5. Insert the necessary prepositions.

1. This business organization receives and holds deposits, lends money … interest and moves money … one place to another.

2. Commercial banks seek to earn profits … their owners.

3. Modern banks offer their customers different types … accounts.

4. Personal chequing accounts are used … individuals to pay … their expences.

5. Saving accounts are used … individuals to earn some interest … money … the bank

6. The functions … a bank are: 1) the provision … a safe deposit … money and valuables; 2) the lending … money; 3) the issuing … bank-notes.

7. Major commercial banks cooperate … each other.

8. A Central Bank stands … the apex and is responsible … the operation … the banking system.

Exercise 6. Answer the questions on the text.

1. What do all commercial banks do?

2. What is the oldest and the most important banking function?

3. What is the most profitable banking activity?

4. What services do modern banks provide?

5. What types of services do modern banks offer?

6. How are personal chequing accounts used by individuals?

7. Some interest is paid on a personal chequing account, isn’t it?

8. What kinds of accounts are used by individuals who wish to earn some interest on the money in the bank?

9. How do commercial banks finance imports and exports between countries?

10. What is the function of Central Bank?

Exercise 7. Speak about banks and their functions.