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V. Translate the following terms into English:

1. стратегия «снятия сливок»

2. стратегия «проникновения на рынок»

3. ценовая дискриминация

4. индекс розничных цен

5. ползущая инфляция

6. поднимать уровень цен

7. средство сохранения стоимости

8. номинальная стоимость

9. внутренняя (реальная) стоимость

10. законное платежное средство

Test 6 (Banking, Central Banking, Loans in the uk)

I. Match the terms with their definitions:

1. Legal tender

A. a bank officially appointed by law to work closely with the government

2. Central bank

B. a joint stock bank

3. The balloon loan

C. the form of money in which a person has a right by law to pay a debt

4. Commercial bank

D. a loan where the repayments are unevenly distributed throughout the life of the loan

5. Fund

E. an amount of money borrowed by an individual or a company

6. Loan

F. amounts of money

II. Put the words in the correct order:

1. The, of, on, to, and, a, its, nature bank, setting, largely, which, according, function, time, vary, central, depends.

2. Loans, as, and, are, irregularly, such, balloon, bullet, repaid.

3. Rate, as, loan, interest, the, is, the, the, in, market, determined, price, equilibrium.

4. “Legal tender”, coins, of, the, in, and, status, notes, have, circulation.

5. Methods, central, banking, objectives, and, widely, commercial, differing, involve, and, functions.

III. Fill in the gaps with the words or word combinations in italics:

Transactions, customer, certified, loan, cheque, cash, cheque, currency, balloon

1. The most common means of payment, particularly for significant sums of money, is the … since it is both safer and more convenient than using … .

2. Central banking is an activity separate from ordinary … banking, because a central bank usually has few … with private customers, dealing primarily with commercial bank and with the national government.

3. If a … wishes to make payments of large amounts of money by … and is not known to the creditor, then he may obtain a “… cheque” from the bank.

4. The hard and the soft … is given by one country to another on condition that the borrower repays it in the lender’s … or the borrower’s currency.

5. The … loan is a loan where the repayments are unevenly distributed throughout the life of the loan.

IV. Are the following statements true or false? Correct the false ones:

1. Paper money consists of notes issued by commercial banks.

2. Coins and bills of every denomination are called legal tender.

3. Central bank is a bank officially appointed by law to work closely with the government.

4. Commercial banking system is profit motivated.

5. Functions of commercial banks are unlimited.

6. Certified cheques are always guaranteed by a bank.

7. Bills of exchange are now used mainly in foreign trade.

8. The interest rate can’t be determined as the equilibrium price in the loan market.

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