Министерство экономического развития и торговли Российской Федерации

Российский Государственный Торгово-Экономический Университет

Кафедра английского языка

старший преподаватель Попова М.Г.

ECONOMY AND FINANCE

( учебно-методическое пособие для студентов экономического факультета 2 курса )

Москва – 2012

Content

Unit 1. An Overview of the State Financial System………………………………………..3

Unit 2. Central Banking System…………………………………………………………….6

Unit 3. Commercial Banks…………………………………………………………………10

Unit 4. Business Organizations………………………………………..……………………14

Unit 5. The Stock Exchange, Shares………………………………………………………..19

Unit 6. The Stock Exchange, Bonds………………………………………………..………24

Unit 7. Foreign Trade…………………………………………….…………………………27

UNIT 1 An Overview of the State Financial System

Finance is the system of science of public revenue and expenditure or the provision of funds when they are needed.

As a system of monetary relations leading to formation, distribution and use of funds in the process of turnover between economic units finance falls into public finance and finance of economic entities. The financial system is a network of institutions through which firms and government units obtain the funds they require and put surplus funds to work. Financial intermediaries including banks, thrift (saving) institutions, pension funds and insurance companies channel funds from people and companies wishing to lend to those wishing to borrow.

Public finance has four major functions. It is the provision of essential services, the encouragement of control of particular sectors of economy, the implementation of the social policy and the encouragement of the growth of the economy as a whole.

Public finance is the provision of money (obtained through taxes) to be spent by national and local government authorities on projects of national and local benefit. Central government raises money from individuals and companies by direct and indirect taxation and spends money on goods and services, such as health and defense, wages, salaries and pensions. Local government receives grants from Central government and raises revenue mainly through local property taxes. From these resources it provides services: education, police, fire services, etc.

All governments have budgets, the major instruments of any financial system. They show the sources from which the revenue will be collected and lists the expenditures for various public purposes. A budget is the forecast for a specific period of time known as a financial or fiscal year.

public (n) – общественный, государственный

revenue (n) – доход, денежные поступления

public revenues – государственные доходы

expenditure (n) – трата, расход

to list the expenditure - перечислять расходы

public expenditure - общественно-государственные расходы, расходы на социальные нужд

provision (n) – снабжение, обеспечение, ассигнование нераспределенной прибыли на конкретную цель

to provide (v) – снабжать, обеспечивать

provision of funds – предоставление средств

turnover (n) - оборот

public finance – государственные финансы

entity (n) – (экономическая) единица, организация, предприятие

institution (n) – учреждение, организация

surplus (adj) – избыточный, лишний

surplus (n) – излишек, остаток

in surplus - в излишке, в избытке

intermediary (n) – посредник, агент, брокер; учреждение, выступающее посредником между поставщиками и потребителями финансовых ресурсов

thrift (saving) institutions – сберегательные учреждения

insurance (adj) – страховой

insurance (n) - страхование

to insure (v) - страховать

lend (v) – одалживать, давать в долг

borrow (v) – занимать, заимствовать

encouragement (n) – одобрение, поощрение, поддержка, стимулирование

to encourage (v) – одобрять, поощрять, поддерживать, стимулировать

implementation (n) – осуществление, выполнение

to implement (v) – осуществлять, выполнять

government (public) authorities – органы государственной власти

raise money (funds) – получать (добывать, занимать) деньги, мобилизовать капитал

direct and indirect taxation – прямое и косвенное налогообложение

property (n) – собственность, имущество

source (n) - источник

forecast (v) – прогнозировать, предсказывать

forecast (n) – прогноз, предсказание

Exercises

1. Answer the questions.

1) What is finance?

2) What does finance as a system of monetary relations lead to?

3) What parts can finance fall into?

4) What are financial intermediaries?

5) What are the major functions of public finance?

6) How do central and local governments raise money?

7) How do they use funds?

8) What do budgets show?

2. Translate into English.

Государственные доходы и расходы, предоставление средств, система денежных отношений, распределение и использование средств, государственные финансы, финансы организаций, сеть учреждений, избыточные средства, посредники направляют средства, желающие одолжить (дать в долг), желающие занять (взять в долг), основные функции, стимулирование контроля определенных секторов экономики; деньги, полученные через налоги; тратить деньги на здравоохранение и оборону, зарплаты и пенсии; налоги на имущество, обеспечивать услуги, различные общественные нужды.

3. Complete the text using the words:

Objectives, require, inflow, outflow, expenses, revenues, forecast, positive, responsible for

The Financial Management

The financial plan of a company includes the timing and the amounts of funds, as well as the 1)… and 2)… of money. Financial managers also 3) … the economic conditions, the company’s revenues, expenses and profits.

The plan starts and ends with the company’s 4) … . Managers review them and determine the funding they 5) … . Managers also compare the 6) … involved and the 7) … expected. It helps them predict cash flow. Management plans a strategy to make the ending cash 8) … , and accordingly works out the way the resources should be allocated (размещены).

Resources are invested according to the strategic plan of a company into materials and inventory, personnel and advertising, etc. Managers are 9) … implementation of this strategy, the whole process being supervised by the General Executive and the Board of Directors of the company.

4. Translate the questions into English and answer them.

1) Что включает в себя финансовый план компании?

2) Что еще прогнозируют финансовые менеджеры?

3) Чем начинается и заканчивается план?

4) Что сравнивают менеджеры?

5) Какова цель финансовой стратегии?

6) Во что инвестируются ресурсы?

7) Кто отвечает за выполнение финансовой стратегии?

8) Кем контролируется весь процесс?

5. Read the text and translate it into Russian.

Taxation

Taxes are a compulsory (принудительный) financial contribution (вклад) by a person or groups of persons to the expenditure of public authorities. In modern economies taxes are the most important source of government revenues. Taxes imposed (налагаемые) on income (on wages, salaries, profits, dividends, rent) and on capital are known as “direct” taxes. Taxes on commodities or services (товары и услуги) are known as “indirect” taxes.

Taxes have three functions:

- fiscal or budgetary, to cover government expenditure, to provide the public authorities with the revenue required for meeting the cost of defense, social services, interest payments on the national debt, municipal services, etc;

- economic, to promote stable economic growth;

- social, to increase the economic welfare (благосостояние) of the community.

Russian taxes provide revenue for three tiers (уровни) of the budget: federal, regional and local.

The major taxes paid to the budget are: profit tax, value-added tax (налог на добавленную стоимость), securities tax (налог на ценные бумаги).

Tax returns (декларации) are audited by tax authorities (налоговые органы) at the time they are submitted (подаваться).

We should say that along with cases of illegal evasion of tax obligations (незаконное уклонение от налоговых обязательств) there are legal ways of avoidance (минимизация налоговых обязательств) by which a person or a business may so arrange affairs as to minimize or even eliminate tax liability on property and income.

6. Chose the correct words to complete each sentence:

1) The tax on wages and salaries is called … tax .

a) value-added b) income

2) A tax that is levied at a higher rate on higher incomes is called a … tax.

a) progressive b) regressive

3) Property taxes, sales taxes, customs duties on import, etc. are … taxes.

a) direct b) indirect

4) Reducing the amount of tax you pay to a legal minimum is called … .

a) tax avoidance b) tax evasion

5) Making false declarations is called … and is illegal.

a) tax avoidance b) tax evasion

7. Summarize the information of the unit and speak on the topic: An Overview of the State Financial System