XI. Translate the following extract in written form:

An exchange is an organized meeting of persons in a permanent appointed place with the aim of buying and selling. The trading there is governed by certain rules and is limited to members of the exchange, who are known as brokers. The two chief types of exchanges are the commodity exchange and the stock exchange.

Commodity exchanges (or produce exchanges) have been established in important cities of Great Britain, the U.S.A. and other countries for trading in cotton, wool, timber, wheat, hides and skins and other such commodities.

Stock Exchanges are places where securities, stocks and bonds are sold and bought. The most famous stock exchanges are the Royal Exchange in London and the New York Stock Exchange.

XII. Read the text and answer the questions:

1. When is a market created?

1. Why are foreign exchange markets necessary?

2. What effects a change in the exchange rate?

Market place

A market is a set of transactions in which a particular kind of commodity is exchanged, and in which the transactions for this commodity among different individuals and firms are related.

There are markets for hundreds of thousands of things. Some of these things are tangible and satisfy individual desires, while others are intangible but also important in satisfying individual interests. These things are frequently referred to as products. Frequently, product markets are divided into two classes: goods and services. For example, a hamburger is a good, While a doctor's examination is a service. When you buy an automobile, you purchasing a good. When you have someone adjust a carburetter, however, you are purchasing a service.

A market is created when those who willingly supply a good, service, or resource exchange with those who desire to use, control, or consume a good, service, or resource.

When the money used in the international exchange is different from that used in the domestic economy, the person receiving payment in the foreign currency will want to exchange it for a domestic currency.

Hence, international trade creates markets for different kinds of money. Such markets are called foreign exchange or foreign currency markets.

A foreign exchange market is a market where one kind of money is traded for a different kind of money.

Changes in supply and demand in these markets change the rate at which one currency will be exchanged for another currency. As a consequence, the price of goods that are traded will change either because of a change in the price in economy where they are produced or because of a change in the exchange rate.

XIII. Read and remember some English idioms useful for businessmen:

1. Change hands - 1) to have a new owner - поміняти власника, перейти до нового власника; 2) to be sold; to have a new owner, e.g. This realty has never changed hands; змінити власника.

2. Pay on the nail - to pay on the exact date that money becomes due - зробити оплату/внести оплату точно в строк.

3. Pay through the nose - to pay excessive price - платити занадто високу ціну.