Bank and its classes. Bank is an institution that deals in money and its substitutes (заменители) and provides other financial services. Banks accept deposits and make loans and derive a profit from the difference in the interest rates. They also have the power to create money. The two major classes of banks are commercial and central banks. Commercial banks accept savings deposits, make loans and other investments, and offer financial services that facilitate (способствуют) the exchange of funds among individuals and institutions. In addition to (в добавок к) the profit derived from the difference in the interest rates, commercial banks change fees for various services. Central banks are involved in the issue of money and maintain the country’s foreign currency reserves. Central banks maintain the accounts of other banks and supervise their activities. Central banks act as bankers to governments, as the designer of monetary and credit policies, and as lenders of last resort to commercial banks in case of a financial crisis. Central banks also pay a significant psychological role (важная психологическая помощь) as guarantors of the monetary system. Central banks may be nationalized organizations and are subject to government control, but some of them can have independence from governmental supervision (государственное наблюдение).
To deal in
To make a loan
To derive a profit
A savings deposit
To charge fees for
A lender of last resort
I Agree or disagree with the following statements.
1) Bank trades in money. 2) Bank gives various financial services. 3) banks receive deposits. 4) Banks don’t make loans. 5) Banks derive a profit by skillfully deceiving people. 6) Commercial banks aid the exchange of funds among individuals and institutions. 7) Central banks act as bankers to organized crime. 8) Central banks act as the designers of default. 9) Central banks act as the designers of foreign policy. 10) Central banks act as lenders of last resort to counterfeiters. 11) Central banks play an important role as guarantors of the monetary system. 12) Central banks back up the accounts of the other banks. 13) Central banks keep the country’s foreign currency reserves. 14) Central banks back up the accounts of other banks. 15) Central banks oversee the activities of other banks. 16) Central banks may be private owned organizations. 17) Central banks are subject to shadow ministers. 18) Central banks are totally dependent on their bank customers.
II Translate the following words and phrases.
Торговать, сберегательный вклад на неопределенный срок под процент, способствовать, денежные средства, начислять комиссионные, валютная политика, кредитная политика, последний кредитор в критической ситуации, денежная система, вклад в банк, ссуда, извлекать прибыль, процентная ставка. 1. Банк торгует деньгами и их заменителями. 2. Банк обеспечивает различные финансовые услуги. 3. Банки принимает вклады. 4. Банки предоставляют займы. 5. Банки получают прибыль из разницы в процентных ставках. 6. Банки могут быть независимыми от правительственного контроля.
IV Complete the following statements
1). Bank deals in ... 2). Bank provides ... 3). Bank accept ... 4). Banks make ... 5). Banks derive ... 6). Banks have ... 7). The two major classes of banks are ... 8). Commercial banks accept ... 9). Commercial banks make ... 10). Commercial banks offer ... 11). Commercial banks change ... 12). Commercial banks ae involved in ... 13). Central banks maintain ...14). Central banks supervise ... 15). Central banks act as ...16). Central banks play ... 17). Central banks may be ... 18). Central banks are subject to ... 19). Central banks can have ...
Bnaks are financial service firms, producing and selling the professional and prudent management of the public as well as performing many other roles in the economy. Their success or failure depends on their ability to identify the services with the public demands, produce those services efficiently, and sell them at a competitive price. Banks are financial institutions that offer the widest range of services – especially credit, savings, and payment services – are the widestrange functions of any business firms in the economy.
Banker’s services cover an enourmous range of activities today. A full list of the most frequently used services of rules would begin with:
1 Current account services. They are extended to anyone whom banks regard as reliable. A new depositor should be recommended by his employer or should present a reference. İf this proves satisfactory the bank will accept a deposit from him which will be entered in his current account.
A cheque book will then be issued free of charge. Once the customer has received his cheque book he may use the cheque book to make the banker to pay out sums of money from his current account. Money is being paid into and paid out off the account as often as the customer finds convenient.
2. Deposit account services. Companies and individuals can deposit cash resources that are not needed at present. They can withdraw(забирать) the money either any day they needed it or after a certain period in case of time deposits.
3. Saving account services. It enables small savers to put money away for particular purposes, for example, for holidays .Other services: foreign exchange ; foreign exchange transactions: services in foreign trade payments; discounting bills and exchange; granting loans; investing management services; cash dispensers; safe custody; economic information, banker’s credit cards and many others.
Major commercial banks in such cities as Tokyo, Paris, Rio cooperate with each other. In this way they finance in ports and exports between countries.
An importer buys merchandise from another country using the currency of that country. For that purpose he buys this currency from the foreign exchange department of his bank. And in the same way if an exporter receives foreign money from sales to other countries, he sells this currency to his bank. By this method the currency of any country can usually be exchanged.
Nationwide and worldwide banks grant more installment loans (часть долга, взнос) to consumers than any other financial institutions and they are among the leading buyers of bonds (облигация) and notes issued by governments to finance public facilities. Banks are among the most important sources of short-term (working capital) loans to business and have become increasingly active in recent years in making long-term business loans for a few plant and equipment. Their deposits are the principal money medium for global transactions and the principal channel for government economic policy to stabilize the economy. For all these reasons and more, banks are one of the most important of society’s institutions.
1. Give Russian equivalents to the word combinations:
To identify the financial services with the public demands
To produce the services (the management) efficiently
To cover an enormous range of activities
To extend services to
To regard as reliable
To present a reference
To accept a deposit from smbTo pay money into (out off) the account
To issue a cheque book free of charge
To deposit cash resources
To withdraw money
To enable small savers to put money away
For particular purposes
To be the principal money medium for
A deposit account
A saving account
A cash dispenser
To grant (provide/give/offer) a loan
Investing management services
An installment loan
2. Answer the following questions to discuss the details of the text.
1. What kind of financial institutions are banks?
2. What does success or failure of banks depends on?
3. Do banker’s services cover an enormous range of activities today?
4. What are the most important services of banks?
5. Whom are current account services extended to?
6. What is the procedure of opening current accounts?
7. How can the customer use the cheque book?
8. What kind of banker’s services are deposit accounts?
9. For what purposes are saving accounts used?
10. What is the role of banks in international trade?
11. What is the role of banks in stabilizing the economy?