Economy, Finance, Management


Экономическая теория и математическое моделирование

Economics limits itself to the study of the material aspects of live, and while it is true that man cannot live by bread alone, it is equally true that he cannot live without it. An underlying problem in economics is that of survival and we must examine how people have solved or are trying to solve this problem.



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Составители:  А. А. Авакян,  И. В. Кирсанова


    Экономика, финансы, менеджмент:   Методические указания. (часть 1)    /Уфимск. гос. авиац. тех. ун-т; Сост.: А. А. Авакян,           И. В.Кирсанова   Уфа, 2003,    43  с.



Unit 1  The individual and Society

Unit 2    Management

Unit 3  Money

Unit 4  Functions of money

Unit 5  The structure and functions of a bank

Unit 6  Banking and monetary policy

Unit 7  Interest Rates

Unit 8     Types of Accounts



Most introductory textbooks on Economics begin by posing the question, 'What is Economics about?' Although Economics is a vast subject and precise definitions are usually very complex, it is not a difficult matter to give a simple and sensible answer to the basic question. Economics is essentially a study of the ways in which people apply their knowledge, skills, and efforts to the gifts of nature in order to satisfy their material wants.

Economics limits itself to the study of the material aspects of live, and while it is true that man cannot live by bread alone, it is equally true that he cannot live without it. An underlying problem in economics is that of survival and we must examine how people have solved or are trying to solve this problem. In the more advanced countries this may seem a very remote problem few people, if any, are conscious of a life or death struggle for existence. In many other countries, however, the continuity of human existence is by no means assured starvation is a very real prospect for millions of human beings.

Even in the prosperous, economically advanced countries there is an aspect of survival which attracts little or no attention from those of us fortunate enough to live in these areas. This is our relative helplessness as 'economic' individuals. The Indian peasants have an extremely low standard of living, yet, left completely to their own devices, they can survive. Such people have the abilities to sustain life without outside assistance. A large percentage of the human race still lives in very small self-sufficient peasant communities. These people experience great poverty, but they can provide on an individual basis, for their own survival. They have a degree of economic independence.

If we now turn to the inhabitants of New York, London, or any other great metropolitan area we must observe the opposite situation a high standard of living together with an extreme economic dependence. The inhabitants of cities are totally incapable of providing for themselves, directly, the means of their survival. They could not feed themselves, or build their own houses. Such people depend, each and every day of their lives, on the efforts and cooperation of many thousands of specialist workers. In industrialized societies a high standard of living is possible only if the organized cooperation of large numbers of people can be guaranteed. In the economically developed countries we are rich, not as individuals, but only as members of a complex economic organization.


  1.  Read and translate the text

  1.  Learn the vocabulary:

advanced countries  - передовые страны

apply (v.)    - применять, использовать

completely (adv.)  - полностью

degree (n.)  - степень

depend on (v.)  - зависеть

directly (adv.)  - прямо, непосредственно

effort (n.)   - усилие

equally (adv.)  - равным образом

essentially (adv.)  - главным образом

examine (v.)   - рассматривать, исследовать

extremely (adv.)  - крайне

however (adv.)  - однако

inhabitant (n.)  - житель

means (n.)   - средство

opposite (adj.)  - противоположный

percentage (n.)   - процент, процентное отношение

pose a question   - ставить вопрос

poverty (n.)  - бедность

provide (v.)   - обеспечивать, снабжать

remote (v.)   - далекий, не имеющий прямого отношения

satisfy wants   - удовлетворять потребности

self-sufficient (adj.)  - независимый в экономическом отношении

solve a problem   - решать проблему

skill (n.)    - умение, мастерство, квалификация

standard of living  - уровень жизни

struggle for survival  - борьба за выживание

sustain life   - поддерживать жизнь

totally (adv.)   - полностью

vast (adj.)   - обширный

  1.  Fill in the blanks using the following words:

inhabitants, precise, prospect, vast, standard, percentage, means, human

1.  Economics is a ... subject and ... definitions are very complex.

2.  Starvation is a very real ... for millions of... beings.

3.  The Indian peasants have an extremely low... of living.

4.  A large ... of the human race still lives in small self-sufficient peasant communities.

5.  The ... of cities are totally incapable of providing for themselves the ... of their survival.

4. Suggest the English equivalents to the following words and word combinations

точное определение, простой ответ, основной вопрос, изучение материальных сторон жизни, развитые страны, борьба за существование, уровень жизни, относительная беспомощность, без посторонней помощи, испытывать крайнюю бедность, степень экономической независимости, наблюдать противоположную ситуацию, жители городов, члены сложной экономической организации

5. Put the sentences into Past and Future Simple

  1.  It is not a difficult matter to give a simple answer to that basic question.
  2.  People apply their knowledge and efforts to the gifts' of nature in order to satisfy their material wants.
  3.  Even in the prosperous countries there is an aspect of survival.
  4.  This problem attracts little attention.
  5.  Such people have the abilities to sustain life without outside    assistance.
  6.  They experience great poverty.

7.   They depend on the efforts and cooperation of many thousands of specialist      workers.

6.   Answer the following questions:

1.  What do most introductory books on Economics begin by?

2.  What does Economics study?

3.  What does it limit itself to?

4.  What is an underlying problem of Economics?

5.  What categories of people can survive without outside assistance?

6.  Why do they have a very low standard of living?

7.  Why aren't the inhabitants of big cities economically independent?

8.  Why is a high standard of living impossible without a cooperation of large numbers of people?

7.  Find synonyms among these words:

study, precise, complex, subject, essentially, use, exact, matter, basically, mainly, apply, developed, examine, advanced, completely, help, community, totally, assistance, society, build, gift, construct, present.

  1.  Find antonyms among the following words:

begin, difficult, high, poor, inside, wealth, finish, easy, low, prosperous, outside, poverty, capable, dependence, incapable, directly, large, independence, indirectly, small.

  1.  Home reading. Read the text and explain the meanings of the following terms:

      ‘Capital’, ‘Wealth’, ‘Fixed capital’, ‘Money’:



Capital is a man-made resource. Any product of labour and land which is reserved for use in the further production is capital.

Capital was created when people began to make simple tools and implements to assist them in the production of food, the hunting of animals, and in the transportation of their possessions.

It might be helpful at this stage to deal with the confusion which commonly arises over the meanings of three important terms: capital, money and wealth.

Capital, as already indicated, means any producted means of production.

Wealth is quite simply the stock of all those goods which have a money value. Capital, therefore, is an important part of the community’s wealth.

Money is a claim to wealth. From the standpoint of the community as a whole, money is not wealth, since we can not count both the value of real assets and the value of the money claims to those assets. From the point of view of the individual citizen, however, money represents a part of his personal wealth, since he sees it as a claim on assets held by other people. To the individual business person, therefore, any   money he possesses he regards as capital, since it gives him a claim on resources now possessed by others. We must be quite clear, however, that money is not part of the national wealth.

Capital is usually divided into two types: that which is used up in the course of production and that which is not.

Working capital consists of the stocks of raw materials, partly finished goods held by producers. These stocks are just as important to efficient production as are the machines and buildings. Stocks are held so that production can proceed smoothly when deliveries are interrupted and so that unexpected additional orders for finished goods can be met without changing production schedules. This kind of capital is sometimes called circulating capital because it keeps moving and changing. Materials are changed into finished goods which are then exchanged for money and this is used to buy more materials.

Fixed capital consists of the equipment used in production – buildings, machinery, railways and so on. This type of capital does not change its form in the course of production and move from one stage to the next – it is ‘fixed’.



 Management is the process of coordinating the resources of an organization to achieve the primary organizational goals. Depending on its size an organization may employ a number of specialized managers who are responsible for particular areas of management. A very large organization may employ many managers, each responsible for activities of the management area. In contrast, the owner of a sole proprietorship may be the only manager in the organization. Managers are concerned with the following main resources:

 * Material resources are physical materials and the equipment used by an organization to make a product. For example, cars are made on assembly lines. These assembly lines and the buildings that house them are material resources.

* The most important resources of any organization are its human resources – people. Some firms believe that their employees are their most important assets. To keep employees content, a variety of incentives are used, including higher-than-average pay, flexible working hours, recreational facilities, lengthy paid vacations, cafeterias offering inexpensive meals, etc.

* Financial resources are the funds the organization to meet its obligations to various creditors. A grocery store obtains money from customers and uses a portion of that money to pay the wholesalers from which it buys food. A large bank borrows and lends money. A college obtains money in the form of tuition, income from its endowments, and federal grants. It uses the money to pay utility bills, insurance premiums, and professors' salaries. Each of these transactions involves financial resources.

* Finally, many organizations increasingly find they cannot ignore information. External environment – including the economy, consumer markets, technology, politics, and cultural forces – are all changing rapidly that an organization which does not adapt will probably not survive. And, to adapt to change, the organization must know what is changing and how it is changing. Companies are finding it increasingly important to gather information about their competitors in today's business environment.

It is important to realize that these are only general categories of resources. Within each category there are hundreds of more specific resources, from which management must choose those that can best accomplish its goals. Managers must coordinate this complex group of specific resources to produce goods and services.


1. Learn the vocabulary

1. application    применение

2.  skill      мастерство

3. employ     нанимать

4. particular     особый, специфический

5  proprietorship    собственность

6. be concerned with   заниматься, иметь дело с чем-л.

7. assembly line    конвейер

8. incentive     стимул, побудительный мотив

9. recreational facilities   места отдыха и развлечений

10. meet obligations   выполнять обязательства

11. tuition     плата за обучение

12. endowment    пожертвование, благотворитель-

      ный взнос

13. grant      субсидия, безвозвратная ссуда

14. utility     предприятие коммунального об-


15. competitor     конкурент

2. Answer the following questions

1. What can you say about management in general?

2. Why does a large organization employ many managers?

3. What is important to an organization?

4. What can you say about management as a process?

5. What main resources are managers concerned with?

6. What incentives are used to keep employees content? Why?

7. How does an organization obtain financial resources? Give some examples.

8. What should an organization do to survive?

3. Find the English equivalents using the text

 Нанимать менеджеров, владелец единоличной собственности, основные цели организации, длительный оплачиваемый отпуск, давать деньги в долг, оплачивать счета предприятий коммунального обслуживания, страховая премия, (финансовая) операция, приспособиться к изменению, осуществить цели, гибкий график работы, заплатить оптовикам, считают все более важным, потребительский рынок, часть денег, собирать информацию о конкурентах, чтобы заинтересовать служащих.

4. Fill in the blanks

1. The owner of a sole proprietorship may be the only … in the organization.

2. Management is the process of coordinating the resources of an organization to achieve the … of the organization.

3. Managers are concerned with four types of … .

4. Material resources are … resources.

5. To keep employees content a variety of … are used.

6. A large bank … and … money.

7. External environment is charging so rapidly that an organization which does not … will probably … .

8. Companies are finding it increasingly important to gather … about their … .

9. Managers must coordinate the complex group of specific resources to produce … and … .

5. Translate into English

1. Менеджмент – это процесс координации ресурсов организации для достижения организационных целей.

2. Менеджеры занимаются четырьмя видами ресурсов: материальными, финансовыми, людскими и информационными.

3. Наиболее важными ресурсами любой организации являются ее людские ресурсы.

4. Для привлечения служащих используется ряд поощрений.

5. Материальные ресурсы – это материалы, из которых изготовлена продукция, а также оборудование, используемое для ее производства.

6. Финансовые ресурсы – это фонды, которые использует организация для выполнения своих обязательств перед различными кредиторами.

7. Внешнее окружение, включая экономику, потребительские рынки, технологию, политику и культурные факторы, изменяется очень быстро.

8. Организация, которая не приспосабливается к внешнему окружению, может не выжить.

9. Компании считают все более важным собирать информацию о своих конкурентах.

6. Speak on the following

1. General definition of management.

2. Material and human resources.

3. Financial and informational resources.

7. Home reading. Read and translate the text


An organizational structure can be divided more or less horizontally into areas of management. The most common areas are finance, operations, marketing, human resources, and administration. Depending on its purpose and mission, an organization may include other areas as well – research and development, for example, or risk management.

 A financial manager is primarily responsible for the organization's financial resources. Accounting and investment are specialized areas within financial management. Because financing affects the operation of the entire firm, many of the presidents of the largest companies are people who got their “basic training” as financial managers

 An operation manager creates and managers the systems that convert resources into goods and services. Traditionally, operations management is equated with the production of goods. However, in recent years many of the techniques and procedures of operations management have been applied to the production of services and to a variety of nonbusiness activities

 A marketing manager is responsible for the exchange of products between the organization and its customers or clients. Specific areas within marketing are marketing research, advertising, promotion, sales and distribution.

 A human resources manager is in charge of the organization's human resources programs. He or she engages in human resources planning, design systems for hiring, training and appraising the performance of employees, and ensures that the organization follows government regulations concerning employment practices.

 An administrative manager (also called a general manager) is not associated with any specific functional area but provides overall administrative leadership. A hospital administrator is a good example of an administrative manager. He coordinates the activities of specialized managers in all these areas.




The work which people undertake provides them with money. People buy essential commodities with money. All values in the economic system are measured in terms of money. Our goods and services are sold for money, and that money is in its turn exchanged for other goods and services. Coins are adequate for small transactions, while paper notes are used for general business. Originally, a valuable metal (gold, silver or copper) served as a constant store of value, and even today the American dollar is technically 'backed' by the store of gold which the US government maintains. Because gold has been universally regarded as a very valuable metal, national currencies were for many years judged in terms of the so-called 'gold standard'. Nowadays national currencies are considered to be as strong as the national economies which support them.

Valuable metal has generally been replaced by paper notes. These notes are issued by government and authorized banks, and are known as 'legal tender'. Other arrangements such as cheques and money orders are not legal tender. They perform the function of substitute money and are known as 'instruments of credit'. Credit is offered only when creditors believe that they have a good chance of obtaining legal tender when they present such instruments at a bank or other authorized institutions. If a man's as-sets are known to be considerable, then his credit will be good. If his assets are in doubt, then it may be difficult for him to obtain large sums of credit or even to pay for goods with a cheque.

The value of money is basically its value as a medium of exchange or as economists put it, its 'purchasing power'. This purchasing power is dependent on supply and demand. The demand of money is reckonable as the quantity needed to effect business transactions. The demand for money is related to the rapidity with which the business is done. The supply of money is the actual amount in notes and coins available for business purposes. If too much money is available, its value decreases. This condition is known as 'inflation'.

The British currency is the pound sterling. In each pound there are 100 pence. Pounds are indicated by the symbol £ before the amount. Pence are indicated by the letter 'p'. Five pounds is written therefore as £ 5, fifty pence as 50 p. If one wants to combine the two, the 'p' is dropped. For example, nine pounds and fifty-seven pence is written as £ 9.57.

British currency uses both notes and coins: the one pound piece (Ј1), the fifty pence piece (50 p), the twenty pence piece (20 p), the ten pence piece (10 p), the five pence piece (5 p), the two pence piece (2 p), and the one pence piece (1 p). Each coin has the date it was minted stamped on one side.

There are five denominations of notes. The lowest note in value is the £ 5 note, the highest is the Ј100 note. In between these there are the £ 10, 20 and £ 50 notes. Every note has a serial number to show when it was issued and a watermark to pre-vent forgeries.


  1.  Read and translate the text into Russian

2.  Learn the words. Cover the words and test your memory, while looking at the translation:

commodity   - товар (сырьевой)

goods    - товары

coins    - монеты

transaction   - сделка

copper    - медь

currency    - валюта

legal tender   - законное платежное средство

assets    - активы

purchasing power  - покупательная способность

demand    - спрос

supply    - предложение

forgery    - подделка

money order   - платежное поручение

3.  Make sentences using the following words:

1.  one, money, is, man's, inventions, greatest, of.

2. is, it, tool, essential, of, an, civilization.

3.  take, the, exchange, of, may, barter, form.

4.  will, barter, requirements, quite, man's, adequately, serve.

5.  barter, the, system, very, and, inefficient, proves, frustrating.

6.  system, very, becomes, exchange, of, cumbersome, this.

7.  upon, a, depends, it, coincidence, wants, of, double.

8.  discovered, a, arrangement, man, more, much, convenient.

9.  removes, the, it, of, the, barter, major, system, difficulty.

10.  exchanges, are, such, for, granted, taken.

11.  would, be, they, without, inconvenient, use, of, the, money.

12.  is, problem, exchange, the, rates, solved, of, easily.

13.  is, to, deferred, it, serve, payment, means, a, as, of.

4.  Give 3 forms of the verbs:

to be, to have, to give, to apply, to satisfy, to live, to study, to examine, to solve, to leave, to survive, to experience, to provide, to turn, to observe, to feed, to build, to depend, to guarantee

5.  Fill in the blanks using verbs in brackets:

1.  Although Economics ... a vast subject and precise definitions ... usually very complex, it... not a difficult matter to give a simple answer to the basic question (to be).

2.  Economics ... itself to the study of the material aspects of life (to limit).

3.  We must examine how people have solved or ... to solve this problem (to try).

4.  It... little attention from those of us fortunate enough to live in these areas (to attract).

5.  A large percentage of human race still... in small self-sufficient communities (to live).

6.  Translate and answer the questions:

Для каких  целей использутся деньги?

От чего зависит прочность национальной валюты?

Что такое "законное платежное средство" ?

При каких условиях может быть предоставлен кредит?

Что такое "спрос на деньги"?

Что такое "предложение денег" ?

Какие существуют достоинства британской валюты?

7. Put in prepositions and translate sentences:

1.  Monetary policy is concerned with the cost... money.

2.  Bank-notes and coins are not the most important form ... money ... developed economies.

3.  Cheques didn't come ... general use ... the second half of the seventeenth century.

4.  A payment from one person ... another merely requires that the banker reduces the amount ... one deposit and increases it ... another.

5.  The transmission ... payments ... means ... cheques creates problems when the person making the payment has an account... a different bank ... the person receiving the payment.

6.  Most countries have a central bank, which is responsible ... the operation ... the banking system.

7.  Several merchant banks date back ... the nineteenth century.

8.  ... recent years there has been a considerable extension ... the range ... financial services offered ... building societies.

8. Home reading. Read and retell the text in English and Russian:


The Bank Charter Act of 1844 followed a long dispute about the control of the money supply and whether the value of the note issue should be allowed to exceed the stock of gold available to support it. The Act placed a statutory limit on the fiduciary issue (that part of the note issue which was not backed by gold) and restrictions were placed on the issue of notes by joint stock banks other than the Bank of England. In fact, these regulations were framed so that the passage of time would eventually leave the Bank of England as the sole note-issuing authority in England and Wales. The last private bank of issue in England surrendered its rights in 1921.

Apart from relatively short periods of emergency when conversion was suspended, all bank-notes, until 1914, were convertible into gold. Convertibility on a restricted basis was restored in 1925, but finally abandoned in 1931. Since that time Bank of England notes have been wholly inconvertible and we have now reached the stage where our bank-notes, while still carrying a 'promise to pay' printed on their faces, are no more than token money. This is also true of the coinage; the commodity value of the coins is but a tiny fraction of their money value. Nevertheless the notes and coins are universally acceptable, the fact that they have no real commodity value, and are not backed by gold, in no way affects their ability to serve as money.



A medium of exchange

As we have already explained, the use of money as a medium of ex-change makes possible a great extenuation of the principle of specialization. In an advanced society the use of money allows us to exchange hours of labour for an amazing variety of goods and services. We can exchange, for example, two weeks' labour for a holiday abroad just as easily as we can exchange it for a piece of furniture or a year's rent on a television set. Such exchanges are taken for granted yet they would be inconvenient without the use of money.

A measure of value

The first step in the use of money was probably the adoption of some commodity as a unit of account or measure of value. Money, most likely, came into use within the barter system as a means whereby the values of different goods could be compared. The direct exchange of goods for goods would raise all sorts of problems regarding valuation. For example 'How many bushels of corn are equal in value to one sheep, if twenty sheep exchange for three cows and one cow exchanges for ten bushels of corn?' The problem of exchange rates is easily solved when all other commodities are valued in terms of a single commodity which then acts as a standard of value. Money now serves as such a standard and when all economic goods are given money values (i.e. prices), we know, immediately, the value of one commodity in terms of any other commodity.

 A store of value

Once a commodity becomes universally acceptable in exchange for goods and services, it is possible to store wealth by holding a stock of this commodity. It is a great convenience to hold wealth in the form of money. Consider the problems of holding wealth in the form of some other commodity, say wheat. It may deteriorate, it is costly to store, may be insured, and there will be significant handling costs in accumulating and distributing it. In addition, its money value may fall when it is being stored. The great disadvantage of holding wealth in the form of money has become very apparent in recent years during periods of inflation its exchange value falls.

A means of making deferred payments

An important function of money in the modem world, where so much business is conducted on the basis of credit, is to serve as a means of deferred payment. When goods are supplied on credit, the buyer has immediate use of them but does not have to make an immediate payment. The goods can be paid for three, or perhaps six, months after delivery. In the case of hire purchase contracts, the buyer takes immediate delivery but pays by means of installments spread over one, two, or three years.

A complex trading organization based upon a system of credit can only operate in a monetary economy. Sellers would be most unlikely to accept promises to pay in the future which were expressed in terms of commodities other than money. They would have no idea how much of the commodities they would need in the future, and if they do not want them, they face the trouble and risks involved in selling them. Sellers will accept promises to pay expressed in terms of money because, whatever the pattern of their future wants, they can be satisfied by using money.


Read and translate the text

Learn the vocabulary:

acceptable (adj.)  - приемлемый

adequately (adv.)  - адекватно

arrangement (n.)  - устройство

article (n.)    - изделие, товар

coincidence (n.)  - совпадение

consider (v.)   - рассматривать 

cumbersome (adj.)  - громоздкий, обременительный

deferred payment  - отсроченный платеж

delivery (n.)   - доставка

deteriorate (v.)   - портиться

devote (v.)   - посвящать

exchange rate   - обменный курс

face (v.)    - сталкиваться с чем-то

frustrating (adj.)  - бесполезный

hire purchase   - аренда с опционом покупки

hold (v.)    - держать

invention (n.)   - изобретение

installment (n.)   - рассрочка

insure (v.)    - гарантировать, страховать

laborious (adj.)   - затрудненный

medium (n.)   - средство, способ

merely (adv.)   - только, просто

need (n.)    - потребность, нужда

payment (n.)   - платеж

promise (n.)   - обещание

rely upon (v.)   - полагаться на

remove (v.)   - удалять

seek out (v.)   - искать

similar (adj.)   - подобный, похожий

spread (v.)   - распределять, распространять

stock (n.)    - запас

store (v.)    - хранить, запасать

surplus (n.)   - добавка

trading (adj.)   - торговый

whereby (adv.)   - посредством чего-то

3.  Translate and answer the questions:

Каковы основные функции денег?

От чего зависит роль денег?

Почему в последнее время стало невыгодно хранить состояние в денежной форме?

Почему деньги являются лучшим способом отсроченного платежа?

Как работают торговые организации в системе денежной экономики?

Using suffixes -er, -or, -ier, -ent, -ial, elc., give nouns which are related to following:









Find synonyms among the following words:

means, form, tool, frustrating, obtain, useless, need, instrument, shape, get, medium, commodity, general, require, labour, store, common, article, work, stock, deteriorate, significant, spoil, essential, apparent, conduct, purchase, evident, carry out, buy

6.  Fill in the blanks using given words:

granted, convenience, monetary, commodity, money, direct, inventions, barter, valuation

1.  Money is one of man's greatest....

2.  In the absence of some form of money, exchange may take the form of... .

3.  If a ... is generally acceptable in exchanging for goods and services, it is ....

4.  Such exchanges are taken for ....

5.  The ... of goods for goods would raise all sorts of problems regarding ....

6.  It is a great... to hold wealth in the form of money.

7.  A complex trading organization based upon a system of credit can only operate in a ... economy.

7.  Make up questions to the words in italics:

1.  In the  absence of some form of money, exchange may take the form of barter.

2.  As the extent of specialization increases, the barter system proves very inefficient.

3.  A specialist metal worker must seek out a large number of other specialists in order to obtain, by barter, the variety of goods he needs.

4.  The alternative is to change his skins for some other article.

5.  The use of money makes possible a great extension of the principle of specialization.

6.  The use of money allows us to exchange hours of labour for an amazing variety of goods and services.

8.  Home reading. Read and translate the text. Suggest the title:

Banknotes and coins are not the most important form of money in developed economies. In the UK about 90%, by value, of all transactions are settled by means of cheques. But cheques themselves are not money, they are merely orders to bankers to transfer money from one person to another. The money so transferred consists of bank deposits. If there is no money in the form of a bank deposit then any cheques drawn on that account will be worthless.

Cheques were used as early as the second half of the seventeenth century, but they did not come into general use until the second half of the nineteenth century. The Bank Charter Act of 1844 put strict limitations on the note issue at a time when the output of goods and services was expanding rapidly The need for an expansion of the money supply to keep pace with increasing output greatly stimulated the use of bank deposits.

This most developed form of money (i.e. bank deposit) consists of entries in the banks' ledgers, or more likely nowadays, of records on computer tapes. The greater part, in value terms, of the payments made each day are carried out by adjustment made to the totals in different bank deposits. A payment from one person to another merely requires that the banker reduces the amount in one deposit and increases it in another. Transferring money, therefore, has become little more than a kind of bookkeeping exercise; the money itself does not consist of some physical tangible commodity.




As you read the passage, find the answers to the questions given below:

The English commercial banks have branches in all the major towns and a similar sin id lire and mode of working is common to them all. The owners are the shareholders. At the outset they provide the necessary capital. They are all organized on the joint stock principle and arc registered public companies.

The Chairman and Board of Directors arc elected by the ordinary shareholders at the Annual General Meeting and are responsible for the efficient management of the bank. The Board is concerned with the overall policy of the bank and the major decisions which put that policy into effect.

The Board will appoint a Managing Director who is directly responsible to them and a member of the Board. They will also appoint the most senior executives who in turn appoint the rest of the clerical staff who will be responsible in different capacities for the day to day running of the bank.

The essence of a bank's activities is the collection of deposits through cur-rent accounts and deposit accounts and the use of these funds to provide loans or funds for investment. The current account is the one commonly held and is drawn upon by cheques and standing orders. The deposit account is more in the nature of a savings account. The pattern of investments which a bank decides upon is crucial because, on the one hand, the bank must use the funds wisely to make a profit and, on the other, funds must be available for depositors to withdraw when they wish to do so.

At the end of each business year the Directors recommend and the Annual General Meeting decides how much of the profit should be distributed to the shareholders as dividend, and how much should he retained in the business. In preparation for the Annual General Meeting, a bank publishes its Report and Accounts. These must be sent to every shareholder and are also available for anyone with an interest in the affairs of the hank. From the published accounts shareholders can easily determine the total profits the bank has earned and how much is available for distribution.


  1.  Find in the text English equivalents for the following words:

account     - счет

accountant    - бухгалтер

board of directors   - совет директоров

capital     - капитал

clerk     - служащий

current account    - текущий счет

deposit account    - депозитный счет

depositor     - вкладчик

dividend     - дивиденд

draw upon an account (v)  - снимать со счета

invest (v)     - инвестировать

interest     - процент, процентный доход

joint stock    - акционерный капитал

loan      - ссуда, заем, кредит

profit     - прибыль

reserve     - резерв, запас

run the hank (v)    - управлять банком

shares     - акции

shareholder    - акционер

statement     - выписка из банковского счета

standing order    - постоянное поручение клиента банку

  1.  Find the nouns that are qualified in the passage by these adjectives and make up sentences of you own:

clerical           over-all

necessary        day to day

published         total

  1.  Fill in the blanks with proper words or phrases:

1.  The hoard appoints the..... and the .....

2.  An employee in a hank who pays out and receives money is called a...

3.  The Board of Directors is elected by the......

4.  The Board may distribute..... to the shareholders out of the profits once or twice a year.

5.  The ..... may be high even after all the hank's expenses are paid.

6.  A bank will need to seek approval for a large ..... to a customer.

7.  The Board will discuss the bank's ..... in other businesses.

  1.  Find proper definition:



1. Capital

2. Dividend

3. Deposit account

4. Retained profits

5. Current account

a) a sum of money paid to a shareholder out of profits in relation to his investment

b) an account in a bank from which money can be drawn by cheque

c) profits not paid out as dividends and added to the surplus

d) the money value of the shareholders stake in the bank or company

e) an account in a bank on which the depositor receives interest

  1.  Role play:

1.  You are a bank manager mid you were asked for a loan.

2.  Consider the things you will worry about the loan and the questions you will want to be answered; you should give particular consideration to:

 whether you will have sufficient funds to make this loan,

 whether you think the customer will he able to repay loan and interest,

 whether you would offer all or part of what is being asked,

 whether you need any further evidence of the credit-worthiness of your customer and how you would get it,

 what sort of security would you accept,

 what kind of term would you offer.

  1.  Translate the following word combinations. Make up sentences of your own:

an essential tool of civilization, the direct exchange of goods and services, the great disadvantage of barter, a laborious system of exchange, an amazing variety of goods and services, a piece of furniture, the value of one commodity, a means of making deferred payments, in the case of hire purchase contacts

7.      Make up sentences using these words:

1.  limits, of, economics, to, study, the, of, aspects, the, material, itself, life.

2.  problem, an, is, underlying, economics, in, that, survival, of.

3.  seem, may, a problem, very, this, remote, very.

4.  very, starvation, a, prospect, millions, for, real, human, beings, is, of.

5.  peasants, an, Indian, have, living, of, the, low, extremely, standard.

6. people, great, experience, poverty, these.

8.  Home reading. Read and translate the text. Give a short summary of it 


The idea of banking, insurance and consulting business all being offered by the same organization is increasingly affecting traditional banking practices. In pursuit of a new source of profit, many banks have strayed far from the business of taking and safeguarding the public's deposits and running the payment systems. The change made banks look different in from a decade ago.

This change is already seen in America, Europe and Japan. American and Japanese commercial banks are pushing their merchant banking as de-eply into the securities business as they feel the regulators will let them get away with. In America, Bankers Trust, Chase Manhattan, Citicorp and J.P. Morgan have all been allowed to set up securities - underwriting affiliates slipping through the Section 20 loophole of the legislation separating commercial and investment banking.

For their part, investment banks and securities houses have become direct suppliers of credit to a wide range of customers.

Though forbidden from commercial banking in their home markets, American and Japanese investment banks and securities houses happily run such affiliates abroad.

It is not only the boundaries between the banking and securities Indus-tries that are becoming blurred. So are those with insurance and commerce.

Everywhere ordinary commercial firms are making deep incursions into financial services, Retailers and manufacturers own securities companies, insurance firms, thrifts and nоn-bank banks. They offer a wide range of credit, investment-banking and insurance services, to companies and individuals alike.



Financial intermediaries:

The main function of the financial institutions which make up the British banking system is to collect deposits from those with surplus cash resources and to lend the funds to those with an immediate need for them. This is the function of a financial intermediary. There are many advantages of the funds being channeled through a financial institution rather than being loaned directly by savers to borrowers.

1. Many savers want to save relatively small sums. They will also want liquidity the ability to withdraw their money when they want it. Most borrowers want to borrow for definite periods of time-often for quite long periods. Financial intermediaries can aggregate many small sums of savings and make relatively large loans. They can offer savers liquidity by borrowing for short periods of time and lending for long periods. Depositors can be allowed to withdraw funds because such withdrawals are likely to be matched by new deposits. If such an institution retains the confidence of its depositors there is no reason why the funds available for lending should fall significantly.

2. Savers will tend to look for security they want to feel that their money is 'safe'. By spreading its loans over many different types of borrower, a financial intermediary greatly reduces the risk of losses. It can take account of likely losses in the rate of interest it charges to borrowers.

3. Financial intermediaries can use their size and expertise to offer savers a wide range of savings schemes and to offer borrowers several different types of loan.

Some of these financial intermediaries have been discussed earlier for example, insurance companies, pension funds, building societies and finance houses. In this chapter we are concerned mainly with the most important of these institutions namely, those in the banking sector.

Banking services:

The operations of the main banking institutions are explained later in this chapter. The various services provided by banks are summarized below.

(a) The provision of safe deposit facilities for money and valuables.

(b) The lending of money: this is the most profitable activity of the banks and the one which provides most of their income.

(c) The issuing of banknotes: in England and Wales this right is restricted to the Bank of England, but some banks in Scotland and Northern Ireland retain the right to issue their own banknotes.

(d) The provision of efficient money transmission services (e.g. cheques, credit cards, standing orders, direct debits, giro systems and the provision of cash).


Read and translate the text

Learn the vocabulary:


- посредник

to lend

- предоставлять заeм

insurance company

- страховая компания


- трансмиссия, передача

giro system

- жиросистема (через счета в  почтовых     отделениях)

Put one of the given words or word combinations into the blanks:

board of directors, capital, dividends, investments, loan, profit, reserves, statement, stockholders, vice-president.

1.  The men who control the activities of the bank will meet today. The ... ... ... will meet.

2.  They were chosen by all the parties who hold part ownership in the bank. They we-re chosen by the ....

3.  The board will discuss the hiring of a person to assist the president. They must hire a new ... .

4.  They'll also discuss the new announcement of the bank's financial condition. They will discuss the ....

5.  Then they must make a decision about the earnings they're keeping back for later use. They must decide what to do about the ....

6.  This is money held by the bank in addition to the amount the stockholders put up to start the bank. It's money held in addition to the ....

7.  The board may want to pay money to the stockholders out of profits. They may give out....

8.  Quite a lot of money was left over this year after all the bank's expenses were paid. The ... were high.

9.  The president will ask to approve a large ... to a customer. This is money owned by the bank which the customer will be permitted to use for a time and then return with an additional payment for its use.

10.  The board will probably discuss the money which the bank has put into other businesses in order to make profits. They'll discuss the bank's....

4.  Translate the sentences into Russian

1.  I guess your work has to do with checking accounts.

2.  We have had an account with them for years.

3.  You don't make much on that kind of account.

4.  When will the board of directors meet?

5.  He is a member of the board of directors.

6.  What is the amount of the capital?

7.  They had some trouble raising the capital.

8.  You would better see the cashier about that.

9.  The cashier is on vacation just now.

10.  I don't think they'll be able to get a charter.

11.  How much money is left in my checking account?

12.  I would like to close my checking account.

13.  We are behind on our clerical work.

14.  Do you have any clerical jobs open now?

15.  The last dividend was quite large.

5.  Put in prepositions

1.  Most textbooks ... Economics begin ... posing the question, 'What is Economics ...?'

2.  Economics is essentially a study ... the ways ... which people apply their knowledge ... the gifts ... nature ... order to satisfy their needs.

3.  ... the more advanced countries few people are conscious ... a life or death struggle ... existence.

4.  Even ... the economically advanced countries there is an aspect... survival.

5.  Such people have the abilities to sustain life ... outside assistance.

6.  If we now turn ... the inhabitants of New York we must observe the opposite situation a high standard ... living together ... an extreme economic dependence.

7.  The inhabitants ... cities are totally incapable/... providing ... themselves the means ... their survival.

8.  Such people depend ... the efforts ... many thousands ... specialist workers.

9.  ... industrialized societies a high standard ... living is possible only if the organized cooperation ... large numbers ... people can be guaranteed.

10.  ... the economically developed countries we are rich, not as individuals, but only as members ... a complex economic organization.

  1.  Make up five sentences using one of the following word combinations:

financial symposium; to run the investment house; to disagree with; to do a good deal of business; to repay the staggering sums of money.

8.      Dialogue:


Tracy: Who really owns the bank?

Charles: The stockholders own it. In the beginning, they put up the necessary capital and were granted a charter from the government.

Tracy: Are the members of the board of directors stockholders?

Charles: Oh, yes. They're chosen by the other stockholders to operate the bank.

Tracy: And the board hires the president and the vice-president to manage it.

Charles:   That's right. Along with the cashier, the tellers and the clerical workers.

Tracy:     I guess most of your work has to do with checking and savings accounts and making loans.

Charles:   Yes. But we invest money too. Planning the bank's investments is also very important.

Tracy:      Do you divide all the profits among the stockholders?

Charles:   Not all of them. The stockholders receive regular dividends. But some of     our earnings are held in reserve accounts.

Tracy:      I suppose that would be necessary.

Charles:  Here's a copy of our last published statement. You see the reserves are shown here as surplus and undivided profits.


1.  Learn the vocabulary:

own, v    - владеть

stockholder   - акционер

in the beginning  - вначале

put up    - зд. вносить деньги

to grant a charter  - предоставлять разрешение, лицензию

board    - зд. правление

choose, v    - выбирать, избирать

hire, v    - зд. назначать

cashier    - зд. главный кассир, главный экономист

teller    - зд. кассир-оператор

guess, v    - полагать, думать

checking account  - банковский счет

savings account   - сберегательный счет

to make loans   - предоставлять займы, кредиты

divide, v    -  делить

profit    - прибыль

earnings    - зд. прибыль

suppose, v   - предполагать

statement    - зд. отчет

surplus    - зд. остаток

2.   Read and translate the text



The Bankers' Clearing House

The transmission of payments by means of cheques creates problems when the person making the payment has an account in a different bank from the person receiving the payment. The final settlement obviously requires a movement of money from one bank to another. In any one day there will be millions of cheques which require such inter-bank transactions to be carried out. Fortunately, many of these transfers of money will offset each other. There will be a large number of cheques drawn on accounts in Bank A that are payable to accounts in Bank B, but there will also be a large number of cheques requiring a transfer of funds in the opposite direction.

Each bank in a multi-bank system will find itself in this kind of situation at the end of each day. An obvious solution is for each bank to pay (or receive) the net amount owing after the banks have totalled their claims against each other. This is the function of the Bankers' Clearing House. Cheques which are drawn on one bank but payable to another are sent to the clearing house where mutual claims are offset against one another, and the banks merely settle the outstanding amounts. These payments from one bank to another are carried out by means of cheques drawn on accounts which the clearing banks keep at the Bank of England. On an average day in 1986, some 6—7 million cheques, with a total value of f27000 million, were exchanged and cleared.

The operational members of the London Clearing House are Barclays, the Mid-land, Lloyds, the National Westminster, Coutts and Co., Williams and Glyn's, the Co-operative Bank, the Trustee Savings Bank, the National Giro Bank and the Bank of England. Non-clearing banks have agency arrangements with the clearing banks, although there are proposals to extend membership of the Bankers' Clearing House. There are three Scottish clearing banks, with their own clearing system: the Bank of Scotland, the Clydesdale and the Royal Bank of Scotland.

The Bank of England

Most countries have a central bank, which is responsible for the operation of the banking system. The central bank in the UK is the Bank of England, which was taken into public ownership in 1946. It has many responsibilities, which are summarized below and discussed in more detail later in this chapter.

(a) It is the government's bank. It handles the income and expenditure of the Exchequer and other government departments.

(b) It is the bankers' bank. The clearing banks maintain accounts at the Bank of England. The final cash settlements within the banking system and between the ban-king system and the Bank of England take place through these accounts.

The Bank is also a banker for about 100 overseas central banks and international monetary institutions.

(c) It is the central note-issuing authority for the UK and the sole note issuing authority for England and Wales. Some banks in Scotland and Northern Ireland still issue their own notes but these are largely backed by Bank of England notes.

(d) It manages the national debt. This is a major responsibility which involves making repayments on government securities when they mature, undertaking new issues of long-term securities, making regular payments of interest to holders of existing government securities, and handling the weekly issues of Treasury bills. The management of the national debt, as we shall see later, has important effects on the supply of money and the rate of interest.

(e) It is the lender of last resort. The Bank of England stands ready to come to the assistance of the banking system in times when it is threatened by a shortage of cash.

(f) It acts as the government's agent in the foreign exchange market, in which it can intervene to influence the value of sterling against other currencies.

(g) It has the responsibility for carrying out the government's monetary policy.

(h) It has legal powers to supervise the operations of other banks. All banks are expected to supply the Bank of England with information about their business, and they have to respond to directives given to them by the Bank.

Although the Governor of the Bank of England has a certain amount of independence and his advice is sought and heeded, the Bank is subordinate to the Treasury which may give instructions to the Governor at any time.



The Bank’s influence on short-term interest rates arises from its role in the domes-tic money markets. As banker to the government and to the banks, the Bank is able to forecast fairly accurately the pattern of flows between the government’s accounts on the one hand and the commercial banks on the other, and acts on it daily basis: to smooth out the imbalances which arise. When more money flows from the banks to the government or vice versa, the banks’ holdings of liquid assets are run down and the money market finds itself short of funds. When more money flows the other way, the market can be in cash surplus, but the pattern of government and bank operations usually results in a shortage of cash in the market each day - a shortage which the Bank then relieves. Because the Bank is thus, on a day-to-day basis, the final provider of liquidity to the system, it can choose the interest rate at which it will provide funds each day.

Rather than deal directly with every individual bank, the Bank uses the discount houses as an intermediary. These are highly-specialized dealers who hold large stocks of commercial bills and with whom the major banks place their surplus cash. The discount houses have borrowing facilities at the Bank. The Bank may provide cash either by purchasing securities from the houses, or by lending to them direct. The rates at which the Bank deals with the discount houses are quickly passed on through the financial system, influencing interest rates for the whole economy.

When the Bank changes its dealing rate, the commercial banks promptly change their own base rates from which deposit and lending rates are calculated.


Learn the vocabulary:

to arise from    - происходить от

imbalance     - дисбаланс

holdings to liquid assets  - запасы ликвидных активов

cash surplus    - избыток, излишек наличности

shortage of cash   - дефицит наличности

funds     - средства

discount house    - учетный дом

intermediary    - посредник

to purchase    - покупать

base rate     - базовая ссудная ставка

to calculate    - считать

Answer these questions:

1.  What are the reasons for the shortage of funds on the money market?

2.  What is the role of the discount house?

3.  Does the Bank of England influence commercial bank's base rates?

4.  When can the market be in cash surplus?

5.  When does the money market find itself short of funds?

6.  What is an interest rate?

 Explain the meaning of the following terms in English:

Imbalance, shortage of cash, solvency, intermediary, exchange rate.

4.  Fill in the blanks with prepositions

1.  Current account enables people to keep their money ... a safe place.

2.  Beside, it allows them to withdraw money ... any time.

3.  Thirdly, it provides them ... a cheque book se that they do not have to carry a lot of cash.

4.  If the manager is satisfied ... the applicant he will approve the application, arrange ... the applicant to be given a cheque book and arrange for a monthly statement to be sent ... him or her.

5.  You can pay ... cheque.

6.  If you put your money ... a deposit account, it will earn interest ... you.

5.  Translate into English using Future Tenses or Present Tenses with Future meaning

1.  Оплата будет произведена путем открытия аккредитива.

2.  Если образцы удовлетворят наши требования, мы сделаем большой заказ.

3.  Он собирается установить контакты с поставщиками.

4.  Менеджер вот-вот подойдет.

5.  Поезд прибудет в 5:30.

6.  М-р Браун уезжает завтра.

7.  Я попытаюсь сделать это.

8.  Когда она приедет, то напечатает письмо.

9.  Я собираюсь обсудить с Вами цену товара.

10.  Как будет производиться оплата?

11.  Когда он приезжает в Киев?

12.  Я подготовлю письма.

13.  Шеф подпишет письма после обеда.

14.  Совещание закончится в три часа.

15.  Мы собираемся подписать договор.

6.  Find proper definitions:



1. Tax

2. Yield

3. Cash

4. Bond

5. Stock/share

6. A rating

7. Portfolio

8. Liquidity

a) the pattern of investments held by a bank

b) a government or local government security

c) the actual return from a particular investment

d) a unit of ownership in a company

e) a stock thought to be of highest quality

f) money collected by a government for its support

g) the speed with which an investment can be redeemed for cash

h) coins and bills

7.  Put the verbs in brackets into a proper form according to the model

Model: They already (sign) the contract before the telex (come). 

            They had already signed the contract before the telex came.

 We already (buy) 3000 computers when the government (impose) an important quota on them.

 Our sales (reach) an amount of 13000 units a year before we (to set up) a joint venture with Apple Computer.

 When the plane (land) I already (to arrive) at the airport.

 I (to have breakfast) when the porter (enter) the room.

 Mr. Baker (not, telephone) yet when the boss (call) me.

8.  Translate into Russian:

1.  We had invested the money before the new interest rates were introduced.

2.  I had received regular dividends before I changed my account.

3.  They made a new loan before they had checked current accounts.

4.  I hadn't seen the latest bank statement by the time I discovered this loss.

5.  The total profile bank had earned were published yesterday.

9.  Home reading:


Britain's retail banks underpin the superstructure of London's financial and money markets and provide the financial support for Britain's private sector businesses and the bulk of the personal sector. Their core business has for centuries involved the taking of deposits and lending of money. Today, new information technology has vastly improved these and other services and in recent years the entire face of the British ban-king system has fundamentally changed.

As regards classic banking business, the direct ancestors of the modern retail banks were the London goldsmiths of the mid-17th century. Goldsmith firms gave promises to repay deposits of coin on demand in the form of bearer documents. These passed from hand to hand and thus became the first English bank notes. In time, golds-miths extended their services to the provision of loans. They undertook transactions in both notes and coin, settling their various accounts through balances held at the Bank of England. This relationship with the Bank of England, through the discount house intermediaries, is essential to today's banking system in Britain.

Outside London, many provincial banks were formed in the second half of the 18th century, with about 700 in existence in the early 1800s. During the Victorian period high casualty levels were suffered among the small privately owned banks, particularly during the successive financial crises in the middle of the century. For example, of the 59 banks established in 1836, only the Midland (today one of the largest retail banks) survived 20 years later.

The banks in the rural area, the "country banks", had more depositors than borrowers and used London banks as agents to make loans to borrowers in developing industrial areas. They did this mainly by discounting bills of exchange. The system originated the London discount market and played an important part in financing the industrial revolution. During the middle and late 19th century the growth and prosperity of industrial firms led in turn to the amalgamation of smaller banks and growth of large networks of banking branches.



There are two general reasons for using a bank account. The first and most common is the convenience and safely provided by a current account at a bank. The second is that small and perhaps regular surpluses are available to be saved, and for this purpose a bank provides deposit accounts.

A deposit account will not offer a high rate of interest and would not be the best way to save large sums of money for any long period of lime, but it is designed to make saving simple, convenient and safe. It is especially appropriate for those who may save small amounts from time to time without any planned regularity or for those who wish to save for a particular purpose in the immediate future, for example for annual holidays or for the purchase of a major item such as a car.

Most customers of a bank who have opened a deposit account will also have a current account and this makes the transfer to amounts of money from one to the other an easy matter. Regular payments into a deposit account can be made through a standing order to the bank who will automatically transfer the agreed amount according to your instructions. Other payments are made on standard forms but it is most convenient and provides a useful record if the depositor uses a paying in book. Interest is calculated every six months mid added to the account. The rate of interest varies from lime to lime and is publicly advertised in any bank. Because the bank uses money deposited with them to lend to others it normally requires about seven days notice of intention to withdraw money from a deposit account, but unless there is a heavy demand for money they arc not likely to insist on this and cash is often immediately available to those who wish to withdraw it. There is an assumption that such notice was given and you would lose seven day's interest on the money.

The increasing need for security and the use of computers in wage payments have combined to make it more common to have a bank account than to be without one. This kind of account is a current one and its most common use is a single regular payment in either a weekly wage or a monthly salary find regular payments out to meet the normal everyday expenses. Most payments are still made by cheque although the use, of the standing order or the direct debit is becoming very common. It is normally

expected that a current account will remain in balance and customers who regularly maintain a greed minimum balance are often given the services of the bank without charge, in general, however, charges arc made which vary with the size of the balance, the amount of use of the bank's services and the number of transactions. If the account is overdrawn a further charge, which is interest on the overdrawn amount, is also made.

Overdrafts are not permitted automatically and anything oilier than a small temporary overdraft would have to be by Agreement with the bank manager. Such a facility is often useful particularly when there is a short-term disbalance between income and expenditure. On the other hand, since money in a current account does not attract interest, it is not a good idea to maintain large cash balances, these would be better transferred to a deposit account or to an alternative, form of saving.


Answer the following questions

1.  What are the two main reasons for opening a bank account?

2.  Which type of account is used by those who wish to save?

3.  What kind of saving is this type of account most suited to?

4.  What is a standing order?

5.  Why does a bank sometimes need notice of intention to withdraw money from saving accounts?

6.  What is the most common use of current accounts?

7.  Why are some customers not charged for the facility of a current account?

8.  Why is it not a good idea to retain large balance in a current account?

2.  Learn the vocabulary

active account

- активный депозитный счет

accrue (v)

- накапливаться

balance (v)

- сальдировать, подводить итог, закрывать  счета

cancel a cheque (v)

- аннулировать чек

compound interest

- сложные проценты

credit (v)

- кредитовать

debit (v)     

- дебетовать


- вклад, депозит, задаток


- запас, резерв, фонд


- подлинный, неподдельный


- страхование

insure against (v)

- страховать(ся)

interest on hank credits

- процент по банковскому кредиту

joint account

- совместный счет


- бухгалтерская книга


- ликвидный


- срок платежа


- извещение, уведомление


- 1) выпущенный в обращение

2) не предъявленный к платежу,     задолженный


- овердрафт, превышение кредитного  лимита

overdraw (v)

- превышать кредитный лимит


- банковская расчетная книжка, депозитная  книжка,   сберегательная книжка

per annum

- ежегодно


- 1) номинал векселя

2) капитал;  3) основной должник


- проводка

rate of interest

- процентная ставка

reconcile (v)

- выверять счет


- комиссионный счет

service charge

- срок выполнения обязательств

time certificate

- срочный сертификат


- переводной

Using the words in brackets as a guide, explain the meaning of the following terms:

1.  Deposit (put into, an account)

2.  Withdrawal (an account, remove from)

3.  Standing order (transfer, automatic, bank, customer, instructions)

4.  Joint account (two or more people, owned by)

5.  Statement (a customer's deposits and withdrawals, a record)

6.  Overdraft (current account, balance)

7.  Interest (the use of money, pay for)

8.  Notice (one's intentions, an announcement of)

9.  Insurance (loss, protection against, government agency or another specializing in)

Demonstrate the meaning of the following expressions in sentences of your own

1.  To reconcile a statement with one's own records

2.  To have join account

3.  To have an overdraft

4.  To cover an outstanding cheque

5.  To send your banker a standing order

6.  To make a withdrawal

7.  To calculate interest on

8.  To pay interest.

Find synonyms

to debit   to maintain

to deposit  to credit

to reconcile  to permit

to sign   to cancel

to accrue  to pay in


6.  Fill in the blanks with proper words or word combinations:

accrues, credit, compounded, interest, maturity, term, per annum, time deposit, principal, transferable

1.  The balance of a loan or investment is called the ....

2.  This is the amount on which the money paid for its use is figured. The ... is figured on this balance.

3.  In some types of accounts, interest is figured on the principal plus any interest that has built up. It's ....

4.  Then it's added to the account. It's ... to the account.

5.  On my savings account this payment for the use of my money builds up at the rate of 3%. It... at that rate.

6.  I have another type of account in which I have made a deposit for a specified period of time. I've agreed to leave the money on deposit for a specified ....

7.  This is called a ...... .

8.  The payment for its use is payable only when the investment is due. It's payable only at....

9.  This payment is at the rate of 4% each year. The rate is 4% .......

10.  I can sign this investment over to another person, if I choose to. It's....

7.  Say what you have learnt from the text about

types of account;

advantages of every type of accounts;

find the most suitable type for you. Why?

8.  Home reading. Read the dialogue and give a short summary in English


Virginia Clary,   I have some funds on hand, and I'm wondering whether I      investor:              ought to put it in a savings account.  

Woods Palmer,

banker:   It's a good idea, if you want to keep your investment fairly   liquid. And you might also think of a time deposit.

Virginia:            What's the difference?

Palmer:            Well, first of all, your time deposit is for a specified term.  But you can make withdrawals from your savings account at any time, although as much as thirty days' notice of withdrawal maybe required.

Virginia:           Do they draw the same rate of interest?

Palmer:           We pay the maximum 4% per annum at maturity on a one-year time certificate. Interest on a savings account accrues at the rate of 3%.

Virginia:            How do you figure the interest on a savings account?

Palmer:              It's compounded and credited to the account semiannually.

Virginia:            You mean added to the principal?

Palmer:              Yes, and we issue you a passbook on your savings account in which each deposit and withdrawal is entered.

Virginia:             Is either type of account transferable?

Palmer:              Only time certificates.

Virginia              Are these deposits insured?

Palmer:              Yes, we're a member of the Federal Deposit Insurance Corporation.


accrue, v   - увеличиваться, накопляться, нарастать

compound, v  - зд. начислять, рассчитывать (сложные проценты)

credit, v   - зд. добавлять, записывать на счет

insure, v   - страховать, застраховать

interest   - зд. проценты

rate of interest  - процентная ставка

maturity   - срок оплаты (кредита, инвестиций)

notice   - зд. извещение

per annum  - каждый год

principal   - зд. основная сумма

term    - зд. срок

transferable  - переводной, с правом передачи другому лицу


Т.К. Алексеева, В.Г. Дарская, Л.А. Лясецкая, Т.Г. Шелкова.  Деловой английский. Часть 1, 2. English for business. - Москва: Вече, 1998.

И.Е. Митина, Л.С. Петрова.  Business English. Banks and Money.   -С.- Петербург: Союз, 1999.

 Л.Г. Памухина, А.Г. Глуховская, З.И. Сочилина. Деловой англий-ский. Часть 3. English for Business. - Москва: Вече, 1998.

 В.Д. Португалов.  Economics. Учебник по английскому языку. -  Москва: АСТ, 2002.

 Томас Р. Мокайтис.  Бизнес курс английского языка. - Ростов-на-Дону: Феникс, 1997.

 Н.А. Самуэльян. English for Banking. – Москва: Менеджер, 1999.

 Л.М. Федорова, С.Н. Никитаев, Л.Я. Лавренко.  Деловой англий-ский. Учебное пособие. - Москва: Гардарики, 2001.



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