The foreign exchange market

The Foreign Exchange Market is subject to United Kingdom exchange control regulations governing the purchase and sale of foreign currencies in the sterling area, but these regulations have been progressively relaxed in recent years. The turnover of the market has increased materially since the introduction in December 1958 of external convertibility for the principal European currencies.

The market consists of about 130 authorized banks and nine firms of brokers, all linked together by telephone in the United Kingdom, and by telephone, telex and cable with overseas centres.

XIV. Write a summary of the text

Tip:

XV. Practice talking about the following situations

1. You requested an overdraft at your bank. Base your arguments on this fact. What was the bank's reply and the final result of this situation.

2. Your accounting department has failed in paying off the bill. Tell what it is necessary to do in order to avoid the mistrust of your suppliers.

3. Your office hasn't got the payment in due course and you ran into the problems with your bank. Talk all measures of setting the matter.

4. You are in foreign business. What are the bank's services to exporters and importers and the types of payment in foreign trade.

5. Clear up the role of the banks in home business and the types of payment in the home trade.

XVI. Work in groups of two or three, talk about banking and payment

1. Discuss with a bank clerk the conditions of getting personal loan; what is the regularity of taking up loans and what innovations may take place.

2. You are the sales manager. The accountant of your office informs you about the delay of payment by one of your customers. Discuss this problem.

3. You have got the raise of your salary an decided to open an account in the bank. Discuss with the clerk of the bank what account is better to open.

4. Discuss with your partner the matters dealing with finances (types of payment, terms of payment, the conditions of granting a delay).

5. The general manager and the department managers are discussing the widening of the bank's services in the connection with setting up its subsidiaries not only in the city but beyond its range.

Section 4.3. Inflation

KEY VOCABULARY

I. Read the words below and remember the correct pronunciation of them

persistently [pә'sɪstәntlɪ]

upwards ['ʌpwdz]

hyperinflation [̗hapәɪn'fleɪʃn]

confidence ['kɔnfɪd(ә)ns]

currency ['kʌrәnsɪ]

withdraw [wɪѲ'drɔ]

queue [kju:]

inevitably [ɪn'evɪtәblɪ]

aggregate ['ægrɪgɪt]

resources [rɪ'sɔ:sɪz]

available [ә'veɪlәbl]

eventually [ɪ'venʧuәlɪ]

expenditure [ɪks'pendɪʧә]

rationing ['ræʃnɪɳ]

II. Read and translate the following groups of words

a steady increase, an extreme form of inflation, aggregate demand, at current prices, little or no effect, a full employment situation, no further increases, deficiency of home supply, the excess purchasing power, the additional government spending, an upward movement of prices, general price level, currency's ability, unemployed resources, rate of economic growth.

III. Remember the words and word combinations given

aggregate demand – совокупный спрос

attempt – попытка

confidence – доверие

creeping inflation – ползучая инфляция

currency – валюта, деньги

current – текущий

eventually – в конечном счёте, со временем

expenditure – расходы

experience – испытывать

hyperinflation – гиперинфляция

inevitably – неизбежно

persistently – постоянно, настойчиво

private – частный

queue – очередь

rate – уровень, темп

rationing – нормирование

replace – заменять

run – away inflation – гиперинфляция

saving – сбережение, накопление

since – так как

taxation – налогообложение

transfer – перемещать, переводить

withdraw – изымать