1.Translate the following sentences into Russian, paying attention to the active vocabulary.

1. The essential feature of the gold standard was that each country's currency had a fixed value in terms of gold, and therefore exchange rates were effectively fixed.

2. With its large population and massive dependence on foreign exchange from oil exports Nigeria is regarded as the most vulnerable of the OPEC countries and has constantly battled to increase its production quota.

3. Hong Kong operates a currency board, as do Bulgaria and Lithuania.

4. A fixed exchange rate, also called a pegged exchange rate, is a type of exchange rate regime wherein a currency's value is matched to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold.

5. In order to avoid the risks associated with exchange rate movements, traders (and investors) can enter into a forward contract with a bank whereby the exchange rate is fixed for future delivery or receipt of a foreign currency more than two working days from the date of the deal.

6. As a result Italians would, for instance, be allowed to open bank accounts abroad and to bank unlimited amounts of foreign currency within Italy.

7. A currency board has no discretionary powers to effect monetary policy and does not lend to the government. It also does not act as a lender of last resort to commercial banks, and does not regulate reserve requirements.

8. The depreciation of a country's currency refers to a decrease in the value of that country's currency. For instance, if the Canadian dollar depreciates relative to the euro, the exchange rate (the Canadian dollar price of euros) rises - it takes more Canadian dollars to purchase 1 euro.

9. The Bretton Woods Conference (1944) established a fixed exchange rate system whereby each currency had a fixed parity (value) in relation to the dollar.

10. The devaluation or revaluation of a currency against the dollar was permitted only when a country faced a severe economic crisis.

11. Of course some pound notes may be used more frequently than others, and some may not be used at all, but the velocity of circulation measures the average number of times a unit of currency is used.

12. Meanwhile, money supply figures from the Bank of England showed that borrowing increased by £4.9 billion in November, the smallest monthly rise since February 1988.

13. If the exchange rate is kept fixed, the deficit will be financed by a loss of the foreign exchange reserves held by the Bank of England or by overseas borrowing.

14. The effective working of the adjustable peg system required deficit countries to have official reserves at their disposal for supporting their currency at the par value.

15. Because fiat money is not linked to physical reserves, it risks becoming worthless due to hyperinflation.

2.Match each word with its translation.

____ fluctuation ____ pegged ____ unit of currency ____ appreciation ____ intervention ____ par value ____ adjustable peg ____ commitment ____ foreign exchange ____ inflow ____ currency board ____ managed float ____ fiat money ____ devaluation ____ free float

1) повышение курса 2) валютная палата 3) корректируемая привязка 4) номинальная стоимость 5) приток 6) управляемое плавание 7) колебание 8) денежная единица 9) девальвация 10) привязанный 11) свободное плавание 12) обязательство 13) иностранная валюта 14) интервенция 15) бумажные деньги