11. Answer the following questions based on text b:

1. How many parties can there be to a bill of exchange and to a cheque?

2. How do bills change hands?

3. What caused the emergence of discount houses?

4. In what way do cheques differ from bills of exchange?

5. What is a crossed cheque? What types of crossing do you know? Describe each of them.

12. Make up sentences of your own using the following expressions from text b.

To issue a promissory note, to be payable at sight, the day of maturity, to cover the withdrawal, must be paid in for the credit of any account, to be crossed "account payee only", to give a title to the cheque, nonnegotiable instrument.

13. Say what is true and what is false. Correct the false sentences.

1. Promissory note is an acknowledgement of debt with a specified date of repayment

2. Only bills of exchange are the most important financial instruments.

3. The drawer is a person who pays money due to the bill.

4. A bill payable of a time in the future is called a term bill.

5. If you want to get money immediately and hold some bills with future date of payment you may sell them for the sum of money promised.

6. Cheques require acceptance, because it is an order to the bank from a depositor to pay money out of his account.

7. At the top of the cheque is printed the name and address of the person to whom the payment should be made.

8. There is only one holder for cheques and bills of exchange and it may not be passed from hands to hands.

9. Crossed cheques are safer than open ones.

10. Due to a special crossing the cheque can only be paid with the specified bank.

14. Using the words in brackets, explain the meaning of the following terms:

to discount a bill (to buy, lower price, money market, financial instrument);

special crossing (cheque, to be stolen, to cash, thief, to be impossible);

acceptance (bill of exchange, to sign, debtor, to guarantee, payment);

negotiable instrument (to sell, to buy, secondary financial market, to get profit);

discount house (institution, financial instrument, to deal with, commission).

15. Match the following words with the correct definition from the list.

Bill of exchange, note, withdrawal, balance, drawer, honour, crossed cheque, present a cheque, endorse, negotiable instruments, payee, encashment

1. The amount held in a bank account at any particular date.

2. A cheque which will be paid into an account only.

3. An account-holder who draws up or makes out a cheque and signs it.

4. Drawing cash against a cheque.

5. To sign the back of a cheque.

6. To pay as promised.

7. A person named to receive payment.

8. Paying a cheque in at a bank for clearing.

9. Drawing cash out of a bank account by the use of cheques, standing orders, etc.

10. A written order by a drawer to a drawee to pay a sum on the given date to drawer or to named payee.

11. The device used in place of cash in a transaction like cheques and money orders.

12. Written promises to pay a specific amount of money within a specified period of time.