III speech practice exercises

1. Answer the questions:

1. You’ve learnt that the word banking came from Italian, meaning bench. The

word you should guess also comes from Italian. It means bench-broken,

and refers to the old custom in Italy of breaking the benches used by

moneylenders when they failed. What is this word?

2. Have you ever applied to a bank for some services? What types of services were you offered?

3. Have you ever started either checking or savings account? What procedures did you follow? What special documents (a passbook, a checkbook, a credit card, etc.) did you get?

4. Probably you get monthly grants for your studies in the University. Then

you must have got a special plastic card to withdraw cash from your bank

account. Explain how you operate an automated cash machine.

5. Imagine you apply for credit as it can help you afford larger purchases –

such as a home, car, boat, or something else – by spreading payments over a long period of time. What would you buy on credit first of all? How much money would you borrow from a bank? What interest rate would suit you?

6. Installment loans may be secured (guaranteed by assets you own) or unse

cured. What assets could you use as collateral if a loan you want to take

needs to be secured?

7. A business company needs $300,000 to accomplish construction in

progress. The bank makes it a two year fixed-rate construction mortgage

loan for $300,000 with an interest rate of 9%. How much money will the

company have to pay off the bank at the mature date? What might happen

if the company fails to repay the loan?

8. Name some banks in your city you know. Which bank do you consider to

be the most reliable one and why?

9. Do you think it is safe to keep money in a bank? Why do so many people in

Russia keep holding their money at home? What factors from your point of

view may change such a practice?

10. Imagine you need to buy some foreign currency. What bank department

would you apply to?

11. Exchange rates are floating according to supply and demand. Do you

know the current ruble-per-U.S. dollar exchange rate and ruble-per-euro

exchange rate? What is the current exchange rate for the Russian ruble

relative to the Japanese yen and the Chinese yuan?

12. In the near future you will graduate from the University with a degree in

Economics. Wouldn’t you like to try your hand in the banking business?

Do you think banking is a promising field for a business career and why?

2. Translate into English:

1. Трудно представить сегодняшний мир без развитой банковской систе-

мы. Многочисленные финансовые институты оказывают разнообраз-

ные банковские услуги предприятиям и физическим лицам.

2. Банки выполняют роль посредника между теми, кто хочет сберечь де-

ньги, и теми, кто хочет их занять.

3. Финансовые учреждения подразделяются на депозитные и не-депозитные. Депозитные финансовые институты открывают чековые и сберегательные счета и специализируются в предоставлении коммерческих займов. Недепозитные финансовые учреждения не выпускают сберегательных и чековых счетов, но предлагают широкий спектр различных финансовых услуг.

4. Пенсионные фонды, страховые и финансовые компании являются недепозитными финансовыми учреждениями. Пенсионные фонды предлагают пенсионные программы, обеспечивающие гарантированный доход работникам, вышедшим на пенсию. Страховые компании страхуют физические лица и предприятия от возможных ущербов и убытков. Финансовые компании предоставляют ссуды частным лицам и фирмам, которых коммерческие банки считают некредитоспособными.

5. Bank of America является одним из крупнейших коммерческих банков мира. Основанный в Сан-Франциско в 1904 г. А.П. Джианнини, он первоначально назывался Bank of Italy. Сегодня общий объём банковского капитала превышает 40 миллиардов долларов, банк имеет свыше 1500 отделений в стране и 500 за рубежом.

6. Центральный Банк России, учреждённый в 1990 г., является главным финансовым институтом страны. Банк контролирует банковскую систему, регулирует валютные резервы и количество денег в обращении, выпускает банкноты и монеты, осуществляет международные расчёты и выполняет другие важные функции.

7. Сберегательный Банк России учреждён в 1922г. и сочетает функции сберегательного и коммерческого банков. Главным источником бан ковских фондов являются вклады частных лиц. На июль 2001 г. общая стоимость активов банка составила $ 0,9 миллиарда.

8. Около 15% всех банковских активов приходится на ссуды торгово-промышленным предприятиям. Такие ссуды имеют различную степень ликвидности и риска дефолта. Как правило, компании должны обеспечивать ссуды залогом, который конфискуется (seize) банком в случае, если заёмщик оказывается не в состоянии погасить ссуду.

9. Потребительские ссуды обычно выпускаются в форме кредита с погашением в рассрочку. Такие ссуды предоставляются, главным образом, для дорогостоящих покупок, таких как автомобиль, лодка, мебель и т.д.

10. Самой распространённой формой потребительского револьверного

кредита являются кредитные карточки. Используя кредитную карточку, вы можете делать покупки до установленной суммы, известной как ваш лимит кредита.

11. Самыми ликвидными активами банка считаются денежные активы,

которые служат в качестве средств обмена. Наличность в расходной

кассе используется банками для ежедневных выплат вкладчикам при

снятии ими денег со счетов..

12. Если вы платите 15 рублей за каждые 100 рублей, которые занимаете, то ваша процентная ставка составляет 15%. Таким образом, если основная сумма долга составляет 60 тысяч рублей, то годовой процент на эту сумму равняется 9 тысячам рублей. При условии, что вы взяли кредит на два года, вам придётся выплатить банку, в общей сложности, 78 тысяч рублей.

13. «Прайм-рейт» - это самая низкая процентная ставка, назначаемая

банками для своих самых кредитоспособных клиентов.

14. Если вам нужно купить иностранную валюту, обратитесь в отдел об-

мена валюты любого банка. Там вы также получите информацию об

обменном курсе на сегодняшний день.

15. Мы живём в эпоху кибернетических технологий, когда банковские операции совершаются по Интернету, а сами банки становятся компьютеризованными супермаркетами. На смену банковским клеркам приходят автоматизированные кассовые машины, а умирающие наличные деньги заменяются маленькими пластиковыми карточками со встроенными компьютерными чипами.

3. Read the dialogue and think how you could finish it.

Michael Torn, the Chairman of Westfirst Bank, is interviewed by TV star

Norma Baker.

Norma - Hello, I’m Norma Baker and you’re watching Business Matters,

a weekly program. I invite you to pick up your phone when you

need to contact us. Today we’ll talk about things we’re faced with

when settling our financial problems –these are banks and banking

services. Our guest is Michael Torn – the Chairman of Westfirst

Bank. Westfirst Bank is well known as one of the largest and most

reliable commercial banks in the Northwest and it is very kind of

Mr. Torn to take part in our talk show.

Mr. Torn - Thank you, Norma and good evening everyone. This is a good

chance for me to greet the present customers of Westfirst and our

potential savers and borrowers. At Westfirst, we know that

convenience and customer service are the two things people look

for when choosing a bank for their checking account, the right type

of credit, or savings and investment selections. Geffrey Williams,

the founder of Westfirst , said once that the major purpose of the

bank was to serve its customers to their best advantage. We

always keep to this philosophy.

Norma - Glad to hear that, Mr. Torn, as I’m also your potential customer.

Could you give us some figures to illustrate the bank’s present

performance?

Mr. Torn - As of the end of the last fiscal year , the bank’s assets totaled

about 10 billion dollars with net income exceeding 300 million

dollars. The bank has more than 100,000 stockholders and about

4 million checking and savings accounts. It has over 500 branches

in the Northwest and about 250 in other countries.

Norma - Sounds impressive, thank you, Mr. Torn. And now let’s talk about

credit – it’s the topic of the day for many householders. Buying

things on credit is something most of us will do many times in our

lives. Whether it’s for a new home, a boat, a personal computer,

a car, or your child’s education, the right type of credit can help

make your dreams a reality. Mr. Torn, what types of credit does

your bank offer?

Mr. Torn – No two people have exactly the same credit needs. That’s why

there are many different types of credit available. At Westfirst we

have a wide variety of credit choices including installment loans,

home equity loans, auto leases, student loans, home loans and

many others. The bank employees are experts at helping you find

the right program to fit your particular needs.

Norma - Meanwhile the studio operators are accepting calls from the people

watching our program. Tom Chesley, a student of the Seattle

Pacific University was the first to have contacted us. He asked if

he could get a subsidized student loan and what requirements he

should fulfil then.

Mr. Torn – At Westfirst we offer subsidized or guaranteed student loans. With

these low-interest variable rate loans you make no payments until

six months after you leave college, that means after you’ve had a

chance to get a job and establish some financial independence.

What’s more, while you’re in college the government pays all

interest charges. To qualify for a subsidized loan, you need to

show financial need. The loan amounts available and qualifying

criteria are set by each individual college and can be obtained by

contacting your college’s Office of Financial Aid.

Norma - Are there any other options for students?

Mr. Torn - Sure. One may choose between federal unsubsidized loans and

Plus loans. This is an attractive alternative if you don’t qualify for a

subsidized loan. With federal unsubsidized loans you make

“interest only” payments while you’re in college, and up to six

months after you leave college. Then you begin paying both

principal and interest. Plus loans are variable rate loans available

to students and their parents. As with all student loans, the interest

rate is generally lower than the going rate for fixed rate loans, and

the repayment terms are more favorable.

Norma - Thank you, Mr. Torn. Credit can be a big help in managing our

finances and no wonder many people want to learn more about it.

Mrs. Denton, a medical assistant from Portland, phoned us and

asked how much credit she could afford to borrow.

Mr. Torn – Well, according to most financial advisors, your total debt – the

amount you pay each month for housing expenses (mortgage

payments or rent), car payments, credit card payments, and other

debts – shouldn’t be more than 36% of your gross monthly income

before taxes are deducted. For example, if you make $2,500 a

month ($30,000 per year), no more than about $900 should be

spent on fixed expenses. For detailed information, I invite you to

visit your local Westfirst branch.

Norma - But what should people do if they can’t leave their homes or offices

to do their banking? I mean those with limited abilities and other

people with different problems.

Mr. Torn - I’ve told you already that convenience and customer service were

always alpha and omega of the Westfirst philosophy. We believe

the best way to serve you is by giving you choices. Choices that

allow you to decide what works best for you, for your lifestyle.

We’re constantly looking for ways to make banking easier. And our

best ideas come from our customers. You can apply for your loan

from the privacy of your home or office by calling our 24-hour

customer service phone line. You can talk directly with a Westfirst

Representative any time of the day or night, or perform the most

frequently used functions automatically with your touch- tone

phone. When you need to do your banking and you can’t get to a

branch, Westfirst makes it easy for you with access to over

3000 cash machines throughout the West, as well as more than

80,000 cash machines worldwide. And you can use your home

computer as well. Computerized Banking Centers offer the

breakthrough technology of interactive video banking. Linking with

these centers you can get up-to-the-minute information and do

your banking when it is handy for you.

Norma - Thank you, Mr. Torn. I think your customers feel sure that the

management of the bank is staying on top of things. We have a

few minutes more before we break for commercials. John

Silver, a farmer from Bremerton and a Westfirst account holder,

informed us that he was going to obtain installment credit for a new

car and he wanted to know the credit terms.

Mr. Torn – What’s the price of the car?

Norma - Mr. Silver said it cost $15,000.

Mr. Torn – Well, let me think... My calculator is just what is wanted! A five

year fixed-rate loan for a $15,000 new car, with 20% down,

requires a $12,000 loan. Based on an interest rate of 9.25% and

standard loan fees of $130, this loan would have 60 payments

of $253.27 each month. The annual percentage rate would be

9.64%.

Norma - I appreciate your competent advice for us very much, Mr. Torn.

Dear friends, we’ll meet in some minutes to go on with Business

Matters. Thank you, and stay with us!