Vocabulary notes

to be gratified - получать удовольствие, удовлетворение

to meet debts - покрывать долги

if worst comes to worst - в самом худшем случае

to go down the tubes = to go bust = to go down the pan = to go to the wall = to go under = to go broke = to go bankrupt - обанкротиться, разориться

patient - терпеливый

to settle a bill - оплатить счёт, уплатить по векселю

share price - курс акций

bad debts - безнадёжные долги (в случае дебиторской задолженности), просроченные ссуды (в банковской практике)

rickshaw - рикша

to escape - (зд.) бежать, спасаться

securities company - инвестиционная компания

to stall - «держать в узде”

6. Be ready to work on the projects offered below:

1. Goals of Financial Management.

2. Debt versus Equity Financing.

3. The Responsibilities of a Financial Manager.

IV. Brush up your grammar

A. Grammar Folio:

The Modals and Their Equivalents

Can, could and (be) able to

Модальный глагол can («мочь”, “уметь”, “быть в состоянии”) имеет две формы- настоящего времени can и прошедшего could. Форма could употребляется: а) как форма изъявительного наклонения для выражения действий в прошлом; б) в контексте настоящего времени для выражения отличных от формы can оттенков значения.

To be able to – эквивалент глагола can, может употребляться во всех временах в значении «быть в состоянии”.

Таблица значений

Оттенки значений	Глаголы	Пример	Перевод
Способность (физическая, ментальная)	can be able to	I can read. He could speak five languages. She is able to do it. We’ll be able to pay the bill tomorrow.	Я могу (умею) читать. Он мог говорить на пяти языках. Она способна (в силах) это сделать. Мы сможем оплатить счёт завтра.
Возможность благодаря обстоятельствам	can could	You can shrink your costs. Nowadays, you can buy most things via the Internet. In the early days you could only get computer software.	Вы можете сократить свои затраты. Сегодня вы можете делать большинство покупок через Интернет. Когда-то вы могли только лишь приоб-ретать компьютерные программы.
Возможность благодаря разрешению	can	You can go to the cinema tonight.	Можешь пойти в кино сегодня вечером.
Возможность, которая не была реализована	could have (done)	I could have come earlier, but you didn’t ask me about it. The situation was bad, but it could have been worse.	Я мог бы придти рань- ше, но ты не попросил меня об этом. Положение было пло- хим, но оно могло быть ещё хуже.
Предложение, предположение	could	I’m very tired. We could have a break. «To find out what we could do for you, ring, fax or visit our website. It could change your life. Forever.” [ part of an advertisement] The phone is ringing. It could be Tom.	Я устал. Мы могли бы сделать перерыв. “Чтобы узнать о том, что мы могли бы сделать для вас, позвоните, отправьте факс или посетите наш сайт. Быть может, это изменит вашу жизнь. Навсегда.” Нам звонят. Это может быть Том.
Просьба, очень вежливая просьба	can could	Can I use your telephone? Could I use your telephone?	Могу я воспользоваться вашим телефоном? Не мог бы я воспользо- ваться вашим телефо- ном?
Неопределённость, сомнение	can could	Can he have said it? Could it be true?	Неужели он это сказал? Неужели это правда?
Невероятность	can't couldn’t	He can’t be so selfish. I couldn’t have been mistaken.	Он не может быть таким эгоистичным. Не может быть, чтобы я ошибся.

May and might

Модальный глагол may имеет две формы – настоящего времени may и прошедшего времени might. Форма might употребляется: а) в контексте прошедшего времени, главным образом в косвенной речи в соответствии с правилом согласования времён; б) в контексте настоящего времени для выражения отличных от формы can оттенков значения.

Эквивалент глаголов may и might – to be allowed to может употребляться во всех временах в значении «разрешать”.

Таблица значений

Оттенки значений	Глаголы	Пример	Перевод
Разрешение	may	You may go.	Можете идти.
Вежливая просьба	may	May I take your pen?	Можно взять вашу ручку?
Неуверенная или очень вежливая просьба	might	Might I smoke here?	Можно ли мне курить здесь?
Вежливое предложение или совет	might	One person you might talk to is Roger Bird. He knows a lot about this firm.	Человек, с которым ты мог бы поговорить, Роджер Бёрд. Он много чего знает об этой фир-ме.
Запрещение	may not	You may not come here.	Не смей сюда приходить.
Предположение о возможности с с оттенком неуверенности	may	Don’t do it. You may end up losing all your money. Nick may have wanted to buy you a present.	Не делай этого. В итоге ты можешь потерять все свои деньги. Ник, возможно, хотел купить тебе подарок.
Предположение с сильным оттенком неуверенности	might	- I can’t find my mobile phone anywhere. - You might have left it in the office.	- Я нигде не могу найти свой мобильник. - Ты мог оставить его в офисе.
Упрёк	might	You might be more polite.	Ты мог бы быть повежливее.
Нереализованная возможность, нереальная ситуация	might (have)	If I knew them better, I might lend them money. You might have let me know about it beforehand.	Если бы я знал их лучше, то мог бы одолжить им денег. Ты мог бы оповестить меня об этом заранее.
Правило согласования времён	might	He told me that it might be true.	Он сказал мне, что это могло быть правдой.

B. Exercises

1. Translate the sentences into Russian and comment on the use of the

modal verbs

1. I’m very busy and I can only spare you a few minutes.

2. We could discuss the project without referring to the materials.

3. Could you give me a call about nine o’clock tonight?

4. A firm which cannot pay its debts may have to be declared bankrupt.

5. I think the meeting may be over now.

6. The equity market (рынок акций) might see a strong growth as foreigners

will be buying stocks with the rubles.

7. I could have come earlier – unfortunately I was too slow and missed the

six o’clock train.

8. Watch out! Your company may get into trouble by taking on too much debt.

9. The director is alone now. So you may see him.

10. –Jane, I’m afraid that I won’t be able to see you on Friday. I’ve got to

see some clients and they can’t make it any other time.

11. I’m so tired. You might have helped me.

12. You may not enter the room until I say so.

13. If you explain the problem, I may be able to help you.

14. He said that we might tell her everything.

15. The company might have gone broke, but it had survived.

16. Unless you are certified, you can’t offer financial services nowadays.

17. Our financial situation is not so desperate. There are several ways to

improve it. We could sell off the assets that are no longer needed, for

instance.

18. Tom is an experienced financial manager. He couldn’t have invested

in such a shady business.

19. The man who can smile when things go wrong has thought of someone

he can blame it on.

20. Few things are quite so embarrassing as watching your boss do something you just said couldn’t be done.

2. Chose the right variant

1. _____ you show me the way to the finance department?

a) may b) can c) could

2. Where _____ I find the vice-president of finance?

a) may b) might c) can

3. The director has canceled the meeting. You ____ go home.

a) might b) may c) could

4. Excuse me Sally, but I’m too busy today. I ____ to see you only tomorrow.

a) may b) will be able c) can

5. Thank you for your help. I _____ it without you.

a) can’t do b) may not do c) couldn’t have done

6. You _____ read these papers. They are top-secret.

a) may not b) cannot c) are not able

7. Sam told me that I _____ take his car.

a) might b) may c) can

8. Our credit was good, but it _____ better.

a) can be b) could be c) could have been

9. He _____ killed, but he had survived.

a) can have been b) might have been c) may have been

10. If you don’t accept the offer today, we _____ guarantee that it will be

available tomorrow.

a) can’t b) may not c) aren’t able

11. So much for finance today! We _____ talk about something more

interesting.

a) may b) might c) could

12. _____ I speak to you for a moment, professor?

a) can b) could c) might

13. My secretary looks so tired today. I fear she _____ fall ill.

a) can b) may c) is able

14. They say you’ve got much bad debt. _____ it be true?

a) can b) may c) might

15. - Do you enjoy your work?

- I love my work. I _____ look at it all day.

a) may b) might c) could

16. The language of wealth management _____ be foggy.

a) might b) can c) could

17. You never _____ tell what the future _____ bring.

a) may; can b) can; may c) could; might

18. – I wonder why boss is in low spirits today?

- He _____ a follow-up letter from his creditors.

a) may get b) might get c) might have got

19. Shareholders _____ receive dividends after creditors have received

interest payments.

a) could b) can c) might

UNIT 2

1. TEXT

BANKING BUSINESS

“If you owe a bank a hundred dollars, you have

a problem. If you owe it a million dollars, it has a

problem!” ( John Maynard Keynes )

A. The Traditional Distinctive Function of Banks

The history of banking is nearly as old as civilization. Ancient writers often mentioned money-changers and moneylenders. These were men who bought the money of other countries and gave local coins in return. They had strongboxes in which to keep the money. People eventually began to leave their own coins with the money-changers to be kept in the strongboxes for safekeeping. Thus, the earliest banking was that of deposit and safekeeping. The beginning of modern banking is usually placed in the year 1587, when the Banco di Rialto was established in Venice, Italy. The term banking comes from the Italian word banco, meaning bench ( early Italian bankers carried on their business at a bench in a street ).

No matter where in the world you live, work, or travel, you’ll find that a banking system has developed to provide individuals and businesses with a wide range of financial services. Banks receive money for safe-keeping, and make loans to borrowers. Banking, therefore, is the business of receiving, protecting, and lending money. The primary role of banks is to intermediate between savers and borrowers. Simply put, banks and other financial institutions pool the savings of households and make them available to businesses that want to invest. The process of moving money from person to person and business to business is facilitated by a network of financial institutions categorized by the services they provide.

B. Modern Banking Institutions

Deposit institutions accept deposits from customers or members and provide some form of checking account. They include commercial banks, thrifts (savings and loan associations and savings banks that have traditionally specialized in mortgage lending), and credit unions (financial cooperatives owned by the members or employees of a company or other group). Nondeposit institutions, which include insurance companies, pension funds(institutions that specialize in managing funds that individuals save for retirement), and commercial and consumer finance companies(institutions that specialize in making loans to relatively high-risk individuals and businesses), provide a variety of other services. The traditional types of services, typical investments, and primary sources of funds for deposit and nondeposit institutions are listed in Exhibit 2. 1. These include a variety of checking and savings accounts, loans, credit cards, safe-deposit boxes, tax-deferred individual retirement accounts (IRAs), discount brokerage services, wire transfers, and financial counseling. In addition, most banks provide low-cost traveler’s checks and automatic overdraft protections for checking accounts when depositors write checks exceeding their account balances.

Banks are also heavily involved in foreign exchange trading. Nearly all banks trade currencies. In the U.S.A. this business is largely dominated by money-center banks, such as Citibank, J.P. Morgan Chase, and Bank of America. These three banks alone account for over one-fourth of the transactions in the U.S. foreign exchange market, which is a system of private banks, foreign exchange brokers and dealers, and central banks through which individuals, businesses, and governments buy and sell currencies.

The majority of the bank cash reserves of a country are held by central banks which perform numerous monetary services for their government. Central banks, such as the Federal Reserve System (the Fed) in the United States, the Bundesbank in Germany, the Bank of Japan, and the Central Bank of Russia control the country’s banking system. Central Banks as the most powerful financial institutions issue bank notes, supply currency and clear checks, regulate the supply of money and demand deposits, influence exchange rates, and serve as a depository for the federal government.

Exhibit 2.1. Financial Institutions and Their Traditional Services

TYPES OF

ACCOUNTS

TYPICAL OFFERED TO PRIMARY SOURCE

INSTITUTION SERVICES DEPOSITORS OF FUNDS

Deposit Institutions

Commercial *Personal loans *Checking accounts *Customer deposits

bank *Business loans *NOW accounts *Interest earned on

*Real estate, *Passbook savings loans

construction, and accounts

home mortgage *Time deposits

loans *Money market

deposit accounts

Savings and loan *Bond purchases *Savings accounts *Customer deposits

association *Home mortgages *NOW accounts *Interest earned on

(S&L) *Construction *Time deposits loans

loans *Money market

deposit accounts

Savings bank *Bond purchases *Savings accounts *Customer deposits

*Home mortgages *NOW accounts *Interest earned on

*Construction *Time deposits loans

loans *Money market

deposit accounts

Credit union *Short-term *Share draft accounts *Deposits by

consumer loans *Savings accounts members

*Longer-term *Money market *Interest earned on

mortgage loans deposit accounts loans

Nondeposit institutions

Insurance *Corporate long- *Premiums paid by

company term loans policyholders

*Commercial *Earnings on

mortgages investments

*Government bonds

Pension fund *Some commercial *Contributions by

mortgages member employees

*Government bonds and employees

*Corporate securities *Earnings on

investments

Commercial *Short-term loans *Interest earned on

and consumer to businesses loans

finance *Individual consumer *Sales of bonds

company loans *Short-term

borrowings