Методички ЭД-203фк / Банковское дело и финансы. Часть I. Материал для изучения курса

1.Where is the central bank of the United Kingdom located?

2.When was the Bank of England established and nationalized?

3.When did the Bank gain operational independence?

4.What is understood by “its contribution to a health y economy”?

5.Have the Bank’s roles changed over its three-hundred year history?

6.How long has it been the banker’s bank?

7.What are the main functions of the Bank of England at present?

8.What Committee takes interest rate decisions?

9.What does much of the Bank’s work involve?

Exercise 5: Choose words from the list below:

Retail Banks

Retail banks primarily ___1___ individuals and small to medium-sized __2__. The major __3__ banks operate through more than12.148 __4__ offering cash deposit and withdrawal facilities and systems for __5__ funds. They __6__ current account facilities, including interest-bearing accounts; deposit __7__; various types of loan arrangement; and offer an extending __8__ of financial services.

accounts, branches, serve, provide, range, businesses, transferring, retail

Exercise 6: Read the extract and render the information.

During the nineteenth century, the Bank of England only gradually built up its institutional control over the London money market. Until the 1840s, it competed with other private banks, both in the capital and in the provinces, and sometimes speculated as irresponsibly as any other investor. But the bank had the only sizable gold reserves and came to monopolize government stock issues and short-term loans. Along with the East India Company and a few large insurance firms, it administered the financing of the national debt, subscribing its share through competitive bidding and then reselling it in small amounts to ordinary investors at a premium. The smaller City banks, private and independent, acted as agents for provincial investors.

The Bank Act of 1844 retained the decentralized system of private provincial banks but allowed the Bank of England to compete with them in the speculative loan market, on the theory that it would stabilize rates of interest.

Unfortunately, the bank's competition had exactly the opposite effect. Coupled with the railway mania of the 1840s, it led to a stock market panic and financial crash in 1847. Thereafter, the bank withdrew from the speculative market, fixing instead a minimum discount rate that, along with a statutory level of gold reserves

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for currency issues, controlled to some extent the expansion and contraction of credit.

UNIT 3

MONEY

1. Consult the Economic dictionary. Give the Russian equivalents for the words and expressions:

responsibility: to assume responsibility , to release (to relieve) from responsibility, financial responsibility

responsible

fineness: fineness of gold

legal: legal (lawful) tender

payment: payment forward, payment in cash, payments in dollar terms, payment on account

accept acceptable acceptance acceptor

debt: to be in debts, to be out of debts, to cancel debts, to run (get) into debt, to meet (settle) debts, national debt

debtee debtor

coin: to mint (strike) coins, coins of different denominations, coins of same denomination, counterfeit (spurious) coins, current coin, legal coin

coiner: false coiner coinage: coinage of gold

currency: convertible currency, counterfeit currency, paper currency

deposit: to deposit money with a bank, cash deposit, savings deposit, short deposit, time deposit

depositor

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standard: gold standard

require

requirement: to meet (satisfy) requirements

reserve: external reserves, gold reserve

stock: gold stock

value

2. Read and translate the text.

MODERN MONEY SYSTEM

The control of money is one of the rights and responsibilities of national governments. The government selects the money unit. Then it defines the money unit as a certain weight of metal of specified fineness. It decides which money has the power of legal tender. Legal tender is money which can be offered and accepted for the payment of debts. The government then issues coins and paper money. It holds the metal which the paper currency represents, and regulates the banks in which people have deposits.

Gold and silver have come to be used as money because they have certain characteristics which meet the requirements of gold money.

Money must be easily recognized, so that persons can tell its value at a glance. It must wear well, because it will pass often from hand to hand. Its value will be decreased if it wears out in the process of being exchanged many times. It must also be readily divisible to provide for fractional values. Good money must be easy to carry around, but it cannot be too small, or it will be easily lost.

Countries which define their money units in terms of gold, and which comply with certain requirements, are said to be on gold standard. The first requirement of the gold standard is to give the monetary unit a definite weight and fitness of gold.

That is, it must sell or exchange gold for all other kinds of money, when presented. It also must buy gold at a fixed price.

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Most governments own their nations’ monetary gold stock. Gold is needed as

reserves for central banks, and as means of international payments when other

forms of money are not acceptable. The monetary system in most countries today

is based on the gold standard.

Exercise 1: Match the English and Russian equivalents:

1.	mental of specified fineness	a)	фиксированная цена
2.	legal tender	b)	золотой стандарт
3.	payment of dets	c)	денежная единица
4.	issue of banknotes	d)	бумажные деньги
5.	paper currency	e)	металл определенной
6.	certain characteristics		пробы
7.	gold standard	f)	эмиссия банкнот
8.	monetary unit	g)	золотой запас
9.	fixed price	h)	законное платежное
10. gold stock			средство
		i)	определенные свойства
		j)	погашение долга

Exercise 2: Find the English equivalents for these words and expressions from the text:

права и обязанности; выбрать денежную единицу; выпускать монеты и банкноты; иметь вклады; удовлетворять требованиям; с одного взгляда; передавать из рук в руки; проба золота; средство международных платежей.

Exercise 3: Give the synonyms of the following:

coinage, banknotes, lawful tender, features, to hand, reserve, to comply with, at first sight, reduce, can be divided, certain weight, to choose, to be easily portable.

Exercise 4: Answer the questions:

1.Do the national governments control the money?

2.What does the government select?

3.How does it define the money unit?

4.What is legal tender?

5.Why have gold and silver come to be used as money?

6.What are the characteristics of good money?

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7.What countries are said to be on gold standard?

8.What is the first requirements of gold standard?

Exercise 5: Fill the gaps with the proper words from the list below:

Barter

In the days of primitive man, thousands of years ago __1__ was not used. Whenever a man wanted something he did not 2 or raise himself, he had to find another __3__ who __4__ desired article. Then he had to offer something _5___. It was not always __6___ to find people who were willing to trade. This troublesome method is known as the “__7 __ system”.

Primitive __8__ first used as money things _9__ or eat. Such things as grains, __10__, skins, salt, beads have also been used as money. These many __11__ of money were eventually replaced by pieces of __12__, particularly __13__ and silver.

mental, easy, varieties, money, person, gold, possessed, men, in exchange, barter, tobacco, to wear, make

Exercise 6: Read and translate the text and discuss what money does for you:

The very complicated system of trade which now exists would be impossible without money. First, money serves as a medium of exchange. Suppose that you are eager to buy a bicycle, and that you must earn enough money to pay for it.

With this money you can go to a bicycle shop and make your purchase. The merchant accepts your money and you get your bicycle. Money has performed a service for you. It has enabled you to exchange your labour for something you wanted.

Second, money serves as “yardstick of value”. This means that money may be used to measure and compare the values of various things.

By learning the price asked for all kinds of products, you may measure their value in terms of the work required to earn the purchase price.

Third, money is a “storehouse of value”. A far mer might not be able to hold his crops for a very long time because they are perishable. But the results of his labour can be preserved for the future if he is paid in money.

Fourth, money serves as a “standard for future payments”. Suppose that the dealer from whom you purchase your bicycle lets you have the bicycle after you make a down payment of five dollars. You then agree to pay the rest of the cost at a later date. You will not pay in eggs, baseballs, or roller skates. You both recognize the value of the money as a form in which later payments can be made.

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Библиографический список

1. Англо-русский словарь по экономике и финансам. /Под редакцией проф.

д-ра экон. наук А. В. Аникина. – Санкт-Петербург: «Экономическая школа», 1993. – 590 с.

2.Деловой английский . Андрюшкин А.П.- Санкт-Петербург: «Норинт», 2001.

3.Английский язык для экономистов. Федорова Л.М., Немчина С.Н.-Москва: «Экзамен» 2002.

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BANKING AND FINANCE

Методическая разработка по финансовой терминологии Часть I

Составитель Ольга Евгеньевна Касаткина

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