Vocabulary

a bank run (a run on the bank) – массовое изъятие вкладов из банка

to withdraw – снимать со счета

to wipe out – уничтожать

recession – падение, спад, рецессия

to suspend – приостанавливать, временно прекращать

convertibility – обратимость, конвертируемость (валюты, ценных бумаг)

to impose – облагать (налогом), налагать (обязательство)

reserve ratio – норма резерва

to fail – обанкротиться

failure – банкротство, несостоятельность

interests rate – ставка процента

assets – активы, средства, фонды

bubble – бум

downturn – спад деловой активности

8. Give Russian equivalents:

an incentive

chain of bankruptcies

to cause

to prevent

to satisfy

to insure

9. Choose words from the list to fill in the gaps, then use them to make sentences:

price, financial, bank, interest, economic

1. _____ rates

2. _____ bubble

3. _____ recession

4. _____ crises

5. _____ customer

10. Correct the statements that are false:

1. A bank run occurs when some bank customers withdraw their deposits.

2. Nothing can help to prevent bank runs.

3. To stop a run banks can temporally suspend withdrawals.

4. Depositors’ savings cannot be protected when the bank fails.

11. Answer the questions:

1. What is a bank run?

2. When does a bank panic occur?

3. Is it possible to prevent bank runs? How?

4. What was the financial crisis of 2007-2009 caused by?

12. Use words/phrases from the list to help you retell the text: a bank run, insolvent, a banking panic, suffer runs, to prevent bank runs, suspension of convertibility, impose, a reserve ratiorequirement,deposit insurancesystems, interest rates.