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Vocabulary Notes on the Text

1 legal action — судебное разбирательство.

2 unquestionable reputation — безупречная репутация.

3 at a current rate of exchange — по текущему курсу обмена валюты.

4 to accept — акцептировать (принимать).

5 legally binding — имеющий обязательную силу.

6 "dishonoured" — не оплаченный в установленный срок.

7 to protest the bill — опротестовать вексель.

8 to prosecute — преследовать в судебном порядке.

Exercises on the Text

1. Read and translate the text.

2. Translate the following words and learn their pronunciation:

acceptor; creditor; debtor; discredit; failure; reputation; transference; transaction; binding; fundamental; urgent; isolated; able; subject to.

3. Give English equivalents of the following:

а) акцептор; дебитор; кредитор; банковский счет; банковский перевод; переводной вексель; аккредитив; текущий курс обмена валюты; день оплаты; авансом; по открытому счету; поквар­тально; юридически обязательный; неоплаченный в установленный срок; акцептировать; опротестовать вексель; преследовать в судебном порядке.

б) судебное разбирательство; единичная (разовая) сделка; безупречная репутация; полная дискредитация; полностью доверять; подлежать (подвергаться) чему-л.; по требованию.

4. Explain the meaning of the following in English:

acceptor; creditor; debtor; a bill of exchange; a letter of credit; a banker's transfer; to accept

5. Answer the following

  1. What types of payments in foreign trade do you know?

  2. In what way may they be made?

  3. When are payments in advance used?

  4. What is the method of payment in such cases?

  5. Whom are open account terms granted to?

  6. In what way is payment in these cases made?

  7. What is the banker's transfer?

  1. What is necessary for a customer to do while paying by banker’s transfer?

  2. What is the bill of exchange?

  1. When does the B/E become legally binding?

  2. What is the letter of credit?

  3. How does it work?

  4. Why are both the buyer and the, seller secure?

Vocabulary and Speech Exercises

6. Fill in the required prepositions:

1) Payment … goods … the home trade is made either … advance or … a reasonably short period … delivery.

  1. There is little time lost …correspondence and … delivery.

  2. A bill … exchange is an order … written form addressed … one person … another, to pay … demand or … a named date a certain sum …money … a person named … the bill, or … his order.

4) The banker's transfer is carried … … , current rates … exchange.

5) This transaction is simple and may be speeded … … cabled instructions if desired.

6) The L/C is ideal … individual transactions or … series, it gives protection … both the seller and the buyer.

7. Read and translate the text. Pay attention to the words in bold type:

One of the important features of the bill of exchange is that it is negotiable. It means that it can be used by the holder to pay his own debts. To do this, the holder of the B/E must endorse it, i.e. sign his name on the bill before handing it in to the next holder.

The owner of the bill can also sell it to the bank, who will pay face value, less interest: this is called to discount a bill. The other way to use a bill is to leave it as security for a loan.

It is due to its free negotiability that the B/E is known to be a useful means of payment in foreign trade. Undoubtedly, its successful operating depends on confidence and trust. Before handling bills each individual company's status and reputation are thoroughly checked and taken into account.

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