11. Answer the following questions based on text b:

1. Why are deposits so important?

2. What are the main types of deposits in the U.S.?

3. Why are demand deposits often referred to as checking ac counts?

4. What new forms of deposits appeared in the 1970s and 1980s?

5. Do all the deposits sold by American banks carry the same yield?

6. What are the factors that influence the shaping of deposit interest rates?

12. Make up sentences of your own using the following expressions from text b.

The raw material of banking, a bank's balance sheet, to levy charges, to meet the expenses, the relevant information, negotiable orders of withdrawal, money market deposits account, automatic transfer services, the mix of bank deposits, to shape deposit interest rates.

13. Say what is true and what is false. Correct the false sen­tences.

1. Banks carrying lending and investment operations have the use of money of their clients from the moment they pay their money into the bank and for ten years.

2. The manager of the bank informs the clients about paid checks, received credits and resulting balances personally by the phone.

3. Demand de­posits are not similar to current accounts

4. The customers are given small booklets, called a passbook, show­ing money market rates.

5. Time deposits offer the lowest interest rates a bank can pay.

6. Super NOWs can be held only by individuals, governments, and nonprofit organizations.

7. The longer the maturity of a deposit, the smaller the yield you may get.

8. In recent years bank deposits have changed greatly.

9. The types of deposits offered by a bank depend on one factor - the government's policy.

14. Using the words in brackets, explain the meaning of the following terms:

withdrawal (an account, remove from, a purpose, cash);

insurance (loss, to protect against, risk, government agency);

standing order (transfer, automatic, bank, customer, instructions);

debit (the amount, to remain, account);

maturity (the date, loan, investment, to be due);

15. Match the following words with the correct definition from the list.

Notice, bank statement, NOW account, current account, balance, yield, teller, deposit, charge, interest rate

1. Cash, checks or drafts placed with a financial institution for credit to a customer's account.

2. An amount shown in an account; difference between debits and credits in an account.

3. Return on an investor's capital investment.

4. The price of credit or ratio of the fees charged to secure credit from a lender to the amount borrowed, usually expressed on an annual percentage basis.

5. Bank clerk or cashier.

6. Interest-bearing checking account available to individuals and nonprofit institutions from banks, savings and loans, and other depository institutions.

7. A document which records the transactions which have occurred in a customer's bank account during a particular period of time and the closing balance.

8. The price demanded for service or goods.

9. The notification of termination of an agreement given by one party of an agreement to another.

10. An account held by a bank which records transactions made by a customer, interest on the balance of the account is not generally given.