12. Answer the following questions based on text b:

1. What is a bank? What factors determine the success of its operation?

2. What makes the 1980s a turning point in banking?

3. What do bank trust operations encompass?

4. What groups do the bank trust operations fall into?

5. What does the Federal Indenture Act of 1939 envisage?

6. What are the obligations of a bank acting as trustee under indenture?

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

Modern full-service banking institu­tion, to sell at a competitive price,

to provide large scale services, trust departments, commercial paper market, to finance the construction of business facilities and private houses, mortgage loans, to places oneself as authorized agent, the riskiest forms of bank credit.

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

1. The success or failure of the bank depends on its ability to pro­duce a great amount of products.

2. The service menu of banks changes constantly.

3. Many banks offer either wholesale or retail banking.

4. Trust services are one of the most important and rapidly growing services provided by any supermarket.

5. Offering trust service the bank places itself as authorized agent between the marketplace and the customer.

6. Not so many banks today would like to offer real estate broker­age services to their customers.

7. Nowadays banks often serve as trustees under indenture.

8. Fiduciary relationship must be established between a bank and a cus­tomer, because bank acts to benefit its customer.

9. Bank trust divisions act as agents for corporations and other busi­nesses only in one way.

10. Mortgage loan is one of the safest forms of bank credit.

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

fiduciary services (trust, estate, management, to do with, fee);

broker (stocks and bonds, to sell, to buy, to request, for others);

charter (to carry on, to give permission, an official document, to fulfill, to provide services);

lending institution (to make loans, mortgage, to be empowered, interest rate);

The Treasury (government, department, British, national economic policy, public expenditure, to control, to coordinate, to supervise);

banking facilities (bank, to provide, customers, services, charge);

trust deed (deed to, property, security for a loan, to hold as, to manage).

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

Fiduciary relationship, trustee, real estate, mortgage, estate, trust de­partment, trustor, service

1. One's collective assets and liabilities.

2. An agreement between a bank and its customer in which the bank becomes responsible for the management of the customer's funds.

3. One who holds legal title to property in trust for the benefit of another person, and who is required to carry out specific duties with regard to the property.

4. One who creates a trust.

3. Debt instrument by which the borrower gives the lender a lien on property as security for the repayment of a loan.

3. Part of a bank engaged in settling estates, administering trusts and guardianships, and performing agency services.

4. A type of business that sells assistance and expertise rather than a tangible product.

5. Immovable property such as land held on a freehold.