Text-based Exercises

Ex. 1 Which of the following adjectives from the text are used with the nouns given below? Consult the text if necessary.

1. Potential, equal, financial, negotiable, intangible, purchasing, convenient, necessary, agricultural, personal, principal, professional.

2. Qualities, operations, advice, power, payment, property, means, instruments, obligations, installments, financiers, advantages.

Ex. 2 Join the two groups of words from both columns to make word-combinations which are used in the text.

To include	credit history
To provide	financial plan
To make	operations
To convince To repay To guarantee	expenditures handling of money loans
To sell	purchases
Consumer	payment of interest
Good	repayment of a loan
Complex	the bankers
Sound	collateral
Constant	debts

Ex.3 Find in the text all the word-combinations of the following structure:”credit+ noun”, “financial+ noun”, read them aloud and translate into Russian.

Ex.4 Find in the text the sentences with the following word-combinations, read them aloud and translate into Russian.

To be extended by public or private institutions;

To be carried out by means of documents;

To be legally transferred;

To be prepared to show;

To be repaid with interest;

To be repaid in equal monthly installments;

To be paid in full

To be charged on balances;

To be added to the cost;

Ex. 5 Which words do the following sentences define?

1. An arrangement with a shop, bank that allows you to buy something and pay for it later.

a) mortgage b) credit c) contract

2. Property or other goods that you promise to give someone if you cannot pay back the money they lend you [= security].

1. collateral b) mortgage c) safety

3. ABFL legal arrangement by which you borrow money from a bank or similar organization in order to buy a house, and pay back the money over a period of years.

1. loan credit b) consumer loan c) home mortgage

4. A small plastic card that you use to buy goods or services and pay for them later.

1. credit card b) identification card

5. An account you have at a shop that allows you to take goods away with you now and pay later.

1. savings account b) outstanding account c) charge account

Ex. 6 Complete the sentences giving the English equivalents of the words written in the brackets.

1. Credit is (договоренность) between a creditor and a borrower.

2. (Кредитные сделки) normally include (выплату процентов) to the lender.

3. (Дебитор) is someone who owes money.

4. Credit (может быть предоставлен) by public or private institutions.

5. The use of credit makes possible the performance of the complex operations involved in modern business without the constant (обращения/ использования денег).

6. Bills of exchange, money orders, cheques, drafts, bonds are usually (оборотные документы); they may be legally transferred in the same way as money.

7. Banks differ greatly in their (готовности принимать риск).

8. Credit seekers must be prepared to show they are (достойны помощи банка).

9. A sound financial plan, a good (досье заемщика), and the guarantee of a third (стороны) can convince the bankers that the business can succeed.

10. (Имущественный залог) is a security that a borrower gives to a creditor to guarantee (выплату) of a loan.

11. This security may be in the form of a (закладной) on buildings, stock and bonds, certain (нематериальную) properties such as patents and copyrights.

12. The creditor may sell the collateral to (взыскать) the money due.

13. Credit for consumers falls into two categories: (ссудный) credit and (коммерческий) credit.

14. Loan credit (дает вам возможность) to borrow money which can be used to finance a purchase.

15. (Кредит по открытому счету) enable consumers to make purchases up to a specified limit, without paying cash.

16. A credit card is a kind of charge account that (дает право) its holders to shop at many different places.

17. Credit cards and charge accounts provide a safe and convenient means of carrying our (покупательной способности) with us while we are shopping or travelling.

18. Credit has its (преимущества и недостатки).

Ex. 7 Complete the sentences choosing the best alternative. Use the text for reference.

1. Creditor is someone

1. who money is owed to.

2. who owes money.

2. Negotiable instruments may be legally

1. transferred in the same way as money.

2. used as collateral.

3. Obtaining credit begins with

1. choosing co-signers who can guarantee the repayment of a loan.

2. choosing a bank that can support the firm's financial needs.

4. Credit seekers must be prepared to show

1. they were not extended credit in the past.

2. they are worthy of the bank's help.

5. In judging an individual’s credit worthiness, lenders often look at

1. the “three C’s” of credit: character, capacity and capital.

2. day-to-day expenses.

6. Collateral is a security that

1. co-signers give to a creditor to guarantee repayment of a loan.

2. a borrower gives to a creditor to guarantee repayment of a loan.

7. Sales credit enables

1. to buy goods and services now and pay for them later.

2. to borrow money which can be used later.

8. Home-mortgages are long-term loans used

1. to finance the purchase of automobiles and other goods and services.

2. to finance the purchase of a home or apartment.

9. Charge accounts enable consumers to make purchases

1. up to a specified limit, without paying cash.

2. paying by installments.

10. There is usually no charge for the use of a charge account if

1. if credit cards purchases are billed weekly.

2. the balance is paid in full at the end of the month.

Ex 8 Say whether the following statements are true or false. Correct the false ones.

1. Credit is an arrangement between two parties in which one (the debtor) supplies money, goods, services without future payment by the other (the creditor).

2. Credit transactions normally include the payment of interest to the lender.

3. The only institutions which extend credit are commercial banks.

4. Credit operations are carried out by means of documents known as credit instruments.

5. Banks don’t differ in their willingness to assume risk, ability to give professional advice, loyalty to customers, and maximum size of loans offered.

6. Some banks do not provide loans to small businesses in bad times.

7. The guarantee of a third party is enough to convince the bankers and other potential financiers that the business can succeed.

8. In judging credit worthiness, lenders often look at an individual’s honesty and willingness to repay debts.

9. Collateral may be in the form of tangible properties.

10. Home mortgages are repaid without interest, in equal monthly installments, over the life of the loan.

11. Auto and other consumer loans are usually repaid with interest in equal monthly installments over the life of the loan.

12. There is usually no charge for the use of a charge account if the balance is paid in full at the end of the month.

13. A credit card is a kind of charge account that entitles its holders to shop at certain places.

14. There are no disadvantages of buying on credit.

Ex. 9 Read the paragraphs of the text about advantages and disadvantages of credit and give your arguments or counter-arguments on each point. Use the following phrases.

I quite agree that…

I think that…

My point of view is…

As for me, …

I am not sure that …

I am afraid I can’t agree that…

It’s not quite so. I believe that…

Ex. 10 Ask questions to which the following sentences from the text can be answers. Try to complete these sentences first.

1. Credit may be extended by …. .

2. Credit is an arrangement in which the borrower supplies money, goods, services ….

3. Credit transactions normally include …. .

4. The use of credit makes possible …

5. Credit operations are carried out … .

6. Obtaining credit begins …

7. Credit seekers must be ready to show …

8. A sound financial plan, a good credit history, the guarantee of a third party … .

9. Collateral is …

10. Credit for consumers falls into … .

11. Loan credit enables you … .

12. Sales credit enables you … .

13. Home-mortgages are long-term loans used ….

14. Charge accounts enable consumers to make …

15. A credit card is a kind of …

Ex. 11 Divide the text into logical parts. Make up a plan of the text.

Ex. 12 Check yourself. If you are ready to answer all these questions, you know the basic notions and ideas of the topic.

1. What is credit?

2. What do credit transactions normally include?

3. What institutions is credit extended by?

4. How do banks differ in their ability to extend credit?

5. What does the use of credit make possible?

6. By means of what documents are credit operations carried out?

7. What does obtaining credit begin with?

8. What can convince the bankers that credit seekers are worthy of the bank’s help?

9. What security can a borrower give to a creditor to guarantee repayment of the loan?

10. What is the difference between loan credit and sales credit?

11. What examples of sales credit do you know?

12. What are home-mortgages used for?

13. What do charge accounts enable to do?

14. What credit cards are the most widely used?

15. Is there any charge for credit card purchases?

16. Are there any disadvantages of buying on credit?

17. What principal advantages of credit can you name?

Ex.13 Be ready to speak about the following issues. (Credit Situations)

5. The definition of credit.

6. Credit institutions.

7. Credit instruments.

8. The procedure of obtaining credit.

9. Collateral as a security to repay the loan.

10. Loan credit and sales credit.

11. Types of sales credit.

12. The advantages of credit.

13. The disadvantages of credit.