Semester 4, Lesson 8 (53)
BANKS
I. Read
the following words and word combination and learn their meanings by heart:
Savings
['seiviNz] bank - ощадна каса; savings - заощадження; a source
[sL:s] of credit ['kredit] джерело кредитування; a
depositor [di'pozitq] вкладник, депозитор; a depository
[di'pozitqri] скарбниця, сховище; a withdrawal [wiz'drLql] зняття, вилучення, a commercial bank - комерційний банк; a loan [loun]
позика; a letter of credit (L/C) - акредитив; a trust [trAst] траст, трест; trustee [trAs'ti:] опікун, довірена особа; minors ['mainqz] підлітки, неповнолітні; a goldsmith ['gouldsmiT] ювелір; entrust [in'trAst] довірити, доручити; an interest
['intrist] відсоток; interest-free - безпроцентний; integrity [in'tegriti]
цілісність, чесність; to take into consideration [kqn,sidq'reiSn] брати до уваги; offer ['Ofq]
пропозиція, пропонувати; a connection [kq'nekSn] зв'язок; to give notice ['noutis] повідомляти; the Middle Ages -
середньовіччя; a choice [COis] вибір.
II. Read
and translate text 20:
TEXT 20 BANKS
Banks are among the most important financial
institutions. The way in which a bank is organized and operates is determined
by its objectives. There are different banks. They may be classified according
to different services they perform.
Savings
banks. These are
institutions which accumulate savings in small accounts. They are also valuable
sources of credit for businesses. Savings banks, as a rule, invest their funds
in long-term credit instruments. That is why, most savings banks require their
depositors to give notice before a withdrawal.
Commercial
banks. In most
countries commercial banks serve as a depository of funds and a source of
credit. To-day they are active in giving short-term loans to business.
Commercial banks also deal in foreign exchange and
letters of credit.
Investment
banks. They do not
accept checking deposits. They promote industry through the sale of large
issues of stocks to investors.
Trust
companies are such
financial institutions which administer funds or property for the benefit of
others. They serve as trustees for property or guardians of minors, or agents
for stocks. In a word, they manage business in the interests of others.
The banking system of modern times is very complex.
If we go back as far as the Middle Ages we can find
some banking practices too.
The goldsmiths made fine things out of gold and
silver. They kept those precious things in strong-boxes. Soon some people began
to come to them to entrust money to the goldsmiths. Later on some goldsmiths
found themselves in possession of large sums of money. Some of goldsmiths
didn't want to keep money idle. They began to lend it at interest. At the same
time the goldsmiths kept some part of money to meet possible withdrawals. It
was an early step in the development of banks.
The most important thing in the choice of a bank is
its integrity. The size and the type of the bank must be taken into
consideration too.
If you are going into business, there is an advantage
for a small business to place an account in a small bank. The staff of such a
bank know each customer and can estimate your business better.
However, there are the advantages of a larger bank. It
is true, that dealings with a large bank are more impersonal. But, it is also
true, that a large bank can offer more facilities. Large banks can make a loan
at more favourable interest rate. They can also make as large loan as it is
desired.
In any case, selecting a bank people learn as much
information about the reputation of a bank as possible.
III. Retell the text according to the following questions:
1. What are
the main types of banks? 2.What institutions are savings banks? 3.What is the
function of commercial banks? 4. How do investment banks function? 5.What is a
trust company? 6.When and where can some banking practices be found? 7. What is
the most important thing in the choice of a bank? 8. What bank would one prefer
doing small business? 9. Are there any advantages of a large bank? 10. How can
one learn about the reputation of a bank?
IV. Try to
repeat a tongue twister several times, as quickly as possible, without
stumbling or mispronouncing:
When you write copy you have the
right
to copyright the copy you write.
V. Learn the following groups of:
a) synonyms:
To
accumulate - to store, to promote - to support, valuable - precious, benefit -
profit, estimate - appraise, desire - wish, property - capital, to invest - to
deposit, to perform - to do, to go back - to return, choosing - selection, size
- dimension, loan - credit, integrity - fairness, practice - method, quantity -
amount.
b) antonyms:
To deposit -
to withdraw, complex - simple, long-term - short-term, advantage - weakness,
favourable - infavourable, to accept - to give, true - false, better - worse,
minors - adults.
VI. Fill each blank in the text with the correct
word or phrase. Choose from the following list:
Withdraw, cash dispenser, issued,
debited, slip, credit transfer.
Banks offer many services to businesses and their
customers. Here are some of the most common:
Many people now have a card which enables them to money from a . You feed your card into the
machine and key in your PIN (personal identification number) and the amount of the
money you want. If you have
enough in your account, the money requested will be to you up to a daily limit. Your account is automatically for the amount you have drawn out. If you have several bills to pay,
you can do this by . You write once cheque for the total sum
involved, fill in a for each bill and hand everything to the bank cashier.
VII. Match the words with the correct definition
from the list below.
Top management, staff, commercial
bank, organization chart, chief executive officer, audit, board of directors,
branch banking.
1. Committee elected by shareholders to set
the bank's policy and oversee the bank's performance.
2. Most common and most unrestricted type of
bank, allowed the most latitude in its services and investments.
3. Chart showing the interrelationship of
positions within an organization in terms of authority and responsibility.
4. Banks that offer a full range of services
from multiple locations, inclu¬ding a head office and one or more branch
offices.
5. Key problem in an organization who make
most important decisions.
6. Inspection of the accounting records and
procedures of any reporting entity by a trained accountant, for the purpose of
verifying the accuracy and completeness of the records.
7. Personnel in an organization.
8. Member of staff who has ultimate
management responsibility for an organization. He reports directly to a board
of directors.
VIII. Read
and translate the meanings of the following terms. Translate the sentences with
them.
Check - l)is (banking) (US) cheque; 2) is
a slowing down or stopping; 3) is an inspection or examination of the condition
of something; 4) is (US) a bill issued in a restaurant.
1. He usually uses banking cheques.
2. Public spending has been held in check. 3. All our machines are given
regular checks. 4. Ask the waiter for the check.
Deposit - 1) is a sum of money paid into a
bank or savings account; 2) is a payment of part of a larger sum to be paid
later, especially to prevent the goods being sold to someone else; 3) is a sum
of money paid when borrowing or hiring something and given back if the item is
returned undamaged.
1. He makes a regular deposit of
$100 per month. 2. You are advised to deposit your valuables in the hotel safe.
3. I'd like to make a deposit. 4. Time deposits include savings certificates and
small certificates of deposit. 5. The U.S. Treasury also maintains deposits at
the Fed, for the Fed is the government's principal bank. 6. It is necessary to
pay a 10% deposit to secure the goods.
Interest rate - is the cost of borrowing money
expressed as a percentage
of the
capital borrowed.
1. The new interest rate is 11.5%.
2. Interest rate is relation between the payment received by a lender of money
and the amount of money lent, expressed as a percentage per period of time.
Guarantor - is a person who promises to be
responsible for or to repay another's debt.
1. The bank will give us a loan, but
we have to find a guarantor First.
Balance - is the difference between the
total of money coming into (credits) and money going out of (debits) an
account; the amount needed to make these totals correspond.
1. My bank statement shows a balance
of $ 150.
IX. Translate the following extract in written form:
Banks perform the widest range of functions in the
economy and consequently any modern full-service banking institution should
provide the widest variety of services.
Banks may be defined as firms producing and selling
financial services. Their success or failure hinges on their ability to
identify the financial services of public demands, produce those services
efficiently, and sell them at a competitive price. The service menu (вибір
послуг) of banks does not і remain unchanged as new services are constantly
being introduced and developed by commercial banks. Many of them offer a
combination of wholesale and retail banking. The former provides large scale
services (послуги, які надаються великим фірмам) to the corporate sector. The
latter mainly provides smaller scale services (послуги малим фірмам і населенню)
to the general public.
X. Look through the excerpt before filling the spaces with necessary words. Translate the text into Ukrainian.
organization, board of directors,
departments, services, responsibilities, markets, offers, serve, top management.
If a bank is owned and controlled by a holding
company, its shareholders elect a ...(1) to oversee bank and nonbank firms
allied with the same holding company. Selected members of this board of
directors ... (2) on the bank's board as well. The key problem in such an
...(3) is span of control, with ...(4) often knowledgeable about banking
practices, but less informed about the products and ...(5) offered by other
subsidiary companies. Moreover, because the bank itself ...(6) so many
different services in both domestic and foreign ...(7), serious problems may
not surface for weeks or months.
XI. Read text 21 and answer the questions:
1. What are main functions of a bank?
2. How are banks usually organized?
TEXT 21 BANK
ORGANIZATION
The way in which a bank is organized and operates is
determined by its objectives. The first and most important function of a
central bank is to accept responsibility for advising the government on the
making of the country's financial policy, and then to see that it is carried
out. The aim of commercial banks is to earn profit. Over the years banks have
developed organizational forms, or structures, designed, to perform these
various roles and to supply the services their customers demand.
Banks are usually organized to follow their functions
and supply the services demanded by them as efficiently as possible. Moreover,
because larger banks generally play a wider range of roles and offer more
services a bank's size is also a significant factor in determining how banks are
organized.
The large banks possess some potential advantages over
small and medium-size banks. Because the largest institutions serve many
different markets with many different services, they are better diversified,
both geographically and by product line, to withstand the risks of a
fluctuating economy. They also possess the important advantage of being able to
raise financial capital at relatively low cost and the professional expertise
to focus that new capital on the most promising loans and business acquisitions.
The oldest and most common banking organizations in
the United States are unit banks. They offer all of their services from one
office though a small number of services (such as taking deposits or cashing
checks) may be offered from limited-service facilities, such as drive-in
windows, automated teller machines (ATM) and retail store point-of-sale (POS)
terminals that are linked to the bank's computer system.
XII. Individual work: learn
the meaning of words describing change on the
market.
to increase = to become large or higher
to shoot up = to increase in number or size very quickly
to rize = to increase, become higher
to take off = to start being successful or popular
to improve = to get better
to pick up = to improve
to recover = to get better, improve
to grow = to get bigger
to expand = to get bigger, larger
to fall = become smaller in size or number
to slump = to drop suddenly
to shrink = to become smaller
to decline = to become worse or smaller
XIII. A. Mix
and match
1. increase a. to increase in
number or size very much
2. shoot up
b. to improve
3. take off
c. to change continuously
4. pick up
d. to become larger or higher
5. fall e. to
start being successful or popular
6. slump
f. to drop suddenly
7. level off
g. to stop falling or rising
8. fluctuate h. to become smaller in size
or number
B.
Complete the sentences with the words below:
1. Costs have _______slightly
on the project. We will exceed the budget.
2. The number of rejects _____
dramatically. We will have to invest in new machines.
3. Sales are finally beginning
to _________. We should hit our target next quarter.
4. Work should ____________ in
the autumn. That’s traditionally our best time.
5. Sales _____________ by ten
per cent in the last quarter. We need a new advertising campaign.
6. Demand ____ due to the hot
weather. People use a lot less electricity in summer.
7. Costs are ____ after steep
increases. We expect them to start falling next quarter.
8. Prices have _____________ a
lot recently. We hope they will stabilize soon.
Pick up; fluctuated; levelling off; take off; increased; slumped; shot up;
fell
XIV A. Mix and match.
1. rise
a. to reach the lowest point before improving
2. recover
b. to increase, become higher
3. expand
c. to get better, improve
4. grow
d. to reach the highest point before falling
5. shrink e. to get bigger, expand
6. decline
f. to get bigger, grow
7. peak
g. to become worse or smaller
8. bottom out
h. become smaller
B. Complete the sentences with the
words below:
1. Costs have ____ steadily
over the last year. This is due to higher transport costs.
2. The dollar has _____
slightly against the euro. We are back at last year’s rate.
3. We are currently ______ at
a phenomenal rate. We expect to be bigger than our main competitors next year.
4. The popularity of our
products continues to _____ . They are
becoming a must-have among young people.
5. Our market share has _____
to less than twenty per cent. We need new products.
6. Interest has _________. We
need to regenerate interest through new advertising.
7. Tourist numbers ________ in
August. We are usually full for the whole month.
8. We think prices have
__________ . We expect to see small increases soon.
Shrunk,
peak, declined, expanding, recovered, bottomed out, risen, grow