Text 4 finance and financial system

Exercise 4.1 Study the vocabulary:

1) Public finance	1) державні фінанси
2) provision	2) постачання, забезпечення
3) monetary relations	3) грошові відносини
4) distribution	4) розподіл
5) turnover	5) обіг, оборотність
6) economic entity	6) економічний суб'єкт
7) network of institutions	7) мережа закладів (організацій)
8) household	8) домашнє господарство
9) unit of government	9) державна організація.
10) funds	10) фонди, засоби, гроші
11) surplus	11) надлишок, залишок
12) saver	12) вкладник
13) borrower	13) позичальник
14) intermediary	14) посередник
15) thrift institution	15) ощадний заклад
16) insurаnce company	16) страхова компанія
17) pension fund	17) пенсійний фонд
18) mutual fund	18) взаємний фонд
19) community	19) співтовариство, група осіб, що об'єднані за певними ознаками;
20) government authorities	20) уряд, органи державної влади
21) benefit	21) вигода, користь, благо
22) financial flows	22) фінансові потоки
23) encouragement	23) підтримка, стимулювання, заохочення
24) раrtiсular	24) особливий, специфічний
25) implementation	25) виконання, здійснення
26) social роlісу	26) соціальна політика
27) budget	27) бюджет
28) estimate	28) оцінка, кошторис
29) revenue(s)	29) доходи (державні)
30) fiscal year	30) фінансовий рік
31) expenditure	31) витрати
32) deficit	32) нестача

Exercise 4.2 Read and translate the text:

Finance is the provision of money at the time when it is needed. It is a system of monetary relations leading to formation, distribution and use of money in the process of its turnover between economic entities.

The financial system is the network of institutions through which firms, households and units of government get the funds they need and put surplus funds to work.

Savers and borrowers are connected by financial intermediaries including banks, thrift institutions, insurance companies, pension funds, mutual funds, and finance companies.

Finance in an economic system comprises two parts: public finance and finance of economic entities.

Public finance is the provision of money (by the community through taxes) to be spent by national and local government authorities on projects of national and local benefit. It is a collective term for the financial flows and also the financial institutions of the public sector.

Public finance has the following four functions:

a) the provision of essential services;

b) the encouragement or control of particular sectors of the economy;

c) the implementation of social policy in respect of social services;

d) the encouragement of the growth of the economy as a whole.
The major instrument of any financial system is the budget. In a market-oriented economy, the budget is the most important tool for achieving national priority and goals through the allocation and distribution of resources, and the maintenance of stable macroeconomic environment.

The budget is an estimate of national revenue and expenditure for the ensuing fiscal year. When expenditure exceeds the revenue the budget has a deficit.

In Ukraine, public finance is a sum of the budgets of all levels of subjects of the state, extra budgetary and reserve funds.

Exercise 4. 3Read the text and match the equivalents:

1. National revenue(s)	a) економіка, що орієнтована на ринок
2. Borrower	b) фінансові потоки
3. Market-oriented economy	c) державні прибутки
4. Intermediary	d) страхова компанія
5. Financial system	e) вкладник
6. Saver	f) фінансова система
7. Extrabudgetary and reserve funds	g) місцева вигода
8. Insurance company	h) посередник
9. Financial flows	i) позичальник
10. Local benefit	j) позабюджетні та резервні фонди

Exercise 4.4 Read the text and match word combinations from the text:

1. Economic	a) system
2. Thrift	b) institutions
3. Financial	c) entities
4. Fiscal	d) benefit
5. Insurance	e) services
6. Pension	f) finance
7. National	g) year
8. Public	h) funds
9. Local	i) revenue
10. Essential	j) companies

Exercise 4.5 Read the text and choose the right ending:

1. Finance is the provision of	a) the budget has a deficit.
2. Finance is a system of	b) monetary relations leading to formation, distribution and use of money.
3. The budget is the most important tool	c) national revenue and expenditure for the fiscal year.
4. The budget is an estimate of	d) for achieving national priority and the maintenance of stable macroeconomic environment.
5. When expenditure exceeds the revenue	e) money at the time when it is needed.

Exercise 4.6 Read the text and choose whether the statements are true or false:

1. Finance is the provision of money at the time when it is needed.

2. Finance comprises four parts.

3. Finance in an economic system which consists of public finance and finance of economic entities.

4. Public finance has four functions.

5. The essence of finance is shown in its functions.

6. The major instrument of any financial system is taxation.

7. The budget is an estimate of national revenue and expenditure for the ensuing fiscal year.

8. In a market-oriented economy the taxation is the most important tool for achieving national priority.

9. Finance and money have identical substance.

10. When the revenue exceeds expenditure the budget has a deficit

Дата добавления: 2015-01-03