The Nature of Banking

B) Write down 3-5 questions about the text.

A) Supply the prepositions where necessary.

Bank Accounts

C) Say a few words about services provided by commercial banks.

B) Write down 3-5 questions about the texts.

A) Supply the articles where necessary.

When money in placed in … bank it is said to be “deposited”.

The money may be put into... account from which it can be drawn at any time, or into ... account which can only be drawn upon after certain notice has been given. In British banking, these types of accounts are known as current accounts and deposit accounts respectively. In... USA, the corresponding terms are "demand deposits" and "time/or notice deposits".

A person uses a current account to provide … safe way of keeping his money, and having it easily available when he wishes to spend it.

Payments are made from current accounts, and money is withdrawn from them by means of cheques (... very small interest is paid on these accounts).

A deposit account is used for saving money, and … period of notice must be given before money can be withdrawn from a deposit account, especially when... amount to be withdrawals is fairly big. A higher rate of interest is paid by the bank on money on deposit accounts compared with current ones. A cheque book is provided for the customer when he opens this account. The terms "cash deposits" and “savings deposits” are sometimes used to denote the deposits continually turned over in... settlements of debts and those not held for current business, but as investments or savings.

Words you may need:

place – розміщувати, поміщати

respectively – відповідно

demand deposit – безстроковий вклад

available – доступний

time deposit – терміновий вклад

denote – позначати

turn over – обертатись

The nature... banks can best be understood... examining both their long-established functions and new emerging roles. The former include the provision of payment services and intermediation services. The latter include the merging... investment and commercial banking activities. The banking firm is recognized as a major force … the financial markets. As intermediaries they collect the deposits of the household sector, held... the form of demand and savings deposits, and recycle them... real investment capital. They perform maturity transformation – lending long and borrowing short. Banks provide the real sector... funds, the major source of financing for the industrial sector. Besides, banks are viewed now as evaluators of investment opportunities available... both the primary and secondary markets. The bank's role is to screen potential projects, to determine expected return and risk... the not-always-objective data presented... the demanders of funds.

What differentiates banks from other financial intermediaries? First, banks issue liabilities that are media of exchange in that the transactions velocities of chequable deposits tend to be much higher than the transactions velocities of other assets. Second, banks differ... other financial intermediaries with regard... the nature of the assets they hold. While most of the assets held... mutual funds are publicly traded, bank assets tend not to be traded... securities markets.

Words you may need:

nature – природа, характер

emerge з’являтись, виникати

the former/the latter – перший /останній з двох

savings deposit – ощадний вклад

to lend long – надавати довгострокові позики

to borrow short – отримувати короткострокові позики

real sector – реальний сектор

evaluator – оцінювач

screen – сортувати, проводити перевірку

expected return – очікувана прибутковість

to issue liabilities – видавати боргові зобов’язання

media of exchange – засоби обміну

velocity – швидкість

chequable deposit – депозит, який може вилучатись за допомогою чеків

publicly traded – ті, що продаються та купуються на фондовій біржі

Дата добавления: 2014-11-29