IV. Summarize the functions of savings banking institutions in about 150 words

Limited-Service Banks

Limited-service banks offer some services of banks, such as commercial loans and demand deposits; however, they cannot do both within the same organization. Perhaps the most recognizable of the limited-service banks is the Sears Roebuck Financial Network. Through acquisitions, Sears has developed a complete financial supermarket offering insurance, securities brokerage and real estate services.

Pushed, by concerns expressed by commercial banks, Congress decided in 1987 to ban the formation of new limited-service banks and limit the growth of the existing ones. However, the trend toward their formation had already slowed by that time, as many did not achieve sufficient volume and consumers did not show the expected enthusiasm about "financial supermarkets".

I. Key terms:

Collateral	- забезпечення кредиту - originally the US term for security, now used more widely. The official US definition (under the US Commercial Code) includes goods, intangibles, paper (negotiable instruments and documents of titles) and proceeds;
Promissory note	- простий вексель - an instrument recording a promise to pay a specific sum of money by a given date;
Commercial paper	- “комерційні бумаги (векселя)”- an unsecured note issued by companies for short-term borrowing purposes. It differs from a bill of exchange in that it is one-name paper; a bill of exchange contains the names of the drawer and the drawee, both of them are liable, whereas commercial paper has only the name of the issuer.

II. Answer the following questions:

1. What are thrifts?

2. What is the primary purpose of their creation?

3. Why are savings banks also called mutual savings banks?

4. Where are the existing savings banks primarily concentrated?

5. Who typically sponsors member owned credit unions?

6. What can you say about individual credit unions and what have they typically concentrated on?

7. What services do limit-service banks offer?

8. What can you say about Sears Roebuck Financial Network?

9. What is the present situation with limited-service banks?

III. Find in the text the corresponding English terms:

Ощадні інститути; кредитні спілки; позичково-ощадні товариства; закладна (іпотека); ощадні банки; взаємоощадні банки; пайовий рахунок; чековий пайовий рахунок; ощадний кооператив; короткострокова споживацька позика; довгострокова позика під нерухомість; банки з обмеженими послугами; посередництво в покупці та продажу цінних паперів.

Look through the excerpt and then fill the blanks with words from the box. Translate the text into Ukrainian:

the availability individuals transactions deposit accounts

savings banks transferred designer NOW account (negotiable order of withdrawal, in effect a cheque)

From their earliest origins savings banks have _____ their financial services to appeal to _____ and families. _____ can be opened for amounts as small as $1, with transactions _____ by mail or, in many instances, through automated _____ in convenient locations. _____ in Massachusetts and New Hampshire were the first to develop the interest-bearing, perhaps the most important new consumer financial services of the past decades. Many savings banks advertise of family financial counseling services, home equity loans, and travel planning as well a wide variety of savings instruments.

V. Find in the text the words which correspond to the following explanations:

1. Land including anything constructed on it.	___________
2. Non-bank institutions receiving deposits and making loans.	___________
3. The commission charged by a broker.	___________
4. Any medium of investment in the money market or capital market.	___________
5. A legal agreement conveying conditional ownership.	___________
6. A method of compensation for financial loss in the case of death, illness, injury, accident, theft, destruction or damage.	___________

VI. Explain the meaning of the following word combinations and use them in your own sentences:

1. To accept deposits

2. To make a loan

3. To earn interest

4. To place amounts of money in

5. To lend money to

6. To expand services

7. To face financial problems

8. To be chartered by

9. To catch on in

10. To be sponsored by

11. To provide a loan

12. To offer services

VII. Complete the table:

Verb	Adjective	Noun
accept	-	-
-	deposited	-
offer	-	-
-	acquired	-
-	-	expansion
originate	-	-
-	provided	-
-	-	generation
demand	-	-
-	expected	-
-	-	creator
sponsor	-	-
-	owned	-
-	-	consumer (-tion)
purchase	-	-
-	loaned	-
-	-	insurance
employ	-	-
-	invested	-

VIII. Do it in English making use of the active vocabulary:

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