Text 2 the purposes of financial laws

Exercise 2.1 Study the vocabulary:

1) certainty	1)впевненість, достовірність
2) consistent	2) послідовний, стійкий
3) predictability	3) передбачуваність
4) supply	4) забезпечувати
5) undermine	5) підривати
6) otherwise	6) в іншому випадку; протилежний
7) disclosure	7) розкриття, виявлення
8) solvency	8) кредитоспроможність
9) lending	9) надання кредитів
10) mortgage	10) заклад, іпотека
11) adjust	11) врегулювати
12) exchange	12) обмін; валютний курс; біржа
13) stock market	13) фондова біржа
14) forthcoming	14) поява, прийдешній
15) impact	15) вплив
16) securities	16) цінні папери
17) illicit	17) незаконний
18) interest rate	18) відсоткова ставка

Exercise 2.2 Read and translate the text:

Financial laws are designed to stabilize and protect the economy. Businesses depend on legal certainty and a stable economic environment to operate, develop products and employ people. Citizens depend on consistent interest rates and investment predictability. And together, citizens and businesses supply the capital that keeps the global economy running. Without financial laws, unpredictability and instability would undermine an otherwise functional system.

The framework of financial law also protects consumers. The issues vary, but most consumer protection laws seek to provide truthful disclosure of information to consumers, assure the solvency of companies, and ensure that all socio-economic groups have access to financial services.

The economic crisis that started in 2007 inspired a number of reforms to financial regulation. These reforms were enacted to prevent the irresponsible lending that contributed to the mortgage crisis. Reform efforts have also changed how credit card companies and banks conduct their business, and adjusted financial laws have forced these companies to become more transparent about their operations.

The Securities and Exchange Commission (SEC) regulates almost all aspects of the stock market. Under the Securities and Exchange Acts, the SEC makes sure companies disclose information about their policies and operations to consumers and to the government. Companies must also be forthcoming about their financial condition and any other information that could impact a consumer’s decision to buy securities. The SEC, along with the Commodities Futures Trading Commission (CFTC), monitors the activities of broker-dealers and protects consumers from the impacts of unfair dealing, illicit trading and insider trading.

Exercise 2.3 Decide if the statements are true or false:

1. Financial laws are designed to stabilize and protect the courts.

2. Citizens depend on consistent interest rates and investment predictability.

3. Without financial laws, unpredictability and instability would undermine an otherwise functional system.

4. The framework of financial law also protects government.

5. Most consumer protection laws seek to provide truthful disclosure of information to consumers.

6. The economic crisis that started in 2007 inspired a small number of reforms to financial regulation.

7. These reforms to financial regulation were enacted to prevent the violence.

8. The Securities and Exchange Commission (SEC) regulates almost all aspects of the stock market.

9. The SEC makes sure companies disclose information about their illegal actions to consumers and to the government.

Exercise 2.4 Choose the best variant:

1. Financial laws are designed _________the economy.

a) to destroy;

b) to protect;

c) to stabilize and protect.

2. Businesses depend on legal certainty and _____________to operate, develop products and employ people.

a) a stable economic environment;

b) fair legislation;

c) financial stability.

3. Together, citizens and businesses supply the capital that keeps the________.

a) faithful economic situation;

b) global economy running;

c) legal framework.

4. Most consumer protection laws assure __________of companies.

a) financial stability;

b) the solvency;

c) the predictability.

5. Reform efforts have changed how credit card companies and banks_________.

a) solve their economic problems;

b) conduct their business;

c) treat their clients.

6. Financial laws have forced the companies to become _________about their operations.

a) more transparent;

b) more confident;

c) more equitable.

7. Companies must be forthcoming about any information that could impact a consumer’s decision_________.

a) to buy securities;

b) to sell securities;

c) to borrow some money.

8. The SEC monitors ____________and protects consumers from the impacts of unfair dealing.

a) the activities of the companies;

b) the stock markets activities;

c) the activities of broker-dealers.

Exercise 2.5 Match the term with its definition:

1. To stabilize	unlawful, forbidden
2. To employ	ability to pay one's debts
3. Interest	money paid for the use of money lent
4. Consumer	to use the services in return for payment
5. To disclose	purchaser of goods or services
6. Solvency	document as evidence of a loan, certificate of stock, bonds, etc.
7. To lend	to allow the use of money at interest
8. Securities	illegal practice of trading to one's own advantage through having access to confidential information
9. Illicit	to make or become stable
10. Insider Trading	to make known; expose.

Exercise 2.6 Replace the following words translating them into English:

1. Financial laws are designed стабілізувати and захистити економіку.

2. Businesses depend on legal certainty and стабільне економічне середовище.

3. Citizens depend on стійкі відсоткові ставки and investment predictability.

4. Економічна криза inspired a number of reforms to financial regulation.

5. Most законів про захист прав споживачів seek to ensure that all socio-economic groups have access to financial services.

6. The reforms were enacted to prevent the безвідповідальне кредитування that contributed to the mortgage crisis.

7. The Securities and Exchange Commission regulates almost all aspects of фондової біржі.

Дата добавления: 2015-01-03