Inflation and business

D

D

П	п
D	D
□	D
D	П
П	D

f.8

PART I. ECONOMICS

VI. Financial Indicators. In order to get an overview of the health of an economy in a country, bankers may examine the financial indicators, which show the main economic figures. Look at the items in the box and match them with the definitions.

Gross Domestic Product	Gross foreign debt	trade balance
annual inflation	bank prime rate	FX reserves
average monthly salary	industrial output	discount rate
current account balance	unemployment figures	Annual Percentage Rate

1. The amount of foreign currency held by the country.

2. The yearly interest rate.

3. Those people in a country who do not hold a job.

4. The rate between imports and exports.

5. The monthly payment paid to employees.

6. The yearly inflation figures.

7. The amount of goods produced by manufacturing companies.

8. The bank lending rate.

9. The amount of money owed by the country.

10. The sum held on the country's current account.

11. The interest rate at which central banks lend to commercial banks.

12. The total value of goods produced by a country in a specified period.

VII. Central Banks and Economic Stability. Choose the correct phrase from the alternatives in
italics to create eight true sentences about economic management.

1. Most people think politicians/bankers are better than politicians/bankers at running an economy.

2. Independent central banks have a good record on controlling inflation/public opinion.

3. Freedom to control monetary policy/banking regulations means being able to change exchange rates/political opinion.

4. Low interest rates/high interest rates help to control inflation/small banks.

5. High interest rates often cause small banks/central banks to fail.

6. In developing countries, central banks cannot help small banks because of the risk of low inflation/hyper-inflation.

7. Newly independent central banks are limited by their agreements with the International Monetary Fund/the United Nations.

8. Any risk of inflation can mean disinvestment/new investment from investment fund holders/national governments.

VIII. Writing Practice. Make a short summary about types of inflation from the above text. Use
the opening phrases from Appendix I.

UNIT 12. INFLATION

UNIT 13.

discussion 1. In what ways can inflation influence business?

2. What are the consequences of such influence? Give some examples from real life.

Дата добавления: 2014-12-23