English-russian dictionary of business terms 8 страница
VI. Explain in English
the National Girobank; cash assets; cash reserves; interest-earning assets; asset-holders; liquid assets; illiquid assets; sight deposits; time deposits
VII. Answer the questions
1. What's a financial intermediary? Name different financial intermediaries.
2. What's a deposit?
3. What's a bank liability? In what way are the bank liabilities part of the money stock?
4. What's a commercial bank?
5. What's a clearing bank?
6. What's a clearing system? How does it work? Draw a scheme showing how the system works.
7. What's the role of the Bank of England?
8. What do assets include? Dwell on each item.
9. What's liquidity? Why is money itself the most liquid asset? Why aren't advances very liquid forms of bank lending?
10. What do liabilities include? Dwell on each item.
VIII. Translate into English using all the active possible
1. О деятельности коммерческого банка можно судить (понять) с помощью балансового отчета, в котором активы равняются пассивам.
2. У коммерческого банка две основные функции — прием денежных вкладов и выдача ссуд.
3. Банкир преследует две противоречащие друг другу цели. Одна цель - прибыль. Коммерческие банки, как и другие предприятия, стремятся к прибыли. Поэтому они предоставляют кредиты и покупают ценные бумаги, правительственные облигации и акции компаний. Эти операции в балансе показаны как основные активы, приносящие доход коммерческим банкам. С другой стороны, коммерческий банк должен стремиться к безопасности. Для банков безопасность обеспечивается ликвидностью, в частности такими ликвидными активами, как наличность. Поэтому банкиры стремятся к балансу между осторожностью и прибылями.
4. Финансовые посредники - это институты, которые собирают сбережения населения и предоставляют их заемщикам. Финансовые посредники в общем виде могут быть разбиты на три группы - банковские, страховые и инвестиционные институты. Банковские институты состоят из коммерческих банков, сберегательных банков и др. Для них характерно принятие вкладов населения и организаций. Страховые институты представлены страховыми компаниями и пенсионными фондами. Инвестиционные институты представлены финансовыми компаниями. Они привлекают деньги, выпуская собственные акции и инвестируя фонды в акции и облигации.
Unit 21.
MONEY AND THE RETURN IT EARNS
(ДЕНЬГИ И ДОХОД, КОТОРЫЙ ОНИ ПРИНОСЯТ)
Fundamental to all financial markets is the idea of earning a return on money. Money has to work for its owner. Here are some of the ways it can do so:
1. You deposit $1,000 with a bank, which pays you, say, 10 per cent a year interest. In other words, your $1,000 of capital earns you $100 a year, which is the return on your money. When you want your $1,000 back you get $1,000, plus any accumulated interest, not more or less. Provided your bank does not go bust, your $1,000 of capital is not at risk, except from inflation, which may reduce its purchasing power each year.
2. You buy gold bullion to a value of $1,000 because you think the price of gold will rise. If the price of gold has risen by 20% after a year, you can sell your gold for $1,200. You have made a profit or a capital gain, of $200 on your capital outlay of $1,000. In other words you have a return of 20% on your money. If the price of gold fails to move, you've earned nothing because commodities like gold do not pay interest.
3. You use your $1,000 to buy securities that are traded on a stockmarket. Usually these will be government bonds (known as gilt-edged securities or gilts in the UK) or ordinary shares in a company. The former always provide an income; the latter nonnally do. Traditional gilt-edged securities pay a fixed rate of interest. Ordinary shares in companies normally pay a dividend from the profits the company earns. If the company's profits rise, the dividend is likely to be increased; but there is no guarantee that there will be a dividend at all. If the company makes losses, it may have to cease paying a dividend.
But when you buy securities that are traded on a stockmarket, the return on your $1,000 is not limited to the interest or dividends you receive. The prices of these securities will also rise and fall, and your original $1,000 investment accordingly becomes worth more or less. So you are taking the risk of capital gains or capital losses.
Suppose you buy $1,000 worth of ordinary shares, which pay you a dividend of $40 a year. You are getting a return or dividend yield of 4% a year on your investment ($40 as a percentage of $1,000). If after a year the market value of your $1,000 of shares lias risen to $1,100, you can sell them for a capital gain of $100 (or a 10% profit on your original outlay). Thus your overall return over a year consists of the $40 income and the $100 capital gain: a total of $140 or a 14% overall return on your original $1,000 investment.
Investors are generally prepared to accept much lower initial yields on shares than on fixed-interest stocks because they expect the income to rise in the future. Most investors in ordinary shares are seeking capital gains at least as much as income. Note that if you are buying a security, you are taking the risk il,4t the price may fall whether it is a government bond or a share. But with the government bond the income is at least guaranteed by the government. With the share there is a second layer of risk, the company may not earn sufficient profits to pay a dividend.
To summarize: money can be deposited to produce an income; it can be used to buy commodities or goods, which are expected to rise in value; or it can be invested in stockmarket securities, which normally produce an income but show capital gains or losses as well. Of course, there are many variations on each of these items.
VOCABULARY NOTES
an accumulated interest накопленный процент
provided (syn. providing) при условии
to go bust (syn. to go bankrupt) обанкротиться
a capital gain - доход от прироста капитала (как результат роста рыночной стоимости активов; может быть получен при продаже активов)
capital outlay капиталовложения
gilt-edged securities (gilts) первоклассные (особо надежные) ценные бумаги (с золотым обрезом)
ordinary shares обыкновенные акции
a fixed rate of interest фиксированная процентная ставка
pay a dividend приносить дивиденд
to cease прекращать
a capital loss капитальный убыток (потери от понижения рыночной стоимости активов)
a yield доход по ценным бумагам (особенно облигациям)
a dividend yield доход на акцию
overall return общий, суммарный доход
a second layer of risk дополнительный риск
a layer слой
Assignments
I. Suggest the Russian equivalents
the idea of earning a return on money; your $1,000 of capital earns you
$100 a year; a profit or a capital gain of $200 on your capital outlay of $1,000; commodities like gold do not pay interest; securities that are traded on a stockmarket; your overall return over a year; most investors in ordinary shares are seeking capital gains at least as much as income; there is a second layer of risk; the company may not earn sufficient profits to pay a dividend; so you are taking the risk of capital gains and capital losses
II. Replace the parts in italics by synonyms
in case your bank does not go bankrupt, securities that are bought and sold on a stockmarket; to earn profits enough to pay a dividend.
III. Fdl in the gaps with the words and expressions from the text
1. Fundamental to all financial markets is the idea of .
2. Your $1,000 of_______________ earns you $100 a year, which is on your money.
3. When you want your $1,000 back you get .
4. Provided your bank does not , your $1,000 of capital is
5. You may buy , but if the price of gold fails to move, you've earned because commodities like gold .
6. Of all______________ traded on a stockmarket always provide an income, normally do, and traditional__________________ pay .
7. Ordinary shares in companies normally pay the company .
8. When you buy securities that are traded on , the return is not limitedto or you receive.
9. If the market value of your shares has risen, your over a yearconsists of and .
10. Investors are generally prepared to accept___ on shares than on stocks because they expect the income____________ .
11. Most investors in ordinary shares are seeking at least as much as .
12. With the government bond the income is at least .
13. If the company does not______ , it may to pay .
IV. Find in the text English equivalents for the following
процент годовых; накопленные проценты; при условии, что...; обан- кротиться; сокращать покупательную способность денег; рисковать; зо- лотой слиток; ценные бумаги; государственные облигации; акции; фик- сированная процентная ставка; прекратить выплату дивидендов; началь- ный доход по акциям; приносить доход (проценты) (2 варианта); доходы на капитал (доходы от прироста капитала); потеря капитала
V. Explain in English
a capital gain; a capital loss; a return; an overall return; a dividend yield; a fixed rate of interest.
VI. Answer the questions
1. What are the ways of earning a return on money?
2. What are gilt-edged securities? Who issues them? Why are they considered to be of the highest class?
3. In what cases does the investor take the risk of capital gains? Capital losses?
4. Which way of earning a return do you consider the safest and most profitable other things being equal?
VII. Translate into English using all the active possible
1. В условиях рыночной экономики всякая денежная сумма способна приносить доход.
2. Если вы владеете акциями какой-либо компании и цены на эти акции поднялись, то вы можете получить доход, продав эти акции.
3. Продать или купить акции можно на особом рынке - фондовом.
4. Цена акции колеблется, ее курс может падать и повышаться. Это зависит от размеров прибыли, которую получает компания, и, следовательно, от дивиденда, который выплачивается по акциям, а также от банковской процентной ставки.
5. Предположим, цена на акции составляет $100. Если дивиденд пс акциям равен $10, а рыночная ставка процента равна 10%, то 100-долларовая акция приносит доход в 10 долларов. Сумма наличными в 100 долларов, помещенная (вложенная) в банк, тоже приносит доход в 10 долларов. Следовательно, цена на акции не изменится.
6. Если дивиденд повысится до 20 долларов, а процентная ставка останется неизменной (10%), то доход по акциям в этих новых условиях удвоится по сравнению с доходом от такой же суммы, помещенной в банк. Вполне естественно, что курс акции (цена на акции) удвоится.
Unit 22.
INTEREST RATES AND BOND PRICES
(СТАВКА ПРОЦЕНТА И ЦЕНЫ НА ОБЛИГАЦИИ)
The change in interest rates has important implications for the stockmarket prices of bonds, which pay a fixed rate of interest: fixed-interest securities, of which the traditional gilt-edged securities issued by the government are the most familiar though companies also issue fixed-interest bonds. It works like this.
Gilt-edged securities are a form of IOU (I owe you) or promissory note issued by the government when it needs to borrow money. The government undertakes to pay so much a year in interest to the people who put up the money and who get the IOU in exchange. Normally the government agrees to redeem the stock at some date in the future, but to illustrate the interest rate mechanism it is easiest initially to take an irredeemable or undated stock, which does not have to be repaid.
The original investors who lend the money to the government do not have to hold on to the IOUs. They can sell them to other investors, who then become entitled to receive the interest from the government. Suppose the government needs to borrow money at a time when investors would expect an 11% yield on a gilt-edged security. It offers $11 a year interest for every $100 it borrows. The investor is prepared to pay $100 for the right to receive $11 a year interest, because this represents an 11% return on his outlay.
Then suppose that interest rates rise to a point where an investor would expect a 12,5% return if he bought a gilt-edged security. He will no longer pay $100 for the right to $11 a year in income. He will only be prepared to pay a price that gives him a 12,5% return on his outlay. The "right" price in this case is $88, because if he pays only $88 to receive $11 a year in income, he is getting a 12,5% return on his investment. So in the stockmarket the price of the gilt-edged security that pays $11 a year interest will have to fall to $88 before investors are prepared to buy it. The original investor who paid $100 thus sees the value of his investment fall because of the rise in interest rates. Conversely, the value of his investment would have risen if interest rates had fallen.
To summarize: If interest rates on securities go down, bond prices or prices for securities go up, and vise versa.
VOCABULARY NOTES
a promissory note долговое обязательство
to put up the money вкладывать деньги
to redeem погашать (ценные бумаги)
irredeemable stock непогашаемые ценные бумаги
undated stock ценные бумаги без указания даты погашения
to hold on (to smth) сохранять что-либо, держаться за что-либо
vise versa наоборот
Unit 23.
THE MONEY SUPPLY AND THE DEMAND FOR MONEY
(ПРЕДЛОЖЕНИЕ И СПРОС НА ДЕНЬГИ)
The Bank and the Money Supply. Банк и предложение денег The narrowest measure Ml of the money supply is currency in circulation outside the banking system plus the sight deposits of commercial banks against, which the private sector can write cheques. Thus the money supply is partly a liability of the Bank (currency in private circulation) and partly a liability of commercial banks (checking accounts of the general public).
The Demand for Money. Спрос на деньги
The demand for money is the quantity of liquid assets people are willing to have in hand at any given moment. It depends on the income they gain and the opportunity costs connected with the interest rate. But why do people hold money at all?
Money is a stock It is the quantity of circulating currency and bank deposits held at any given time. Holding money is not the same as spending money when we buy a meal or go to the cinema. We hold money in order to spend it later.
The distinguishing feature of money is its use as a medium of exchange, for which it must also serve as a store of value. It is in these two functions of money that we must seek the reasons why people wish to hold it.
The Transactions Motive for holding money. In a monetary economy we use money to purchase goods and services and receive money in exchange for the goods and services we sell. Without money, making transactions by direct barter would be costly in time and effort. Holding money economizes on the time and effort involved in undertaking transactions. We need to hold money between receiving payments and making subsequent purchases.
How much money we need to hold depends on two things, the value of the transactions we wish to make and the degree of synchronization of our payments and receipts. We do not know how much $100 will buy until we know the price of goods. If all prices double, we will need to hold twice as much money to make the same transactions as before.
The demand for money is a demand for real money. We need a given amount of real money to undertake a given quantity of total transactions.
The Precautionary Motive for holding money. Thus far we have assumed that people know exactly when they will obtain receipts and make payments. But of course we live in an uncertain world. This uncertainty about the precise timing of receipts and payments gives rise to a precautionary motive for holding money. Suppose you decide to buy a lot of interest-earning bonds and try to get by with only a small amount of money holdings. You are walking down the street and spot a great bargain in a shop window. But you do not have enough money to take advantage immediately of this opportunity. By the time you have arranged for some of your interest-earning bonds to be sold off in exchange for money, the sale may be over. Someone else may have snapped up the video recorder on sale at half-price. This is the precautionary motive for holding money. In advance, we decide to hold money to meet contingencies the exact nature of which we cannot foresee.
Together, the transactions and the precautionary motives provide the main reasons for holding the medium of exchange. They are the motives most relevant to the benefits from holding money.
The Asset Motive for holding money. Suppose we forget all about the need to transact. We think of a wealthy individual or a firm deciding in which assets to hold wealth. At some distant date there may be a prospect of finally spending some of that wealth, but in the short run the objective is to earn a good rate of return.
Some assets, such as industrial shares, on average pay a high rate of return but are also quite risky. Some years their return is very high, but in other years it is negative. When share prices fall, shareholders can make a capital loss, which swamps any dividend payment to which they are entitled. Other assets are much less risky, but their rate of return tends to be much lower than the average return on risky assets. Since people dislike risk, they will not put all their eggs in one basket. As well as holding some risky assets, they will keep some of their wealth in safe assets. Although on average this portfolio will earn a lower rate of return, it will help avoid absolute disaster at hard times.
The asset motive for holding money arises because people dislike risk. People are prepared to sacrifice a high average rate of return to obtain a portfolio with a lower but more predictable rate of return.
VOCABULARY NOTES
currency in circulation наличность в обращении
the opportunity costs альтернативные издержки владения деньгами
the transactions motive for holding money трансакционный мотив накопления денег (категория кейнсианского анализа)
to undertake transactions проводить, совершать сделки
receipts денежные поступления
the precautionary motive for holding money мотив накопления денег на непредвиденные цели (категория кейнсианского анализа)
the precise timing точное время
to get by прожить, сводить концы с концами
to spot разг. увидеть, заметить
a great bargain хорошая вещь, которая предлагается по специальной (сниженной) цене; удачная покупка
to take advantage of воспользоваться
to snap up подхватить, перехватить
contingencies случайности, непредвиденные обстоятельства
to foresee предвидеть
the asset motive for holding money мотив накопления денег в качестве активов (категория кейнсианского анализа)
on average в среднем
to swamp поглощать, сводить на нет
risky assets неликвидные активы (долгосрочные инвестиции и ссуды; ценные бумаги с колеблющимся курсом)
a portfolio портфель (напр., ценных бумаг)
disaster бедствие, крах
to sacrifice жертвовать, приносить в жертву
predictable rate of return предсказуемая норма прибыли
Assignments
I. Suggest the Russian equivalents
the distinguishing'feature of money; in a monetary economy; the time and effort involved in undertaking transactions; snapped up the video recorder on sale at half-price; the motives most relevant to...; a capital loss, which swamps any dividend payment to which they are entitled; will not put all their eggs in one basket; avoid absolute disaster at hard times; to sacrifice a high average rate of return; in the short run
II. Replace the parts in italics by synonyms
gives rise to; to take advantage of the opportunity; to meet contingencies; to foresee; a more predictable rate of return
III. Fill in the gaps with the words and expressions from the text
1. The narrowest measure M1 of the money supply is outside the banking system plus __ of commercial banks.
2. The money supply is partly of the Bank and partly a liability of
3. The demand for money is people are willing to have in hand at any given moment.
4. Holding money is not the same as j money, as we hold money in
order to .
5. It is in two main functions of money, that is, its use as a medium of
and a store of , that we must seek the reasons why .
6. Without money, making transactions by would be in time and effort.
7. We need to hold money between and .
8. How much money we need to hold depends on we wish to make
and the degree .
9. We need a given amount of_____________ to undertake a given quantity of .
10. The uncertainty about________________ of receipts and payments gives rise to .
11. The precautionary motive for holding money is a decision to hold
money to meet_____________________ the exact nature of which we cannot .
12. Together, __ and provide the main reasons for holding the
medium of exchange as they are the motives to the benefits from _
13. Some assets, such as , on average pay a high rate of return but are also .
14. When share prices fall, __ can make , which any dividend payment to which .
15. Since people dislike risk, they will not .
16. Although on average will earn a lower rate of return, it will help
avoid_ at hard times.
17. People are prepared to sacrifice to obtain a portfolio with a lower but rate of return.
IV. Find in the text English equivalents for the following
наличность в обращении; денежные обязательства банка; текущий (чековый) счет; путем непосредственного обмена; трансакционный мотив накопления денег; мотив накопления денег на непредвиденные цели; прожить на небольшие деньги; быть готовым к случайностям, непредвиденным обстоятельствам; получать доходы и производить платежи; мотив накопления денег в качестве активов; портфель ценных бумаг
V. Answer the questions
1. What is the money supply?
2. What determines the demand for money?
3. What are the reasons for holding money? How do people hold their money?
4. Dwell on each motive for holding money.
VI. Translate into English using all the active possible
1. Одна из причин спроса на деньги состоит в том, что люди нуждаются в деньгах как в средстве обращения, то есть в удобном способе приобретения товаров и услуг. Домашние хозяйства должны иметь достаточное количество денег, чтобы делать покупки, платить по счетам и т. д. Предприятиям деньги нужны для оплаты труда, материалов, энергии и т. д. Необходимые для этих целей деньги называются спросом на деньги для сделок.
2. Другая причина, по которой люди держат деньги, вытекает из их функции как средства сбережения. Люди могут держать свои финансовые активы в различных формах, например: в виде акций, частных или государственных облигаций или в деньгах. Отсюда, естественно, следует, что существует спрос на деньги, как на финансовые активы.
3. В узком смысле предложение денег, обозначаемое Ml, состоит из двух элементов: наличности, то есть металлических и бумажных денег, находящихся в обращении, и чековых (бессрочных) вкладов, то есть вкладов в коммерческих банках, различных сберегательных учреждениях, на которые могут быть выписаны чеки.
Unit 24.
THE MONEY MARKET (РЫНОК ДЕНЕГ)
The money market comprises the demand for money and the money supply. The equilibrium in the money market is such a state of balance when the demand for money from households and businesses is satisfied by the quantity of the money supplied. The equilibrium in the money market is reached by changing bond prices.
People can hold their wealth in various forms - money, bonds, equities, and property. For simplicity we assume that there are only two assets: money, the medium of exchange that pays no interest, and bonds, which we use to stand for all other interest-bearing assets that are not directly a means of payment. As people earn income, they add to their wealth. As they spend, they deplete their wealth. How should people divide their wealth at any instant between money and bonds to gain the best profits possible and not to incur losses?
There is an obvious cost of holding money. The opportunity cost of holding money is the interest one would have gained if he (she) had held bonds. It naturally follows that people will hold money rather than bonds only if there is a benefit to offset this cost, only if holding money is more profitable than holding bonds. It may happen only when interest rates on bonds are too low to make it profitable to hold bonds.
Suppose the money market is in equilibrium when the interest rate on interest-bearing assets (e.g. Treasury bills and other securities) is 6% and the amount of money demanded is $200 mln. Now suppose the interest rate goes down, say, to 4%. In this case interest-bearing assets are no longer profitable as they can't earn a sufficient return. Hence the demand for money will rise and will lead to a temporary lack of money in the money market. If they lack money, households and businesses are likely to sell bonds they possess for cash. That will cause an increase in the bond supply, which lowers bond prices and raises interest rates on interest-bearing assets. With a higher interest rate the amount of money people are willing to have in hand will decrease again. Consequently, the money supply will adjust to a current demand to reflect a new higher interest rate.
Conversely, the increase in the money supply creates its temporary surplus, which results in the demand for bonds and bond prices going up. The interest rate falls thus restoring balance in the money market, but at a new lower interest rate.
VOCABULARY NOTES
equities (syn. ordinary shares, equity shares, ordinary stocks) обыкновенные акции
to deplete истощать, исчерпывать
obvious очевидный
to offset возмещать
Treasury bills казначейские векселя
consequently следовательно, поэтому
conversely наоборот
temporary surplus временный избыток, излишек
Assignments
I. Suggest the Russian equivalents
interest-bearing assets are no longer profitable; to sell bonds they possess for cash; the supply will adjust to the current demand; we use to stand for all other interest-bearing assets; thus restoring balance
II. Replace the parts in italics by synonyms
to offset this cost
III. Fill in the gaps with the words and expressions from the text
1. The money market comprises and .
2. The equilibrium in the money market is such when the demand for money from is satisfied by the quantity of__________ .
3. The equilibrium in the money market is reached by .
4. Money is the medium of that .
5. We use bonds to stand for all other____ that are not directly .
6. As people earn income, they __ their wealth. As they spend, they
their wealth.
7. of holding money is the interest one if he (she) bonds.
8. People will hold money rather than bonds only if holding money is
than holding bonds, that is when____ on bonds are to make it profitable to
9. In case the interest rate goes down are no longer profitable as they
can't__ .
10. The demand for money will rise and will lead to in the money market.
11. If they lack money, households and businesses are likely to they
possess .
12. If there is an increase in the bond supply, it will bond prices and interest rates on .
13. The money supply will_________ to a current demand to a new higher interest rate.
14. The increase in the money supply creates its , which results in .
IV. Find in the text English equivalents for the following
равновесие денежного рынка; временная нехватка (избыток) денег; иметь на руках; быть в равновесии; восстанавливать равновесие; достичь равновесия; активы (облигации), приносящие процентный доход; увеличивать богатство; исчерпывать (истощать) богатство; для простоты допустим, что...; альтернативные издержки владения деньгами; компенсировать издержки
V. Answer the questions
1. Explain in your own words the term "opportunity costs". What is the opportunity cost of holding money?
2. What's the equilibrium in the money market? How can it be reached?
3. How does the money market work?
VI. Translate into English using all the active possible
1. Для экономики плох как недостаток, так и избыток денег, так как первый ведет к снижению расходов во время упадка, а последний - к обесценению денег и снижению их покупательной способности во время инфляции.
2. Денежный рынок объединяет спрос и предложение денег для определения равновесной ставки процента.