What is Economics and Economic System?

Міністерство науки і освіти України Волинський національний університет імені Лесі Українки

Петровська Н.М.

АНГЛІЙСЬКА МОВА

НАВЧАЛЬНИЙ ПОСІБНИК ДЛЯ СТУДЕНТІВ СПЕЦІАЛЬНОСТІ

“МІЖНАРОДНІ ЕКОНОМІЧНІ ВІДНОСИНИ”

Луцьк 2009

УДК 811.111(075) ББК 81.432.1 – 923 П 30

Рекомендовано до друку вченою радою Волинського національного університету імені Лесі Українки

(протокол № 6 від 18.02. 2009)

Рецензенти:

Чарікова І.В.–кандидат філологічних наук,доцент кафедри теорії та практикиперекладу Волинського інституту економіки та менеджменту

Книш Т.В.–кандидат педагогічних наук,доцент кафедри іноземних мов таперекладу ЛІРоЛ “Україна”

Петровська Н.М. Англійська мова:Навчальний посібник для студентівспеціальності «Міжнародні економічні відносини». – 129 с.

Містить тексти для перекладу на економічну тематику, систему вправ на активний вокабуляр та на переклад, додаткові тексти для самостійної роботи, англо-український та українсько-англійській словники економічної термінології, а також найпоширеніші абревіатури з економіки, фінансів та бізнесу. Призначено для студентів IV курсу спеціальності «Міжнародні економічні відносини»

УДК 811.111(075) ББК 81.432.1 – 923 П 30

Петровська Н.М., 2009

ПОЯСНЮВАЛЬНА ЗАПИСКА

Навчальний посібник призначений для студентів IV курсу спеціальності «Міжнародні економічні відносини» факультету міжнародних відносин. Він укладений у відповідності з діючою програмою дисципліни “Іноземна мова спеціальності”.

Посібник складається з трьох частин. Перша частина містить п'ять уроків: “Economics”, “Money and monetary policy”, “Banks. Methods of payment”, “Accounting and bookkeeping”, “Investment”, кожен з яких представлений активним вокабуляром, основним текстом англійською мовою для перекладу на українську, вправами на закріплення лексичного матеріалу та на переклад речень (з англійської на українську та навпаки) та текстів як з англійської мови на українську так і з української на англійську.

У другій частині подані додаткові оригінальні англомовні тексти для перекладу на тематику, представлену у першій частині даного посібника.

Третя частина – словники (англо-український, українсько-англійський) економічної та фінансової термінології і список найпоширеніших абревіатур, присвячених економіці, фінансам та бізнесу.

Даний навчальний посібник може також бути використаний студентами інших навчальних закладів, що спеціалізуються в галузі економічних наук, студентами перекладацьких відділень (факультетів) університетів, фахівцями, які прагнуть вдосконалити власні навички та вміння перекладу економічної літератури, а також перекладачами.

PART I

UNIT 1

ECONOMICS

I. Active Vocabulary.

anticipate	передбачати
meet human needs	задовольняти людські потреби
production and distribution of goods and	виробництво та розподіл товарів та
services	послуг
bring together	зв’язати у єдине
natural resources	природні ресурси
labor supply	робоча сила
technology	техніка
entrepreneurial	підприємницький
managerial	організаторський
ingredient	складова
fertility of the soil	родючість ґрунту
minerals	корисні копалини
riches of the sea	морські багатства
limited in supply	обмежений запас
cope with	подолати
available labor	працездатна робоча сила
skilled	кваліфікований
vocational education	професійне навчання
enterprise	підприємство
up-to-date equipment	сучасне обладнання
efficient	ефективний
equipped	обладнаний
managed	керований

technological achievements	технологічні досягнення
entrepreneurship	підприємництво
abundant	наявний у великій кількості
skillful	досвідчений
willing	добровільний
labor force	робоча сила
account for	пояснювати
area	сфера
productive	продуктивний
entrepreneurial investment	капіталовкладення, яке зробив
	підприємець
manage the business	керувати справою
endeavor	спроба
undertake all the responsibilities	прийняти відповідальність

II. Text.

1. Read and translate the text into Ukrainian.

What is Economics and Economic System?

Economics is the social science subject (study) of how society works and allocates scarce resources and goods. There are two main branches of the subject: macroeconomics, microeconomics.

Macroeconomics is the study of the economy as a whole. The prefix “macro” means “large”, indicating that macroeconomics is concerned with the study of the market system on a large scale M. considers the aggregate performance of all markets in the market system and is concerned with the choices made by the large subsectors of the economy – the household sector, which includes all consumers, the business sector, which includes all firms; and the government sector, which includes all government agencies Macroeconomics examines questions such as how fast the economy is running, how much overall output is being generated; how much total

income is. It also seeks solutions to macroeconomic problems such as how employment can be increased, and what can be done to increase the output of goods and services.

Microeconomics is the study of individual consumers and the business firm or individual government agencies. The prefix micro means “small” indicating that microeconomics is concerned with the study of the market system on a small scale. Microeconomic examines cause-and-effect relationships that influence choices of individuals, business firms and society. It is concerned with problems such as scarcity, choice and opportunity costs, production and consumption.

Every economic system tries to anticipate and then meet human needs through the production and distribution of goods and services. The economic system is the mechanism that brings together natural resources, the labor supply, technology, and the necessary entrepreneurial and managerial talents.

So, the first ingredient of an economic system is the natural resources from which goods are produced, and which include the natural fertility of the soil, minerals, forests, rivers and the riches of the sea. Unlike the other ingredients, the natural resources are limited in supply, but good organization of living helps cope with this problem.

Second, the amount of available labor and its quality – how hard people are willing to work and how skilled they are – helps determine the health of an economy. The strong emphasis placed on education, including technical and vocational education, also contributes to a country’s economic success.

Third, enterprises which are well organized, well managed and which use up-to-date equipment will generally be more efficient than those which are poorly equipped and badly managed. This means that an enterprise should follow the world technological achievements in order to perform better results.

And last but not least, no economic system can do without such an ingredient as enterpreneurship. The existence of abundant natural resources and a skillful and willing labor force accounts for only part of the structure of a country’s economy. If

left to themselves, these ingredients will not produce anything. The resources must be brought together and directed as efficiently as possible into the areas where they will be most productive. So, once the first entrepreneurial investment of capital has been made, someone must be hired to manage the business, factory or other endeavor – to take the decisions on what, how and where to produce, and to undertake all the responsibilities and the risks.

2. Answer the following questions based on the text.

1) What is economics?

2) What are the main branches of economics?

3) What kind of mechanism is the economic system?

4) Enumerate the natural resources from which goods are produced?

5) What do available labour and its quality include?

6) Should an enterprise follow the world technological achievements in order to perform better results?

7) What functions does such an ingredient of economic system as entrepreneurship perform?

3. Make up a summary of the text.

III. Exercises.

1. Match the following phrases in column A with their equivalents in column B.

1. Large blocks of resources must be	A.Після того,як підприємець зробив
available for major investments.	початкове капіталовкладення, він має
	найняти когось на роботу для
	керівництва підприємством.
2. The amount of available labor and its	B.Наявність у великій кількості
quality – how hard people are willing to	природних ресурсів і досвідченої та
work and how skilled they are – helps	добровільної робочої сили пояснює
determine the health of an economy.	лише частину структури економіки

	країни.
3. The existence of abundant natural	C.Кількість та якість працездатної
resources and a skillful and willing	робочої сили, а власне працьовитість
labor force accounts for only part of the	та кваліфікація робітників, допомагає
structure of a country’s economy.	визначити стан здоров’я економіки.
4. Every economic system tries to	D.Першою складовою економічної
anticipate and then meet human needs	системи виступають природні
through the production and distribution	багатства – основа для виробництва
of goods and services.	товарів – до яких входять природна
	родючість ґрунту, корисні копалини,
	ліси, річки та морські багатства.
5. Once the first entrepreneurial	E.Будь-яка економічна система
investment of capital has been made,	намагається передбачити і потім
someone must be hired to manage the	задовільнити людські потреби через
business, factory or other endeavor.	виробництво та розподіл товарів і
	послуг.
6. Enterprises which are well organized,	F.Підприємства із доброю
well managed and which use up-to-date	організацією та керівництвом, які
equipment will generally be more	застосовують сучасне обладнання,
efficient than those which are poorly	взагалі є більш ефективними, ніж
equipped and badly managed.	підприємства із поганим
	обладнанням та керівництвом.
7. The first ingredient of an economic	G.Чим більший обсяг використаних
system is the natural resources from	ресурсів, тим значнішими повинні
which goods are produced, and which	бути капіталовкладення.
include the natural fertility of the soil,
minerals, forests, rivers and the riches of
the sea.

2. Translate the sentences into Ukrainian.

1) Although the type of economic system used by a nation is the result of a political decision, it is also in even larger part the result of a historical experience that, over time, becomes a national culture.

2) As a rule, consumers look for the best values for what they spend, while producers seek the best price and profit for what they have to sell.

3) The mixture among consumers, producers and members of government changes constantly, resulting in a dynamic rather than a static economy.

4) In the American economy, managers of enterprises responding to signals from markets perform the function of bringing together and directing the natural resources and labor force.

5) Large blocks of resources must be available for major investments.

6) So, entrepreneurs are decision-takers and risk-bearers.

7) A country can only produce some of the goods and services its people want.

3. Translate the sentences into English.

1) Хоча рішення, які формують американську економіку, приймаються споживачами й виробниками, уряд має потужний вплив на неї.

2) Для того, щоб бізнес якнайкраще служив народові, уряд регулює та контролює приватне підприємництво багатьма різними шляхами.

3) Урядові органи, серед них Конгрес і такі організації, як Федеральна резервна система, намагаються утримати крайні прояви економічного буму, інфляції й депресії, регулюючи розмір податків, обсяг грошової маси та використання кредитів.

4) Уряд надає пряму допомогу компаніям та окремим громадянам, що виявляється у різних формах, наприклад, визначені тарифи на певні товари, захищають їх від іноземної конкуренції.

5) Встановлені урядом податки та кількісні обмеження на імпорт сприяють тому, що аналогічні американські товари почуваються на ринку впевненіше.

6) Уряд також субсидує ціни на фермерську продукцію.

7) Хоча протягом тривалого періоду розвитку американська економіка зазнала докорінних змін, деякі з прикметних її рис сягають від перших днів існування республіки.

4. Translate the texts into Ukrainian in written form.

Text A

The Functions of Every Economic System

There are many economic problems – poverty, inflation, unemployment, etc. People in different modern societies solve these problems in different ways.

The great American economist Paul Samuelson said that every economic society has to answer three main questions:

1. What to produce? 2. How to produce? 3. Who gets the product?

The way in which a society goes about answering these fundamental questions is known as its economic system.

So, these questions are universal and true for any economic system that has the three functions.

The first function is to make a right decision what goods we are going to produce with the given resources – clothes, food, cars, television sets, books, etc.

The second function is to decide how we are going to produce goods and services with the basic recourses of labour, land, etc. What methods are best and the most effective is an important question here.

Once we have produced goods and services we now have to decide how these will be divided, distributed among the people in the economy. So, it is the third function.

Economic system may be classified as traditional, command or market one. Resources are allocated (distributed) in a traditional economy in accordance with

traditions and in a command economy by government planners. Resources in a market economy are allocated in accordance with the laws of supply and demand.

When we speak on economic growth we mean an increase in the GDP of a nation. The Gross Domestic Product is the total value of all production in an economy in a year. The GDP is the basic indicator of how well a country’s economy performs. The main features that cause such growth are the following: 1) increases in natural resources; 2) increases in the production of goods and services; 3) improvements in technology; 4) improvements in human resource.

However, there is a difference between real and nominal increases.

For example, between 1968 and 1989 the GDP of the UK increased from $ 38 billon to 439 billon. It means an increase of 1045 per cent. But if we take into account inflation an increase is only about 60 pet cent.

Many examples of this kind may be given concerning Eastern European countries during their transition period.

The GDP is also affected by the indicator of population growth. Say, the GDP grows at 5 per cent and the population grows at 10 per cent. In this case the GDP is declining.

Text B

The UK Economy

Great Britain has an open economy, in which foreign trade plays a vital part. About one-quarter of its gross domestic product comes from the export of goods and services, a high share among major economies. Private enterprise accounts for three-quarters of gross domestic product and over two-thirds of total employment. Services now account for 60 percent of gross domestic product and manufacturing for about 25 percent. Britain is among the largest exporters of steel, chemicals, aircraft and satellites, textiles and clothing, financial, business and other services.

The keynote of government industrial policy is to encourage enterprise. Competition policy seeks to promote market efficiency where this is not achieved solely by market forces. A substantial privatization program has encouraged share

ownership. It has also involved the privatization of a number of major businesses including British Airways, British Gas, British Telecom, and the water supply industry.

5. Translate the text into English.

Text

Економіка США.

Третьою прикметною рисою є безперервна дискусія щодо політики США у міжнародній торгівлі та рівня інтеграції Сполучених Штатів у світову економіку. Торгівля була наріжним каменем колоніальної системи: експорт американських товарів відкривав дорогу імпортові капіталу та машин для подальшого розширення обсягів економіки. Але уряд США завжди підтримував протекціоністські заходи, необхідність яких державний діяч Олександр Гамільтон обстоював одразу ж після Американської революції.

Зазначені чинники виявляють деякі істотні особливості американської економіки. По-перше, вона постійно змінюється через діяльність громадян, що вільно виражають економічні погляди як прямим шляхом, на ринку, так і непрямим – голосуючи на виборах. Водночас тривала незмінність характеристичних ознак засвідчує історичну наступність та цінність економіки США.

	UNIT 2
MONEY AND MONETARY POLICY
	I. Active Vocabulary.
control the money supply		контролювати грошову масу
Slump		раптове падіння
total spending		загальні витрати
monetary policy		грошово-кредитна політика

bank deposits	банківські депозити
control the level of bank deposits	контролювати обсяг банківських
	депозитів
bank customers’	клієнти банку
willingness	прагнення
ability to borrow	спроможність позичати
demand for loans	попит на позики
ability to lend	спроможність надавати позики
supply for loans	пропозиція позик
price of a loan	ціна на позику
rate of interest	процентна ставка
borrow loans from the banks	брати позики у банках
in the money market	на грошовому ринку
borrower	позичальник
lender	позикодавець
cost of borrowing	вартість позики
total bank deposits	сума банківських вкладів

II. Text.

1. Read and translate the text into Ukrainian.

Money and Payment System.

Money is used for buying or selling goods, for measuring value and for storing wealth. Almost every society now has a money economy based on coins and paper bills of one kind or another. However this has not always been true. In primitive societies a system of barter was used. Barter was a system of direct exchange of goods or services one for another. In this system no money is used. Somebody could exchange a sheep, for example, for anything in the market place that they considered to be of equal value. The farmer specializing in production of beef might find a hungry barber and thus get a haircut, or find a hungry tailor and thus exchange meat

for clothes, or find a hungry doctor and thus obtain medical treatment. Farmers spent half their time producing beef, and the other half searching for someone who wants beef, but that someone had also to be able to provide something in exchange that the farmer wanted. Clearly, barter was a very inefficient system, because people’s precise wants seldom coincided. Furthermore, with barter, there is a problem of indivisibility. A suit or an automobile, or a house should be bought all at once and not in piece. People needed more practical system of exchange, and various money systems, developed based on goods which the members of a society recognized as having value. Cattle, grain, teeth, shells, feathers, skulls, salt, elephant tusks and tobacco have all been used. With money, exchange was much easier. Precious metals gradually took over because, when made into coins, they were portable, durable, recognizable and divisible into larger and smaller units of value. Until the eighteenth and nineteenth centuries coins were given monetary worth based on the exact amount of metal contained in them, but most modern coins are based on face value-the value that governments choose to give them, irrespective of the actual metal content. Most governments now issue paper money in the form of bills, which are really ready to pay. Paper money is obviously easier to handle and much more convenient in the modern world. Checks and credit cards are being used increasingly, and it is possible to imagine a world where “money” in the form of coins and paper currency will no longer be used.

The government tries to control the money supply for several reasons. If prices are rising and the government fears an increase in the rate of inflation, it will try to reduce the money supply or slow down the rate at which it is increasing. If there is a serious slump, it might try to increase total spending by allowing the money supply to increase. The measures used for these purposes are described as monetary policy. In Britain, for example, the Bank of England is responsible for carrying out the government’s monetary policy.

Since the greater part of the money supply consists of bank deposits, monetary policy must try to control the level of these deposits. The extent to which they are

created depends upon the bank customers’ willingness and ability to borrow the demand for loans, and the banks’ ability to lend (the supply of loans). The Bank of England, therefore, must be able to influence the behavior of both the banks and their customers.

The price of loan is the rate of interest one has to pay for it. Any changes in the rate of interest, therefore, will affect people’s willingness to borrow from the banks.

The Bank of England is able to operate in the money market as a major borrower and lender. It can, therefore, have a direct effect on the demand for or supply of loans. In other words, it can influence the price of loan – the rate of interest. A rise in the rate for bank loans may fall or, more likely, grow more slowly. The rate at which total bank deposits are growing will slow down. A fall in the rate of interest will reduce the cost of borrowing and increase the demand for bank loans. Total bank deposits will tend to grow more rapidly.

2. Answer the following questions based on the text.

1) What is modern money economy based on?

2) What system was used in primitive society?

3) Why did precious metals gradually take over?

4) In what form do most governments issue paper money now? 5) What does government try to control?

6) What is the Bank of England responsible for?

7) Is the Bank of England able to operate in the money market as a major borrower and lender?

3. Make up a summary of the text.

III. Exercises.

1. Match the following phrases in column A with their equivalents in column B.

1. A rise in the rate of interest raises the A. Банк Англії може функціонувати

cost of borrowing.	на грошовому ринку як основний
	позичальник та позикодавець.
2. If there is a serious slump, the	B.Якщо спостерігається серйозне
government might try to increase total	раптове падіння, уряд може
spending by allowing the money supply	спробувати підвищити загальні
to increase.	витрати, дозволяючи зростання
	грошової маси.
3. Any changes in the rate of interest	C.Підвищення процентної ставки
will affect people’s willingness to	збільшує вартість позики.
borrow from the banks.
4. The extent to which the deposits are	D.Уряд намагається контролювати
created depends upon the bank	грошову масу з кількох причин, а
customers’ willingness and ability to	заходи, уживані для цього, називають
borrow (the demand for loans), and the	грошово-кредитною політикою.
banks’ ability to lend (the supply of
loans).
5. The Bank of England is able to	E.Будь-які зміни в процентних
operate in the money market as a major	ставках впливатимуть на прагнення
borrower and lender.	людей брати позики у банках.
6. The government tries to control the	F.Масштаби утворення депозитів
money supply for several reasons; the	залежать від прагнення та
measures used for these purposes are	спроможності клієнтів банку
described as monetary policy.	позичати (попит на позики) та
	спроможності банку надавати позики
	(пропозиція позик).
7. The price of a loan is the rate of	G.Ціна на позику–це процентна
interest one has to pay for it.	ставка, яку потрібно сплатити за
	послугу.

2. Translate the sentences into Ukrainian.

1) Some bank will pay no more than one hundred dollars at a time, and no more than five hundred per day.

2) You receive a receipt after each transaction stating your balance.

3) Often you can transfer the required sum of money to another account.

4) You can withdraw money after the deposited checks have been verified which usually takes a couple of days.

5) Banks are all different and each one wants to get your business.

6) Checks are an easy way to pay bills especially by mail.

7) When you open a checking account at a bank, be sure to have an ID (your passport, driver’s license, etc.).

3. Translate the sentences into English.

1) Гроші – це важлива частина будь-якої економічної системи. Без них система не могла б добре функціонувати.

2) Гроші прискорюють процес купівлі та продажу, бо нам не потрібно думати, як знайти необхідний товар, щоб обміняти його через бартер.

3) Через глибоку економічну кризу в Україні рівень інфляції залишається високим.

4) Справжня вартість грошей – це їхня купівельна спроможність.

5) Внаслідок грошової реформи в Україні з’явились гривні.

6) Пластикові гроші мають багато переваг над звичайними.

7) Потрібно утримувати баланс між кількістю грошей та кількістю товарів.

4. Translate the texts into Ukrainian in written form.

Text A

The money supply in the United States consists of more than just coins and paper money. Checking account deposits are considered a form of money because they are spend when people write checks. In fact, in the United States, about three-

fourths of all payments are made by check. When commercial banks make loans, they can create checking deposit money by giving the borrowers additional credit in their deposit accounts. The Federal Reserve System maintains control over this money creation by administering reserve requirements, rules which require that commercial banks hold currency in their vaults – or deposits with Federal Reserve Banks – in a set minimum proportion to their deposit liabilities. By controlling the dollar amount of the reserves, the Federal Reserve thus controls the dollar volume of bank loans.

Economists measure the money supply in several ways that differ according to which assets are included in the measurements. One measure includes deposits in all interest-bearing accounts that can be used like checking accounts. Another includes savings accounts that cannot automatically be converted to make purchases.

Text B

The government tries to control the money supply for several reasons. If prices are rising and the government fears an increase in the rate of inflation, it will try to reduce the money supply or slow down the rate at which it is increasing. If there is a serious slump, it might try to increase total spending by allowing the money supply to increase. The measures used for these purposes are described as monetary policy. In Britain, for example, the Bank of England is responsible for carrying out the government’s monetary policy.

Since the greater part of the money supply consists of bank deposits, monetary policy must try to control the level of these deposits. The extent to which they are created depends upon the bank customers’ willingness and ability to borrow the demand for loans, and the banks’ ability to lend (the supply of loans). The Bank of England, therefore, must be able to influence the behavior of both the banks and their customers.

The price of a loan is the rate of interest one has to pay for it. Any changes in the rate of interest, therefore, will affect people’s willingness to borrow from the banks.

The Bank of England is able to operate in the money market as a major borrower and lender. It can, therefore, have a direct effect on the demand for or supply of

loans. In other words, it can influence the price of loans – the rate of interest. A rise in the rate of interest raises the cost of borrowing. The demand for bank loans may fall or, more likely, grow more slowly. The rate at which total bank deposits are growing will slow down. A fall in the rate of interest will reduce the cost of borrowing and increase the demand for bank loans. Total bank deposits will tend to grow more rapidly.

5. Translate the text into English.

Text

Грошова маса в Сполучених Штатах складається не лише з монет та паперових грошей. Депозити чекових рахунків також вважаються різновидом грошей, оскільки люди витрачають їх, виписуючи рахунок. Фактично майже три чверті всіх платежів у Сполучених Штатах здійснюються за чеками. Коли комерційні банки дають позики, вони можуть створювати чеково-депозитні гроші, надаючи позичальнику додатковий кредит на його депозитний рахунок. Федеральна резервна система тримає під контролем процес створення грошей шляхом резервних вимог, тобто правил, згідно з якими комерційні банки повинні зберігати частину грошей у власних сховищах або у депозитах федеральних резервних банків у визначеній мінімальній пропорції по відношенню до своїх депозитних пасивів. Контролюючи резервну масу доларів, Федеральна резервна система контролює таким чином доларовий обсяг банківських позик.

Економісти вимірюють грошову масу кількома способами, які розрізняються залежно від типу активів, що використовуються у вимірах. Один з таких способів включає на всіх рахунках, що приносять процентний доход, якими можна користуватися як чековими рахунками. Інший підхід включає ощадні рахунки, якими не можна послугуватися для негайної оплати покупок.

	UNIT 3
BANKING. METHODS OF PAYMENT.
	I. Active Vocabulary.
saving bank		ощадна каса
savings		заощадження
a source of credit		джерело кредитування
a depositor		вкладник, депозитор
a depository		скарбниця, сховище
a withdrawal		зняття, вилучення
a commercial bank		комерційний банк
a loan		позика
a letter of credit (L/C)		акредитив
a trust		траст, тест
trustee		опікун, довірена особа
minors		підлітки, неповнолітні
a goldsmith		ювелір
entrust		довірити, доручити
an interest		відсоток
interest-free		безпроцентний
integrity		цілісність, чесність
to take into consideration		брати до уваги
offer		пропозиція, пропонувати
a connection		зв’язок
to give notice		повідомляти
the Middle Ages		середньовіччя
a choice		вибір

II. Text.

1. Read and translate the text into Ukrainian.

Banking.

All commercial banks have a similar structure and mode of working. The owners are the shareholders. At the outset they provide the necessary capital. They are all organized on the joint stock principle and are registered public companies.

The Chairman and Board of Directors are elected by the ordinary shareholders at the Annual General Meeting and are responsible for the efficient management of the bank. The Board is concerned with the over-all policy of the bank and the major decisions, which put that policy into effect.

The Board will appoint a Managing Director who is directly responsible to them and a member of the Board. They will also appoint the most senior executives who in turn appoint the rest of the clerical staff who will be responsible in different capacities for the day to day running of the bank.

The essence of a bank’s activities is the collection of deposits through current accounts and deposits accounts and the use of these funds to provide loans or funds for investment. The current account is the one commonly held and is drawn by cheques and standing orders. The deposit account is more in the nature of a saving account. The pattern of investment, which a bank decides upon, is crucial because, on the one hand, the bank must use the funds wisely to make a profit and, on the other, funds must be available for depositors to withdraw when they with to do so.

At the end of each business year the Directors recommend and the Annual General Meeting decides how much of the profit should be distributed to the shareholders as dividend, and how much should be retained in the business. In preparation to the Annual General Meeting, a bank publishes its Report and Account. These must be sent to every shareholder and are also available for anyone with an interest in the affair of the bank. From the published accounts shareholders can easily determine the total profits the bank has earned and how much is available for the distribution.

Banks are closely concerned with the flow of money into and out of the economy. They often co-operate with governments in efforts to stabilize economies and to prevent inflation. They are specialists in the business of providing capital, and in allocating funds on credit. Banks originated as places to which people took their valuables for safe-keeping, but today the great banks of the world have many functions in addition to acting as guardians of valuable private possessions.

Banks normally receive money from their customers in their two distinct forms: on current account, and on deposit account. With a current account, a customer can issue personal cheques. No interest is paid by the bank on this type of account. With a deposit account, however, the customer undertakes to leave his money in the bank for a minimum specified period of time. Interest is paid on this money.

The bank lends the deposited money to customers who need capital. This activity earns interest for the bank, and this interest is almost always at a higher rate than any interest which the bank pays to its depositors. In this way the bank makes its main profits.

2. Answer the following questions based on the text.

1) Who owns the commercial banks?

2) How does the bank start?

3) What is the Board’s task?

4) How are the profits distributed?

5) Are banks concerned with the flow of money into and out of the economy?

6) Whom do banks normally receive money from?

7) What way does the bank make its main profits?

3. Make up a summary of the text.

III. Exercises.

1. Match the following phrases in column A with their equivalents in column B.

Commercial bank	AA bank which accepts deposits, grants
	credits, collects cheques drawn on other

	banks, bills of exchange and other items
	and effects transfers on the basis of
	standing orders, through bank giro and
	the direct debiting service.
Merchant bank	BA bank which provides long-term
	fixed capital for industry, in return
	taking over shares in the borrowing
	companies, so that some measure of
	influence or control can be exercised.
Clearing bank	CA bank which clears customers’
	cheques drawn on other banks through a
	central clearing house, a bank which is a
	member of a central clearing
	organization.
Investment bank	DBanks which have developed from
	the activities of immigrants to Britain in
	the 18th century. Nowadays they deal in
	acceptance, deposit banking,
	management of clients’ funds,
	management of mergers and take-over
	bids, transactions in foreign exchange,
	the issue and placing of shares and
	debentures, marine and insurance
	business, etc.

2. Translate the sentences into Ukrainian.

1) The banking system of the USA is represented only by the Federal Reserve System.

2) Commercial banks, investment banks, saving banks, numerous credit unions and finance companies are part of the US Federal Reserve System.

3) None of the US commercial banks is a state bank.

4) Not all the national banks are members of the System.

5) The national banks are supervised by the Comptroller of the Currency from the Treasury Department.

6) Any commercial bank can have a branch in any state outside the bank’s home-office city.

7) As no commercial bank is allowed to have branches beyond the limits of the state in which it was established bank holding companies (group banking) have been formed.

3. Translate the sentences into English.

1) Банківська система – це головний механізм створення грошової маси та

її контролю.

2) Центральний банк країни, комерційні банки, вторинні банки, торгівельні банки, акцептні контори, залікові палати створюють банківську систему країни.

3) Інвестиційні банки та інші посередники не є частиною банківської системи країни.

4) Можна використати свій депозитний рахунок у комерційному банку для погашення боргів, використовуючи чеки або переказ грошей з одного рахунку на інший.

5) Банки пропонують клієнтам таку форму кредиту як овердрафт.

6) Головним завданням банківської системи країни є попередження банкрутства банків та захист клієнтів банків від шахрайства та збитків.

7) У наш час зникають традиційні відмінності між різними типами банків, оскільки більшість фінансових посередників урізноманітнюють свою діяльність.

4. Translate the texts into Ukrainian in written form.

Text A

It dates to March 1991 the Ukrainian Parliament passed the law On Bank and Banking Activities, determining this system as two-level, composed of the National Bank and commercial banks.

Starting from almost nil, when even Ukraine’s Central Bank was little more than a transit for funds coming from Moscow, a new Ukrainian banking system has managed to materialise in just a few short years. It has been steadily developing and growing since 1989, and November 1994, 227 banks where registered in Ukraine. These Financial institutions range from credit unions to full-scale banks offering up to 30 different type services.

The activity of these banks – most of them commercial – is overseen by the country’s central bank, the National Bank of Ukraine (NBU). Although the NB is under jurisdiction of the country’s legislature.

Two of Ukraine’s largest banks are still state-owned: Ukreximbank – the State Export – Import Bank of Ukraine, and Ukroshchadbank – the Ukrainian saving Bank. Ukreximbank specializes in international trade, providing wide scale services to over 11,000 clients. Currently, Ukreximbank controls an estimated 80% of all export-import operations of Ukrainian State – owned enterpeises. It has correspondence accounts in 12 of the largest banks in Europe, North America and Asia.

These new commercial banks have already gained experience from working in the Ukrainian and foreign financial markets. The Ukrainian Association of Banks – the largest banking association in the country – view banks, both small and large, as paying a vital supporting role in the country’s transitions to a market economy.

Text B The world bank.

The World Bank today consists of five closely associated institutions:

IBRDThe International Bank for Reconstruction and Development The IBRDprovides loans and development assistance to middle-income countries and creditworthy poorer countries. Voting power is linked to members’ capital subscriptions, which in turn are based on each country’s relative economic strength. The IBRD obtains most of its funds through the sale of bonds in international capital markets.

IDAThe International Development Association (IDA) plays a key role insupporting the Bank’s poverty reduction mission. IDA assistance is focused on the poorest countries, to which it provides interest-free loans and other services. IDA depends on contributions from its wealthier member countries – including some developing countries – for most of its financial resources.

IFCThe International Finance Corporation IFC promotes growth in thedeveloping world by financing private sector investments and providing technical assistance and advice to governments and businesses. In partnership with private investors, IFC provides both loan and equity finance for business ventures in developing countries.

MIGAThe Multilateral Investment Guarantee Agency MIGA helps encourageforeign investment in developing countries by providing guarantees to foreign investors against loss caused by non-commercial risks. MIGA also provides technical assistance to help countries disseminate information on investment opportunities.

ICSIDThe International Centre for Settlement of Investment Disputes.

ICSIDprovides facilities for the settlement – by conciliation or arbitration – ofinvestment disputes between foreign investors and their host countries.

5. Translate the text into English.

Text

Звичайно термін “банк” – це організація, яка зберігає гроші своїх клієнтів та позичає їх під відсотки; взагалі банк торгує грошима. Центральний банк країни – це головний банк, що контролюється урядом. Цей банк контролює

фінансові справи країни, встановлюючи головні відсоткові ставки, випускає валюту (країни) й контролює валютний курс.

Комерційні банки отримують ліцензію на діяльність від керівних органів країни. В Україні Національний банк України реєструє комерційні банки. Комерційні банки повинні мати обов’язковий резерв у Національному банку й діяти відповідно до економічних стандартів, встановлених НБУ.

НБУ підзвітний Верховній Раді України й, у свою чергу, здійснює нагляд за діяльністю комерційних банків в країні.

	UNIT 4
	ACOUNTING AND BOOKKEEPING.
	I. Active Vocabulary.
accounting		бухгалтерський облік
an accountant		бухгалтер
an account		рахунок
a financial position		фінансовий стан
to record		записувати, реєструвати
a measure		міра, вимірювання
relevant financial data		відповідальна фінансова інформація
a user		користувач
a financial statement		фінансовий звіт
a tax		податок
tax bodies		податкові органи
primary		основний
a profit and loss account		рахунок доходів та витрат
balance sheet		баланс
cash		готівка
previous		попередній
revenue		дохід