Task 6. Match each title with a given paragraph.

1. The definition of finance.

2. Finance connection with economics and accounting.

3. Large-scale production.

4. The definition of finance at micro and macro level.

5. Well-developed financial system.

Task 7. Study the ways of expressing present actions in Active and Passive Voice. Translate the sentences.

Means of expressing present actions:

Present simple (Active Voice) – It generally involves balancing

Present simple (Passive Voice) – Finance is used by individuals, by governments, by businesses, etc.

Task 8. Match the English sentences with their Russian equivalents. Find Active and Passive Voices in the English sentences. Pay attention how they are expressed in the Russian equivalents.

Finance is used by a wide variety of organizations. The goals of each of the above activities are achieved through the use of appropriate financial instruments. Personal financial decisions also involve paying for a loan. Personal finance addresses the ways in which - individuals or families obtain, budget, save and spend monetary resources over time, taking into account various financial risks and future life events. The terms Corporate finance and Corporate financier are also associated with investment banking. Managerial finance studies the financial decisions of all firms. Country, state, county, city or municipality finance is called public finance

Личное финансирование связано с направлением деятельности отдельных лиц или семьями, которые составляют бюджет, копят и тратят денежные средства, учитывая различные финансовые риски и события их будущей жизни. Термины «корпоративное финансирование» и «корпоративный финансист» также ассоциируются с инвестиционным банковским делом. Финансы используются разнообразными организациями. Административные финансы изучают финансовые решения всех фирм. Цели выше перечисленных видов деятельности достигаются путем использования соответствующих финансовых инструментов. Финансовые решения отдельных лиц также включают

Вариант 2

Task 1.

a) Define the meanings of the given words using the Glossary:

loan, investment, penalty, issue, equity, debt, expenditure.

B) Fill in with the correct variants.

1. Finance used by individuals is called ... finance.

a) personal; b) corporate; c) public.

2. Personal finance decisions involve....

a) current assets; b) savings accounts; c) investment banking.

3.The primary goal of corporate finance is ... corporate value. a) to enhance; b) to minimize; c) to receive.

4.Public finance is concerned with ....

a) consumer loans; b) the budgeting process; c) saving or borrowing.

5. Government financing can be achieved by...

a) seignior age; b) investment; c) tax penalties.

Task 2. Translate the words and complete the sentences with them:

commission, bonus, tax, social security, rent, fee, overtime, pension, earn, salary, mortgage, income.

1. After I lost my job, I was living on ... for three months. This was difficult, because the amount was much lower than the ... I had before.

2. I used to work as a salesperson, but I wasn't very successful, so I didn't... much....

3. If the company makes 10% more than last year, we'll all get a ... at the end of the year.

4. It'll take me at least 25 years to repay the ... on my house.

5. My wages aren't very good, so I do a lot of....

6. Nearly 40% of everything I earn goes to the government as....

7. The owner has just increased the ... on our flat by 15%.

8. When I retire, my ... will be 60% of my final salary.

9. Our private doctor said he would like his ... to be raised.

10. They live beyond their....

Task 3. Translate the text in writing and be ready to read it. Skim the following text and try to understand the subject matter of the text.

B. Types of Finance

1. Finance is used by individuals (personal finance),by governments (public finance),by businesses (corporate finance),etc., as well as by a wide variety of organizations including schools and non-profit orga­nizations. In general, the goals of each of the above activities are achieved through the use of appropriate financial instruments, with consideration to their institutional setting.

Personal Finance

2. Personal finance is the application of the prin­ciples of finance to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget,save and spend monetary resources over time, taking into account various financial risks and future life events. Compo­nents of personal finance might include checkingand savings accounts,credit cards and consumer loans,investments in the stock market,retirement plans, social security benefits,insurance policies, and income taxmanagement.

3. Personal financial decisions may involve paying for education, financing durable goods such as real estateand cars, buying insurance, e.g. health and property insurance, investing and saving for retire­ment. Personal financial decisions also involve paying for a loan.

Questions in personal finance revolve around:

♦ How much money will be needed by an individual (or by a family) at various points in the future?

♦ Where will this money come from (e.g. savings or borrowing)?

♦ How can people protect themselves against un­foreseen events in their lives and risk in financial markets?

♦ How can family assets be best transferred across generations (bequests and inheritance)?

♦ How do taxes (tax subsidiesor penalties)affect personal financial decisions?

Corporate Finance

4. Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to enhancecorporate value while reducingthe firm's financial risks. Equivalently, the goal is to maximize the corporations' return to capital. Although it is in principle different from managerial finance which studies the financial decisions of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms.

5. The discipline can be divided into long-termand short-termdecisions and techniques. Capital investment decisions are long-term choices about which projects receive investment, whether to finance that investment with equitor debt,and when or whether to pay dividend to shareholders.On the other hand, the short-term decisions can be grouped under the heading "Working capital management". This subject deals with the short-term balance of current assetsand current liabilities;the focus here is on managing cash,inventories, and short-term borrowing and lending (such as the terms on credit extended to customers).

Public Finance

6.Country, state, county, city or municipality finance is called public finance. It is concerned with

♦ Identification of required expenditureof a public sector entity

♦ Source(s) of that entity's revenue

♦ The budgeting process

♦ Debt issuance (municipal bonds) for public works projects.

7. It is the field of economics that deals with budget­ing the revenues and expenditures of a public sector entity, usually government. Governments, like any other legal entity, can take out loans, issue bondsand invest. A bond issued by a public sector entity may give tax advantagesto its owners.

8. Government financing can be achieved by seigniorage,taxes, or government borrowing. This area can involve right-financing, the income redistribution effects of the various types of taxes and types of bor­rowing, tax incidence,and the effect of taxes on market prices and efficiency.

Task 4. Answer the following questions:

1. What are the three main types of finance?

2. What is personal finance? What are its components?

3. What do questions in personal finance revolve about?

4. What is the primary goal of corporate finance?

5. How can corporate finance be divided?

6. What is called public finance?

7. What does public finance deal with?

8. How can government financing be achieved?