Task 1. Read and translate the text. The financial system of a developed country is a network of financial institutions comprising organizations carrying out and regulating financial activities

The financial system of a developed country is a network of financial institutions comprising organizations carrying out and regulating financial activities, the ministry of finance, the treasury, the central bank, the tax service, stock and currency exchanges.

Financial activities embrace budgeting, financing, investment, banking, taxation and insurance. Financial assets flow in the system from savers, who act as sources of funds, to borrowers, who use them. Savers and borrowers in the system are linked by financial intermediaries – banks, finance, investment and insurance companies. Banks occupy a central place in any financial system.

Historically the heart of financial services industry in Britain has been located in the famous “Square Mile” in the City of London. The City is one of the largest financial centres in the world.

There re more overseas banks in the City than in any other financial centre. The banking sector in Britain accounts for about a fifth of total international bank lending.

The world’s largest financial markets – the London Stock Exchange, the Foreign Exchange Market, the Financial Futures and Options Market, eurobond and Eurocurrency markets, the world’s largest international insurance market – are also located there.

Note on the Text

…”Square Mile” in the City of London. – … «Квадратная миля» в Лондонском Сити

future – фьючерс

option – опцион

Task 2. Comprehension questions

1. What does a financial system comprise?

2. What do financial activities embrace?

3. Who are the savers and borrowers linked by?

4. What is the “Square Mile”?

5. What financial markets are located in London?

Task 3. Find English equivalents for the following Russian phrases:

- финансовая система развитой страны

- сеть финансовых институтов (организаций)

- осуществлять и контролировать финансовую деятельность

- министерство финансов

- казначейство

- налоговая служба

- фондовые и валютные биржи

- финансовая деятельность охватывает

- финансовые активы

- вкладчики

- источники финансовых средств

- заемщики

- финансовые посредники

- занимать центральное место

- иностранные банки

- составлять (часть чего-л.)

- банковские ссудные операции

- рынок финансовых фьючерсов и опционов

- рынок еврооблигаций

- страховой рынок

Task 4. Give derivatives of:

financial

organization

regulating

taxation

saver

borrower

investment

insurance

service

lending

located

Task 5. Read the text and translate it into Russian. Say what role banks play in any financial system.

Banks play a very important role in any financial system. Most typically banks open accounts for their clients and receive money on current and deposit accounts. These funds are used by them to provide loans or for investment. Apart from these functions bankers perform many other functions of great value to their clients. Banks collect cheques, discount bills of exchange, transfer money, buy and sell securities for their clients, take charge of their clients’ valuables.

As a rule, commercial banks in a country are supervised by the central bank, which acts as the government’s banker. Among other functions central banks have the sole right to issue banknotes and to license retail banks.

Words and word combinations you may need

apart from – не говоря уже о, кроме, не считая

have the sole right – иметь монопольное право

Task 6. Match the infinitives in A with the nouns in B.

A B

to carry out and to regulate a place

to perform loans

to license activities

to occupy funds

to buy money

to borrow intermediaries

to issue a role