Consult a dictionary and practice the pronunciation of the following words. Pay attention to the stress

Promissory note, certificate of deposit, bearer, bill of exchange, to charge to account, to owe, drawer, drawee, payee, to execute, to honour the draft,

payable at sight, acceptance, sizeable, remainder, to loan at interest, to earn a profit, deliberately, to issue a cheque, to dishonor, payoff, to disregard, to lapse, interest, due, comakers, liable, collateral note, prematurely, mortgage note, to pledge, warehouse receipt, insurance policy, security, receipt, maturity, to inhibit,

to withdraw.

2. Answer the following questions.

1. What is the most common form of commercial paper?

2. What is a draft ? What is another name of draft?

3. What is the function of draft?

4. Who is a drawer?

5. Who is a drawee?

6. What is the acceptance?

7. What are cheques usually written on?

8. What does it mean to honor/dishonor the cheque?

9. Who bears the loss when a cheque was stolen and no stop payment order

was made?

10. What is a promissory note?

11. What is a collateral note?

12. What is a mortgage note?

13. What is a certificate of deposite?

3. Explain what is meant by:

promissory note, certificate of deposit, bill of exchange, to honour the draft, payable at sight, to loan at interest, comakers, collateral note, mortgage note, warehouse receipt, dishonor the cheque, drawer/ drawee, documents of title, blank cheque, CD,IOU, COD, demand instruments, the order directed the bank.

WRITING

Translate into Ukrainian:

variant ( a ) Text 1 ‘DRAFTS’;

variant ( b ) Text 2 ‘CHEQUES’; variant ( c ) Text 3 ‘PROMISSORY NOTES’

variant ( d ) Text 4 ‘CERTIFICATES OF DEPOSIT’

SPEAKING TASKS

You are expected to speak for about two- three minutes:

1/. What do you know about the definition of a business letter ( purpose, addressees)?

2/. What is a structure of business letters: a) addresses, date, salutation?

3/. What is a structure of business letters: b) the subject heading, ref., the opening paragraph, the body of the letter, complimentary close?

4/. Speak about types of business letters. What is CV, Memo, E-Mail?

5/. What will you put in your CV?

6/. What will you leave out of your CV?

7/. What is a Cover Letter? Basic rules for writing of effective Cover Letter.

8/. What is a commercial paper? Types of commercial papers.

9/. Speak about drafts.

10/. Speak about cheques.

SUPPLEMENTARY READING AND WRITING

TASK 1

Read the text “What Are Some ...” give your answers on the following questions:

1. What is a certified cheque? 2. What is a cashier’s cheque?

3. What are bank drafts used for? 4. When are money orders used?

5. What is the procedure of cashing traveler’s cheques?

What Are Some of the Specialized Forms of Commercial Paper in Use?

Certain variations of commercial papers’ forms are available for specialized needs. These include:

Certified Cheques

A person to whom a personal cheque is offered as payment may fear the bank will not honor the cheque because of insufficient funds in the drawer's account. However, accepting a cheque is much safer if the bank has already agreed to pay the cheque, because only the unlikely event of the bank's failure will prevent the payee or current owner of the cheque from receiving the money due. A personal cheque that has been accepted by a bank in advance of payment is known as a certified cheque. At the time of certification, the bank draws sufficient funds from the depositor's account and sets them aside in a special account to pay the cheque when it is presented. In addition, the bank marks the front of the cheque with «accepted» or «certified,» the date, and the bank's signature.

2. Cashier's Cheques

A cheque that a bank draws on itself and which is issued by an authorized bank officer is a cashier's cheque. Such cheques are used by banks to pay their own obligations. They also may be purchased from a bank by persons who wish to send remittances (payments) but who either have no personal chequeing account or do not wish to use their personal cheques .

3. Bank Drafts

A draft drawn by a bank on funds that it has on deposit with another bank is a bank draft. Thus, such a document is a draft drawn by one bank on a second bank. Banks use these drafts in their own transactions. Sometimes a person or a business firm wishes to make an initial purchase for a big sum. The seller refuses to accept cheques of customers whose credit is not established. Therefore such customers may use bank drafts purchased from a bank.

Money Orders

Money orders are often used by persons who do not have chequeing accounts. A money order is a draft issued by a post office, bank, express company, or telegraph company for use in making payment or transferring funds upon the credit of the issuer. Money orders serve the same purpose as cheques. For example, a money order is purchased from one post office, which orders payment by another post office in the hometown of the payee designated by the purchaser.

5. Traveller's Cheques

Hotels and retailers around the world understandably prefer to take cheques only from persons they know and can trust. At the same time, travellers do not want to carry cash on journeys. To meet the needs of both the traveller and the merchant, traveller's cheques have been devised. A traveller's cheque is a cheque drawn by a reliable financial institution (such as Bank of America or American Express Company) on itself or its agent. Traveller's cheques may be purchased from banks and other institutions. At the time they are purchased, each cheque is signed by the buyer. When cashing one of the cheques the traveller writes in the name of the payee and again signs her or his name as originally written on the cheque. This is done in the presence of the payee who can compare the signatures. The payee, who knows and trusts the drawee bank or issuing company, is usually willing to take the traveller's cheque. Thereafter, the payee may deposit and collect the traveller's cheque in the same manner as other cheques. Although traveller's cheques are still used, the greatly expanded use of credit cards throughout the world has reduced the need for them.

TASK 2

Read the text ‘ Selecting your CV format’ and express your point of view concerning the material. Compare it with the opinions of your classmates.