Unit One
The Structure and Functions of a Bank
Active vocabulary
Account -данс
Accountant -нягтлан бодогч
Board of directors-захирлуудын зөвлөл
Capital-хөрөнгө
Clerk-ажилтан
Current account-урсгал тэнцэл
Deposit account-харилцах данс
Depositor-хадгалууулагч
Dividend-ноогдол ашиг
Draw upon an account (v)-данснаас мөнгө авах
Invest(v)-хөрөнгө оруулалт
Interest-хүү
Joint stock-хувь нийлүүлсэн
Loan-зээл
Profit-ашиг
Reserve-нөөц
Run the bank (v)-банк удирдах
Shares-хувьцаа
Shareholder statement-хувь нийлүүлэгчдийн хувьцаа
Standing order-байнгын төлбөрийн даалгавар
Dialogue
Read the dialogue in parts
Student: Who really owns the bank?
Banker:The stockholders own it. In the beginning,they put up the necessary capital and were granted a charter from the government.
Student:Are the members of the board of directors stockholders?
Banker:Oh, yes.They're chosen by the other stockholders to operate the bank.
Student:And the board hires the president and the vice-presidents to manage it.
Banker:That's right.Along with the cashier,the tellers and the clerical workers.
Student:I guess most of your work has to do with checking and savings accounts and making loans.
Banker:Yes.But we invest money too.Planning the bank's investment is also very important.
Student:Do you divide all the profits among the stockholders?
Banker:Not all them.The stockholders receive regular dividends.But some of our earnings are heldin reserve accounts.
Student:I suppose that would be necessary.
Banker:Here is a copy of our last published statement.You see the reserves are shown here as surplus and undivided profits.
Questions on the dialogue:
1.Who owns the bank?
2.How does a bank start?
3.Who chooses the board?
4.What's the board's task?
5.Who hires the employees?
6.What are the bank's main activities?
7.How are the profits distributed?
8.How are the stockholders kept informed?
Text 1
As you read the passage, find the answers to the questions given below.
The English commercial banks have branches in all the major towns and a similar structure and mode of working is common to them all.The owners are the shareholders.At the outset the provide 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 the member of the Board.They will also appoint the most senior executives who in turn appoint the rest of the clerical staff 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 deposit 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 upon by cheques and standing orders.The deposit account is more in the nature
