Saint Pearl: Business

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 held in 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 bank 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 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 of 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 of a savings account. The pattern of investments, 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 wish to do so.
At the end of each business year Directors recommend and 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 for the Annual General Meeting, a bank publishes its Report and Accounts.These must be sent to every shareholder and are also available for anyone with an interest in the affairs of the bank.From the published accounts shareholders can easily determine the total profits the bank has earned and how much is available for distribution.

Текст №1

Английн худалдааны банкууд нь бүх том хотууддаа салбартай бөгөөд тэдгээрийн бүтэц үйл ажиллагаа нь ижил байдаг.Банкны эзэд нь өөрсдөө хувьцаа эзэмшигч нар юм.Үйл ажиллагаагаа эхлэхдээ тэд шаардагдах хөрөнгийг гаргадаг.Тэд хамтарсан хөрөнгө оруулалтын зарчим дээр зохион байгуулагдсан албан ёсны бүртгэлтэй компаниуд юм.

Банкны тэргүүн болох захирлуудын зөвлөл жил бүр нийт хувьцаа эзэмшигчдийн хурлаас сонгогддог бөгөөд банкны үр ашигтай ажиллах удирдлагыг хангах үүрэгтэй. Зөвлөл нь өөрийн гишүүдийн дотроос гүйцэтгэх захирлыг сонгодог бөгөөд тэр нь зөвлөлийн өмнө шууд хариуцлага хүлээнэ.Гүйцэтгэх захирал нь банкны ахлах албан тушаалтнуудыг томилох бөгөөд тэдгээр нь банкны өдөр тутмын үйл ажиллагааг гардан явуулах бусад албан тушаалтнуудыг томилно.

Банкны үйл ажиллагааны мөн чанар нь гүйлгээний болон хадгаламжийн дансаар дамжуулан мөнгө хуримтлуулах, тухайн хуримтлалыг ашиглан зээл олгон хөрөнгө оруулалтын эх үүсвэрийг бий болгоход оршино.

Гүйлгээний данс нь маш өргөн дэлгэр хэрэглэгддэг бөгөөд гүйлгээгээ чекээр болон төлбөрийн даалгавраар гүйцэтгэдэг.Хөрөнгө оруулалтын хэлбэр нь нэг талаас банк өөрөө ашиг олохын тулд энэ хөрөнгийн нөөцөө ухаалгаар ашиглах ёстой нөгөө талаас тухайн харилцагч өөрсдөө мөнгөө авах шаардлагатай үед тэр нөөц нь бэлэн байх ёстой тул маш чухал юм.

Жил бүрийн эцэст хувьцаа эзэмшигчдийн хурал зохион байгуулагдаж захирлуудын санал болгосноор тухайн жилийн ашигаас хэд нь ноогдол хувь болох , хэдэн нь үйл ажиллагаанд үлдэх вэ гэдгийг шийдвэрлэнэ.Хувьцаа эзэмшигчиддээ зориулан банк өөрийн тайлангаа хэвлэн нийтлүүлнэ.Энэ нийтлэл нь банкны үйл ажиллагааг сонирхогч хэн бүхэнд нээлттэй.Нийтлэгдсэн тайлангаас хувьцаа эзэмшигч нэг бүр банкны нийт ашгийн хэмжээг тооцоолон ямар хэмжээний ноогдол ашиг хуваарьлагдаж болох вэ гэдгийг мэдэх болно.

Questions on the text

1.Who owns English commercial bank?
2.How does a bank start?
3.Who chooses the Board?
4.What is the Board's task?
5.Who hires the employees?
6.What are the Bank's main acitivities?
7.How are the profits distributed?
8.How are the shareholders kept informed?

Vocabulary Exercises

Comparison of American and British terms.Dialogue deals with the structure and functions of an American bank,while the text describes an English commercial bank. There are some differences in American and British terminology.Find American terms corresponding to the British ones given below.

Accounting                                   Accountancy
Cheque                  Check
Current account                            Checking account
Deposit account    Savings account
Managing Director(MD)               Chief Executive Officer (CEO)

Shareholder Stockholder

Find proper definitions

Terms Definitions

1.Capital a.a sum of money paid to a shareholder out of profits in relation to his investment.

2.Dividend                        b.an account in a bank from which money can be drawn by cheque,
3.Deposit account             c.profits not paid out as dividends and added to the surplus
4.Retained profits              d.the money value of the shareholders stale in the bank or company
5.Current account              e.An account in a bank on which the depositor receives interest.

III

Choose the right answer:

1.The people who decide to the general policy of the bank are:

a.Shareholders

b.The Board of Directors

c.The Executive Staff

2.The bank's financial position can be discovered

a.a report

b.an announcement

c.a statement

3.Bank profits kept back for later use are:

a.withdrawals,

b.surplus

c.retained profits

4.Earnings remaining after all the expenses of a business activity have been paid are :

a. dividend

b.capital

c.profit

5.Money which one person allows another to use a business activity have been paid are :

a.investment

b.loan

c.interest

Using the information in the passage, say what is true and what is false .Correct the false sentences.

1.Members of the Board of directors are shareholders.

2.All the shareholders participate in running the bank .

3.The entire bank's profits are divided among the shareholders.

4.The reserves are shown in the in the statement as retained.

Using suffixes -er,-or,-ier,-eat,-ial,etc.,give nouns which are related to the folllowing:

bank cash

direct deposit

executive hold

invest manage

office own

work

Find synonyms for the following.Use a dictionary whenever necessary:

to own to appoint

to run to distribute

to cell to receive

VII

Find the nouns that are qualified in the passage by these adjectives and make up sentences of you own:

clerical necessary published over-all day to day total

VIII

Explain the following:

1.To raise capital

2.To become a public company

3.To put money into business

4.An account in a bank from which money can be drawn by cheque

5.Profits not paid out as dividends

Fill in the blanks with proper words or phrases:

1.The Board appoints the .....and the.....

2.An employee in a bank who pays out and receives money is called a ............

3.The Board of Directors is elected by the........

4.The Board may distribute ........to the shareholders out of the profits once or twice a year.

5.The........may be high even after all the bank's expenses are paid.

6.A bank will need to seek approval for a large.... to a customer.

7.The Boars will discuss the banks.....in other businesses.

Make sentences of your own:

1.to put up the necessary capital

2.to be registered as a public company

3.to run a bank

4.the board of directors

5.Shareholders

6.current account

7.deposit account

8.to make a loan

Unit two

Currency and Other forms of Exchange

Active vocabulary

Accept a bill(v) Векселийг баталгаажуулах

Bank draft(v) Банкны гүйлгээ

Bank money order Банкны мөнгөн шилжүүлэг

Bank note, Note,bill(US) Мөнгөн тэмдэгт

Bearer Эзэмшигч

Bill of exchange Шилжүүлдэг вексель

Cash(v) Бэлэн мөнгө гаргаж авах

Cashier’s check(US) Бэлэн мөнгөний чек

Certificate Сертификат

Certified Check Баталгаажсан чек

Certify Баталгаажуулах

Cheque,Check(US) Чек

Traveller’s cheque Замын чек

Coin Зоос

Creditor Зээлдүүлэгч

Credit standing Зээл төлөх чадвар

Currency Мөнгөн гүйлгээ, мөнгө,валют

Denomination Үнэ цэнэтэй

Discount a bill(v) Векселийг хямдруулах

Endorse/indorse(v) Шилжүүлэх эрх олгох

Forms of exchange Солилцооны хэлбэр

Honour a bill(v) Векселийг баталгаажуулах

Identification Үнэт цаасыг тодорхойлох

In lieu of Хамтдаа

Issue(v) Гүйлгээнд гаргах

Legal tender mature(v) Албан ёсны төлбөрийн хэрэгсэл

Mature(v) Хугацаа болох(төлбөр хийх)

Negotiable Шилжүүлж байгаа

Payee Төлбөр хүлээн авагч

Payer Төлбөр төлөгч

Sight draft Шууд төлбөр төлөх

Dialogue

Read the dialogue

Student: The bank must use just about every form of exchange in a day’s work.

Cashier: Just about. Of course, we constantly handle coins and bills of every denomination.

Student: They’re what you call legal tender.

Cashier: Yes. Or currency. A nation’s currency is its legal tender.

Student:But a check isn’t legal tender.

Cashier:No.However checks is a very common form of exchange ,and they are generally accepted in lieu of currency.

Student: Are traveller’s checks currency?

Cashier: Not in a strict sense.But they are immediatey negotiable every where.For instance,even merchants will cash them under most circumstances.

Student:The bearer need only present proper identification.

Cashier:That’s right.

Student: Well, what’s a bank note? Is that currency?

Cashier:Definitely. Bank notes are issued by the banks of the Federal Reserve System, and they are legal tender just as silver certificates are.

Students:That’s what I thought.But getting back to checks ,why are bank drafts sometimes preferred over checks?

Cashier:Well, in the case of a check, the party who sings it is the only one who guarantees payment. But a bank draft is issued and guaranteed by a bank.

Student: Is that true of cashier’s check’s, too?

Cashier:Yes.And also of certified checks and bank money orders.

Student:What about sight drafts?

Cashiers: Now, sight drafts are different. They are a form of request for payment through a bank.

Questions on the dialogue

1. What forms of exchange are called legal tender?

2. Why are checks a common form of exchange?

3. How are trveller’s checks useful?

4. Which banks in the USA may issue bank notes?

5. What is the difference between a check and a bank draft?

6. What do cashier’s checks, certified checks and bank drafts have in common?

7. How do sight drafts differ?

Text 2

The work of bank centers around money and financial services. Virtually any activity involving money or advice about, financial matters is undertaken by all the commercial banks.The immediate service offered by the bank is the receipt for deposit of coins,notes and cheques and the cashing of cheques ,through current account accounts.Coins and notes in circulation have the status of legal tender that is to say they must be taken in payment of a debt although the extent to which this applies in the case of coins is deliberately restricted for the sake of convenience.

The most common means of payment, particularly for significant sums of money, is the cheque since it is both safer and more convenient than using cash. However, it is not legal tender and creditors can refuse to accept it if they wish. Normally both national cheques and traveller’s cheques are readily negotiable if the bearer has come means of proving in his identity and the creditor can be sure that the cheque will be “honored”. To assist the use of cheque, will guarantee it up to a stated maximum.If a customer wishes to make payments of large amounts of money by cheque and is not known to the creditor,then he may obtain a certified cheque from his bank. Such a cheque is signed by the bank and therefore payment is guaranteed.

Those trading overseas ,or in conditions where there may be a significant time lapse between sending out goods and their receipt by the customer, may use a Bill of Exchange as a means of payment. This is really a post dated cheque which assures the creditor payment but also gives the buyer opportunity to inspect the goods before the transaction is completed. Those whose credit standing is unknown may have to get the Bill accepted before a creditor will take it. Such a process guarantees payment and most works of this kind is undertaken by the merchant banks

Because Bills are post dated creditors may have to wait some time for their money.They can overcome this problem by endorsing the Bill and then either discounting it with a Discount House or a bank or passing it on to another trader in settlement of a debt of their own. By the time it comes to maturity a Bill may have passed through several hands and on occasion it must be endorsed.The commercial banks participate in this activity in two ways: in part by lending money to the discount houses and in part by discounting bills for their own customers.

Текст 2

Банкны үйл ажиллагаа нь мөнгө ба санхүүгийн үйлчилгээг тойрон төвлөрдөг.Өөрөөр хэлбэл бүх арилжааны банкууд мөнгө ба санхүүгийн үйлчилгээтэй холбоотой.Мөн зөвлөгөө өгөх асуудлуудыг хариуцдаг.Банкны үзүүлэх эхний үйлчилгээ бол зоосон мөнгөн дэвсгэрт ,чекийг хадгаламжинд авах ба гүйлгээний дансаар чекийг бэлэн мөнгөөр солих үйлчилгээнүүд.

Төлбөрийн хамгийн түгээмэл хэлбэр нь ялангуяа их хэмжээний мөнгөний хувьд чек юм.Яагаад гэвэл энэ нь хамгийн аюулгүйгээс гадна бэлэн мөгөн хэрэглэснээс илүү тохиромжтой.Гэвч чек нь хууль зүйн дагуух шалгаруулалт биш учраас худалдагч хүсвэл хүлээн авахгүй байж болно. Ер нь үндэсний чекүүд ба замын чекүүд нь хэрэв эзэмшигч нь өөрийнхөө биеийн байцаалттай бол бэлэн мөнгөөр сольж болно. Чекийн хэрэглээг хялбаршуулахын тулд банкнууд үйлчлүүлэгч нартаа зээлийн карт олгож байгаа юм.Чектэй цуг хэрэглэхэд тогтоосон хэмжээ дотроо баталгаатай үйлчилнэ.Хэрэв үйлчлүүлэгч их хэмжээний мөнгөний төлбөрийг чекээр хийхийг хүсэж байвал мөнгөн төлбөр хүлээн авагч нь танихгүй бол тэр өөрийн банкнаас "баталгаажуулсан чек" авч болно.Энэ чек нь банкны гарын үсэгтэй байх тул төлбөрийн баталгаатай.Гадаадын худалдаа эрхэлдэг хүмүүс бараагаа ачуулаад бараа хүлээн авах төлбөр хийх хугацаа хүртэл цаг хугацаа шаардах учир төлбөрийн хэлбэр өрийн бичиг байна.

Энэ нь төлбөрийн хугацаа нь хойшилсон худалдагчийн төлбөрийг баталгаажуулж өгөх ба худалдан авагчид төлбөрөө хийхээс өмнө бараагаа шалгах боломж олгоно.Төлбөрийн чадвар нь мэдэгдэхгүй байгаа худалдан авагч нарын хувьд хүлээн авсан өрийн бичиг хэрэглэж болно. Энэ нь төлбөрийг баталгаатай болгодог бөгөөд иймэрхүү төлбөрийн бүх үйлчилгээнүүд арилжааны банкаар хийгддэг.Векселийг хэрэглэсэн тохиолдолд худалдагч нь мөнгөө тодорхой хугацаанд хүлээх болдог.Энэ нь асуудлыг тэд векселээ банкиндаа тушааж мөнгөө авах буюу эсвэл өөр худалдагчид төлбөрийн хэлбэр болгож шилжүүлж болно.Векселийн хугацаа нь дуусах үед вексель нь хэд хэдэн гараар дамжсан байж болно.Хугацаа нь ирэхэд мөнгө болгож банк мөнгийг нь төлнө.Арилжааны банкууд векселийг өөрийн хэрэглэгсдээс хүлээн авч мөнгө болгож оролцдог.

Questions on the text

1.What forms of money are called legal tender?
2.Why are cheques a common form of exchange ?
3.What is the main purpose of banker’s card?

4.What is the special feather of a certified cheque?

5.What is the main use of a Bill of Exchange?

6.Why does a Bill sometimes have to be “accepted”?
7.In which two ways might a creditor who needed the money dispose of a Bill?

Vocabulary exercises

List all the forms of money mentioned in the passage and match them with the following definitions:

1.A bank’s unqualified guarantee to pay a specified sum to a specified individual or organization .

2.A negotiable instrument issued only by the Bank of England and signed by the Chief Cashier of the Bank.

3.A written order to a bank to pay a stated amount of money.

4.A negotiable instrument issued by a bank in exchange for cash and readily useable in most parts of the world.

5.Token money largely used for small purchases and transactions.

6.A written order to a bank to pay a stated amount of money to a stated person or, after endorsement to the bearer on or within a stated time after a given date.

Choose the right answer

1.’We constantly handle coins and bills’ means

a.cash them under most circumstances

b.deal with them

c.receive them

2.’Bills of every denomination’ denote

a.bank notes of different values

b.bank notes of various sizes

c.other means of exchange

3.'Legal tender' is

a.a type of paper currency

b requirement to accept in settlement of a debt

c.money guaranteed by a government

4.'Both cheques and traveller's cheques are readily accepted'means

a. able to be given to another party

b.certified by the bank that funds are available

c.endorsed by an officer of the bank

5.'the cheque will be honored' means

a.that it will be readily acepted by creditors

b.that it will be treated with respect

c.that the bank will be ready to cash it

6.'A bearer'is

a.a person who is named as payee on the exchange document

b.an officer off the bank who endorse the cheque

c.the person offering the exchange document and demanding payment

III

Say what is true or what is false .Correct the false sentences

1.Coins and bills of every denomination are called legal tender.

2.Cheques are rarely accepted in lieu of currency.

3.To cash a traveller's cheque the bearer need only present proper identification.

4.Bills of Exchange are not legal tender.

5.A cheque is always guaranteed by a bank.

6.Certified cheques are always guaranteed by a bank.

Using suffexes-cation,-cate,-ment-ion,-ature,etc.,give nouns which are related to the following verbs:

accept prfer

certify present

circulate regulate

denominate settle

endorse signify

invest sign

identify state

pay transact

Using prefixes dis-,il-,in-,ir-,un-,non-,etc.,give negatives which are related to the following:

accepted certified

common honoured

legal necessary

maturity regular

negotiable significant

Combine the words listed below into meaningful two or three word expressions as possible:

account legal transaction

bank money endorsing

bill maturity note

circulation nation traveller

cashier proper earnings

deposit profit participation

discount regular work

honoured reserve fellow

investment shareholders payment

identification surplus undistributed

VII

For each of the following phrases find another one in the text that explains it:

1.Money issued by the central bank of a country.

2.A piece of currency made of metal.

3.Unit of the bank note's value.

4.A document in settlement of a large debt guaranteed by the bank.

5.A document which establishes the identity of a person settling by cheque.

6.Cashing in a Bill of Exchange before it is due for payment.

7.The bank's readiness to accept a cheque for payment.

VIII

Fill in the blanks with proper words or phrases:

bank notes honoured

bearer identification

coins issued

currency traveller's cheques

1.While travelling I don't like to carry large amounts of .................

2.I prefer to have .........which are immediately negotiable.

3.Traveller's cheques are ...........in different denominations.

4.To cash the traveller's cheque the............should present proper identification.

5.However, there are merchants who will not accept traveller's cheques even though you present proper...........

6.I collect..............of every denomination.

Write sentences of your own:

1.to sign a cheque

2.to accept a cheque

3.to cash a cheque

4.to make payment by cheque

5.to certify a cheque

6.to endorse a cheque

7.to make out a cheque

8.to accept liability for

9.to present our identification document

10.to settle business accounts

Unit Three

Depositing Money with a Bank

Active vocabulary

active account-идэвхитэй харилцах данс
accrue-хуримтлагдах
balance-дансыг хаах /дүгнэлж гаргах,үлдэгдэл тооцох/
cancel a cheque-Чекийг хүчингүй болгох
compound interest-хуримтлуулсан хүү
credit-зээлдүүлэх
debit-дебит гүйлгээ хийх
deposit-хадгаламж
fund-сан,нөөц
genuine-жинхэнэ,хуурамч биш
insurance-даатгал
insure against-даатгах, даатгуулах
interest on bank credits-банкны зээлийн хүү
joint account-дундын данс
ledger-нягтлан бодох бүртгэлийн дэвтэр
liquid-хөрвөх чадвартай
maturity-төлбөрийн хугацаа
notice-өгч байгаа мэдээлэл
outstanding-гүйлгээнд гаргах,зээлэх
overdraft-данс улайх
overdraw-зээлийн шугамыг хэтрүүлэх
passbook-банкны тооцооны дэвтэр
per annum-жил бүр
principal-нэрлэсэн вексель,хөрөнгө,гол зээлдэгч
posting-шилжүүлэг
rate of interest-хүүгийн хувь
reconcile-чекийг шалгах
commission-шимтгэл
service charge-шимтгэл
term-үүргээ биелүүлэх хугацаа
time certificate-хугацаатай сертификат
transferable-шилжүүлгийн

Dialogue
Read the dialogue
Cashier: Now this is the checking account ledger.Each page is a record of a customer's deposits and withdrawals.
Student:And you give a copy of this to the customer.
Cashier:That's right.That is his statement, which he receives with all his cancelled checks.Then he reconciles it with his own records.
Student:This one is a joint account, isn't it? And pretty active.
Cashier: Yes,it is
Student:What is this debit?
Cashier:That's our service charge.
Student:I notice an overdraft here in April.
Cashier:I'm afraid we've had this customer and his wife several times that they must keep a sufficient balance to cover all outstanding checks.
Student: Will I have to learn to recognize all our customers signatures.
Cashier:Yes, you will..Any check we cash must have a genuine signature.But we keep a file of them that you can refer to.
Student:Will I be doing any posting of this ledger?
Cashier:No.I'm afraid.Not till you are employed in our bank.
Student:Well,suppose one has some funds on hand, I'm wondering whether he ought to put them in a savings account.
Cashier: It is a good idea, if he wants to keep his investment fairly liquid.And he might also think of a time deposit.
Student:What is the difference?
Cashier:Well, first of all , his time deposit.Is for a specified term, but he can make withdrawals from his savings account at any time, although as much as thirty days notice of withdrawal may be required.
Student:Do they draw the same rate of interest?
Cashier:The bank pays the maximum 4% per annum at maturity on a one year time certificate.Interest on a savings account accrues at the rate of 3%.
Student:How do you figure the interest on a savings account?
Cashier:It is compounded and credited to the account semi-annually.
Student:You mean added to the principal?
Cashier:Yes.And we issue each customer a passbook on his savings account in which each deposit and withdrawal is entered.
Student:Is either type of account transferable?
Cashier:Only time certificates.
Student:Are these deposits insured?
Cashier:Yes,We're a member of the Federal Deposit Insurance Corporation.
Questions on the Dialogue
1.What is a checking account ledger?
2.Why does the bank send a copy of the statement with all checks cancelled to every customer?
3.Are service charges debited or credited to an account?
4.What happens when a cashier notices an overdraft on somebody's account?
5.What does a teller have to do have to do before he cashes a check?
6.What advice would you offer to a customer who has some funds on hand?
7.Why is it profitable to deposit your funds for a specified term?
8.How is the interest on a savings account figured?
9.Which type of account is transferable?
10.How are customer's deposits protected?
Text 3
There are two general reasons for using a bank account.The first and most common is the convenience and safety provided by a current account at a bank.The second is that small and perhaps regular surpluses are available to be saved, and for this purpose a bank provides deposit accounts.
A deposit account will not offer a high rate of interest and would not be the best way to save large sums of money for any long period of time, but it is designed to make saving simple, convenient and safe.It is specially appropriate for those who may save small amounts from time to time without any planned regularity or for those who wish to save for a particular purpose in the immediate future , for example for annual holidays or for the purchase of a major item such as a car.
Most customers of a bank who have opened a deposit account will also have a current account and this makes the transfer of amounts of money from one to the other an easy matter .Regular payments into a deposit account can be made through a standing order to the bank who will automatically transfer the agreed mount according to your instructions.Other payments are made on standard forms but it is most convenient and provides a useful record if the depositor uses a paying in book.Interest is calculated every six months and added to the account.The rate of interest varies from time to time and is publicly advertised in any bank .Because the bank uses money deposited with them to lend to others it normally requires about seven days notice of intention to withdraw money from a deposit account, but unless there is a heavy demand for money they are not likely to insist on this and cash is often immediately available to those who wish to withdraw it.There is an assumption that such notice was given and you would lose seven day's interest on the money.
The increasing need for security and the use of computers in wage payments have combined to make it more common to have a bank account than to be without one.
this kind of account is a current one and its most common use is a single regular payment in ether a weekly wage or a monthly salary and regular payments out to meet the normal everyday expenses.Most payments are still made by cheque although the use of the standing order or the direct debit is becoming very common.It is normally expected that a current account will remain in balance and customers who regularly maintain an agreed minimum balance are often given the services of the bank without charge. In general, however,charges are made which vary with the size of the balance, the amount of use of the bank's services and the number of transactions. If the account is overdrawn a further charge, which is interest on the overdrawn amount, is also made.
Overdrafts are not permitted automatically and anything other than a small temporary overdraft would have to be by agreement with the bank manager.Such a facility is often useful particularly when there is a short term disbalance between income and expenditure.On the other hand, since money in a current account doesn't attract interest, it is not a good idea to maintain large cash balances, these would be better transferred to a deposit account or to an alternative form of saving.
Текст 3
Банкны данс хэрэглэх хоёр үндсэн шаардлага байдаг.Эхний бөгөөд хамгийн гол шалтгаан нь банкин дахь харилцах данс нь мөнгөний аюулгүй байдал болон хэрэглэх тааламжтай нөхцлүүдийг хангадаг. Хоёр дох шалтгаан нь бага хэмжэний магадгүй тогтмол илүү гарч байдаг мөнгийг хадгалахад оршино.
Энэ зориулалтаар банк хадгаламжийн данс нээдэг.Халгаламжийн данс нь хүү багатай ба их хэмжээний мөнгийг урт хугацаагаар хадгалах хамгийн зөв арга зам болж чаддагггүй.Гэвч энэ нь хадгаламжийн энгийн тааламжтай мөн аюулгүй хэлбэр юм. Энэ нь голдуу бага хэмжээтэй мөнгийг ямар нэгэн урьдчилсан төлөвлөгөөөгүйгээр хугацаатай хадгалах хүсэлтэй хүмүүс буюу тодорхой зорилготойгоор жишээлбэл: жилийн амралт болон ирээдүйдээ машин гэх мэт том хэмжээний зүйл худалдан авах хүсэлтэй хүмүүс мөнгийг хадгалахад хамгийн тохиромжтой.Банкны ихэнх харилцагчид нь хадгаламжийн данстай байхаас гадна сөн харилцах данстай байдаг Энэ нь мөнгөний шилжүүлэг хийхэд тохиромжтой.Төлбөр нь дансанд шилжүүлгийн баримтуудаар дамжин орно.Банк нь тухайн мөнгийг таны зааврын дагуу автоматаар шилжүүлэг хийнэ.Бусад төлбөр нь стандарт хэлбэрүүдээр хийгдэнэ.Энэ нь хэрэв хадгалуулагчид төлбөрийн тусгай баримт(орч.хадгаламжийн дэвтэр,чек г.м)хэрэглэж байгаа бол бичилт хийх нь хамгийн тохирожтой арга.Хүүг зургаан сар дутам тооцож дансан дах мөнгөн дээр нэмнэ.Хүүгийн хэмжээ цаг үргэлж өөрчлөгдөж байдаг ба банкууд үүнийгээ нийтэд зарладаг.Яагаад гэвэл банк нь хадгалуулсан мөнгийг бусад хүмүүст зээлдүүлэхэд хэрэглэдэг.Хадгаламжийн данснаасаа мөнгө гаргаж авахад ойролцоогоор долоон хоног шаардагдана.Банк нь бусдад зээл олгохдоо хадгаламжинд байршуулсан хөрөнгийг ашигладаг учир ердийн нөхцөлд хадгаламжаас мөнгөө татахдаа долоо хоногийн өмнө мэдэгддэг юм.Гэвч ихэнх тохиолдолд мөнгөний эрэлт хэт өндөр болоогүй үед хадгаламжаасаа мөнгө авах гэж байгаа хүмүүст мөнгийг нь тэр доор нь олгоно.
Энэ нь мөнгөний долоон хоногийн хүүг алдана гэдэг таамаглал дэвшүүлж байна. Аюулгүй байдлыг хангах ба цалингийн төлбөрт компьютерийг ашиглахад гүйлгээний данс байх нь илүү тохиромжтой.Долоо хоногийн буюу сарын цалин тавих өдөр тутмын зардлыг гаргахад хамгийн их хэрэглэгддэг арга бол нэг л гүйлгээний дансийг ашиглах нь тохиромжтой.Ер нь бол банкны үйлчлүүлэгчдийн төлбөр нь балансийн хэмжээ банкны үйлчилгээг хэр ашиглаж байгаа нь гүйлгээний тооноос шалтгаалдаг.

Questions on the text
1.What are the two main reasons for opening a bank account?
2.Which type of account is used by those who wish to save?
3.What kind of saving is this type of account most suited to?
4.What is a standing order?
5.Why does a bank sometimes need notice of intention to withdraw money from saving accounts?
6.What is the most common use of current accounts?
7.Why are some customers not charged for the facility of a current account?
8.Why is it not a good idea to retain large balance in a current account?

Vocabulary exercises
I
Find proper definitions
1.Debit a.The unpaid balance or portion of a loan or investment on which the interest is figured
2.Balance                 b.An amount by which withdrawal are greater than the balance in an account
3.Overdraft              c.The point at which a loan or investment is due.
4.Compound    d.The amount which has to be paid for the use of a bank's services by a current      account holder.
5.Maturity e.A figure in the ledger indicating a withdrawal orating
6.Principal                 f.the amount remaining in an account
7.Charge                   g.Figure interest on the principal plus any accrued interest
8.Rate of interest h.The amount per hundred pounds which is added to the balance of a deposit account.

II
Using the words in brackets as a guide,explain the meaning of the following terms:
1.deposit(put into,an account)
2.withdrawal(an account,remove from)
3.standing order(transfer,automatic,bank,customer, instructions)
4.joint account(two or more people owned by)
5.statement (a customer's deposits and withdrawals, a record)
6.overdraft(current account,balance)
7.interest (the use of money, pay for)
8.notice(one's intentions, an announcement of)
9.insurance(loss, protection against, government agency or another specializing in)
III
Choose the right answer:
1.'a current account' is
a.one which is available for the time being
b.one in which savings are held
c.one which is used all the time for day-to-day transactions
2.'canceled cheque'means
a.worthless cheque
b.sta regulamped to indicate that payment has been made
c.crossed cheque
3.'a genuine signature' is
a.person's name written by himself
b.a person's name written correctly
c.legible signature
4.'an outstanding cheque' means
a.unpaid cheque
b.written but not yet presented for payment
c.overdue cheque
5.'a deposit account' is
a.one from which regular payments are made
b.one in which savings are held
c.one from which withdrawals can be made by cheque
6.'rate of interest' is
a.the percentage of each unit of money paid for its use
b.rate of profitability
c.portion of an investment on which the interest is calculated

7.'an overdraft 'is

a.an amount by which the balance in a current account exceeds the value of a cheque drawn from it

b.an amount by which the value of a cheque exceeds the balance in the current account 

c.an excessive balance in a current account
IV
Say what is true and what is false.Correct the sentences:
1.The teller has to learn to recognize all customers' signatures.
2.If you want to keep your investment liquid put it in a deposit account.
3.You can't make withdrawals from your deposit account.
4.Interest is paid by the bank on both current accounts and deposit accounts.
5.Withdrawals are made from a deposit account by cheque or standing order.
6.Money is easily transferable from a current account to a deposit account.
7.The rate of interest on deposit accounts is fixed.
8.It is easier to get money out of a deposit account than it is from a current account.
V
Give verbs which correspond , to the following nouns:
Nouns                                      Verbs

Assumption
Debit
Deposit
Maturity
Notice
Overdraft
Statement
Withdrawal 
VI
Find synonyms:
to debit                                        to maintain
to deposit                                     to credit
to reconcile                                  to permit
to sign                                          to cancel
to accrue                                      to pay in

c.portion of an investment on which the interest is calculated

7.'an overdraft 'is

a.an amount by which the balance in a current account exceeds the value of a cheque drawn from it

b.an amount by which the value of a cheque exceeds the balance in the current account 

c.an excessive balance in a current account

VII
Collocations
1.Find the nouns which, are qualified in the text by these adjectives and unite one noun to each adjective:
general                                        especially
most                                            minimum
regular                                         short-term
2.Combine the words listed below into meaningful two or three word expressions.
interest                                        deposit
certificate                                     account
overdraft                                      withdraw
balance                                        service
charge                                         savings
cheque
VIII
For each of the following phrases find the expression in the text or in the dialogue that explains it:
1.to record figures in a ledger
2.to compare one's own records with the bank's statement and make them agree.
3.money paid for the use of someone's money
4.to increase in quantity
5.the date when a loan or investment is due
6.a specified period of time 
7.to protect against loss or damage
8.at the rate of 5% each year
9.an instruction to a banker to make a payment at regular intervals
10.an instruction to a banker to make a single payment to a specified person
11.the amount on which the money paid for its use is calculated
12.on my deposit account this payment for the use of my money builds up at the rate of 3%.
13.another type of account into which my salary is paid every month
14.the amount which i have to pay the bank for the use of their services
15.the amount by which my current account holding is greater than nothing
16.my statement shows me that I owe the bank money. 
IX
Fill in the blanks:
Mr.Collins and his wife have a current account in both their names.They have a .........They both work and put money into the account.They both make ............Sometimes they get mixed up about the amounts of money they have removed from their account.They get confused about their .....Once or twice the amount remaining in their account has become too low.They have had too small a .........The next cheque they wrote was for more money than they had in their account.Tney had an.......The only way they could restore the balance was to get a record of their deposits and withdrawals from the bank. So they asked for a .......
They also had the cheques which had been stamped to indicate that payment had been made.They had their.......cheques.Then they added up the cheques that had been written but had not been paid by the bank yet. They totaled their............cheques.They also subtracted from their balance the bank charges and interest on the ...........Finally they managed to make their records agree with the bank's statement.They.........their account.  
X
Demonstrate the meaning of the following expressions in sentences of your own:
1.to reconcile a statement with one's own records
2.to have a joint account 
3.to have an overdraft
4.to over an outstanding
5.to send your banker a standing order
6.to make a withdrawal 
7.to calculate interest on
8.to pay interest


Unit 4


 Applications for Loans

Active Vocabulary:

amortize(v) -өрөө хэсэгчлэн төлөх
repaid by annual-хугацаа хойшлуулж төлөх
installments appraise(v)-үнэлэх,өртгийг нь тодорхойлох
assets-актив байршсан хөрөнгийн хэлбэр
fixed assets-үндсэн хөрөнгө
current assets-эргэлтийн хөрөнгө
balance sheet-тайлан тэнцэл
chattel-хөдөлгөөнт хөрөнгө
chattel mortgage-үл хөдлөх хөрөнгийн зээл
clear-клиринг
collateral security-үнэт цаасаар хийсэн барьцаа
collateral-барьцаа
debt-өр
deed-гарын үсэг болон тамгатай баримт бичиг
discount-хөрөнгөлөх,векселийн тооцоо 
encumbrance-өрийн барьцаа
equity-зөрөө,хувь нийлүүлсэн хөрөнгийн хувь, энгийн хувьцаа
estate-өмч хөрөнгө
estimate-үнэлэх,тооцоолох ,орлого зарлага тооцоолох
holding-хувьцаа эзэмших, хувьцааны багц
holdings-хадгаламж
indebtedness-өр,зээл
installment-хасэгчилсэн төлбөр, ээлжит татвар
legal charge-албан ёсны төлбөр
liabilities-пассив
liquidate(v)-устгах,төлөх
mortgage-үл хөдлөх хөрөнгө
net value,net worth (US)-цэвэр өртөг, өөрийн хөрөнгө
obligation-облигаци,өр зээл
pledge(v)-барьцаалах
property-өмч,хөрөнгө
real estate(US)-үл хөдлөх хөрөнгө
retire(v)-өрөө төлөх
securities-үнэт цаас
title-өмчлөх эрх
trust-итгэмжлэгдсэн хөрөнгө,зээл
trust deed(US)-хөрөнгө эзэмшигчээр баталгаажуулсан баримт
Dialogue

Read the Dialogue

Part 1.Application for Credit

Banker: Our discount committee is still discussing your application for credit.I wonder if you'd mind giving us some more information about certain items shown on your balance sheet.
Customer:Not at all.
Banker: Is the mortgage on your fixed assets being amortized?
Customer:Yes.We are making semi-annual payments on this obligation.
Banker:Your balance sheet show some indebtedness.Are any of your assets pledged as security?
Customer:No.That is just an open note 
Banker:Would your company be willing to pledge part of its current assets as collateral security to our loan?
Customer.We wouldn't object to that.Part of this money will be used to retire present debts and part to expand our operations.then we can immediately begin to liquidate this new liability.
Banker:I think we'd better prefer that arrangement.

Part II
Granting the Loan on an Open Note

Builder:I received your notice that my note is due.I can pay it off now, but there is a piece of land right next to my property that I'd like to buy.
Banker:I don't remember your situation exactly.Are your present holdings free of encumbrance?
Builder:My real estate is clear.But there is a chattel mortgage on my construction equipment.
Banker:has this land you want to buy been appraised?
Builder:Yes.It belongs to an estate and was appraised by order of the court. They estimated its value at 20000$.
Banker:Can it be bought for that figure!
Builder:I think so.I would like to make them that offer.
Banker:Would you consider giving us a trust deed to secure your present note plus the additional funds you'll need?
Builder:I might .But I would thought that my net worth is high enough that i could borrow the amount on my open note.
Banker:Well,in that case,would your wife agree to be a cosigner?
Builder:I'm sure she would,because title to the property will be in both our names.
Banker:Well, it seems to me that you have enough equity in your property for us to make the loan on an open note.

Questions on the dialogue
Part 1
1.What is the customer applying for?
2.Has the banker decided whether to grant the credit yet or not?
3.What sort of information is the banker interested in?
4.How does the banker want to secure the bank's credit?
5.How is the company going to use its current assets?
Part II
6.Why is the builder asking for the extension of his note?
7.What is his present financial standing?
8.Has the land he wants to buy been appraised?
9.What sort of guarantee does the banker insist on to secure the funds the builder will need?
10.What made the builder think that he could borrow the amount on an open note?
11.Who will hold the title to the property purchased?
12.Why has the banker agreed to grant the loan on an open note?

Text 4
Banks made their profits by lending the money which customers deposit with them to other who need it for personal or business reasons.Most people need-more money than they have currently available at some time in there lives.To be a borrower you must be a customer of the bank because the money will be lent to you through a bank account.There are two ways in which you m ay borrow.The first,and easy, is to spend more money than you have in your current account -to overdraw. The second,and the normal way of borrowing larger amounts or for a long period of time is the loan.
If a manager permits an overdraft on current account he is likely to set a limit to the size of the overdraft and may stipulate a date by which the account is back in credit.Business whose payments and receipts are often irregular will frequently need to use overdraft facilities and they are often granted to private customers as well particularly when the manager knows that regular payments are made directly into the account.If a loan is granted it will be a fixed period of time.The principal and the interest on it may all become due for payment at the end of that period but for personal loan it is common to arrange that the loan  and interest are repaid in equal regular installments over the period of the loan.A separate account is opened to record the repayments as they are made.
Whether you are seeking money for business or personal reasons there are a number of things that the manager will want to know before he is prepared to grant your request. The obvious facts will be the amount that you seek and the arrangements for re-payment that you seek and the arrangements for re-payment that you are able to suggest.You need to tell him something about the purpose of the loan, a business loan is likely to help you make profits out of which the loan can be repaid with interest and he will wish to judge for himself whether or not this  is likely.Personal loans usually have to be repaid out of an income  which will not get  any bigger and the manager will be particularly anxious to ensure that you are not being too optimistic.In deciding this he will be considerably assisted by his knowledge of you and his estimate of your character.
Sometimes people don't ask for enough money because they are anxious about the burden of the repayments.The manager will be wise enough to try and ensure that you will have sufficient amount of money to do what you want to do.
Finally he will consider whether or not you really will be able to repay and what kind of security you can offer against the possibility that you don't repay.In the case of a business the manager may well want to see well prepared, relevant documents such as profit and loss accounts and  balance sheets for the most recent years.he would also ask about the expected return from the use of the money and want to see some figures upon which you have based your calculations.For a business good security might be one or more of the assets of the business whilst personal loans are often secured by such things as life insurance policies on which the bank is making regular payment for you or the deeds of your house.      

Текст 4
Банкууд өөрийн зарим үйлчлүүлэгчдийн хадгалуулсан мөнгийг өөр үйлчлүүлэгчтэй хувийн буюу бизнесийн үйл ажиллагаанд зориулан зээлдүүлж ашгаа олдог.Хүмүүст голцуу тухайн үед өөрт нь байгаа боломжоосооо илүү мөнгө хэрэгтэй байдаг.Зээлдэгч байхын тулд банкны харилцагч байх ёстой.Яагаад гэвэл мөнгийг банкны дансаар дамжуулан зээлдүүлдэг.Мөнгө зээлдүүлэх хоёр арга байдаг.Эхний бөгөөд арай хялбар арга нь өөрийн дансанд байгаа мөнгөнөөсөө арай илүүг үрэх.Хоёр дахь бөгөөд түгээмэл арга нь илүү их хэмжээний мөнгийг илүү урт хугацаатай зээлэх.
Дансанд байгаа мөнгөнөөс илүү их мөнгө үрэхийг банкны менежер зөвшөөрч , мөнгөний хэмжээг тогтоодог.мөн буцаад мөнгөө төлөх хугацааг нь заана.Тогтмол гүйлгээ хийдэггүй бизнесүүд  overdraft-ыг хэрэглэх шаардлага байн байн гардаг.Ихэнх тохиолдолд банкууд үүнийг зөвшөөрдөг.Зээл олгохыг зөвшөөрсөн тохиолдолд тэр нь тодорхой хэмжээний мөнгө байх ба тогтоосон хугацаанд хэрэглэж болох юм.Үндсэн зээл ба хүү нь зээлийн хугацааны эхэнд төлөгдөж болно.Тэгэхдээ хувийн зээлийн хувьд үндсэн зээлийн ба хүүг зээлийн хугацаан дотроо хэсэгчлэн төлөх журам байдаг.Зээлийн төлбөр орж ирэх тусгай данс орж ирдэг.
Та бизнесийн зорилгоор юм уу хувийн шаардлагаар мөнгө зээлэхийг хүсэж байгаа бол банкны менежер таниас хэд хэдэн зүйлийг мэдэхийг хүснэ байх.Хамгийн эхлээд хичнээн хэмжээний мөнгө танаьд шаардагдаж байгаа вэ?.Буцаан төлөх хуваарийг, зээлийн зориулалтыг,биенес зээл бол та ямар бизнес хийж ямар ашиг олох, зээлээ төлөх чадвар бий эсэхийг банкны менежер шийднэ.Хувийн зээлийн хувьд өөрийн орлогоос зээлээ буцаан төлөх тул банкны менежер таныг зээлийн төлбөрөө төлж чадах уу зэргийг нарийн судална.Зарим тохиолдолд хүмүүс зээлийнхээ төлбөрийг хийж чадахгүй гэж эргэлзээд хангалттай хэмжээний зээл авахаасаа татгалздаг.Эцсийн эцэст банкны менежер таныг зээлээ төлж чадах уу,төлж чадахгүй тохиолдолд таныг ямар баталгаа гаргахыг тодорхойлно.
Бизнесийн зээлийн тохиолдолд банкны менежер тухайн компаний сүүлийн хэдэн жилийн тайлан тэнцэл, орлого зарлагын данс мэтийн бичиг баримтуудыг үзнэ. мөн зээлийн мөнгө ашиглаад хичнээн орлого олох вэ, тооцоогоо яаж хийсэн бэ гэдгийг шалгаж үзнэ.Бизнесийн зээлийн хувьд зээлийг найдвартай болгохын тулд тэр бизнесийн зарим хөрөнгийг баталгаанд авна.Хувийн зээлийн хувьд амь насны даатгал буюу орон сууцыг барьцаална.


Questions on
the text


  

1.What
two kinds of borrowings are possible?




2.In
what circumstances an overdraft on current account is permissible?




3.How
are personal loans usually repaid? 

4.Will
you pay back more than you borrowed? What will the difference be?  

 5.What
information will the manager require for a personal loan? 

6. What
information will he require for a business loan?




 7.What
other things will he take into account? 

8.
What
will he need from you to make the loan safer for him?




9.What
does a businessman mean by his expected rate of return? 

10. 
Why
might this be important to the bank manager?




11.What
kind of things might you offer as collateral for a personal loan?




Vocabulary
Exercises

I

Find
proper definitions:

Terms                                               
Definitions

1.Mortgage                                      a.
anything owned that has financial value

2.Collateral security                        b. an asset, such as
real estate , which can’t be readily changed into           money  

3.Asset                                            c. assets other than real
estate which can be readily changed  
into money 

4.Open
note                                    
d. to promise as security

5.Current
asset                                 e.
some security in addition to the main security for money lent

6.To
pledge                                     
f. an agreement to give up collateral which has been pledged if a debt
is not paid

7.Fixed
asset                                   
g. a note, the payment of which is not guaranteed by collateral security

8.Real
estate                                   
h. anything owned, especially real estate or land

9.Chattel                                          i. land including

 10.Deed                                          j. a
mortgage on any personal or movable possessions such as furniture  or equipment

11.Equity                                        k. a
document which proves legal ownership of real estate

12.Property                                     l.the
value of the piece of property beyond any indebtedness held against it

13.Principal                                    m. a
statement of the assets and liabilities of a business which shows its position
at a particular date

14. Installment                               n. a payment
towards a larger sum usually made at regular intervals

15.Loan                                         o.the
amount of the loan itself before any interest is added

16.Repayments                              p.a statement
which shows the calculation of the results of doing business for a particular
period of time

17.Balance
sheet                       q.a
fixed sum of money borrowed for a fixed period of time

18.Profit
and loss account             r. land or
buildings

19.Real
property                            s.
amounts of money which are given to a creditor in settlement of a debt or a
loan.

II

Using
the words in brackets, explain the meaning of the following terms and phrases:

1.      the mortgage is being amortized (regular
payments on, the principal, the interest, make)

2.      obligation (must, indebtedness,
repay)

3.      to retire present debts(current,
pay off)

4.      to liquidate the liability(any
official obligation, pay off)

5.      the land has been appraised
(estimate, its value)

6.      an estate(a dead person, left by,
the holdings and obligations)

7.      trust(the legal responsibility,
in financial matters, given to one party, to act for another )

8.      a trust deed (a deed to, real
estate, security for a loan, held as)

9.      to make a loan on an open
note(grant, the repayment, not guaranteed collateral security)

10.  to stipulate(insist upon, state,
particular date)

11.  to repay(give back, pay off)

12.  expected return(profits,
earnings, income)

13.  security(ensure repayment, deeds,
insurance, policy, reduce risk)

III

Choose
the right answer

1.’Applicaton
for loan’ means

a.
granting loan

b.
asking to be granting loan 

c.
refusal to grant loan

2.’balance
sheet’denotes

a.
total profit

b.
total revenues

c.
a document which shows the state of a business at a particular moment

3.’indebtedness’
here means

a.
repayment

b.
owing thanks 

c.
debt, borrowing

4.’Security’
in this sense is

a.
bonds, share certificates and other titles to property

b.
the amount of the original loan

c.
the chief item or person

5.
‘principal’ here means

a.
the most important  information

b.
the amount of the original loan

c.
the chief item or person

6.’my
loan is due for repayment’ means

a.
my loan has reached maturity

b.
my loan has been paid off

c.
my loan has been extended

7.’holdings
free of encumbrance’ means

a.
holdings heavily in debt

b.
the encumbrance isn’t very large

c.
property or security clear of indebtedness

8.’my
net worth’ means

a.
the value of one’s holdings after all obligations have been paid

b.
any personal or movable possession

c.net
earnings

9.’a
co-signer’ denotes

a.
a person who holds a deed to the property

b.
a person who signs a document with another person and shares the obligation

c.
a lawyer who prepares a trust deed 

10.’title
to property’ is

a.
the record or proof of ownership of property

b.
the name of the person who owns the property

c.
a word indicating a high financial rank.

11.’my
expected return’ means

a.
when I expect to come back

b.
the amount of money I expect to have to repay

c.
the income I expect to receive from doing business

12.
‘ deeds’ are

a.
actions

b.
documents showing how well my business is doing

c.
documents which prove that I own a particular piece of real property
IV
 Say what is true and that is false
1.When a bank's manager considers an application for a loan, he usually requires some information about the items shown on teh applicant's balance sheet.
2. The manager is not concerned whether any of the applicant's assets have already been pledged as security.
3.The bank often asks the applicant to pledge part of his assets as collateral security to the bank's loan.
4.One can't apply to a bank for an extension of a loan.
5.To grant a loan the bank must be sure that the applicant can repay.
6.The bank will never wish to offer a larger loan than the applicant asks for.
V 
Find synonyms for 

Liability                                    Optimistic
Collateral                                 Security character
Repay debts                             Sufficient
VI
1.Find tile nouns which are qualified by these adjectives and write one noun to each adjective
additional                                open
collateral                                 personal
current                                    present
expected                                 private
financial                                   real
most recent                             semi-annual
2.Combine the words listed below into meaningful two or three word expressions
asset                                       equipment
current                                    fixed
committee                               installment
deed                                       loan
discount                                  net
documents                              worth
VII
Explain the following 
1.to promise as security
2.to pay off debts
3.to grant a permission to borrow money
4.to make regular payments on the borrowed money
5.to judge the value of something
6.to guarantee the payment of the loan
7.to give a mortgage on one's furniture and other movable possessions
8.to give a deed to the property as security for the loan
9.to sign with someone a document and share the obligation
10.valuable items handed over to reduce the risk of a loan
11.to fur a date by which something must be done
12.to take more money out of your account than you have in it
VIII
Fill in the blanks


Last week Mr.Auger went to his bank to apply for a ..............as he wishes to purchase a piece of land right to his own. He applied for a............and the bank asked him for a statement of this business affairs including a ............account and a .............
The bank manager was happy to grant the loan but wanted some form of ............from Mr.Auger and asked him if he would offer one or more of his fixed ................as..........The bank was prepared o make the loan for ten years and expected Mr.Auger to pay off the annual...........and some of............each year in two equal........every six months.

IX 
1.Demonstrate tile meaning of  the following expressions in sentences of your own
2.to pledge assets as
3.to extend credit to
4.to settle a liability
5.the installment is due on
6.to appraise the property
7.to hold the deed to property
8.to estimate net worth of th property
9.to give somebody collateral
10.to draw up a profit and loss account

Role Play

1.You are a bank manager and you were asked for a loan.
2.Consider the things you will worry about the loan and the questions you will want to be answered; you should give particular consideration to:
-whether you will have sufficient funds to make this loan
-whether you think the customer will be able to repay loan and interest
-whether you would offer all or part of what is being asked
-whether you need any further evidence of the credit-worthiness of your customer and how you would get it
-what sort of security would you accept
-what kind of term would you offer
3.Conduct the interview:
a. if you refuse the loan, write to the client setting out the reasons why you have done so
b.if you grant the loan, write to the client setting out the precise terms of the loan 



Unit 5


Bank Investments

Active Vocabulary

advance-урьдчилгаа, зээл авах
al,first class,AA-rating(US)-нэгдүгээр зэрэглэлийн
Bond-засгийн газрын үнэт цаас
bonds issue-облигаци гаргах, Бонд гаргах, облигаци гаргаж зээл авах
blue chips-1-р зэрэглэлийн үнэт цаас
capital market-хөрөнгийн зах зээл
cash-бэлэн мөнгө
cash-in-banks-банкны бэлэн мөнгө
diversity(v)-хөрөнгийг янз бүрийн үйлдвэрлэлд тараан байрлуулах
fluctuation-ханшийн хэлбэлзэл
general obligation bond-орон нутгийн облигаци
issue bonds(v)-облигаци гаргах
money market-мөнгөний зах
municipal bond-засаг захиргааны облигаци
offering-худалдахаар санал болгож байгаа үнэт цаас
portfolio-үнэт цаасны багц
rate of return-ашгийн норм
reconciliation-банктай зөвшилцөх
revenue-орлого
revenue bonds-тодорхой обьектоос орох орлогоор баталгаажсан облигаци 
share-хувьцаа
stock(US)-хувьцаа
speculative-эрсдэлтэй дамнах
tax-exempt-орлого ноогддоггүй
working capital-ажлын капитал
yield-үнэт цаасны орлого, оруулсан хөрөнгөний хүүгийн хэлбэртэй орж ирж байгаа орлого
yield interest(v) -хүүгийн хэлбэртэй орлого авчрах


 Dialogue 
Read the dialogue in parts.

Board Member: I notice that our cash and cash-in-banks has been building up above the amoun required by law.
President:I have had the same thoughts.And right now there is a new offerings of municipal bonds that can be bought at a price that will yield 3.5%.
Board Member: Are they general obligation bonds?
President: Yes, they are.I prefer those to revenue bonds,don't you?
Board Member: I do.Does this issue have an AA rating?
President:Yes.And they can be had in five to ten-year maturities.They're tax-exempt, you know.
Board Member:Do you think we might also buy some stocks to keep our portfolio well diversified?
President:Well, we might.But stocks are much more speculative.
Board Member:Unless we stick to blue chip issue.They show less price fluctuation.

Questions on the dialogue
1.What problem is being considered by the President and the Board Member?
2.How can the bank invest its funds profitably at present?
3.Why does the President prefer to invest in general obligation bonds?
4.What does the President know about a new offering of municipal bonds?
5.Where else can they invest the bank's funds?
6.What sort of stocks are they going to invest in and why?

Text 5
The investment policy of a bank is upon the reconciliation of two conflicting aims. On the one hand the bank wants to make as much profit as it can and for this reason it must take the risks of lending money.On the other hand its funds belong to its depositors and must be available whenever they wish to make withdrawals.
There are two things that the bank must therefore do.First it must keep a proportion of its assets in the form of cash to meet demands.The amount that this needs to be varies very little from one bank to another or form one day to another and experience suggests that it is about six percent.As a cushion against unexpected demands a further proportion of funds is invested at low rates of return in highly liquid lending mostly to firms in the money and capital markets.
The second thing that the bank must do is to ensure that the investments it chooses are safe.This also means that they are relatively low yielding since high yields are associated with risk and with lending for long period of time.Much of a bank's investment is in short and medium term government and local government bonds.They yield certain incomes and are readily saleable should the occasion demand.Advances by a bank to its customers are the least liquid of their assets since there are few borrowers who could repay a loan at very short notice.However, they are also the most profitable of them yielding the highest rate of return.Advances by a bank to its customers are likely to account for more than two thirds of the banks investment portfolio although this will vary on a day to day basis since overdrafts are the most common form of advance and are not immediately controllable by the bank. In general banks do not lend to industry for long periods of time or for investment projects.They regard themselves as providing working capital rather than fixed capital.
 Текст 5
 Банкны хөрөнгө оруулалтын зарчим нь дээр үеэс зөрчилтэй хоёр зорилгыг зохицуулж ирсэн.Нэг талаас банк нь өөрийн боломжийн хэрээр ашиг олохыг хүсдэг ба олж чаддаг бөгөөд иймээс тэд мөнгө зээлдүүлэх эрсдэлийг авч явах ёстой.Нөгөө талаас, түүний хөрөнгө нь мөнгөө хадгалуулагчдаас хамааралтай ба тэднийг хүссэн үедээ мөнгөө гаргаж авахад нь бэлэн байх ёстой.
Банкны зүгээс цаашид хоёр зүйлийг хийх ёстой.Нэгдүгээрт:Хөрөнгийн мөнгөн хэлбэр нь хэрэгцээтэйгээ уялдаж байгаа харьцааг хадгалж байх ёстой.Энэхүү харьцааны хэмжээ нь нэг банкнаас нөгөө банкинд эсвэл нэг өдрөөс нөгөө өдөрт бага зэргийн ялгаатай буюу ойролцоогоор зургаан хувь орчим байдаг.Гэнэтийн хэрэгцээний эсрэг цаашдийн хөрөнгийн харьцаа нь хөрөнгө мөнгөний зах зээл дэх фермүүдэд ихэнхдээ зээлдэг.
Хоёрдугаарт: Сонгосон хөрөнгө оруулалтын аюулгүй байдлыг баталгаажуулах явдал юм.Энэ нь банкны зээл нь бага хэмжээний хүүтэй байх ёстой.Яагаад гэвэл өндөр хүүтэй зээл нь эрсдэлтэй холбоотой. Мөн удаан хугацааны байдаг.Ихэнх банкны хөрөнгө оруулалт нь орон нутгийн засаг захиргааны болон Засгийн газрын бондын богино ба дунд хугацааны хөрөнгө оруулалт байдаг. 
Тэд зайлшгүй орлогыг бий болгодог ба эргэлзээгүй гүйлгээтэй байх хэрэгтэй юм. Банкнаас үйлчлүүлэгчдээ өгч буй зээллэг нь тэдний хөрөнгөөс бага байх учраас хэдийд ч хамаагүй зээлээ эргэн төлж чадах цөөхөн зээлдэгчтэй байна.
Тэгэхдээ эргэж төлөгдөх өндөр магадлалтай дээд зэргийн ашиг олдог байх хэрэгтэй.Хэдийгээр зээлийн хэтрүүлэлт бол зээллэгийн түгээмэл хэлбэр бөгөөд банкнаас шууд хяналт хийж болдоггүй учир энэ нь өдрөөс өдөрт өөр байдагч гэсэн үйлчлүүлэгчдэд өгч буй зээллэг нь магадгүй банкны хөрөнгө оруулалтын гуравны хоёроос илүү хувьтай байдаг.Ерөнхийдөө, банкууд урт хугацааны туршид эсвэл хөрөнгө оруулалтын төсөлд зориулсан зээлийг олгодоггүй.Тэд өөрсдөө үндсэн хөрөнгөөс эргэлтийн хөрөнгийг илүү хангах нь зүйтэй гэж үздэг.
 Questions on the text
1.What two conflicting aims must a bank reconcile in its investment policy?
2.What must the bank do to be ready to meet demand for cash on the part of its customers?
3.Why does the bank prefer rather low yielding investments?
4.Which investments do usually yield high returns?
5.Which investments are hardly controllable by the bank?
6.Why don't banks usually invest in industrial projects?

Vocabulary exercises
I
Find proper definitions
Terms                                                 Definitions
1.Tax                                                  a. the pattern of investments held by a bank
2.Yield                                                b. a government or local government security
3.Cash                                                c. The actual return from a particular investment
4.Bond                                               d.a unit of ownership in a company 
5.Stock/share                                     e. a stock thought to be of highest quality
6.AA rating                                        f. money collected by a government for its support
7.Portfolio                                          g. the speed with which an investment 
8. Liquidity                                         h. coins and bills

II
Using the words in brackets, explain the meaning of the following terms
1.cash-in-banks(as a reserve,risk,withdrawals)
2.general obligation bonds(secured by, the property of a city, other unit of government )
3.municipal bonds(for sale, a city, other unit of government )
4.revenue bonds(revenues, repaid out of)
5.AA rating (a bond, a stock, the value of, a high estimate of)
6.tax-exempt(tax obligation, free from)
7.working capital (day to day,stock,cash,needs)
8.fixed capital(machinery, buildings, long term)
9. high yield(good return, risk, long period of time)
10.overdraft(current account, withdraw,exceed)
III
Choose the right answers
1.'our portfolio' in this dialogue means
a.  wallet
b. a list of stocks and bonds belonging to the bank
c. a list of bank's fixed assets
2.' portfolio well diversified' is
a. one yielding; high interest
b. entirely made up of blue chip stocks 
c. one made up of a variety of stocks and bonds
3.'price fluctuation' is
a. a price stability
b. an increase in prices
c. a changing back and forth in the price
4. 'speculative' means
a. risky
b. disequilibrating
c. negotiable
5.'yield 3.5%' means
a. earn 3.5%
b. treble the price
c. rise by 3.5%
6. 'advances' here means
a. approaches from one person to another
b.improvements in a bank's position
c.loans and overdrafts for customers
IV
Say what is true and what is false. Correct the false sentences:
1.Bonds are highly liquid investments
2.Stocks are less speculative than bonds.
3.Blue chip issues show a lot of price fluctuation.
4.It is desirable to diversify one's portfolio.
5. All municipal bonds are tax-exempt.
6. Bonds yield uncertain incomes and are difficult to resell.
7.Advances are the most liquid of bank's assets.
8.Advances are the most profitable of bank's investments.
V
Using suffixes -al,-able, -ory,-ive,etc., give adjectives which are related to the following verbs:
change                      pay
control                      profits
desire                       sell
negotiate                   speculate
transfer                     value
VI
For each of the adjectives formed in exercise V, find the noun which could be described by it. Write one noun to each adjective.
VII
Combine the words listed below into meaningful two or three word expressions;
bank                           general                          obligation
fluctuation                   local authority                liquid
member                      blue-chip                       investment
bond                          issue                              price
VIII
For each of the following phrases, find the expression in the text that explains it.
1. a stock of the highest quality
2. a unit of ownership in a company
3. the return actually received from an investment
4.changes in prices
5.a list of docks and bonds belonging
6.a firm's investment in Long term assets
7.loans and overdrafts granted to customers
8.bought and sold in an attempt to make profits from price fluctuation
9. the amount of cash needed by a firm for day to day activity
10. a protective barrier against the unexpected


Unit 6

Types of Banking Institutions 
    

          Active vocabulary

broker-брокер
brokerage-брокерийн ашиг, брокерийн шимтгэл
firm of (stock)brokers-брокерийн үйл ажиллагаа
brokerage house(US)-брокерийн пүүс
commercial bank-арилжааны банк
credit union-зээлийн холбоо
disbursement-хувиарын дагуу төлбөр хийх
exchange equalization account-валютын тэгшитгэх данс
fшduciary-итгэмжлэгдсэн хүн
finance company-санхүүгийн компани
lend(v)(lent,lent)-зээллэг өгөх
lending institution-зээлийн байгууллага
national bank-үндэсний банк
savings and loan association-хадгаламж зээлийн холбоо АНУ
ration(v)-дугаарлах
security, securities-үнэт цаас
state bank-улсын банк
stock exchange(S.E., St.Ex.)-бирж
scrutiny-шалгах
subscribe(v)-ямар нэгэн юм захиалах, захиалан олж авах
subject to-ямар нэгэн юманд хамаарагдсан
The Treasury-сангийн яам, төрийн сан
United States Treasury(Department)(US)-АНУ-гийн сангийн яам
to some extent-ямар нэг хэмжээгээр ,тодорхой хязгаар хүртэл
transaction-гүйлгээ
trust-зээл
trust company-зээлийн компани



 Dialogue 
Read the dialogue in parts.

Types of Banking Institutions

Student:What type of bank is this?
Banker:We're commercial bank.
Student: Does that mean that your services are limited?
Banker:To some extent.For instance, we can't offer the fiduciary services that a trust company can.
Student: What are they?
Banker: Well,they have to do with the administration of trusts and estates.
Student: Suppose I wanted to buy or sell some securities.Does your bank handle such transactions.
Banker:Yes, through our brokerage house.
Student:Is your broker a member of the stock exchange?
Banker: Yes.
Student:This is a state bank, isn't it?
Banker: That's right.
Student: Do you offer fewer services than a national bank?
Banker:No.In general, the only difference is that a state bank gets its charter from the state it's in, and the national bank gets its charter from the federal government in Washington, D.C.
Student:Are there banks that don't offer regular commercial services?
Banker: Oh,Yes.For example Savings and Loan Associations and the Federal Land banks are only lending institutions.
Student: Would you say a savings and loan association is a bank?
Banker:No.I'd rather call it a financial institution.
Student:How about a credit union?
Banker: That's not really a bank,either.
Student: And a finance company is something entirely different.
Banker: Yes.
Questions on the dialogue;

1. What regular services does a commercial bank offer to its customers?
2.What is the difference between a national bank and a state bank?
3.Which institutions deal with fiduciary services?
4.What do you understand by fiduciary services?
5.What is the job of a broker?
6.Where are brokerage transactions concluded?
7.What services are offered by?
-Savings and Loan Associations?
-Federal Land Banks?
-Credit unions?

Text 6
The reason which the Bank of England was founded in 1694 was to look after the Government's debt, commonly called the National Debt, and this is still a most important function. A large proportion of the debt is made up of Government bonds, that is pieces of paper stating that the holder has subscribed such-and-such a sum of money and is entitled to so much interest per year.

 Two
world wars have helped to swell the issue of bonds  to some $40000 million. Another sizeable
slice of debt is in the form of Treasury bills which, are rather like bonds
with a very short life span before the Government buys them back again and so
repays the loans. Their purpose is to provide the government with day-to-day
money to cover the inevitable gaps which occur between its disbursements, e,g,
on such things as unemployment benefit and its receipts from taxation. A third
type of debt is the group of  National
Savings Securities, of which ordinary Post Office (now National Savings Bank )
accounts and Premium Bonds are perhaps the best known examples.

The Bank
of  England is the ultimate source from
which the general public can obtain cash. Other English banks used to issue
their own notes, but now they all use the Bank of England notes.

Scottish
banks have continued to issue their own, but it is an expensive undertaking,
and is closely controlled by the central bank in England. The bank also looks after
the bank account of the Government, which go on every day , are made very
easily. The bank merely debits one account and credits another. The bank also
holds accounts for important international institutions like the World Bank,
for just over a hundred central banks and also for some ordinary foreign banks,
making a total of nearly two hundred accounts. 

The
Exchange Equalization Account is the name of 
the fund in which are held the gold and foreign currency reserves of the
country. The managers of the fund have the task of intervening from time to
time  in the otherwise free market for
foreign currency, so as to influence the price of the pound in line with
Government policy, or simply to try to maintain a reasonably orderly market.



Pound is not the only currency whose price has to be carefully controlled. Most of the major world currencies have the same problems , and all greatly benefit from international cooperation. Dealing with other central banks and managing money on an international scale has become an important side of the Bank's work. Every month the Governor spend a weekend in conference with his opposite numbers from the central banks of other western industrial countries.

The object of  the Bank's management in the monetary held is to support the Government's activities in other fields, e.g.taxation policy, export promotion and so on.The methods of control used by the Bank are based on a system in which money available to be borrowed should be rationed by price, not by orders from  the Bank or The Treasury.

The battery of instruments of control the Bank has may be summarized as follows:

1. Suggestion and request.From time to time the Bank will make suggestions to the other nstitutions in the City, indicating the policy the authorities intend to pursue. If they want specific action, the Government makes a request, like the following: Notice to banks.

All banks and finance houses are asked not to provide either loans to persons or check trading facilities for the purchase of.......,,  

2. Open market operations. This is the name given to the activities of the Bank in the financial markets for control purposes.The point is that by its interventions the Bank can influence markets to move in the directions which it desires.

3.Special deposits and supplementary deposits. From time to time, the Government may wish to reduce the amount of money that people can borrow in order to reduce the amount they spend. An effective way of doing this is to reduce what the banks have available for lending, and this is done by requiring them to deposit more money at the Bank of England in special accounts from which it can't be withdrawn until the bank says so.



 Текст 6

Английн банк/Bank of England/-ыг 1694 онд байгуулсан шалтгаан нь олон нийтийн дунд "Үндэсний өр" гэж хэвшин Засгийн газрын өрийг хянах асуудал байсан юм. Одоо ч энэ үүрэг чухал хэвээр байсаар байна.Дээрх өрийн ихэнх хэсгийг Засгийн газрын бонд эзэлдэг бөгөөд энэ нь бонд эзэмшигч тийм хэмжээний мөнгийг авах дээр нь жилдээ тийм хэмжээний мөнгийг авах, дээр нь жилдээ тийм хэмжээний хүү нэмж авахыг тогтоож өгсөн үнэт цаас юм. энэ үнэт цаасны нийт үнэлэгдэх хэмжээ нь 40000 сая фунт стирлинг болж өсөхөд дэлхийн 2-р дайн нөлөөлсөн юм. Өрийн өөр нэг гол хэсгийг өдөр тутам хүү нь бодогдож Засгийн газар нь эргэн худалдан авч, зээлээ төлж байдаг маш богино хугацааны Сангийн яамны бонд бүрдүүлж байдаг. Сангийн яамны бонд нь ажилгүйчүүдэд тэтгэмж олгох, г.м. зардал, нөгөө талаар татвараа бүрдүүлэх орлогын хооронд гарах зайг бөглөх замаар өдөр тутмын төлбөр хийх боломжийг Засгийн газарт олгодог. Өөр нэг гурав дах хэсэг бол үндэсний хадгаламжийн үнэт цаас.Үүний нэг тод жишээ бол Үндэсний Хадгаламжийн Үнэт Цаас бөгөөд сайн мэдэх хэлбэр болох  Шуудангийн данс ба Шагналын бондууд юм.

Английн банк  (цаашид "Банк" гэнэ.) бол олон нийтэд бэлэн мөнгө хүргэх үндсэн эх үүсвэр байдаг юм. Английн бусад банкууд өөрийн мөнгөн дэвсгэрт гаргадаг байсан ч одоо тэд бүгдээрээ английн банкны мөнгөн дэвсгэртийг хэрэглэдэг.

Скотландын банк өөрийн мөнгөн дэвсгэрт гаргадаг боловч тэр нь их зардалтай байдаг бөгөөд одоо тэд Английн банкны хараа хяналтын доор байдаг.Английн банк нь бусад банкууд өөрсдийн харилцагчдынхаа дансыг яаж хянадаг уу түүний нэгэн адил Английн Засгийн газрын дансыг хянадаг.Энэ дансанд татварын бүх орлого, бусад банкуудаас орох мөнгөний шилжүүлгүүд орж, бусад бүх төлбөрүүд энэ данснаас хийгддэг. Засгийн газартай харилцдаг гол түншүүд  бүгдээрээ Английн банкинд дансаа байрлуулдаг тул засгийн газар болон дээрх түншүүдийн хооронд хийгдэх гүйлгээнүүд маш хялбар хийгддэг.Английн банк нэг дансандаа дебет бичилт нөгөө дансандаа кредит бичилт хийгээд л хангалттай.Дэлхийн банк, бусад орны төв банкууд болон бусад орны төв банкууд болон бусад олон улсын банкууд нийлээд 200-аад дансыг энэ банкинд байрлуулдаг. Тус улс нь өөрийн алт болон гадаад валютынхаа нөөцийг Валютийн тэгшитгэлийн данс /Exchange Equalization Account/  хэмээх санд байрлуулдаг.Тус сангийн менежерүүд Засгийн газрын мөнгөний бодлогын шаардлагад нийцүүлж, Английн фунд, стерлингийн үнэд нөлөөлөхүйц үе үе интервенц хийж, нэгэнт зохион байгуулалтанд орсон зах зээлийн хэвийн байдлыг хамгаалах, ингэснээрээ валютийн зах зээлийг цэгтцтэйгээр ажиллахыг хянах үүргийг үндсэндээ хүлээдэг. Английн фунт стерлинг бол иймэрхүү хяналтыг шаарддаг дан ганц валют биш. Үүнээс гадна дэлхийн нийтийн үндсэн гол гол валютууд ийм асуудалд бас ордог тул тэдгээрийг цэгцлэхэд олон улсын хамтын ажиллагаа ашиг тусаа өгдөг.Бусад төв банкуудтай харилцах, олон улсын хэмжээнд мөнгөний удирдлагыг хийж гүйцэтгэх явдал бол Английн банкны нэг чухал үүрэг байдаг.Английн банкны захирагч нь барууны хөгжилтэй орнуудын төв банкны захирагч нартай сар тутам нэгэн долоо  хоногын эцэст уулзаж хамт өнгөрөөдөгвБанкны удирдлагын мөнгөний салбарт хүлээх үүрэг бол татварын бодлого боловсруулах, экспортыг дэмжих гэх мэт засгийн газрын үйл ажиллагааг дэмжихэд оршдог юм. Банк нь мөнгөний хэмжээг хянахдаа Банкны эсвэл Сангийн яамны даалгавар биш харин түүний үнэ цэнэд үндэслэн системийг иш үндэс болгодог. Банкны ашигладаг хяналтын бүхий л хэрэгслүүдийг дараах байдлаар нэгтгэн тодорхойлж болно. Үүнд:

1.Санал ба хүсэлт

Английн Банк нь үе үе Засгийн газрын бодлогын талаар Сити/"City" хэмээх Лондоны дотоодын болон гадаадын олон банк байрладаг дүүргийг хэлнэ/-д байрлалтай олон байгууллагад Банкны зүгээс хандаж санал тавьдаг.Тодорхой арга хэмжээ авахыг хүсвэл, Засгийг газраас "Банкуудын анхааралд" гээд"... ийм тиймийг худалдаж авах боломж байгаа эсэхийг судлахь эсвэл нийт иргэдэд зээл олгохыг зогсоохыг бүх банк, санхүүгийн байгууллагуудад хандаж байна гэх мэтээр хандах жишээтэй. 

2.Нээлттэй захын операцууд

Үүнийг санхүүгийн зах зээлд банкны явуулах бүхий л хяналтын үйл ажиллагааг хэлдэг.Энэ нь Банк нь зах зээлийг хүссэн нэг чиглэлд залж, түүнд интервенц хийж нөлөөлөх боломжтой болдог гэсэн үг.

3.Тусгай болон нэмэлт депозитууд(хадгаламж)

Жишээ нь засгийн газраас иргэдийн зарцуулах мөнгөний хэмжээг багасгах бодлого барьж болох юм. Үүнийг хэрэгжүүлэх нэг оновчтой хэлбэр бол Банк нь банкуудыг Английн банкинд нэмэлт мөнгийг шаардагдах хугацаанд байрлуулахыг шаардажь улмаар тэдгээрээс иргэдэд олгох зээлийн хэмжээг хязгаарлах явдал юм.  

     

           Questions on the text

1.Why and when was the Bank of England founded?

2.What type of securities make up  the National Debt?

3.What is the money raised in this way spent on?

4.Enumerate the most important functions of the Bank of England?

5.What is the object of a central bank's management in the monetary field?

6.What principle does the Bank of England follow in exercising its control over the monetary policy?

7.What instruments of control has the Bank got at its disposal?

Vocabulary exercises

 I

Find the names of banking and financial institutions mentioned in the dialogue and the text and match them with the definitions given the exercise.

1.A bank whose major services are accepting and protecting money for deposit anti paying cheques issued by the depositors, laws permit to invest for profit a portion of this money.

2.A bank which has a charter from a state government.

3.A bank which has a charter from federal government.

4.A bank established by the government of the USA to make loans for the purchase of land.

5.An institution which handles brokerage.

6.A place where stocks are bought and sold.

7.An institution formed by a group of persons who combine their savings in order to make loans to members at a low rate of interest.

8.A lending institution without a bank charter which specializes in making small loans on open note or secured by chattel mortgage.

9.An institution which accepts savings deposits and makes loans mainly for the purchase and repair of homes.

10.An institution which manages trusts and services.

11.A banker's bank and lender of last resort.

II

Using the words in brackets as a guide, explain the meaning of the following terms.

1.fiduciary services(trusts, estates, management, having to do with)

2.securities(units of fixed obligation, a company, government, fixed term, stocks)

3.broker(stocks and bonds, for others, sells, buys)

4.charter (to carry on, give permission, an official paper)

5.lending institution( to make loans, empowered) 

6.The Treasury(government, department, British, national economic policy, public expenditure, control coordinate)

III

say what is true and what is false.Correct the false sentence:

1.Commercial bank's services are limited.

2.Fiduciary services are handled by trust companies.

3.Commercial banks don't deal with brokerage services.

4.American state banks offer fewer services than a national bank.

5.The interest on deposits is usually higher in savings and loan associations.

6.Savings and loan associations offer regular commercial services.

7.Every English bank issues its own notes.

8.All the important institutions in the City maintain accounts at the Bank of England.

9.The amount of money available for British borrowers depends on The Treasury orders.

IV

Study the following example

We employ people .

A person who employs is an employer.

A person who is employed is an employee.

The suffix -er is generally used for a person who does the action.The suffix -ee is generally used for a person to whom something is done.it has passive meaning.

V

Complete the following:

1.We remit money orders.

A person who remits is a..............

A person to whom the money order is remitted is a.................

2.We transfer bank drafts.

A person who transfers them is a...............

A person to whom they are transferred is a..............

3.You draw out a cheque.

A person who draws a cheque is a..............

The bank on which the cheque is drawn is a ............

A person to whom the cheque is made payable is a............

4.One can pledge assets as security.

A person who pledges assets as security is a.........

A person to whom assets are pledged is a............

5.Loans are granted.

A person who grants a loan is a.......

A person to whom a loan is granted is a.........

VI

Using prefixes il-, im-,in-,ir-,un-,non-,etc., give negative adjectives which are related to the following:

expensive                                    regular                                                   orderly

negotiable                                   important                                                spicified

legal                                           proper                                                     profitable

payable                                      sufficient                                                  transferable

stable matured                            movable

VII

Combine the words listed below into meaningful two or three word expressions as possible

account                                      credit                                                      revenue

association                                 company                                                 savings

bank                                          exchange                                                 state

benefit                                       equalization                                              stock

bond                                          finance                                                    trust

business                                     government                                             transaction

brokerage                                  house                                                      union

board                                        loan                                                         employment

central                                       land

charter                                      premium

VIII

Fill in the blanks

In every capital city there are numerous institutions which make loans. There are numerous............institutions which make loans.There are numerous .....................institutions.One can also borrow money from the..........,though their major function is accepting deposits.People who need a loan for the purchase of land can apply for it to a ...............If you need to borrow money for the purchase or repair of your house or just make saving deposits you can call at a ..............Many individual companies run................which are formed by combining savings of the people working there.They make loans to their members at a low..............Anyone having problems with trusts or estates can seek advice at a ...............They deal with ............matters,people interested in the purchase of stocks or shares usually go to a ..........which specializes in handling............


 IX

Demonstrate the meaning of the following expressions in sentences of your own:

1.to handle transactions

2.to be a party to a transaction

3.to manage the estate

4.to make loans for the purchase of

5.to borrow money from

6.to get a loan from

7.to charge a higher /lower rate of interest

8.to discuss some fiduciary matters

9.to provide the government with

10. to cover the gap between

11. to maintain an orderly market

12.to be the subject to scrutiny by



 Unit Seven

Other Services for Cheque Account Customers
Active vocabulary

allowance-татварын хөнгөлөлт, мөнгөн тэтгэлэг
assign (v)-тусгаарлах,зориулах,хувиарлах
beneficiary-аккредитив,даатгал, түрээсээр мөнгө хүлээн авагч
benefit-хувьцаа эзэмшигчдэд ологдох эрх
bid (v)(bade,bidden)-арилжаанд оролцох, үнийн санал хэлэх
claim(v)-шаардлага тавих 
collect(v)-мөнгө хүлээн авах
common stocks-энгийн хувьцаа
commission-шимтгэл
corporate bond(US)-корпорацын облигаци 
coupon-үнэт цаасны тасалбар бичиг
counsel(v)(US)-хэлэлцэх,зөвлөлдөх
creditor-зээлдүүлэгч
cover-төлөх,даатгал
demand-эрэлт
empower(v)-эрх олгох
nier- сурталчилгааны хуудас, бирж дээрх тоглоом
income-орлого
industrial bond-аж,ахуйн нэгжийн облигаци
inheritance-өвлөж авсан хөрөнгө
insure(v)-даатгах, даатгуулах
inventory-бараа материал, үнэ бүхий зүйлс
liability-хөрөнгийн эх үүсвэр
market-зах
mature(v)-төлбөр хийх хугацаа
policy-бодлого
preferred stocks-онцгой эрхтэй хувьцаа
premium-шагнал нэмэгдэл
probate(v)-батлах
proceeds-орж ирэх
redemption-өр барагдуулах
registered bond-нэр заасан облигаци
safe-deposit box(US)-банкин дах сейф
seat-хөрөнгийн бирж дээрх гишүүнчлэл
stock broker-маклер
strong room-мөнгө хадгалдаг өрөө


 Dialogue

Read the dialogue in parts

Part 1.Brokerage Services

Mr.Watson:I have some corporate bonds that will mature next month. Can you help me to present them for redemption?
Banker:Surely, Where are they payable?
Mr.Watson: At one of the banks in New York.
Banker: Are they the registered or the coupon type?
Mr.Watson:They are registered in the names of both me and my wife.
Banker: You will both have to assign them.
Mr.Watson: yes, I know.And when the proceeds have come in, could you help me reinvest the funds in some preferred stocks?
Banker: Oh,yes.Our brokerage house can bid on some shares for you.
Mr.Watson:They charge the usual broker's commission, I suppose?
Banker:yes,they charge the same as any reliable house;They have a seat on both the New York and the American Exchange.
Mr.Watson:I've also though of taking a flier on some common stocks, if you could find a good growth industry.
Banker:Well, the market looks favorable right now.

Part II.Trust Services
Banker:Mrs. West, I was sorry to hear of your husband's death.
Mrs. West: Thank you.I'm pleased that the bank was named executor of the estate.
Banker:We will help you in every way we can, We've looked through the contents of the safe-deposit box and made an inventory. Everything seems to be in good order.
Mr.Watson: I know so little about my husband's affairs.
Banker: Our counseling service is for people in just your position.
Mrs.Watson: I'm most concerned about my immediate expenses.
Banker:Well, we are empowered under the terms of the will to provide you with an allowance until the estate has been probated.
Mrs.Watson: Oh, that is fine.
Banker: And there are three life insurance policies.You are the beneficiary each of them.
Mrs.Watson:Yes, I knew about those.
Banker: The benefits from these policies will be paid directly to you within the next two weeks.
Mr.Watson: Oh,i don't have to worry, then, 


Banker: No.
The income from your inheritance is going to be quite sizable. Of course, we
don’t know yet what demands will be made against the estate.


Mrs.
Watson: As far as I know, there are no large creditors.

Banker:
We hope not. You understand, also, that this bank is named trustee under the
will, this means that we will take care of the portfolio of securities and give
an annual report of all transactions.

Mrs.
Watson: Yes, I understand that. I feel much better about the future now.

Questions
on the dialogue

1.     
What
sort of securities did Mr. Watson invest his funds in?

2.     
What
does he want the banker to help him in?

3.     
Why
will he have to assign his bonds to the bank?

4.     
What
does he intend to do with the proceeds?

5.     
In
what way can the bank help him reinvest his funds?



Part II

1.     
In
what circumstances did Mrs. West turn to the bank?

2.     
What
did the banker inform her about ?

3.     
 What was Mrs West most concerned about?

4.     
What
was Mrs. West provided with by her late husband ?

5.     
When
will the banker be able to estimate the income, from her inheritance?

6.     
Who
will take care of the portfolio of securities left by the late Mr.West?

7.     
How
did Mrs.West feel after her visit tot eh bank? Why?



Text 7-I 

Investment
in stock and shares can be made through any branch of the bank on behalf of its
customers. All quoted Stock Exchange securities can be bought or sold with
maximum security and minimum formality through the bank. Being in constant
touch with leading stock brokers in London and the country, the bank is in a
position to obtain information regarding all classes of stocks and shares in
which customers may be interested. Shares may be bought or sold without any
charges beyond those payable to a stockbroker and the bank is responsible for
the collection of the proceeds of a sale and for the delivery of the
certificate on a purchase. An investment report service is also often available
for the customer who needs a second opinion on a portfolio being managed
personally. In addition, professional advice can be given on investments in
foreign stock not quoted on the London Stock Exchange. Share certificates,
documents, jewellery and other valuables can be stored in the strong rooms of
the bank. They will be safer with the bank than at the customer’s home but it
is his responsibility to insure them.

The bank
also provides a continuing service for personal income tax payers, checking tax
liabilities and generally assuming the main burden of work involved in the
preparation of tax returns and claims. Because if the sources of income and
allowances are complicated, it is not easy to know for the individual if he is
paying the right amount of tax. The bank helps the customer on particular
problems resulting from Capital Gains Tax and Capital transfer Tax. It may be
able to point out ways in which the customer can quite legitimately minimize
the effect of these taxes.

Insurance
need not to be a problem for the bank’s customer either. Insurance cover-for
life, house, accident or anything else may be effected through any Bank
Insurance Service which employ highly experienced brokers in this held. They
can usually arrange to obtain the best possible terms consistent  with absolute safety.  

No
matter what the customer’s age it is a wise and considerate pre-caution to make
will. When one dies, it will be his executor’s responsibility to protect, to
account for and to distribute all his worldly goods in accordance with his last
will and testament. Therefore the choice of an executor should be carefully
considered. One of the best answers to this problem is to appoint the bank’s
trust company sole or joint executor. The appointment of the bank as the will.
Executor ensures that the estate will be dealt with promptly, efficiently and
in strict confidence.





Questions
on the text 

1.     
Why
is it the best way to buy stocks and shares through a bank?

2.     
How
much does the bank charge for the investment service?

3.     
What
is the best way of keeping valuables safe?

4.     
In
what way may the bank help individual tax payers?

5.     
What
measures can be taken to protect your life and possessions?

6.     
What
are the advantages of writing a will?

7.     
Why
do many people appoint the bank as the executor of their will?



Vocabulary
exercises

Find proper
definitions



1.Flier                                            a. a
unit of ownership in a company 

2.
Corporate bond                         b.
a document which states how a person wishes his estate to be divided, made
public only after his death.

3.Preffered
stock                           c. a list
of items of property 

4.Registered
bone                          d. an
amount of money regularly given to a person for current expenses

5.Common
stock                            e. the
party to whom property or a sum of money is given under the terms of a will or trust

6.Share                                          f. a sum of money payable in case of loss of life

7. life insurance                              g. a bond issued by a corporation or group of people who have a charter to act as tin individual

8. Will                                            h. a bond having the owner's name placed on it

9. Beneficiary                                 i. ordinary stock, with no fired dividend rate

10.Inventory                                  j. Stock on which dividends are paid before those, on common stock and which gives the holder some rights to any assets that are distributed

11. Allowance                               k. a speculative transaction 



II

Using the words in brackets as a guide, explain the meaning of the following terms:



1.mature ( due for payment, become)

2. proceeds (some transaction, the money, received from)  

3.broker(stocks, bonds, for others, buys, sells)

4.broker's commission (in a sale,  for services, a charge, the amount of the transaction, based on)

5. assign(ownership, transfer)

6.good growth industry (development, giving promise of, will increase, an investment, the value of, so that)

7.estate(left buy a dead person, holdings, obligations)

8.safe-deposit box(kept in a bank, important papers, valuables)

9.income(to an individual, the total sum of, coming in, earnings) 

10. inheritance(an estate, money or property, received from)

11.creditor(is owed, a debt, a party to whom)



III

Choose the right answer



1.'present bonds for redemption' means;

a) collect at maturity

b)estimate the value of bonds presented

2.' the coupon type of bonds, is;

a)a premium bond a price of which may be obtained on collecting a certain number of coupons,

b) a bond with a removable printed statement of the interest due at a particular time

3.'          


    
  
  















     

Business

Business

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