МИНИСТЕРСТВО ОБРАЗОВАНИЯ РЕСПУБЛИКИ БЕЛАРУСЬ

УО «Белорусский государственный экономический университет»

Н.И.Виршиц, Т.В.Платицина

MONEY and BANKING

ДЕНЬГИ и БАНКОВСКОЕ ДЕЛО

Минск 2009

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Рецензент: старший преподаватель кафедры теории и практики английской

речи БГЭУ Л.В.Лопато

Рекомендовано кафедрой теории и практики английской речи БГЭУ

Виршиц Н.И., Платицина Т.В.

Деньги и банковское дело = Money and Banking: Электронное учеб.-

метод. пособие / Н.И. Виршиц, Т.В. Платицина – Минск: БГЭУ, 2009. – c. 48

Учебно-методическое пособие содержит тексты для изучающего и

ознакомительного чтения, комплекс упражнений и заданий для формирования

англоязычных коммуникативных навыков студентов на материале актуальной,

профессионально значимой темы «Деньги и банковское дело». Предназначено

для студентов БГЭУ дневной формы обучения.

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Part A: Money and its Functions. The History of Money.

GETTING STARTED

“Savings is a very fine thing. Especially when your parents have done it for you.”- Sir Winston Churchill(1874-1965), English statesman, writer, and Prime Minister.

1. Scan the extract below to get the gist of it and say why the role of money is so important.

Money is one of the most crucial elements of economic science. It is much more than a passive component of the economic system - a mere tool for facilitating the economy’s operation. When operating properly, the monetary system is the lifeblood of the circular flows of income and expenditure which typify all economies. A well-behaved money system is conducive to both full production and full employment. Conversely, a malfunctioning monetary system can make major contributions to severe fluctuations in the economy’s levels of output, employment, and prices, and can distort the allocation of resources.

USEFUL VOCABULARY

Nouns and noun phrases

unit of money - денежная единица money in cash - наличные деньги; syn: effective money, hard money (Am), cash paper money - бумажные деньги (банкноты); syn: soft money (Am) odd money - мелочь, сдача; syn: small coins, change counterfeit money - фальшивые деньги; syn: false money commodity money - деньги-товарmoney market - финансовый рынок money order - денежный переводmoney changer - «меняла» money box - копилкаmortgage – ипотека, заклад; ссуда под недвижимостьpayment - плата, платеж, уплата (обычно единовременная) salary - оклад, зарплата (месячная), salary of an engineer (teacher, manager)wage(s) – заработная плата (рабочих)a living wage - прожиточный минимумfee -гонорар, вознаграждение; a fee of a doctor (lawyer, accountant) bonus - премия, премиальные; a productivity bonus - премия за продуктивностьfare - плата за проезд commission - комиссионное вознаграждение; to sell on commission tip - чаевые

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charge - цена, расходыat any price - любой ценойdebt - долг (денежный), обязательствоrent - арендная плата, квартплата currency – валюта; hard currency - твердая валюта; convertible currency - конвертируемая валюта banknote - кредитный билет,банкнот; the face of a banknote; the back of a banknotecoin - монета; silver (gold, bronze) coinmint - монетный двор, to mint coins - чеканить монеты; mint of money - куча денегcost - цена, стоимость; cost price – себестоимость; cost of living- прожиточный минимум value of money - ценность денег, to be of great (little, no) value the value of a dollar - покупательная способность доллараmeasure of value - мера стоимостиstandard value — одинаковая стоимость

Adjectives

monetary - денежный, монетарный monetary fund - валютный фонд moneyed - богатый, денежный человек reasonable - умеренный, приемлемый, недорогой (о цене) broke - разоренный hard up – сильнонуждающийсяwell-off - состоятельный, зажиточный permanent - постоянный, неизменный, долговременный durable - прочный, надежный, длительный

Verbs and verb phrases

to fall/ get/ run into debt - влезть в долгto settle a debt with smb — выплатить кому-л. долгto accumulate money - накапливать, копить деньги to borrow money (from) - брать деньги взаймыto change money - разменивать деньги to counterfeit money - подделывать деньгиto donate(to) - дарить, жертвовать; syn: to sponsorto earn money - зарабатывать деньги to inherit money - унаследовать деньги to invest money - вкладывать деньгиto lend money- давать деньги взаймыto owe money - быть должнымto raise money (for charity) - собирать деньги (на благотворительные цели)

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to save (up) money - экономить деньги, собирать, копить; syn: to economizeto spend money (on) - тратить деньги (на)to waste money - тратить попусту деньгиto steal money - красть деньгиto win money - выиграть деньгиto be short of money – иметь деньги в недостаточном количестве to state a price - устанавливать ценуto specify a price - точно определять цену to pay cash - платить наличнымиto pay by cheque - расплачиваться чекомto pay by credit card - расплачиваться кредитной карточкойto pay in advance - оплатить заранееto purchase - покупатьto afford - (быть в состоянии) позволить себеto charge (for) - просить, назначать цену (за услуги, работу)to rent - арендовать или сдавать внаем

Money and its Functions

medium of exchange -средство обмена; средство обращения (как функция денег)exchange rate - обменный курсthe exchange rate of rouble against US dollar - обменный курс рубля по отношению к американскому долларуstore of value - средство сбережения, средство образования сокровища; средство «сохранения стоимости» (как функция денег)account n - 1. расчет, подсчет; 2. счет; запись финансовых операцийunit of account - расчетная единицаto keep an account - вести счет defer v - откладывать, отсрочиватьdeferred payment - отложенный, отсроченный платежdistinguish v - (smth from smth/ between things) отличать, различать (одну вещь от другой)/ проводить различие (между двумя вещами) accept v - принимать barter п - бартер (способ торговли, состоящий в обмене товарами и услугами, без использования денег)trade v - 1. (in smth with smb / smth. for smth)- торговать чем-л. с кем-л. / обменивать что-л. на что-л.; trade - n торговляswap v - (smth for smth) - менять (что-л. на что-л.),(употребляется преимущественно для обозначения бартерных операций)repay (repaid ) v - возвращать (долг)loan n- заем, ссуда

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READING

Text 1

1. Read the text “The History of Money” and sum up what the text says about money in the past the way banknotes appeared the metals of which coins were and are made the silver coins and coppers

These days, money is hi-tech. We have notes and coins which are specially made. We use credit cards. Banks and stock exchanges can move millions at the touch of a button. But how did money develop? Where, for example, were notes and coins first produced? Why? What did people use as money before that? Let’s discover the answers to all these questions.Early forms of Money

In the past most societies used objects as money. Some of these were valuable because they were rare and beautiful – others because they could be eaten or used.

animal skins……..Alaska/Canada/Russia/Scandinaviabeads.........………Africa/Canadacattle..........……….East Africacocoa beans ……..Mexicofeathers......……….North Americafish hooks..……….Gilbert Islandsgrain..........……….Indiaknives…………….Chinarats ………………Easter Islandsalt……………….Nigeriashells…………….Thailand/Paraguaystones……………Yap (islands in the Pacific Ocean)tobacco…………..Americawhale teeth………Fiji

Early forms of money like these were used to buy goods. They were also used to pay for marriages, fines, and debts. But although everyday objects were extremely practical kinds of cash in many ways, they had disadvantages, too. For example, it was difficult to• measure their value accurately• divide some of them into a wide range of amounts• keep some of them for a long time• use them to make financial plans for the future.

For reasons such as these, some societies began to use another kind of money. This consisted of precious metals which were cut into small pieces and weighed. People in Mesopotamia (now part of Iraq) began doing this about 4,500 years ago. Later, gold and silver money appeared in Ancient Egypt, China and elsewhere, too.

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The new metal money was an important advance for four reasons:1. It was easy to carry2. It lasted a long time3. It could be divided into lots of different values4. It made planning for the future much easier.

But although pieces of silver or gold were an advance, they still weren't exactly coins. They had no fixed shape and weren't clearly marked so that everyone could recognise them. Notes: hi-tech - short for high technology, modern, well-designed and sophisticatedfines – sum of money which have to be paid by people who have broken the lawprecious – valuable

Early CoinsThe ancient kingdom of Lydia was in the country now known as Turkey. That's

where the first coins – called staters – were produced around 2,700 years ago. They were made of electrum (a mixture of silver and gold) and had a lion's head stamped on them. This showed that they were official Lydian coins and made them easy to recognise. It also meant that each coin's value was guaranteed, so it didn’t need to be weighed. Not only that – there were lots of different values, too. Lydian people used coins worth one-sixth, one-twenty-fourth and even one-ninety-sixth of a stater.

The idea of a metal money system with... (a) fixed values, (b) a clear identity, was successful. So successful that it soon spread to other countries. By 600 ВС in fact, coins were used all around the Mediterranean region. Greek coins of this period are particularly beautiful. Some are marked with the heads of gods and scenes from ancient myths. Others have pictures of objects or animals on them, such as owls, vases or beetles. These show which part of Greece the coins came from. Athenian 'silver owl' coins, for example, soon became famous all over Europe.

The first king to have his portrait on a coin came from Gгеесе, too. Alexander the Great died in 33 ВС. Coins with his face on them appeared the following year.

Early notesToday's paper money is produced and controlled by governments through a

system of banks. That's why we talk about bank-notes. Originally, though, paper money had nothing to do with banks. It was started by Chinese goldsmiths and silversmiths 1,200 years ago. Why? Well, there were three main reasons.1. Metal coins were heavy. It was difficult to carry and use large numbers of them.2. They were easy to steal.3. China only had limited amounts of precious metals. It couldn't use them all to make coins.

To solve these problems, goldsmiths and silversmiths of the T’ang dynasty (618-907) began to produce special receipts. These were printed notes which showed that their customers owned a certain amount of money. As a result it was possible to do business with paper instead of using metal coins.

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The oldest Chinese notes which still survive come from the Ming dynasty (1368-1644). They're made of tree bark and some of them are very large. Take the оnе-kwan note, for example. It measured 22.8cm. x 33cm. and was worth the same as 1,000 copper coins weighing 3.5 kilos.

The introduction of notes like these changed economic history. And not just in China. Paper money soon became popular in Europe, too. For a long time, though, it wasn't made and controlled by governments. In fact the first official European bank notes (issued by the Swedish Stockholm Bank) didn't appear until 1661.

Notes: BC – short for ‘before Christ’. Before the birth of Jesusancestors – members of a family who lived hundreds of years agogoldsmith – people who make and sell objects made of gold (e.g. coins, jewellery, etc.)dynasty – a series of leaders who all come from the same family

2. Do you think the following statements are true or false? Discuss your answers in pairs.

1. The first coins were made in China.2. The first coins were called staters.3. The first coins were made around 600 BC.4. The first coins were made of silver and gold.5. Salt, tobacco, whale teeth and stones were used as money many years ago.6. People in Mesopotamia used small pieces of paper as money 4.500 years ago.7. Early forms of money were used to buy goods.8. Pieces of silver and gold were clearly marked so that everyone could recognise them.9. The first paper notes appeared in the ancient Kingdom of Lydia.10. The first king to have his portrait on a coin came from Ancient Rome.11. The oldest Chinese notes were made of tree bark and were very large.12. The ancient kingdom of Lydia was in the country now known as Turkey.13. China had limited amounts of precious metals; it was one of the main reasons of appearing bank-notes.14. The Lydia’s coins had a tiger’s head on them.15. Metal coins were easy to carry and use large numbers of them.16. Tobacco was used as a form of money in America.17. Shells were used as a form of money in North America.18. One of disadvantages of early forms of money was difficulty in measuring their value accurately.19. The first gold and silver money appeared in Ancient Egypt about 4500 years ago.20. The first gold and silver money had fixed shape and were clearly marked so that everyone could recognize them.21. Early forms of money were used to pay for marriages, fines and debts.Text 2

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1. Read the text “Money and its Functions” and say what the main functions of money are. Money has four functions: a medium of exchange or means of payment, a store of value, a unit of account and a standard of deferred payment. When used as a medium of exchange, money is considered to be distinguished from other assets.

Money as the medium of exchange is believed to be used in one half of almost all exchange. Workers exchange labour for money, people buy or sell goods in exchange for money as well.

People do not accept money to consume it directly but because it can subsequently be used to buy things they wish to consume. To see the advantages of a medium of exchange, imagine a barter economy, that is, an economy having no medium of exchange. Goods are traded directly or swapped for other goods. The seller and the buyer each must want something the other has to offer. Trading is very expensive. People spend a lot of time and effort finding others with whom they can make swaps. Nowadays, there exist actually no purely barter economies, but economies nearer to or farther from the barter type. The closer is the economy to the barter type, the more wasteful it is.

Serving as a medium of exchange is presumed to have for centuries been an essential function of money.

The unit of account is the unit in which prices are quoted and accounts are kept. In Britain, for instance, prices are quoted in pounds sterling; in Europe, in еuros. It is usually convenient to use the same unit to measure the medium of exchange as well as to quote prices and keep accounts in. However, there may be exceptions. During the rapid German inflation of 1922-23 when prices in marks were changing very quickly, German shopkeepers found it more convenient to use US dollars as the unit of account. Prices were quoted in dollars though payment was made in marks. The same goes for Russia and other post-communist economies who used the US dollar as a unit of account, keeping their national currencies as means of actual payment. The higher is the inflation rate, the greater is the probability of introducing a temporary unit of account alongside the existing units for measuring medium of exchange.

Money is a store of value, for it can be used to make purchases in future. For money to be accepted in exchange, it has to be a store of value. Unless suitable for buying goods with tomorrow, money will not be accepted as payments for the goods supplied today. But money is neither the only nor necessarily the best store of value. Houses, stamp collections, and interest-bearing bank accounts all serve as stores of value.

Finally, money serves as a standard of deferred payment or a unit of account over time. When money is borrowed, the amount to be repaid next year is measured in units of national currency, pounds of sterling for the United Kingdom, for example. Although convenient, this is not an essential function of money. UK citizens can get bank loans specifying in dollars the amount that must be repaid next year.

Thus, the key feature of money is its use as a medium of exchange. For money to be used successfully as a means of exchange, it must be a store of value as well.

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And it is usually, though not always, convenient to make money the unit of account and standard of deferred payment.

Notes : 1. to quote— регистрировать, называть2. the same goes for ... — то же самое относится к...

2. Scan the text again to answer the following questions:

1. What are the main functions of money?2. How important is the function of money as a medium of exchange?3. Why do people accept money as a medium of exchange?4. What is a barter economy?5. Why are barter economies wasteful?6. When don't national currencies serve as units of account? Give examples.7. When is money used as a standard of deferred payment?

3. Match two halves of the sentences:

1. Classical economists considered money to be no more2. Money is an asset3. Money is used as a standard of de-ferred payment,4. Loans provided by commercial banks, building societies, etc.5. In addition to being a means of exchange money is also6. Swap in a money market is a process7. Exchange rate is8. GNPs are measured in the country's local monetary unit,9. The foreign exchange market is a market where foreign currencies are sold and bought10. Barter is a method of trading goods and services for other goods and services

a. either through private exchange dealers or a country's central bank.b. known to be a means of measuring the value of men's labour.c. of exchanging one kind of financial asset or liability for another.d. than a medium of exchange.e. or currency.f. for it is an accepted measure of future payments in contracts.g. without the use of money.h. the price of one currency in terms of some other currency, for instance, the price at which dollars might be exchanged for pounds.i. are an essential source of money for everyday consumption and purchase of personal and business assets.j. that is accepted as a means of

payment.

DEVELOPING VOCABULARY

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1. Match the words with their definitions:

a) cash machine coin loan mortgage note salary tax1______________A piece of paper money. 2______________A piece of money made of metal. 3______________Money a person gets for the work he / she does. 4______________Money that you pay to the government. 5______________Money that somebody (or a bank) lends you. 6______________Money that you borrow from a bank to buy a house. 7______________A machine inside or outside a bank where you can get money.

b) fees, bonus, taxes, wages, salary, rent, pension, fare, cash, change1) money paid for a place to live2) money paid to the government 3) money paid for the professional services4) money in coins and notes, not cheques5) money paid to workers by an hour’s or a week’s work6) money paid as an extra payment to one's salary 7) money paid to workers for a month's or year's work8) money paid to older people who no longer work9) money returned to you after you pay too much10) money paid for a journey by bus, train or plane

c) to save, to waste, to earn, to accumulate, to sponsor, to pay, to afford, to charge1) to keep from being spent, lost or wasted2) to ask for some money as a price for something done3) to use without benefit or return4) to receive as recompense for work5) to make something grow into a mass6) to give money for something7) to donate money to8) to have enough money for something

2. Find the closest synonym for the word combinations on the left selecting it from the right column.

1. a lot of money cost of living2. monetary unit to buy3. paper money a great deal of money4. little money money in cash5. a living wage to accumulate money6. effective money a unit of money7. false money soft money8. to donate money counterfeit money9. to save up money a small amount of money

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10. purchase to sponsor

3. Match the words / expressions on the left with their opposites on the right.

1. profit to lend money2. worth the back of a banknote3. hard up expensive goods4. to save up money to buy goods5. the face of a banknote valueless things6. to borrow money to find money7. moneyed person to waste money8. cheap goods well off9. to lose money worthless10. valuable things loss11.to sell goods moneyless person

4. Use the following words to complete the sentences below:salary, wages, charges, fees, fare, tip, commission, payment, bonus.

1) The taxi ... was $18 and 1 gave the driver a $2 ...2) When you purchase over 200 pieces, delivery is free of...3) The builders receive their weekly ... in cash.4) In addition to your basic ... you will receive a 25% ... on all goods sold.5) She's a good accountant but her ... are high.6) This mechanic's ... for the service he provides are reasonable.7) I am very well paid and I have a productivity ...

5. a. The words in the list are used to describe forms of money. Which are countable? Which are uncountable?

wage salary pay savings pension interest cash pocket-moneyb. Choose a word from the list above to complete the sentences below.1. He earns a lot of..............................on the money he has invested.2. How much...........................does she give the children?3. Both parents need to be.........................earners nowadays.4. What I really want to know is what will be in my..................... packet every month.5. Will you pay in....................or by credit card?6. Most of my monthly..............................goes on paying the bills.7. In my country both men and women get their .........................at 60.8. Paying for the car to be repaired has really eaten into his................ .

6. Decide which phrase correctly finishes each sentence.

1) If you lend money a) you owe me moneyb) I owe you money

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2) If I borrow money from you a) you should pay me backb) I should repay you

3) If you can't afford things a) you can borrow money from meb) you can lend me money

4) If I sell something for more than I paid for it

a) I have made a lossb) I have made a profit

5) If I purchase something and pay more than it's worth

a) I will probably make a loss when I sell itb) I will probably make a profit when I sell it

7. Fill in the missing words and word combinations to the following sentences.

1. Money has no value in itself but serves as a ... ... ... between commodities which we consider to be valuable for us.2. Governments are supposed to ... essential foods to meet the needs of the population in case of emergency (в случае крайней необходимости, в чрезвычайных обстоятельствах).3. Economists ... ... productive and unproductive labour.4. Typically, consumers buy more of everything. However, there are ... . Among ... there are inferior goods.5. Money as a ... ... ... lets people determine prices for goods and services and ... them conveniently and less wastefully in a market rather than ... one good directly for another as in barter ....6. A firm that has borrowed to see it through a sticky period (зд. помочь пережить тяжелые времена) may not be able to ... ... ... when the bank demands.7. When transferred from one bank ... to another, money does not consist of any physical commodity.8. Four Swedish ports are free trade zones where goods may be ... duty-free for an unlimited period of time.

DISCOVERING LANGUAGE

1. Fill in the missing prepositions to the following sentences:1. I paid… the dinner last night.2. When can you pay me… the money I lent you?3. Would you like to pay… cash or… credit card?4. I spent €50… books yesterday.5. I don't like lending money… friends.6. I borrowed a lot of money… the bank.

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7. They charged us €60… a bottle of wine.8. All bank-notes and coins must be accepted … their full nominal value without restriction.9. Bank-note paper can easily be distinguished … ordinary paper.10. We know a great variety … commodities to have been used at one time or another as a medium of exchange.11. Cheques and credit cards are known to have become more popular … recent years than paper money and coins.12. New technologies are said to have allowed people with bank accounts to pay … their purchases in shops through videotext TV.13. The Moscow Interbank Currency Exchange is known to have provided a basis for determining the exchange rate … rouble … other currencies in the 1990s.14. Russia's gold reserves were reported to be constantly falling …the early 1990s.

2. Complete the sentences with the verbs given below in the correct tense.be worth borrow inherit invest lend can't afford charge owe save take out cost earn waste

1. My uncle died and left me £2000.2. I put some money aside every week for my next holiday.3. I asked my brother to give me € 10 until next week.4. My brother gave me € 10 until next week.5. I often spend money on stupid things.6. I don't have enough money to buy that car.7. I had to pay the mechanic £100 to repair my car.8. I went to the cash machine and got € 200.9. I bought a book. It was $25.10. Jim gave me £100.1 haven't paid it back yet.11. I bought some shares in British Telecom.12. I work in a supermarket. They pay me € 2000 a month.13. I could sell my house for about € 200,000.

I__________ £2000 from my uncle. I__________ money every week. I___________€ 10 from him. He_________me €10. I often________ money. I_____________to buy that car. The mechanic____________me £100. I_________€ 200 from the cash machine. The book___________(me) $25. I________________ Jim £100.

I______________ some money.

I______________€2000 a month.

My house_______about €2000.

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3. a. Shelley and Ben are having an argument about money. Read what Shelley says and complete the dialogue with Ben's answers from the box below. Then try to guess his last answer.

a. We've had it for at least three years. Maybe longer.b. It's old.c. No. What is it?d. Why not?e. Yes. I've just bought it.f. I can't.

Shelley: Is that a new camera?Ben: 1….

Shelley: What's wrong with our old camera?Ben: 2…

Shelley: Old? How long have we had it? A year? Ben: 3…

Shelley: Three years? I'm sure we bought it last year. Look. We can't afford a new camera.Ben: 4…

Shelley: Have you seen this?Ben: 5… Shelley: The gas bill. It arrived this morning. And we haven't paid the phone bill yet. Take it back to the shop and get your money back.Ben: 6…

Shelley: Why not?Ben: Because...

b. In pairs, read the dialogue again and underline five examples of the present perfect and two examples of the past simple. Then answer the questions: ‘Which form of the verb do we use for...?’ 1. a completed action in the past .2. things which started in the past and are true now 3. recent actions when we don't say exactly when 4. recent actions when we say exactly when

LISTENING

1. You are going to watch an episode "Money, Currency, Banknotes” of the video film ”Economics made easy”. Here are some words that might seem unfamiliar to you:

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• tender-средство платежа, legal tender-законное платежное средство• minter - чеканщик, монетный мастер; mint of money -куча денег• shopkeeper- лавочник• currency - деньги, валюта, средство обращения• rate -курс, цена; at the rate of - в размере, по курсу; foreign exchange rate - курс иностранной валюты• revalue -переоценивать, повышать стоимость; revaluation - повышение стоимости, ревальвация

2. As you watch the episode, note down some words and terms you'll hear and be ready to answer the following questions:1. What kind of old money is mentioned in the text?2. Does the shopkeeper accept a coin from the buyer?3. Is this old coin a legal tender? What is the legal tender?4. What types of currencies were shown in the episode? What is the currency of Germany nowadays?5. What will a man do if he wants to buy a car, coming from another country?6. Is the situation different when in one of the countries too much money is printed?7. What does the term revaluation mean? By whom is this currency exchange normally provided?

FOCUS ON FUNCTIONS

1. Study the language of Money and Currencies: In Great Britain the currency used is the pound sterling. (£)

In the USA (and many other countries) the currency is the dollar. ($)£1 = 100 pence (p): $1 = 100 cents (¢) Note that the sign goes before the figure.

When speaking about sums of money we say:$1.35 - a dollar thirty five (or one thirty five)$3,000 - three thousand dollarsfive cent coins - nickelsten cent coins - dimestwenty-five cent coins - quartersfifty cent coins - half dollars50p - fifty p, fifty pence (not * pences)£ 1.99 - one (pound) ninety nineNote that we do not add 'and' between the figures representing pounds/dollars and pence/cents.Nor do we mix figures and words; the following are wrong: Not * £ 39 ninety nine £ Twenty five 457 dollars

The separation of units of a thousand can be made by using a comma (,) or with a blank:

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$ 365,027,968.80 = three hundred and sixty five million twenty seven thousand nine hundred and sixty eight dollars eighty cents.

A sum of money is used with a verb in the singular:These days £50,000 is not a large sum of money.Why was US $115.69 paid in addition to the ocean freight?

It is now common to see the abbreviation K. (а hundred thousand dollars)$ 100K (a hundred thousand dollars) Countries using dollars include:

USA Australia Canada Hong Kong New Zealand Singapore Taiwan Countries using pounds include:

UK Ireland Egypt Malta Countries using euro include:Germany France Spain Belgium Switzerland Luxemburg etc.

2. Write these out as you would say them.1. $ 1.452. £ 8.503. $ 199,0004. £ 352.295. $75.506. £225,000,0007. 89 p8. $354.50

3. A British tour operator has costed a package holiday in Spain at £650. This calculation is based on £1 = 200 pesetas. However, as a result of a recent fluctuation in the exchange rate £1 now equals 190 pesetas.

How much will the tour operator want to charge?

4. US firm agrees to purchase pharmaceutical products from West German supplier for €100,000, payment to be made 90 days after delivery. On the day of the agreement the exchange rate was $ 1 = € 0.76. Over the next 90 days the dollar falls to $1 =0.67.

How much will the American firm have to pay?

SPEAKING

1. Write down the approximate price of six things in your country, e.g. daily newspaper, a short bus journey, a cup of coffee in a bar / cafe, a ticket for the cinema, a takeaway hamburger, a pair of jeans, etc. Do you think the price is expensive, reasonable or cheap? Compare your answers with someone from the same city, and if possible, someone from a different country.

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2. Work in pairs. Discuss the following questions:

a. There are lots of different ways you can get money. Here are five: earn it, steal it, win it, inherit it, find itOf these five, which are the most common? b. There are also lots of things you can do with money. Here are six: spend it, give it away, invest it, save it, waste itOf these six, which give you the most pleasure and happiness? Put them in order.

3. Interview each other with the questionnaire. Ask for more information.e.g. -Have you ever wasted money on something you've never used? -Yes, I bought an exercise bike. -Why did you buy it?

The Money QuestionnaireHave you ever…?(waste) money on something you've never used(sell) anything on the Internet(lose) a credit card or your wallet(save) for something for a long time(win) any money (e.g. in a lottery)(be) robbed(lend) money to someone who didn't pay you backHave you…recently?(buy) anything on the Internet (be) to a shopping mall or a shopping centre (buy) anyone a present (use) a credit card(take) money out of a cash machine (borrow) money from someone in your family

4. British students spend their money on different things. Here are three of them: Susanne, Charlie and Matthew. Read the information and conduct a survey among your friends to see what Belarusian students spend their money on.

Susanne has been getting £10 every week from pocket money, presents a small weekend job. Charlie's been getting £12 - most of it from a weekend job. Matthew has been getting £4 pocket money.Susanne: I don't spend anything on alcohol or cigarettes because I don't smoke or drink. I usually spend about £1.00 on make up and I put £2.50 toward to holiday. I love horse-riding and I go on a riding holiday each summer with a friend, go on holiday with my family too but they pay for it. The riding is an extra holiday so I pay for it myself. I spend about £3.50 when I go out to the cinema or the sport center. It's difficult to find something cheap to do at the weekend! I buy a CD every two weeks - they cost £6.00.

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Charlie: My holiday is football - I play in a team and I go to watch big football matches; it costs about £2.50 a week. I usually spend something on clothes about £3.00 and I like to buy a CD every week. If I'm lucky I save something usually about 50p a week!Matthew: I don't save anything. I spend everything on going out. My parents buy my clothes and pay for holidays and everything like that. I don't smoke or drink.

5. Think and share your impressions with your partner: Why are goods actually more expensive if the means of payment are different

from the units of account? What measures can a seller take if money does not fulfill its function as a store

of value properly?

WRITING

1. You have received a letter from your foreign friend. Write a reply to him answering all his questions.

1. What do you spend your money on?2. How much does a doctor (teacher) earn in your country?3. Do you save any money? If so, how (in a bank, cash)?4. Is it easy to open a bank account in your country? How much do you need to start?5. Do you owe money? Who to? When will you pay back the money?6. Is there anything you want to do but can't afford doing?7. Do you often lend money? Who do you lend it to?8. Do you often borrow money? Who do you borrow it from?9. Are you in debt/broke/hard-up/ or well-off?10. How much do you need to make ends meet?11. Do people in your country receive a state pension when they are old? 12. What bills do you have to pay?13. How much pocket money did you receive when you were a pupil?14. In your country, what percentage of a person's income is taken in taxes?

2. Write an essay on the topic ‘My attitude to money’. Which of these sentences best describe your attitude to money?

All I want is enough money to enjoy life. Money is very important to me. I’d like to earn as much as possible. I would be happy to live with less money and fewer possessions.

Part B: Introduction to Banking

GETTING STARTED

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1. Do the quiz individually. Then compare answers with a partner. 1) How much cash do you have with you at the moment? Do you:a) know exactly?b) know approximately? c) not know at all?2) Do you normally check:a) your change?b) your bank statements and credit card bills?c) restaurant bills?d) your receipts when shopping?e) prices in several shops before you buy something?3) Do you:a) give money to beggars?b) give money to charities?c) give away used items, such as clothing?4) If you go for a meal with someone you don't know well, do you:a) offer to pay the whole bill?b) suggest dividing the bill into equal parts?c) offer to pay the whole bill but expect them to pay next time?d) try to avoid paying anything?5) What do you think about people who do not pay the correct amount of tax? Is this:a) a serious crime?b) morally wrong but not a crime?c) excellent business practice?6) If you lend a colleague a small amount of money and they forget to pay it back, do you:a) say nothing?b) remind them that they owe you money?c) arrange to go for a drink with them and say you've forgotten your wallet or purse?

2. Write one more question to add to the quiz above. Ask a partner to answer it.Discuss your answers to the quiz. What do they say about your attitude to money? What do they say about your culture?

USEFUL VOCABULARY

bank account - банковский счет bank operation - банковская операция savings account - сберегательный счет current account - текущий счет checking account - чековый счет statement of account - выписка с банковского счета holder of an account - владелец счета

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open an account (at a bank) - открыть счет (в банке)withdraw money from an account- снять деньги со счета; syn: to take out money cash a check - получить по чеку наличными transaction charge - плата за банковскую операцию service charge - плата за банковские услуги banking card - карточка для банковского автомата; syn: bank card, cash card bank machine - банковский автоматcredit card - кредитная карточкаinterest n - ссудный процент; to pay interest - платить проценты; rate of interest - процентная ставкаtraveler's cheque - путевой (дорожный) чекdeposit - вклад в банке; депозитdeposit money in an account - положить деньги на счет; syn: to credit money to an account, to pay money into an account to issue a deposit - открывать счет to withdraw (withdrew, withdrawn) a deposit - изымать вклад; отозвать вклад, взять вклад из банкаtime deposit - срочный вклад; syn. demand depositsight deposit – счет до востребования, текущий счет; syn. chequing account – чековый вклад (депозит); syn. current account -текущий счетto write a cheque against deposit / an account - выписывать чек против счета deposit v - класть в банк, депонировать, отдавать на хранениеto deposit money with / in a bank — положить деньги в банкliability n- обязательство; pl.долги; денежные обязательства; задолженностьto meet one's liabilities – покрыть свою задолженность

clearing n - клиринг; безналичные расчеты между банками clearance n - производство расчетов через расчетную палату; оплата долга;

урегулирование претензийto handlе /to make / to undertake a transaction - производить сделкуnet a - чистый; нетто; без вычетов; сальдо; окончательный; to cash a cheque - получать наличные по чеку short-term a – краткосрочный; ant. long-term a - долгосрочный (заем)interest n - ссудный процентinterest-earning / interest-bearing а – приносящий проценты (доход)bill n - вексель, тратта; Bill of Exchange (B/E) - переводной вексель; Bill of Loading (B/L) - коносамент, транспортная накладнаяgovernment securities — государственные ценные бумагиbond n – облигации; долговое обязательствоshare n - акция; пай stock n – акция; pl.облигации; ценные бумаги; stock exchangе – фондовая биржа

fluctuate v - колебаться, fluctuation n- колебание

READING

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Text 1

1. Scan through the text “Bank and its classes”.

A bank - is an institution that deals in money and its substitutes and provides other financial services. Banks accept deposits and make loans and derive a profit from the difference in the interest rates. They also have the power to create money. The two major classes of banks are commercial and central banks. Commercial banks accept savings deposits, make loans and other investments, and offer financial services that facilitate the exchange of funds among individuals and institutions. In addition to the profit derived from the difference in the interest rates, commercial banks charge fees for various services. Central banks are involved in the issue of money and maintain the country's foreign currency reserves. Central banks maintain the accounts of other banks and supervise their activities. Central banks act as bankers to governments, as the designers of monetary and credit policies, and as lenders of last resort to commercial banks in the case of a financial crisis. Central banks also play a significant psychological role as guarantors of the monetary system. Central banks may be nationalised organisations and are subject to government control, but some of them can have independence from governmental supervision.

Notes:derive a profit - извлекать прибыль; savings deposit -сберегательный вклад на неопределенный срок под процент; issue - эмиссия;lender of last resort - последний кредитор в критической ситуации subject to – подчинять, подвергать(воздействию, влиянию и т.п.)

2. Restore the word order in the questions and answer them.1) What meant by the term "bank" is? 2) What banks do accept? 3) What banks make do? 4) What banks derive a profit do from? 5) What do power banks have? 6) What the two major classes of are banks? 7) What commercial banks accept do? 8) What do make commercial banks? 9) What commercial banks offer do? 10) What central banks are involved in? 1 1 What central banks do maintain? 12) What central banks supervise do? 13) What central banks do act as? 14) What role central banks do play? 15) Are subject to central banks government control or not?

3. Agree or disagree to the following statements.

1) A bank trades in money. 2) A bank gives various financial services. 3) Banks receive deposits. 4) Banks don't make loans. 5) Banks derive a profit by skilfully deceiving people. 6) Commercial banks aid the exchange of funds among individuals and institutions. 7) Central banks act as bankers to organized crime. 8) Central banks act as the designers of default. 9) Central banks act as the designers of foreign policy.10) Central banks act as lenders of last resort to counterfeiters. 11) Central banks play an important role as guarantors of the monetary system. 12) Central banks have the right to issue money. 13) Central banks keep the country's foreign currency reserves.

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14) Central banks back up the accounts of other banks. 15) Central banks oversee the activities of other banks. 16) Central banks may be privately owned organisations.17) Central banks are subject to shadow ministers. 18) Central banks are totally dependent on their bank customers.

Text 2

1. Read the text “Introduction to Banking and Financial Markets” and find the information to answer the questions:

- What are cash assets?

- What does the balance sheet of a bank include?

A commercial bank borrows money from the public, crediting them with a deposit. The deposit is a liability of the bank. It is the money owed to depositors. In turn the bank lends money to firms, households, or governments wishing to borrow.

Commercial banks are financial intermediaries with a government license to make loans and issue deposits, including deposits against which cheques can be written1.

Major important banks in most countries are included in the clearing system in which debts between banks are settled by adding up all the transactions in a given period and paying only the net amounts needed to balance inter-bank accounts2.

The balance sheet of a bank includes assets and liabilities. We begin by discussing the asset side of the balance sheet.

Cash assets are notes and coins kept in their vaults and deposited with the Central Bank. The balance sheet also shows money lent out or used to purchase short-term interest-earning assets such as loans and bills. Bills are financial assets to be repurchased by the original borrower within a year or less. Loans refer to lending to households and firms and are to be repaid by a certain date. Loans appear to be the major share of bank lending. Securities show bank purchases of interest-bearing long-term financial assets. These can be government bonds or industrial shares. Since these assets are traded daily on the Stock Exchange, these securities seem to be easy to cash whenever the bank wishes, though their price fluctuates from day to day.

We now examine the liability side of the balance sheet which includes, mainly, deposits. The two most important kinds of deposits are sure to be sight deposits and time deposits. Sight deposits can be withdrawn on sight3 whenever the depositor wishes. These are the accounts against which we write cheques, thus withdrawing money without giving the bank any warning. Therefore, most banks do not pay interest on sight deposits, or chequing accounts.

Before time deposits can be withdrawn, a minimum period of notification must be given within which banks can sell off some of their high-interest securities or call in some of their high-interest loans in order to have the money to pay out depositors. Therefore, banks usually pay interest on time deposits. Apart from deposits banks usually have some other liabilities as, for instance, deposits in foreign currency, cheques in the process of clearance and others.Notes:

1. to write cheques against the account – выписывать чеки против счета

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2. to balance an account – уравнять, погасить счет; сбалансировать статьи расходов

3. on sight – по предъявлении (без предварительного уведомления)

2. Complete the sentences according to the text:

1.Banks borrow money from the public in order to ...2.The clearing system lets banks ...3.The asset side of the bank balance sheet includes ...4.The liability side of the balance sheet includes ...5.The two most important kinds of deposits are known as...6.Cheques can be written against ...7.Interest is usually paid on ...

1.To withdraw a time deposit one must give the bank a period of notification for the bank...

Text 3

1. Scan through the text “Credit card and credit cardholders”. A credit card is a piece of plastic about 85mm by 54mm, bearing the name and

computer number of the holder and the period of availability. The holder must sign it. The best known cards in the UK are the VISA card and ACCESS; the American Express and Diners' Club (introduced by the Diners' Club, Inc., in 1950) are leisure or entertainment cards as no credit is permitted. VISA is an international credit card scheme which has worldwide representation. Major banks in a number of countries have issued cards through VISA. ACCESS is the name given to a credit card company jointly owned by three banks, namely, Lloyds, Midland and National Westminster.

The American Express Company issues American Express card whose holders have no limit placed on the sum they spend, but all outstanding debts must be settled by a given date. Any creditworthy mature person can be a credit card holder. Before a card is issued, certain details are supplied and references are given. On approval a credit card is given to the holder and the cardholder is at the same time notified of the maximum credit available to him / her. The credit card can be used at any retail outlet displaying the credit card company symbol. It is usual for settlement or partial settlement to be made by the credit cardholder within 25 days of receipt of the statement.Notes:

availability - годность access - доступoutstanding - неуплаченный retail outlet - розничная торговая точкаsettlement - расчетreceipt - получениеstatement – отчет

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reference (a letter written by someone who knows you well, usually to a new employer, giving information about you)- рекомендация

2. Work in pairs to answer the questions that follow.1) What does a credit card bear? 2) What must the holder sign?3) What credit cards are the best known ones in the UK?4) What credit cards are leisure cards and why?5) What are VISA, ACCESS and American Express cards known for? 6) Who can be a credit card holder? 7) What is supplied and given before a card is issued? 8) What is the cardholder notified of?9 ) Where can a credit card be used?10) What is to be made by the cardholder within 25 days of the receipt of the statement?

3. Agree or disagree to the following statements.1 ) A credit card is a piece of wood.2) A credit card bears the name of the owner. 3) A credit card bears the computer number оf the possessor.4) A credit card bears the period of serviceable life.5) The holder must subscribe to a credit card. 6) Holders have limit placed on the sum they can spend. 7) All debts must be settled by a given date. 7) Any solvent person can be a credit card holder. 8) Recommendations are to be given before a card is issued.9) The cardholder is announced of the minimum сredit available to him.10) A credit card can be used far and near.1 1 ) A retailer is someone who sells things in a shop.

4. Complete the following statements. 1) A credit card is ... 2) A credit card bears ... 3) The holder must… 4) The best known cards in the UK are ... 5) VISA is ... 6)ACCESS is ... 7) American Express card is known for its holders have ... 8) Any creditworthy person can ... 9) Before a card is issued ... 10) The cardholder is notified of ... 11) A credit card can be used ... 12) The credit cardholder should make ... within 25 days ...

5. Translate the following text from Russian into English.Кредитная карточка - это выпускаемая организацией карточка, которая

даёт её владельцу возможность делать покупки в кредит в тех предприятиях торговли, которые заключили с данной организацией соглашение (например, кредитная карта «Эксон» может использоваться на автозаправочных станциях). Существуют одноцелевые карточки, выпускаемые конкретными фирмами, многоцелевые карточки (например, «Америкен экспресс», «Карт-бланш») и банковские карточки (например, «Мастеркард» и «Виза»). Владелец карточки -

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это лицо, которому выдана кредитная карта для использования в личных, семейных, домашних или коммерческих расчётах.

Text 4

1. Read the text “On the Money-go-round” in which some advice are given to Englishmen travelling abroad.

Money, usually the lack of it - is a universal problem for travellers. Whatever the amount they take, there is a variety of ways to carry it. Since each has both advantages and disadvantages, a combination of two or three is advisable, the mixture depending on financial circumstances as well as destination.

Traveller's Cheques: One more possibility of making payments without using your cash is traveller's cheques. Traveller's cheques can provide you a safe and convenient way of travelling with large amounts of money. They come in twenty, fifty and one hundred dollar denominations. Traveller's cheques are insured against loss and theft and are treated as cash by most businesses. You may purchase traveller's cheques at most banks. Traveller's Cheques will be replaced if lost or stolen, theoretically within 24 hours. You pay 1 to 1.5 percent of the value of the cheques but usually get a better rate when cashing them.

Foreign Currency: Carry a small amount (for taxis, porters, telephone calls, snacks) until you can get to a bank. Most UK banks need advance notice of your requirements, otherwise change sterling at the airport or port (though exchange rates are less favourable).The commission and rate of exchange vary but shopping around is rather impractical. Some countries (in particular, Greece) restrict the amount of their currency that you can import. You should also carry some sterling for necessary expenses when you return.

Postcheques: Each cheque, when accompanied by a Postcheque Card (included free with your first order of cheques) can now be used to draw up to £100 in local currency from 90,000 post offices in most of Europe and around the Mediterranean as well as Hong Kong, the Bahamas and Japan.

Credit Cards: Access (linked to Mastercard in the United States and Euro-card in Europe) and Barclaycard (linked to Visa) are accepted in nearly five million outlets each though they vary in their acceptability - Barclaycard, for example, is stronger in France, Spain and Italy, whereas Access is most useful in Germany and the United States. Their acceptance in Continental petrol stations, too, is not always certain. They may also be used for cash advances and instead of a deposit on car hire.

Charge Cards: American Express and Diners Club are less widely accepted than credit cards and the interest-free settlement period is shorter but there is no pre-sent spending limit. In addition to the initial starting and annual fee for the cards, both charge a one-percent processing fee for bills converted into sterling.

Eurocheques: can be used to withdraw local currency as well as pay for hotels, restaurants, garages and other services in nearly five million, mostly European,

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outlets. The cheques, made out to the exact amount you require, are then debited to your account in the same way as a domestic cheque.

Individual Cheques: can be cashed for up to a maximum of £100 or equivalent in local currency.

There is no limit to the number of cheques you can use to make а purchase. You pay around £3.50 for the card and there is also a commission 1.25 percent on the value of the transaction, plus roughly a 30-pence handling fee per cheque.

Notes : shopping around - искать более выгодные условия

2. Answer to the following questions:

1. What happens if you lose your traveller's cheques?2. Where should the British traveller exchange sterling into foreign currency?3. Why is the British traveller advised to carry sterling?4. Where can you use Postcheques?5. What are the advantages of credit cards?6. What disadvantages do charge cards have?7. How do you pay for Eurocheques? 8. What is the limit of a Eurocheque?

Text 5

1. Read the text ”Counterfeiting”. Sum up what the text says about the security features of American banknotes.

Counterfeiting of money is one of the oldest crimes in history. In the United States, for example, it was a serious problem in the past, when each bank issued its own currency. Therefore they adopted a national currency in 1863. But it did not solve the counterfeiting problem. The national currency, or the dollar, was soon counterfeited so widely, that it became necessary for the US Government to take special measures. In 1865 the United States Secret Service was established to suppress counterfeiting. It curtailed counterfeiting to a certain extent but this crime still exists.

The US dollars are now the most counterfeited currency in the world. Modern photographic and printing devices, colour copies, laser scanners have made the production of counterfeit money relatively easy. A lot of special security features are usually used in making banknotes of every country.

In making American dollars, for example, the following security features are used:- red and blue fibres, embedded in the paper- the intaglio printing of some features and many others. Besides, not long ago, a few more new security features were added to US dollars. These features are as follows:

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- invisible thread embedded in the paper- micro printing and others.

These new features appeared first in banknotes of certain denominations only. Other denominations will be gradually made with the same security features.

Notes : curtail - сокращать, урезыватьembed - запечатлетьintaglio printing - глубокая печатьthread - нить

2. Complete the sentences with the following words: crime(s), currency, counterfeiting, established, features.

1)… of money is one of oldest... in history.2) Thеу adopted a national ... in 1863.3) In 1865 the United States Secret Service was ... to suppress...4) It curtailed … to a certain extent but this ... still exists.5) The US dollar is now the most counterfeited ... in the world.6) New security ... is added to the dollar from time to time.

3. Give the English equivalents for the following:метод защиты, глубокая печать; волокна, вкрапленные в бумагу; невидимая нить, микропечать, современные ксероксы, цветные принтеры, лазерный сканер, подделывать деньги, средства защиты денег, национальная валюта

Text 6

1. Scan through the text “Money laundering”.

Criminals use the financial system to put money which has been obtained illegally into legal business and bank accounts, so that they can hide it or use it. These activities are commonly referred to as money laundering. In January 1989 the Basle Statement of Principles on Money Laundering was circulated to all institutions authorised under the Banking Act. The Statement of Principles does not restrict itself to drug related money laundering, but extends to all aspects of laundering through the banking system, i.e. the deposit, transfer and / or concealment of money derived from illicit activities whether robbery, terrorism, fraud or drugs. The Statement of Principles seeks to deny to those who involved money laundering by the application of the following principles:

(a) Know your customer - banks should make reasonable efforts to determine the customer's true identity, and have effective procedures for verifying the bona fides of new customers, that is, they are who they say they are.

(b) Compliance with laws - banks should ensure that business is conducted in conformity with high ethical standards and laws; that a service is not provided where

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there is good reason to suppose the transactions are associated with laundering activities.

(с) Сooperation with law enforcement agencies - within any соnstraints imposed by rules relating to customer confidentiality banks should co-operate fully with national law enforcement agencies including, where there are reasonable grounds of suspecting money laundering, taking appropriate measures which are consistent with the law.

Notes:Money-laundering - отмывание денег; laundered money -отмытые деньги; circulate / extend -распространять; concealment - утаивание; illicit - незаконный; deny - не допускать; verify - удостоверять подлинность;bona fides - добросовестность, честность; law compliance - соблюдение закона; constraints - ограничения; consistent - согласующийся;mistaken identity -принятие одного лица за другое.

2. Work in pairs to answer the questions that follow.1) What is commonly referred to as money laundering?2) What was circulated to all banks in 1989? 3) What does the Statement of Principles extend to? 4) How many principles are included in the Statement of Principles? 5) What is the first one?6) What is the second one? 7) What is the third one?

3. Agree or disagree with the following statements.1) Banks should determine the customer's mistaken identity.2) Banks should not check the bona fides of new customers.3) If you check someone's bona fides, you check that they are who they say they are. 4) Banks should ensure that business is conducted in a way that obeys rules.5) Banks should make it certain that a service is not provided where there are laundering activities.6) Banks should disobey law enforcement agencies. 7) Banks should take correct or suitable measures against money laundering.

4. Complete the following statements. 1) Criminals use ... 2) These activities are referred to as… 3)... was circulated to ... 4) The Statement of Principles does not restrict ... but extends to ... 5) Banks should make… 6) Banks should have ... for verifying ... 7) Banks should ensure that business

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is ... 8) Banks should ensure that a service is ... 9) Banks should co-operate ... including taking ...

5. Translate the following words, phrases and statements from Russian into English.Ошибочное опознание личности; применение; разумный; подлинный;

опознание личности; удостоверять подлинность; добросовестность; соблюдение закона; обеспечивать; соответствие; предоставлять; предполагать; распространять; трансферт; утаивание; незаконный; мошенничество; искать; не пускать; сделка; отмывание денег; узаконить; отмытые деньги; ограничивать; ассоциироваться; полицейский орган; ограничения; конфиденциальность; согласующийся. Отмытые деньги - это средства, посланные последовательно через большое число депозитарных институтов в попытке скрыть источник денег. Гангстеры отмывают деньги для придания видимости легальности нелегальным источникам своего обогащения.

DEVELOPING VOCABULARY

1. Fill in the gaps with the words: value, cost, price.1. He learnt the ... of a friend.2. The oil ... is falling in the world-market.3. The ... of living has risen, whereas wages have remained the same.4. The ...of this information is enormous.5. He set a high ... on this time.6. At Christmas sales one can buy goods at reduced ....

2. Put each of the following words or phrases in the correct space in the sentences below. broke hard-up in debt well-off make ends meeta) She earns a lot of money. She's very... .b) He never has a lot of money. He can't afford luxuries. He's always... .c) I'll have to get an extra job in the evenings. I can't... on my salary.d) I'm sorry I can't lend you any money. I haven't got any. I'm absolutely... .e) He's ... He owes money to me and to bank too.

3. Match the following terms with the correct definitions:

current account, cheque, cash, liability, stock exchange, clearance, securities1. means of borrowing money and raising new capital issued by companies, financial

institutions, governments;2. deposit which can be withdrawn on demand and which is used by depositor to

finance day-to-day personal and business transactions;3. coins and bank-notes which are in circulation in a country;4. a market where company stocks and shares as well as government bonds are

bought and sold;5. a form of debt, for instance, a loan;

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6. a means of transferring or withdrawing money from a bank or building society current account;

7. settling liabilities through the Clearing House.

4. Put a suitable form of these words into each space. afford charge cost rise pay economise reduce owe sell1 I... the bank so much that I couldn't take a holiday abroad.2. When I... the rent, I felt as if I had been robbed.3.I paid in cash and they didn't... me so much.4. After I had ... my house, I realized I had made a mistake.5. We ... so that we could buy a new fridge.6. The cost of living keeps ... all the time.7. We only could … last year's holiday by cutting down on luxuries.8. How much did a double room...?9. The shop on the corner has ... everything by fifty percent.

5. Choose the appropriate word from the brackets.

1. (Whenever/elsewhere) a man has to (issue a deposit / settle a debt) orhas to make a purchase, he can do it with either cash or a (time deposit/chequing account).2. Bank notes bring in no (interest/profit) at all.3. The (temporary /net) suppliers of loan funds are households whereas business firms and the government are the main (temporary/ net) demanders of loans.4. (Liability / clearance) function is performed in commodities markets by the International Commodities Clearing House.5. There are enough workers in the factory to (owe / handle) all the available machinery.6. It is typical to (issue / withdraw) bonds for the period of several years.7. The bank (borrows/ lends) the (deposited/ withdrawn) money to customers who need capital.8. Cheques may be written not only against bank (securities / deposits) but also against (interest-bearing/net) building society accounts.9. Nowadays a bank's main function is to be an intermediary between (lenders / depositors) and borrowers.10. It does not make sense (He имеет смысла) for two banks to make two inter-bank (clearing/transactions). They calculate the (debt/net) flows and settle them.

6. Translate the following sentences from Russian into English.1. У нее есть много денег на банковском счете. 2. При оплате наличными это будет стоить тебе 10 $.Если ты рассчитаешься чеком, это будет дороже.3. Не могли бы вы обменять эту купюру на монету для пользования кофе-автоматом.4. Я заплатил более $2000 за свой компьютер, но сейчас он уже не стоит этих денег.

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5. Боюсь, я зря потратил деньги на эти СD-диски, потому что я их никогда не слушаю.

DISCOVERING LANGUAGE

1. Make these sentences 1) interrogative 2) negative:1. There are some new commercial banks in our city.2. There are state chartered banks that offer many services.3. There are some non-deposit financial institutions in the USA.4. There is an insurance company and some pension funds on the list below.5. There is a growing number of small finance companies in the USA today.

2. Fill in the blanks with the pronouns some, any, and no:1. Are there _ commercial banks in your town?Yes, there are _.2. Is there _ money in your savings account? No, there isn't_.3. Does a credit union lend _ money to its members? Yes, it does. It lends _ money to its members.4. Do pension funds invest _ money into the industry?No, they don't. They invest _ money into the industry.5. There are _ commercial finance companies that provide collateralized loans to business.

3. Fill in the blanks with adjectives many and much:1. _ insurance companies protect their customers against risk.2. It takes one _ money to join a credit union.3 Starting a business without financial support from the bank may cause you _ _trouble.4. Banks in the USA are subject to _ government regulations.5. Savings and Loan Associations attract _ small savers who do not want to have any risk.

4. Fill in the missing prepositions where it is necessary.

1. The bank lends the deposited money ... customers who need ... capital.

2. Cheques may be written not only ... bank deposits but also ... interest-bearing building society accounts.

3. The demand ... money is determined ... the quantity needed to handle ... business transactions.

4. Nowadays banks handle ... huge amounts ... money deposited ... them.

5. If a cheque is... soft currency, one may have some trouble cashing it... abroad.

6. The Central Bank ... Russia uses its reserves to help repay ... Russia's foreign debt.

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7. The bank borrows the funds ... the public ... the specific purpose ... lending them ... again ... their customers.

8. Regulations ... America and Japan prevent commercial banks ... trading ... securities.

9. Creditors are persons or businesses ... whom an individual or firm owes money ... goods or services that they have supplied but ... which they have not yet been paid, or because they have made ... a loan.

10. Considerable fluctuations ... prices ... industrial shares are expected to take place ... the stock exchange ... a period of weeks and months.

5. Complete the sentences with the appropriate modal verbs in the correct form.

1. Since the prices of shares and government securities fluctuate, a seller … receive more or less than he paid for them.2. Commercial banks …. required to deposit more of their cash reserves in special deposits at the Central Bank than before.3. The Central Bank has withdrawn this bank's license. The latter … unable to meet its liabilities.4. The owner of the firm hopes the bank …defer repayment of the loan.5. The bank is calling in its loans. Its depositors …withdrawn a lot of their deposits lately or the bank …accumulating funds for a major lending or investment project.6. If the bank has refused to issue a deposit, it means they …dissatisfied with the information you gave them about yourself.7. Banks …said to provide financial services.8. The coffee market … grown considerably in Russia in recent years but the purchasing power of population fell after the 1998 financial crisis.

6. Complete the sentences with the appropriate tense form. Translate them from English into Russian paying attention to the phrasal verbs in bold.1 There's nothing in our bank account. We…run out of money.2 John… putting money by for his holiday all year; he's saved over £500!3 I … take out a loan to buy my new car. I’ll pay back the money I borrowed over three years.4 Doing this course … really eating into my savings! Every week I have to pay £50.5 If you leave your job, what …. live on?6 We're spending too much money every week! We… cut down on luxuries.

LISTENING

1. Paul and Maria are colleagues. It is Paul's first trip to Uruguay and Maria is giving him advice about money. Read and listen to dialogue 1.Paul: Hello, Maria. Have you got a minute? I need some advice.Maria: Hi, Paul. Of course. What's the problem? Paul: Well. I'm doing a trip to Uruguay next week. It's my first trip there. I'm taking my credit cards, but can I use them everywhere?

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Maria: Oh, I see. You can use them in some places, like hotels, but not all. For example, you can't always buy petrol with credit cards, or pay for car parks or train tickets. Cash is essential, but in dollars. Not in local currency. Paul: I see. So traveller’s cheques, then?Maria: Yes, they're useful. But take them in dollars. You can use traveller’s cheques in dollars everywhere.Paul: What about Eurocheques? In Europe we use them everywhere. We use them just like ordinary cash or cheques.Maria: No. Eurocheques aren't very useful. Not useful at all. Nobody uses Eurocheques.

2. Listen to dialogues 2 and 3 and complete the table.

Uruguay northern Europe USAcredit cards are used some places, like hotelscredit cards are not used petrol, car parks, train

ticketstravellers' cheques are used

everywhere

Eurocheques not useful

3. You are going to watch an episode "Money that doesn’t exist” of the video film ”Economics made easy”. Here are some words that might seem unfamiliar to you:

• gilt, n - позолота, деньги• gild, v - золотить• custody - опека• solvent - платежеспособный, кредитоспособный• holders -арендатор, владелец, держатель• bill - счет, расходы, стоимость• interest - процент• short -term bank loan - краткосрочный банковский кредит• to be in the red - быть в долгу• overdraw - превысить кредит (в банке); overdraft - превышение кредита, овердрафт, задолженность банку

4. As you watch this episode for the second time, pay attention to the facts you'll hear and be ready to say whether the following sentences are true or false:

1. A few centuries ago in Paris Mario Linland offered their customers a special service, they accepted the gold of their customers in safe custody and, as an exchange, gave them a kind of receipt-certificates.2. These certificates could be exchanged for the gold again at any time by anybody not just for original owner. So these certificates were accepted everywhere as gold

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and were easier and less dangerous to carry around. And so a kind of paper gold was created.3. The system continued to function as long as gilt minters didn't stay solvent, as long as they were not able to return gold to any holders who asked for it.4. The man in the restaurant has had enough coins to pay for a fine meal.5. He can pay the bill because he has got a check and he can pay with his check despite the fact that he hasn't got any money at his bank account at the moment or perhaps he is in the red as he got debts. All the same restaurants accept his check just as equal cash.6. After a certain agreed limit the bank doesn't guarantee its customers' debts. The customer later doesn't have to pay back the money for the restaurant bill to the bank plus interest. He isn't allowed to overdraw his account by means of a check, money, as we can say, that doesn't exist!

FOCUS ON FUNCTIONS

1. The passive is very often used when we describe a process or a procedure because we are less concerned with who has done something than with what is done. For example, read this description of an export transaction involving a British firm and an Australian one:

First of all, the goods are sent to a port and loaded on board ship. They are inspected and if everything is fine, a 'clean' Bill of Lading (B/L) is signed by the captain and a copy sent to the exporting firm. Then a Bill of Exchange (B/E) requiring the Australian firm to pay on a future date is drawn up by the British firm and presented, together with the insurance certificate and the B/L, to a British bank.

Next, the documentation is sent to the Australian bank. At this stage the B/E is accepted by the importer who is now given the B/L and is able to collect the goods when they arrive and pay his/her bank on the due date.Note that is/are do not have to be repeated when the second verb (e.g. loaded/presented) follows 'and'.

2. See the picture below. Imagine a man called Mr. White owes Blacks plc. a sum of money. If he has an account at Bank В and the firm an account with Bank A what happens to the cheque he makes out?

The life story of a cheque

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3. Complete the blanks with the following verbs: credit send draw exchange deduct pay sort put send on

First of all, when Blacks plc. receives the cheque it 1______ into Bank A and 2___to the firm's account. Then, at the end of each working day all the cheques which 3_______on other banks and 5_____to Bank A's headquarters. Here they 6________ into piles together with cheques from other Banks (В, C, D, etc.) and 7____________to the clearing house where all the cheques 8______. Bank B's headquarters now sends Mr. White's cheque back to Bank В (where he has an account) and the sum 9______ from his account.

1. Mr White makes out the cheque for the money he owes

BLACKS plc.2. Blacks PLC receives the cheque

BANK A3. Bank A sorts all its cheques

BANK AH.Q.4. The piles of cheques are put with cheques from other banks

Bank B

Bank C

Bank D

CLEARING HOUSE5. Here banks give other banks cheques drawn on them and come away with their own

BANK B.H.Q.

BANK C.H.Q.

BANK D.H.Q.

BANK B6. Bank B deducts the sum from Mr. White’s house

Key Movement of cheques to the clearing house

Movement of cheques from the clearing house

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SPEAKING

1. Read and translate the following dialogues.

OPENING AN ACCOUNTI

Man: Good morning.Cashier: Good morning, sir.M: I'd like to open an account, please.C: Certainly, sir. Do you live in Geneva?M: Yes. I'm at the Interpreters' School.C: Are you a student?M: Yes.C: What sort of account would you like? M: A current account, I think. C: Have you got any large sums to deposit?M: No, only a thousand euros or so a month.C: Well, we can open a current account with a cheque book for you as long as the initial sum is at least three thousand euros. But I'd advise you in your case to take an account that gives you more interest, and which is more practical. We normally advise students to open deposit accounts.M: Can I take out money whenever I like?C: Yes. There are two or three types of account. They permit you to withdraw up to ten thousand euros a month.M: Can I receive money directly from abroad? C: Certainly.M: And can I withdraw at a branch office?C: Certainly, though it may be more convenient to open your account in our branch near

the University.M: No, I live quite near here. Do I need a passport? C: Yes.M: I'm afraid I haven't got it. Will my student card do?C: No, I'm afraid not.M: I'll come back later, then.C: Very good, sir.

IIBank Clerk: Good morning. What can I do for you?Oleg Martynov: Good morning. I would like to open a savings account. I’d like to open it with a deposit of one thousand dollars.Clerk: Would you please fill in this application. Besides you need to write a deposit ticket for 1000 dollars. If you have any questions, I'll be glad to assist you.O.M. fills in the application and deposit ticket.Clerk: Everything is correct. Here is your pass-book. The bank will pay you 5% interest.Oleg Martynov: Thank you for your assistance.

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III

Clerk: Good afternoon. May I help you?O.M.: Good afternoon. I’m here to open a checking account. My name is Oleg

Martynov. My wife's name is Lena.C: Do you want a joint account with your spouse?O.M.: Yes. I do. Is there a minimum balance required?C: If you open a checking account you are supposed to maintain an average daily balance of 1000 dollars. As long as you keep this average balance, you won’t be charged for banking services of six dollars a month and you wont' be charged for you transactions.O.M.: What is meant by transaction charge?C: You'll have to pay 25 cents for each check made by you or your spouse and also 25

cents for each cash withdrawal.O.M.: I'd like to open a checking account with a deposit or 1500 dollars. Is that o’kay?C: It's perfectly all right. You can order your check books after having filled in an

application and your deposit ticket.O.M. is filling in an application and deposit ticket.O.M.: Is anything wrong?C: Everything is correct. Now you can order your check books.O.M.: Thanks a lot for your assistance.

WITHDRAWING MONEY FROM THE ACCOUNT

I A: Good morning. B: Good morning, sir.A: I’d like to draw two thousand dollars from my account, please. Here is the number.B: Thank you. One moment, please, sir. I'm sorry, sir. Your account has a balance of 545 dollars.A: All right. Give me 500 dollars, then, and I’ll draw the rest from my deposit account. This is the number.B: One moment, please. Yes that's all right, sir. How would you like it?A: Two notes of a thousand, please. Thank you. Good-bye.

II

A: Good morning. I'd like to draw a thousand euro from account number С 6.287.55, please.B: Is it your own account? A: Yes, here is my passport.B: Thank you. One moment, please. How would you like it?A: In hundreds, please. Thanks. B: Good bye, sir.

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III

A: I’d like to draw some money from my husband’s account, please.B: Have you got power of attorney, madam? A: Yes.B: Do you know the number of the account? A: Yes. Here is my cheque book. B: How much would you like to draw? A: Two hundred dollars, please.B: One moment, please, madam. Yes, that's all right. How would you like it?A: In tens, please. Thank you.B: Thank you. Good-bye, madam.

IV

Man: Good morning.Cashier: Good morning, sir.M: I’d like to take out some money, please.C: Certainly, sir. Do you know the number of your account?M: No. I'm not sure of it.С: What's your name?M: Klaus Bright.C: Is it a checking account?M: Well, I've got a checking account and a savings account.C: And which account would you like to draw from? M: I'd like two thousand dollars from my checking account. C: I'll just check the number, sir. It's 53.875, sir. Could you sign here, please ... and here. Thank you. One moment, please, sir. How would you like it, sir? M: Two bills of a thousand, please. Thank you. Good bye.

V

Mr. Smith: Good morning. Bank Clerk: Good morning, sir. S.: I'd like to withdraw 950 dollars. C: What notes would you like? S.: Nine 100 dollar notes and one 50. C: Here you are, sir. It's 950.S.: Thank you. Please, could you give me some information? I'm going to South America for one month. What do you suggest I take - traveler's checks or cash?C: Oh, it's better to take traveller's checks. It's safer.S.: Thank you. Good-bye!C: Good-bye, sir.

CHANGING FOREIGN CURRENCY

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I

Customer: Could you change dollars into English pounds sterling? Cashier: Certainly, sir. I'll just check the exchange rates. How much would you like to change?Customer: One thousand dollars. And what is the rate of exchange today? Cashier: One dollar to seventy five pence.Customer: And what rate can you offer for two thousand dollars? Cashier: One dollar to ninety pence.Customer: Oh, the difference is not very big. Change one thousand, please. Here is the money.Cashier: Thank you. May I have your passport for a moment, please? We are always to write down the number of the customer's passport if we change thousand dollars or more.Customer: Here it is. No problem.Cashier: Here is your passport. How would you like the money, sir? Customer: Oh, give it to me in hundred pound notes, please.Cashier: Good. One hundred, two hundred ... seventy pounds, seventy five pounds.Customer: Thank you. Good-bye.Cashier: Good bye, sir.

IIM: Good afternoon.C: Good afternoon, sir.M: I've just arrived from Boston and I've got some foreign currency that I'd like to change into roubles. Is that possible?C: We can take the bank notes but I'm afraid we can’t take the small change.M: Then could you change these notes, please?C: Certainly, sir. I'll just check the exchange rate.

IIIM: Good morning.C: Good morning, madam. M: I've just come back from a trip to Russia and I'd like to change on these roubles, please.C: We can change but I'm afraid we can pay a very low rate of exchange on Russian currency, madam.M: Oh, that doesn't matter. I can't use them anyway. C: All right, madam. Just one moment, please.

2. Find the English equivalents for the following sentences in the above dialogues:

1. Я бы хотел открыть счет.2. Какой счет Вы бы хотели открыть?3. Вы хотите положить большую сумму?

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4. Я бы посоветовал в Вашем случае ... 5. Могу ли я снять деньги, когда захочу?6. А могу я снимать в одном из отделений банка?7. Я бы хотел открыть сберегательный счет.8. Я пришел сюда открыть чековый счет.9. Я бы хотел открыть счет в банке.10. Если вы открываете чековый счет, вам положено поддерживать средний ежедневный баланс в размере 1000 долларов.11. Я бы хотел снять деньги со счета.12. Какова плата за банковские услуги?13. Плата за банковские услуги составляет 6 долларов в месяц.14. Я бы хотел открыть чековый счет с вкладом в 1500 долларов.15.Вы можете заказать чековые книжки после заполнения заявление вашего приходного ордера.16. Если у Вас есть вопросы, я буду рад помочь Вам.17. На Вашем счете 545 долларов.18. Я сниму остальные с депозитного счета.19. Этот счет на Ваше имя?20. У Вас есть нотариально заверенное разрешение?21. Я бы хотел снять 950 евро.22. Какими купюрами (банкнотами) Вы хотели бы взять?23. Если Вы едете в Южную Америку, Вам лучше взять дорожные чеки.24. Я бы хотел получить деньги по дорожному чеку.

3. Read the Dialogue. Dick and Sally, university tutors, are discussing their financial problems.

D: Hello, Sally!S: Hi, Dick! Happy to see you again. How are things with you?D: Not bad. And how are you doing?S: I've a problem, you know. I've just wrecked my new automobile. It has been an accident. And I need money to have it repaired.D: Oh, I think I can help you. Haven't you heard about the credit union that we formed? S: Why, no! Could you tell me what it is?D: It was a great idea! The members of our department pooled their money and now anyone can apply for a loan if necessary.S: And may I join the union?D: Of course you may. As a rule, a credit union consists of members of a specific group, such as university employees. And we belong to the same university.S: Great! And how much do I have to pay?D: Well, we require a minimum deposit - something about 100 dollars. And our credit union pays a higher interest rate than many other financial institutions pay on similar accounts.

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S: That also sounds good. And who manages the pool?D: I do.

S: Fine! Then I'll have my car repaired pretty soon!

4. Work in pairs. Act out similar dialogues with your partner.

5. Choose one topic to speak about a) credit card; b) the best known cards in the UK; c) credit cardholders; d) money laundering

WRITING

1. Here is a story about some problems a man had with his bank. The sentences have been mixed up. Put them in the correct order, and add any other words you need to link the story together, e.g. so, because, but, and, etc.

1. He was overdrawn.2. He opened a deposit account.3. He got a statement in the post.4. He forgot about his standing order for £50.5. He paid for a new shirt by cheque.6. He transferred £160 back to his current account.7. He closed his deposit account.8. He had to pay bank charges.9. He wanted to earn more interest on his savings.10. He transferred £160 to his deposit account.

2. You are a bank manager and you were asked for a loan. Consider the things: you worry about the loan and the questions you 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 the loan and the interest,— whether you would offer everything or part of what is being asked,— whether you need any further evidence of the creditworthiness of your customer and how you would get it,— what sort of security would you accept,— what kind of terms 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.

SUPPLEMENTARY READING

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1. Read the texts about English and American money.

ENGLISH BANKNOTES AND COINS

The official currency of the United Kingdom is the pound sterling which is equal to one hundred pence.

English banknotes are issued by the Bank of England. As to coins they are minted also by this state bank. There are banknotes of the following denominations: £1, £5, £10, £20. £50, £100. The following coins are in circulation: halfpenny, one penny, two pence, five pence, ten pence, fifty pence.

On the face of English banknotes one can read the denomination given both in figures and in words. Then the inscription on the face of the banknote reads: I promise to pay the bearer оn demand the sum of... And then there are two signatures. The first signature is that of the person authorized by the Government and the Bank of England. The second signature is that of the Chief Cashier.

The backs of English banknotes, like many other banknotes, feature portrait of different famous people. The one pound banknote, for example, features Isaac Newton (1642 - 1727) a well-known English scientist who made a few very important discoveries including gravitation law. The back of the five pound note portrays the Duke of Wellington (1769 - 1852), a famous Irish general who defeated Napoleon at Waterloo, Belgium in 1815. On the back of the ten pound note one can see Florence Nightingale (1820 - 1910), founder of the nursing profession. She volunteered as a nurse to Turkey to take care of the wounded soldiers form Crimean War, war of England and France versus Russia. And the back of the twenty pound banknote features William Shakespeare (1564 - 1616), the greatest playwright of all time.

AMERICAN MONEY

The American dollar is subdivided into one hundred cents. The dollars are issued by the Federal Reserve System, established by Congress in 1913. Here is the text on the face of an American dollar banknote:- ... dollars- Federal Reserve Note- The United States of America- this note is legal tender for all debts public and private- Washington. DC- Treasurer of the United States- Secretary of the Treasury

On the face of American dollars one can also see the portraits of the following famous persons:- George Washington (1732 - 1799), the first President of the United States of America, who gave his name to the capital of the country.

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- Abraham Lincoln (1809 - 1865) who was President from 1861 to 1865 after the war between the northern and southern states. It was he who proclaimed freedom of slaves of the south.- Alexander Hamilton (1755 - 1804), a famous American statesman and оther famous people.

On the back of banknotes various famous buildings are featured, such as:- Lincoln Monument, one of the monuments in Washington.- US Treasury Building, in Washington.- White House.- US Capitol.- Independence Hall, in Philadelphia.All the banknotes bear the words: In God We Trust.

2. Read the text about different types of bank operations.

BANK OPERATIONS

Savings accountTo open a savings account at a bank a small initial deposit is needed. If you

open your account with $500 or more and keep that much at all times, there is no service charge. If you fall below the 500 dollar limit, you will be charged $5 a month. A bank computer adds all the daily figures and then divides by the number of days in your statement period. Thai's called your average daily balance.

When you open an account, you'll be in touch with your money thanks to a bank machine services. These machines can handle most regular teller transactions. You can make deposits, cash withdrawals, and balance inquiries with your automatic teller card. The machine is at work 24 hours a day, seven days a week.

If, for example, you want to open a savings account with a deposit of $1000, you are supposed to fill in (A.E. - out) an application. Besides you need to write a deposit ticket for $1000. After filling in the application you are given a pass-book. Once you place your money in a savings account, interest on the money begins to accrue. The bank will pay you 4 or 5% interest.

Checking Account

If you want to open a checking account, you are supposed to maintain an average daily balance of 1000 dollars. As long as you keep this average balance you won't be charged for banking services. Should you fall below the 1000 dollar limit, you would have to pay a service charge of $6 a month, and each of your transactions would be charged separately.

A transaction charge means that you'll have to pay 25 cents for each check made by you or your spouse and also 25 cents for each cash withdrawal. But you can easily avoid paying these charges by maintaining $1000 or more on your account.

Interest is paid if your average daily balance is over 2500 dollars. Unless you fall below 2500 dollars, you'll be paid 6,5% interest. The bank credits the interest you've earned automatically to your account.

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You can order your check books after having filled in (out - A.E.) application and your deposit ticket.

For getting a credit card you must have an income of $15 000 or more. This income must be proved by your last pay stub or a copy of your tax return. As soon as the bank has this information, credit cards will be given to you and your wife.Notes: accrue - накоплятьсяstub – корешок чека

3. Scan the text and say what cyber dollars are and why digital money is perfect.

HERE COMES THE CYBER-DOLLARS

They will replace the cash in your pocket. Cash is heavy - $1 million in $20 bills weighs more than a hundred pounds. Cash is expensive - tens of billions of dollars drain from the economy each year merely to pay for the printing, trucking, safekeeping, vending, collecting and counting of currency. Cash is also quaint, technologically speaking - the creased bills in your pocket are a language as outmoded as Morse code. Cash is dying.

So heading into the marketplace are E-cash, Netchex, Cybercash, Netbill and DigiCash. Credit-card firms, Internet start-up ventures, overseas telephone companies, universities and city-transit systems are all experimenting with digital-payment schemes.

Digital money is perfect money. It weighs nothing and moves at the speed of light. It does not get worn or dirty. It is the ultimate extension at the process that began over a century ago when the Western Union Telegraph Company - a communications company, not a bank - found a way to turn cash into bits flowing across wires.

You will carry some cash around for years to come and perhaps barely notice when you stop using it in grocery stores or at gas stations. But for everyone who uses, regulates and stores cash, a challenge is nearing. Some kinds of electronic currency will protect privacy, and some will violate privacy. Some will make crime easier, and some will make it more difficult. Some will tax commerce, and some will catalyze it.Information Warfare. As money enters a new age, so does counterfeiting. Smart cards rely on software, and software always has bugs. Some people will not wait for the flaws. "The chip is a physical thing," says senior vice president of Visa in the United States. "Anything physical, the security people will tell you, can be attacked." An arms race is already raging between those working to armour-plate digital cash with cryptography and those working to pierce the armour.Frightening Prospect. Eliminating cash would free the world of the single biggest form of tax fraud. It would also wipe out bribery, kidnapping, extortion and even robbery. All these depend on the existence of cash as an anonymous and untraceable means of payment.

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Yet the cashless economy could also be a world where networked computer data bases keep track of every bus you ride, every beer you drink, every video you rent. The possibilities are frightening to anyone who cares about privacy.Notes:Cyber-dollar – кибер-долларdigital money – электронные деньгиtax fraud – налоговое мошенничествоextortion – вымогательство

4. Read the text, single out the main facts from it and present your summary in English.

ПЛАСТИКОВАЯ БЕЗОПАСНОСТЬ

Чужая полоса. Специалисты уверяют, что существует более 20 способов подделки пластиковых карт. Один из самых распространенных — так называемый скимминг (от английского skimming — снятие сливок): считывание данных магнитной полосы при помощи различных устройств — скиммеров. Современные скиммеры очень малы — используемые в ресторанах, например, раза в два меньше небольшого сотового телефона, а могут одновременно хранить данные сотен магнитных полос. Вдоль такого прибора проходит отверстие для считывания магнитной полосы. Когда официант берет карту и уносит ее, чтобы сделать платеж, он незаметно проводит ею по скиммеру, спрятанному в руке. Иногда они вообще незаметны — изготавливаются из прозрачного пластика и вкладываются в папку для счета: чтобы списать информацию, официанту достаточно провести картой по внутреннему сгибу папки.

В конце дня данные, считанные с магнитных полос, передаются со скиммера для обработки и дальнейшего распространения. С помощью специального оборудования изготавливается поддельный пластик — полная копия на-стоящего, только имя и фамилия на нем уже другие.

Электронный грабеж. Наиболее часто скимминг используется мошенниками при снятии клиентом денег через банкомат (ATM — Automatic Teller Machine). В этом случае мошенники должны также считать и pin-код карты. Для этого используются банкоматы, установленные на улице, в холлах или вестибюлях банков, метро, торговых учреждений. Главное условие — чтобы около ATM не стоял охранник. Один из мошенников незаметно устанавливает в картридер (приемник карты) прибор для считывания магнитной полосы и укрепляет на передней панели банкомата устройство для запоминания pin-кода. Клиенты пользуются ATM, не обращая никакого внимания на практически незаметные изменения его внешнего вида. Считывание информации происходит в тот момент, когда клиент вставляет карту в картридер и набирает pin-код. При этом он может быть считан как миниатюрной камерой, закрепленной над клавиатурой (но эта технология уже

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считается устаревшей), так и при помощи наклеенной клавиатуры, сделанной из тончайшего пластика и почти не отличимой от стандартной. При использовании видеокамеры информацию о записанных pin-кодах необходимо периодически просматривать, а кассету менять. Поэтому такие устройства устанавливаются на короткое время и через несколько дней снимаются. Заметить их и тем более поймать мошенников практически невозможно. Но уже существуют устройства по считыванию магнитной полосы и pin-кода, которые автоматически сохраняют всю информацию на электронном носителе и передают ее на другой электронный носитель, находящийся на расстоянии 100—160 метров. Обычно для приема данных используется специально оборудованная машина, припаркованная на безопасном расстоянии от ATM. Иногда данные со скиммера посылаются в виде sms-сообщений на сотовый телефон, оформленный на подставное лицо. Такие приспособления могут стоять на банкоматах сколько угодно долго, вплоть до их очередной технической проверки.

Pin-код и данные пластиковых карт, считанные мошенниками, обрабатываются и расшифровываются, а потом на специальном оборудовании выпускается так называемый белый пластик. Это действительно белые кусочки пластика без каких-либо надписей (логотипов или голограмм) с магнитной полосой, на которую скопирована информация настоящей карты. Используется «белый пластик» в банкоматах, расположенных в укромных местах, где нет охранников или сотрудников банка, которые могут заинтересоваться необычного вида картой.

В России и странах Азиатско-Тихоокеанского региона мошенники предпочитают использовать высокотехнологичные способы подделки пластиков. А вот в Западной Европе наиболее популярны простые, но не менее действенные методы.

5. Read the following quotations and proverbs, comment on them.

Money spent on the brain is never spent in vain. Proverb

A prosperous man is never sure that he is loved for himself. Lucan

Money is the root of all evil. The Bible

He doesn't possess wealth that allows it to possess him. B. Franklin

Money is the fruit of evil as often as the root of it. H. Fielding

The human species, according to the best theory I can form of it, is composed of two distinct races, the men who borrow, and the men who lend. Ch. Lamb

Money makes the world go round.

The greatest man in history was the poorest.

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Proverb R.W. Emerson

Money makes the mare go. Proverb

No one can worship God or love his neighbour on an empty stomach. A. Wilson

It is easier for a camel to go through the eye of a needle than for a rich man to enter into the kingdom of God. The Bible

He that is of opinion money will do everything may well be suspected of doing everything for money. B. Franklin

A fool and his money are soon parted. Proverb

Neither a borrower nor a lender be. W. Shakespeare

He who pays the piper calls the tune. Proverb

The greatest of evils and the worst of crimes is poverty.

G. B. Shaw

Wealth is not his who has it, but his who enjoys it. B. Franklin

Money is like a sixth sense without which you cannot make a complete use of the other five. S. Maugham

Not he who has much is rich, but he who gives much. E. Fromm

Let me tell you about the very rich. They are different from you and me. S. Fitzgerald

It is sheer madness to live in want in order to be wealthy when you die. Juvenal

When poverty comes in at the door, love flies out at the window. Proverb

Money has no smell. Emperor VespasianMoney makes money. SayingTake care of the pence and the pounds will take care of themselves. Proverb

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