Ex.15. Read the text B again. Think of some good questions for the following answers:
a) Government bodies and organizers of production.
b) Financial problems
c) Preparing budgets, doing cash flow analysis
d) Exactly so. Finance people control taxes.
e) Five years
f) You are right. Financial careers are paid well.
Ex.16. Retell the text using the plan and keywords.
1. The department you study at
2. The role of finance in a modern world
3. Why did you take an interest in finance?
4. The functions of finance
5. The questions, financiers’ analysis help to answer
6. The professional training of future financiers
7. Jobs for our graduates
to study at the department of, to train, future speciality, popular;
to exist, money incomes, money is spent, government bodies, public institutions, to be concerned with;
want to know, the working of finance and credit, to assume, ordinary people, relations between states;
to include, functions, preparing budgets, doing cash flow analysis, planning of the expenditures;
the company, strong enough, to stay in business, company income, satisfactory, invest, to loan money, to pay back;
the course of study, to last, to learn, general and special subjects, to master, to take practical training;
can work, finance managers, tax inspectors, vice-presidents, directors, financial careers, traditionally, to pay well.
Ex.17. Retell the text in turn. The 1st student begins with one sentence, the 2nd student says again this sentence and adds his sentence. Next student repeats the sentences that were told before and adds his sentence and so on.
Ex.18. Skim the text to understand what it is about. Time your reading. Your time should be 7 minutes.
Banks are closely concerned with the flow of money into and out of economy. They often cooperate with government in efforts to stabilize economies and to prevent inflation. They are specialists in the business of providing capital and in allocating funds on credit. Banks originated as places to which people took their valuables for safe-keeping, but today the great banks of the world have many functions in addition to acting as guardians of valuable private possessions.
Bank normally receive money from their customer in two distinct forms: on current account and on deposit account. With a current account, a customer can issue personal cheques. No interest is paid by the bank on this type of account. With a deposit account however, the customer leaves his money in the bank for a minimum specified period of time. Interest is paid on this money. The bank in its turn lends the deposited money to customers who need capital. This activity earns interests for the bank, and this interest is almost always at a higher rate than any interest which the bank pays to its depositors. In this way the bank makes its main profits.
We can say that the primary function of a bank today is to act as an intermediary between depositors who wish to make interest on their savings and borrowers who wish to obtain capital. The bank is a reservoir of loanable money with streams of money flowing in and out. For this reason economists and financiers often talk of money being “liquid” or of the “liquidity” of money. Many small sums which might not otherwise be used as capital are rendered useful simply because the bank acts as a reservoir.
The system of banking rests upon a basis of trust. Innumerable acts of trust build up the system of which bankers, depositors and borrowers are part.