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Exercises

1. Answer these questions:

1. Why is exchange of currencies necessary?

  1. What makes exchange of currencies possible?

  2. What is Rate of Exchange?

  3. Where are currencies traded?

  1. What major functions does the Foreign Exchange Market рerform?

  1. How does the Foreign Exchange Market operate? ( Forex)

  2. What are the major sectors of the Forex?

  3. What deals are transacted in the market?

  4. Why does the market depend on payment systems of individual countries?

2. Find in the text English equivalents for the following Ukrainian phrases:

Валютний ринок; бути законним платіжним засобом; у рамках національних кордонів; обмін валюти; валюти, які можна обміняти (одна на другу); виконувати функції; сприяти задоволенню потреб в іноземній валюті; домогтися структури грошової маси свого інвестиційного портфелю, угоди заключають з використанням телекомунікаціонних систем; торгівля, яка зосереджувана в …; які представляють великі комерційні банки; ринок готівки; форвардний ринок; ф’ючерський ринок; більшість угод є угодами «спот»; угода передбачає постачання валюти протягом двох робочих днів; відражати різницю між ціною продавця та ціною покупця; валюти, які приймають участь у валютній угоді; розрахунок по фінансовій угоді.

3. Think of the verbs that are commonly used with:

Currency, deals, trading, price, trading activities, restrictions, operations, quotations, financial flows.

4. Think of the nouns that are most often used with:

To exchange, to sell, to buy, to express, to obtain, to deliver, to trade, to clear, to settle, to set, to convert, to determine, to express.

5. Make your own sentences with any five word combinations from 3. and 4.

6. Match the verbs from (a) with nouns from (b) below:

a)To facilitate

To perform

To fix

To enhance

To identify

To seek

To join

To liberalize

To hold

b)needs

trade

legislation

functions

opportunities

negotiations

profits

financial community

exchange rate

7. Write down nouns from the following verbs and translate them.

To depend, to insure, to expand, to credit, to tend, to construct, to exchange, to measure, to decide, to cost, to value, to prepare, to increase.

8. Make up sentences putting the words in the correct order.

  1. Currency, tender. legal, is, a, its, boundaries, only, national, within.

  2. Interchangeable, are, currency, exchange, is, of, possible, if, currencies, national.

  3. Currencies, be, bought, can, or, sold, the, in, Market, Exchange, Foreign.

  4. Functions, performs, two, market, major, functions, the.

  5. Spot, deals, market, in, actuals ( фізичні товари), the actual, product, physical, delivery, for, immediate.

  6. Futures, the, market, commodity, be, can, bought, or, for, sold, delivery, at, time, some, the, in, future.

  7. In, market, futures, traders, option, an, take, to, to, buy, sell, the, in, future, product, or.

  8. The, cost, transaction, of, reflected, is, in, wholesale, the, market, the, in, bid-ask, spread.

  9. The, remainder, deals, of, the, be, can, classified, outright, as, forwards, swap, futures, options, and.