Exercises

1. Answer the questions.

1. What role do financial markets play?

2. In what ways do financial markets differ?

3. How can financial markets be classified?

4. In what way can capital be raised?

5. What ways of raising capital are available for governments?

6. What is a bond?

7. How can the global bond market be subdivided?

8. In what forms can government bonds be issued?

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

Мати справу з різними фінансовими інструментами; обслуговувати клієнтів; з терміном виплати менше одного року; брати участь в угодах на ринку; первинний(вторинний) фінансовий ринок; звертатися до; фінансування шляхом отримування позики; мобілізація капіталу за допомогою випуску акцій; випускати облігації; обговорений строк; емітент; єдина система класифікації; внутрішній ринок облігацій; емітент, який не проживає постійно у країні; облігації, якими торгують на ринку; випуск облігацій гарантовано міжнародним синдикатом; випускати у незареєстрованій формі; офшорний ринок облігацій; скоротити затрати, які пов’язані з купівлею та продажем облігацій; випускати облігації у формі сертифікату; випускати облігації у формі запису у комп’ютері.

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

Maturity, bond, stock, issue, investor, banks, return, depository, sale, credit, credit rating, placement.

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

To raise, to sell, to issue, to borrow, to trade, to divide, to float, to create, to participate, to develop, to attract, to negotiate, to mature, to place, to generate.

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 bring together to classify to underwrite to invest into to speed up to raise to broaden to rely on to enhance to issue

b) capital people issue debt financing role use real sector financial instruments placements bonds

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

1. Money, deal, in, markets, securities, short-term, of, maturities, having, or, less, one, year.

2. Financial, are, as, or, capital, money, markets, classified, markets, and, or, secondary, primary.

3. Capital, deal, in, markets, securities, long-term, maturities, having, greater, one, than, year.

4. Some, available, sources, of, funds, to, are, not, available, businesses, government, to.

5. There, is, uniform, no, for, system, the, global, classifying, bond, markets.

6. The, internal, market, bond, the, national, is, bond, also, market, called.

8. Complete the sentences with the following words: bond, financial markets, short-term securities, long-term securities, internal and external bond markets, national bond market, foreign bond market, domestic bond market, foreign bond market, domestic bond market, the international bond market.

1. .… are classified as money or capital markets and primary or secondary markets.

2. .…. is an instrument in which the issuer (debtor/borrower) promises to repay to the lender/investor the amount borrowed plus interest over some specified period of time.

3. Money markets deal in ….. having maturities one year or less.

4. The global bond market can be classified into two markets: … .

5. Capital markets deal in ………….having maturities greater than one year.

6. The internal bond market is also called the ……….. .

7. The national bond market can be decomposed into two parts:…….. .

8. The external bond market, also called the………. .

9. …….is where issuers domiciled in the country issue bonds and where those bonds are subsequently traded.

10. ………of a country is where bonds of issuers not domiciled in the country are issued and traded.