12. Choose the correct answer.

1.A marketplace is...

1. The area surrounding a supermarket.

2. Any place where people do disorganised selling of goods.

3. An open space in a town where a market is held

2. A futures contract is...

1. An agreement to buy or sell goods, currency or securities for delivery at a future date and for a price fixed in advance.

2. An agreement to buy or sell goods in the future.

3. An agreement only to buy or sell securities at a future date.

3. The exchange rate is...

1. The amount of goods that one is allowed to sell (exchange for money) on alternate days at the market.

1. The amount of one currency that can be bought with another.

2. The amount of all existing currencies that can be bought with the US dollar.

4. A fraud is...

1. The crime of stealing money by breaking into a safe.

2. The crime of gaming money by dishonesty.

3. The crime of kidnapping.

5.A market maker is...

1. A person who controls the order on a marketplace.

2. A firm that as a member of the London Stock Exchange, buys and sells securities for a profit; it may act as a broker for clients or buy and sell for itself.

3. A commercial organisation that buy and sell only their own securities.

6.The City is...

1. The oldest part of London, the financial centre of the UK, where the International Stock Exchange, the major banks and insurance companies are.

2. The modern part of New York well-known for its shopping-mall.

3. The oldest part of London, famous for its gardens and parks.

13. Write a short summary about money markets.

_______________________________Unit 12______________________________________

1. Discuss in what way politics can affect market fluctuations in your country

2. Train the following words and phrases before you read the text “Exchanges”

to govern - керувати, регулювати

Commodity Exchange - товарно-сировинна біржа

Stock Exchange - фондова біржа

timber - деревина

hides - шкіри

jute - джут

to auction - продавати з аукціону

grading – класифікація

CIF (cost, insurance, freight) – СІФ (вартість, страхування, фрахт)

warehousing costs - складські витрати

charges - витрати, видатки

spot - бірж, реальний товар; товар за касовими угодами

terminal market - ринок продажу товарів за готівку; терміновий біржовий ринок

(Великобританія)

3. Read and translate the text exchanges

An exchange is an organized meeting of persons in a permanent appointed place with the aim of buying and selling. The trading there is governed by certain rules and is limited to members of the exchange, who are known as brokers. There are two main types of exchanges: the Com­modity Exchange and the Stock Exchange.

Commodity Exchange (or produce exchange) is a market in which com­modities (raw materials and some manufactured goods) are bought and sold for immediate or future delivery. Commodity markets/exchanges have been established in important cities of Great Britain, the USA and other countries for trading in cotton, wool, timber, wheat, hides and skins and other such commodities. It is not necessary for the commodities to be physically exchanged; only rights to ownership need to be.

In Great Britain there are, for example, the Coal Exchange, the Timber Exchange, the Home and Foreign Produce Exchange and others, of which the following are world known: the Metal Exchange, the Wool Exchange, the grain market in the Baltic Exchange; furs are sold in Beaver House, the diamond trade is centered in Hatton Garden, and tea and rubber have their home in Plantation House. This building also accommodates the London Commodity Exchange dealing with cocoa and coffee, sugar and spices, vegetable oils and jute. London has important commodity markets arising partly from its industrial and colonial history, and partly from the nature of its foreign trade.

Outside London there are two commodity markets in Liverpool: the Cotton Exchange and the grain market. In the USA the best known are the Board of Trade in Chicago (corn), the New York Produce Exchange, the New York Cotton Exchange, the New York Coffee and Sugar Exchange.

The old practice of auctioning commodities from warehouse in which samples could be inspected beforehand has become less important. An efficient system of grading and modern systems of communication have enabled the practice of CIF trading to develop. A buyer can buy a com­modity in the country of origin for delivery CIF to a specified port at which he can off-load for direct delivery to his own premises. This method saves warehousing costs and auction charges. However, many auctions still take place in London, e.g. tea, wool and furs. The market not only enables commodities to be sold spot or for delivery at some specified time and place, but it also includes a market in futures. This latter enables mer­chants to avoid the effect of price fluctuations by buying for forward deli­very. Main terminal markets are situated in London and New York.

Stock Exchanges are places where securities, stocks and bonds are sold and bought. The most famous stock exchanges are the Royal Exchange in London and New York Stock Exchange.

The London Stock Exchange has a unique method of operation in that it divides its members into brokers and jobbers. The brokers do business with the public, but the jobbers do business only with brokers, and with each other. On the Stock Exchange the business of buying and selling shares is called dealing and a transaction is called a deal.

The fluctuation of prices on exchanges influences to a great extent the prices of the various commodities on the world market.