Vocabulary: Banks

1. Practice reading the topical vocabulary from the Word File and translate it. Word File

1 conceivable adj. like any business be after a profit above all commodity n sell v to put it simply seek v buy v cheaply adv. dearly adv. annual adj. FRS at an interest of 11 % interest rate this is what be busy

2 naturally adv. bring smb profit this is why keep up to date with shift v various adj. cost n besides this promote the growth cause the demise 3 be interested in keep money in circulation reduce v lending rates in order to attract v

cuts n make up for v increase n amount n 4 in the pursuit get involved in fraught adj. therefore take measures minimize the danger go broke be obliged take out insurance against smth bankruptcy n lest in any case cater to v

Reading about Banks

2. Scan the text and answer these questions.

• How is the central bank of America called?

• What kind of bank lends money to buy a house or apartment?

1 No population centre in America, even the smallest one is conceivable without a bank building. A small town may have several banks, and in a big city there are tens of them. Like any business, a bank is after a profit above all. Money is the commodity it sells. To put it simply, a bank seeks to “buy” money cheaply (not necessary from the Federal Reserve System) at an annual six percent interest, for example, and to sell it dearly (as credit to a building company) at an interest rate of eleven percent. This is what the banks are busy doing. There are many variations with this pattern, of course.

2 Naturally, the banks put their money where it brings them the highest profit. This is why they keep up to date with the market situation. By shifting money of various costs from sphere to sphere, form one geographical region to another, the banks actively stimulate progress in industry, construction and agriculture. Besides this, the banks promote the growth – or cause the demise – of individual population centres or even whole regions.

3 Banks are interested in keeping most of their money in circulation so that it should bring them profit. They seek to reduce lending rates in order to attract buyers. The cuts in interest rates are more than made up for by an increase in the amount of money in circulation.

4 In the pursuit of high profit, the banks sometimes get involved in risky operations fraught with bankruptcy. Therefore the Federal government takes measures to minimize the danger of banks going broke. Every bank is obliged to take out insurance against robbery or bankruptcy lest the clients should lose their money in any case.

The banks cater to big and small companies and individuals.

Vocabulary exercises

3. Match synonyms and antonyms.

1 cheaply 2 in order to 3 building 4 reduce 5 go broke 6 promote the growth 7 big 8 buy 9 this is why

construction therefore go bankrupt lest cause the demise dearly sell cut small

4. Fill in spaces with necessary words from the text and translate them.

is after a … bring them … in the pursuit of high … the cuts in interest … to reduce … rates

annual interest … at an … rate of 11% keeping most of their money in … … … System to take out … against bankruptcy

5. Give English equivalents.

a) банк, Федеральный Резервный Банк, здание банка, десятки банков, чреватые банкротством, застраховаться от банкротства;

b) население, населенный центр, ни один населенный центр, отдельные населенные центры;

c) ставка, процентная ставка, годовая процентная ставка, снижение процентных ставок, заемные ставки;

d) прибыль, стремиться к прибыли, приносить прибыль, в погоне за высокой прибылью, самая большая прибыль;

e) деньги, вкладывать деньги, перемещать деньги, держать большую часть денег в обращении, увеличение суммы денег в обращении.