5. Answer the following questions based on text a:

1. What are the two main reasons for opening a bank account?

2. Which type of account is used by those who wish to save?

3. What kind of saving is this type of account most suited to?

4. What is a standing order?

5. Why does a bank sometimes need notice of intention to withdraw money from saving accounts?

6. What is the most common use of current accounts?

7. Why is it not a good idea to retain large balance in a current account?

6. Explain the following expressions.

To reconcile a statement with one's own records, to have a joint account, to have an overdraft, to cover an outstanding cheque, to give your banker a notice, to make a withdrawal, to calculate interest on, to pay interest, to open a passbook savings deposit, to repay an overdraft.

7. Choose the right answer:

1. «A current account» is:

a) one which is available for the time being, b) one in which savings are held, c) one which is used all the time for day-to-day transactions.

2. «A canceled cheque» means:

a) worthless cheque, b) stamped to indicate that payment has been made, c) crossed cheque.

3. «A genuine signature» is:

a) a person's name written by himself, b) a person's name written correctly, c) legible signature,

4. «An outstanding cheque» means:

a) unpaid cheque, b) written but not yet presented for payment, c) overdue cheque.

5. «A deposit account» is:

a) one from which regular payments are made, b) one in which savings are held, c) one from which withdrawals can be made by cheque.

6. «Rate of interest» is:

a) the percentage of each unit of money paid for its use, b) rate of profitability, c) portion of an investment on which the interest is calculated.

7. «An overdraft» is:

a) an amount by which the balance in a current account exceeds the value of a cheque drawn from it, b) an amount by which the value of a cheque exceeds the balance in the current account, c) an excessive balance in a current account.

8. For each of the following phrases find the expression in the text or in the dialogue that explains it.

To record figures in a ledger; money paid for the use of someone's money; to increase in quantity; the date when a loan or investment is due; a specified period of time; to protect against loss or damage; at the rate of 5% each year; an instruction to a banker to make payments at regular intervals; an instruction to a banker to make a single payment to a specified person.

9. Fill in the blanks with proper words or phrases.

Mr. Collins and his wife have a current account in both their names. They have a … They both work and put money into the account. They both make … .Sometimes they get mixed up about the amounts of money they have removed from their account. They get confused about their … .Once or twice the amount remaining in their account has become too low. They have had too small a … .The next cheque they wrote was for more money than they had in their account. They had an … .The only way they could restore the balance was to get a record of their deposits and withdrawals from the bank. So they asked for a … .They also had the cheques which had been stamped to indicate that payment bad been made. They had their ... cheques. Then they added up the cheques that had been written but had not been paid by the bank yet. They totaled their … .cheques. They also subtracted from their balance the bank charges and interest on the … Finally they managed to make their records agree with the bank's statement. They ... their account.