5. Answer the following questions based on text a:

1. What two kinds of borrowings are possible?

2. In what circumstances is an overdraft on current account permissible?

3. How are personal loans usually repaid?

4. Will you pay back more than you borrowed? What will the difference be?

5. What information will the manager require for a personal loan?

6. What information will he require for a business loan?

7. What other things will he take into account?

8. What will he need from you to make the loan safer for him?

9. What does a businessman mean by his expected rate of return?

10. Why might this be important to the bank manager?

11. What kind of things might you offer as collateral for a personal loan?

6. Explain the following expressions:

to promise as security, to pay off debts, to grant a permission to borrow money, to make regular payments on the borrowed money, to judge the value of something, to guarantee the payment of the loan, to give a mortgage on one's furniture and other movable possessions, to give a deed to the property as security for the loan, to sign with someone a document and share the obligation.

7. Choose the right answer:

1. «Application for loan» means:

a) granting loan, b) asking to be granted loan, c) refusal to grant loan.

2. «Balance sheet» denotes:

a) total profit, b) total revenues, c) a document which shows the state of a business at a particular moment.

3. «Indebtedness» here means:

a) repayment, b) owing thanks, c) debt, borrowing.

4. «Security» in this sense is:

a) bonds, share certificates and other titles to property, b) safety, c) a guarantee of payment.

5. «Principal» here means:

a) the most important information, b) the amount of the original loan, c) the chief item or person.

6. «My loan is due for repayment» means:

a) my loan has reached maturity, b) my loan has been paid off, c) my loan has been extended.

7. «Holdings free of encumbrance» means:

a) holdings heavily in debt, b) the encumbrance isn't very large, c) property or security clear of indebtedness.

8. «My net worth»means:

a) the value of one's holdings after all obligations have been paid, b) any personal or movable possession, c) net earnings.

9. «A co-signer» denotes:

a) a person who holds a deed to the property, b) a person who signs a document with another person and shares the obligation, c) a lawyer who prepares a trust deed.

10. «Title to property» is:

a) the record or proof of ownership of property, b) the name of the person who owns the property, c) a word indicating a high financial rank.

8. Complete the following sentences in English.

1. Most people need more money than …

2. If a manager permits an overdraft on current account he is likely …

3. Businesses whose payments and receipts are often irregular will frequently need …

4. A separate account is opened to …

5. Personal loans usually have to be repaid out of an income which …

6. Sometimes people do not ask for enough money because …

7. Finally the manager will consider whether or not you really …

8. For a business good security might be …