Assignments

I. Answer the questions.

1. What was the comparative value of each nation’s money determined by, when gold coins exclusively were used as the money of nations and city-states?

2. What does the state of a nation’s trade balance of payments help determine?

3. What are the rates of exchange determined by?

4. What is the foreign exchange market?

5. Why does the trading day in the foreign exchange market never end?

6. What do the participants in the foreign exchange market include?

7. When does trading occur?

II. Translate the following sentences into Ukrainian. Put questions to any two of them.

1. Until a few years ago, countries were required to maintain the rate of exchange of their currencies within a few percentage points of the par value.

2. As demand fluctuates, the rate fluctuates too – rising when demand is greater than supply and declining when supply exceeds demand.

3. The participants in the market include the major international banks (trading primarily for the accounts of their customers); brokers, central banks, and large corporations with international activities (trading usually to protect their currency from short-term fluctuations); and individuals (trading as speculators and investors).

4. A businessman who knows he will be paid for the sale of machinery within thirty days can arrange with his banker today to settle the rate of exchange at which the bank will buy the foreign currency when it is delivered.

III. Translate the following sentences into English.

1. Кожна країна має свою валюту з такими назвами, як долар, фунт, марка, песо, ліра, песета, крона, франк тощо.

2. Кожна основна валюта має номінальну вартість, яка зазвичай офіційно визначається відносно вартості золота.

3. Торгівельний день ніколи не закінчується: він починається у Європі з початком ділового дня і прямує за сонцем на захід, як, у свою чергу, починається і закінчується діловий день кожної країни.

4. Брокер є корисним джерелмо інформації про ринок для різних його учасників, оскільки він володіє картиною коливань у попиті та пропозиції різних валют протягом торгівельного дня.

5. Торговець валют повинен приймати швидкі рішення, які базуються на математичних підрахунках.

IV. Name the following definitions:

A.1. Value, which is usually defined, officially, in terms of gold. In practice, however, little or no trading occurs at this rate.

2. It is an international market with no central trading place, a market in which business is conducted by foreign exchange traders around the world linked by telephones and cables.

3. The person, who brings both sides of the transaction quickly together by telephoning the buyer and seller and arriving at a mutually acceptable rate.

4. Trading for prompt delivery.

B. 1. Simultaneous purchase and sale of foreign currency in different markets to profit from rate differentials.

2. The exchange rate between each of three or more currencies.

3. The delivery of and payment for foreign exchange.

4. The trading of foreign exchange for settlement in two business days.

5. Purchasing and selling commodities, articles of trade or commerce, for future receipt or delivery.

V. State the main problems presented in this text.

VI. Find in the text and translate all sentences with Infinitives; define functions of the Infinitives (a subject, attribute, object, adverbial modifier, part of a predicate).

VII. Sum up what the text says about the foreign exchange market.