Assignments

I. Answer the questions.

1. Where do bank’s lendable funds come from?

2. What are the three C’s of credit?

3. What is a potential borrower’s credit-worthiness determined by?

4. What does the loan applicant’s ability to repay the loan depend on?

5. What does a bank usually consider to be the maximum term for normal commercial loans?

6. What is the "lead bank"?

7. Why is a syndicate desirable for large loans?

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

1. In order to execute a loan, a bank must have funds to lend.

2. Banks make loans only for worthwhile purposes: financing trade, expanding business, and so on.

3. Capital, the financial position of the borrower, is determined by examining the borrower’s financial statement.

4. This usually consists of a detailed balance sheet and a profit and loss statement.

5. The bank credit officer requests a company seeking credit to provide audited financial statements covering the previous three years.

III. Translate the following sentences into English.

1. Банкір завжди має пам’ятати, що гроші, які він надає у позику, не є власними грошима його банку.

2. Здатність того, хто звертається по позику, виплатити її залежить певною мірою від мети позики.

3. Перш за все слід вивчити економічні та політичні перспективи іноземної країни перед тим, як надати позику іноземному позичальнику.

4. Якщо банк вирішує надати позику, перш за все слід обрати відсоткову ставку, що є ціною за одержання грошей позичальником.

IV. Name the following definitions.

1. A type of lending whereby individual disbursements are not evidenced by notes, but by a master agreement.

2. A company’s financial condition on a stated date as viewed by independent auditors.

3. The part of a company’s overall statement that lists what the company owns and owes.

4. Money transferred to a person or company in return for a signed promise to return the money, with interest, by a stated future date.

5. The negative balance in a checking account that occurs when a bank pays checks for an amount greater than that which the customer has in the account.

6. The amount of money actually contributed to a company by its owners for the company’s use.

7. A loan not supported by collateral.

(Keys: unsecured loan, overdraft, paid-in capital, profit and loss statement, collateral, audited financial statement, loan)

V. Make a scheme to the procedure of lending money by the bank.

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. Make sentences with the Complex Subject / Complex Object basing on the text.

VIII. Sum up what the text says about commercial bank lending.

Text 3 Warm-up

1. Translate the following word combinations: overseas buyer, cash flow, export contract, national currency, foreign currency, international payment, to collect funds, same-day transaction, to be subject to a loss, in due course, at first sight, to save time, it is worth consulting.

2. Have you ever remitted money? What does the procedure include?