V. Speech practice exercises

1. Answer the questions:

1. You’ve learnt that the word banking came from Italian, meaning bench. The word you should guess also comes from Italian. It means bench-broken and referes to the old custom in Italy of breaking the benches used by moneylenders when they failed. What is this word?

2. Have you ever applied to a bank for any services? What types of services were you offered?

3. Probably you get monthly grants for your studies in the University. Then you must have got a special plastic card to withdraw cash from your bank account. Explain how you operate an automated cash machine (a dispenser).

4. Imagine you apply for credit as it can help you afford larger purchases – such as a home, car, a tour to Europe, or something else – by spreading payments over a long period of time. What would you choose to buy on credit first of all? How much money would you borrow from a bank? What interest rate would suit you?

5. Installment loans may be secured (guaranteed by assets you own) or unsecured. What assets could you use as collateral if a loan you want to take needs to be secured?

6. A business company needs $300,000 to accomplish construction in progress (незавершённое строительство). The bank makes the company a two-year fixed rate construction mortgage loan for $300,000 with an interest rate of 9 %. How much money will the company have to pay off the bank at the mature date? What might happen if the company fails to repay the loan?

7. Name some banks in your city you know. Which bank do you think the most reliable one and why?

8. Imagine you need to buy some foreign currency. What bank department would you apply to?

9. Exchange rates are floating (колеблются) according to supply and demand. Do you know the current ruble-per- U.S. dollar exchange rate and ruble-per-euro exchange rate? What is the current exchange rate for the Russian ruble relative to the Japanese yen and the Chinese yuan?

10. In the near future you will graduate from the University with a degree in Economics. Would you like to try your hand in the banking business? Do you think banking is a promising field for a business career and why?

2. Translate into English:

1. В древние времена не было банков. Люди, называемые менялами, были первыми в истории «банкирами». В особых прочных ящиках они держали деньги других людей для сохранения.

2. Европа – родина банковского дела. Первый официальный банк был учреждён в итальянском городе Венеция в конце 16-го века.

3. В наши дни финансовые институты подразделяются на депозитные и недепозитные учреждения. Депозитные институты принимают вклады, которые клиенты могут изымать по требованию. Примером депозитного финансового института является коммерческий банк.

4. Недепозитные финансовые институты не открывают чековых и сбере­гательных счетов, но предлагают различные финансовые услуги, такие как кредитование или страхование.

5. Примерами недепозитных финансовых институтов являются пенси­он­ные фонды, страховые компании и финансовые компании.

7. Bank of America является одним из крупнейших коммерческих банков мира. Основанный в Сан-Франциско в 1904 г. А.П. Джианнини, он пер­во­начально назывался Bank of Italy. Банк держит 12 % всех вкладов в США и обслуживает клиентов в ста пятидесяти странах мира.

8. Основная функция банков – исполнять роль посредника между теми, кто хочет сберечь деньги, и теми, кто хочет их занять.

9. Коммерческие банки предлагают кредиты частным лицам и предприя­тиям. Займы, которые банки предлагают предприятиям, называются ссудами торгово-промышленным предприятиям.

10. Ссуды торгово-промышленным предприятиям могут быть обеспе­чен­ными и необеспеченными. Как правило, компании должны обеспечивать ссуду залогом, который конфискуется банком, если заёмщик не в состоянии погасить ссуду.

11. Потребительские ссуды обычно выпускаются (to issue) в форме кре­дита с погашением в рассрочку. Банки выпускают потребительские ссуды для покупки дорогих товаров, таких как автомобиль, лодка, ме­бель и т.д.

12. Если вы платите 15 рублей за каждые сто рублей, которые зани­маете, то ваша процентная ставка составляет 15 %. Таким образом, если основная сумма долга равна 60-ти тысячам рублей, то годовой процент на эту сумму составит 9 тысяч рублей. Если вы взяли кредит на два года, вам придётся выплатить банку 78 тысяч рублей.

13. Прайм-рейт – это самая низкая процентная ставка, назначаемая банками для своих самых кредитоспособных клиентов.

14. Компьютер и продвинутые телекоммуникационные технологии пол­ностью изменили современное банковское дело. Вы можете выполнять слож­­ные финансовые операции на компьютере дома или на работе. Вы мо­же­те использовать беспроводные устройства, например свой сотовый теле­фон.

15. Онлайновые банковские операции позволяют покупать и продавать акции и облигации (bonds), покупать продукты или авиабилеты, не покидая дома.

3. Read the dialogue and think how you could finish it.

Michael Torn, the Chairman of Westfirst Bank, is interviewed by TV star

Norma Baker.

Norma - Hello, I’m Norma Baker and you’re watching Business Matters, a weekly program. I invite you to pick up your phone when you need to contact us. Today we’ll talk about things which touch all of us when we settle our financial problems – these are banks and banking services. Our guest is Michael Torn – the Chairman of Westfirst Bank. Westfirst Bank is well known as one of the largest and most reliable commercial banks in the Northwest. It is very kind of Mr. Torn to take part in our talk show.

Mr. Torn - Thank you, Norma and good evening everybody. It’s a good chance for me to greet the present customers of Westfirst and our potential savers and borrowers. At Westfirst, we know that convenience and customer service are the two things people look for when choosing a bank for their checking account, the right type of credit, or savings and investment selections. Richard Williams, the founder of Westfirst, said once that the major purpose of the bank was to serve its customers to their best advantage. We always keep to this philosophy.

Norma - Glad to hear that, Mr. Torn, as I’m also your potential customer. Could you give us some figures to illustrate the bank’s present performance?

Mr. Torn - At the end of the last fiscal year, the bank assets totalled about 100 billion dollars with net income exceeding 300 million dollars. The bank has more than 100,000 stockholders and about 4 million checking and savings accounts. We have over 500 branches in the Northwest and about 250 in other countries.

Norma - Sounds impressive, thank you, Mr. Torn. And now let’s talk about credit – it’s the topic of the day for many householders. Buying things on credit is something most of us will do many times in our lives. Whether it’s for a new home, a boat, a personal computer, a car, or your child’s education, the right type of credit can help make your dreams a reality. Mr. Torn, what types of credit does your bank offer?

Mr. Torn - No two people have exactly the same credit needs. That’s why there are many different types of credit available. At Westfirst we have a wide variety of credit choices including installment loans, home loans, auto leases, student loans, and many others. The bank employees are experts at helping you find the right program to fit your particular needs.

Norma - Meanwhile the studio operators are accepting calls from people watching our program. Tom Chesley, a student of the Seattle Pacific University is the first to have contacted us. Tom asked if he could get a subsidized student loan and what requirements he should fulfill then.

Mr. Torn - At Westfirst we offer subsidized or guaranteed student loans. With these low-interest variable rate loans you make no payments until six months after you leave college that means after you’ve had a chance to get a job and establish some financial independence. What’s more, while you’re in college the government pays all interest charges. To qualify for a subsidized loan, you need to show financial need. The loan amounts available and qualifying criteria are set by each individual college. Tom, you should contact your college’s Office of Financial Aid.

Norma - Mr. Torn, many people with limited abilities have called the studio. They asked how they would do their banking if they couldn’t leave their homes.

Mr. Torn - I’ve told you already that convenience and customer service were always alpha and omega of the Westfirst philosophy. We believe the best way to serve you is by giving you choices. Choices that allow you to decide what works best for you, for your life style. We’re constantly looking for ways to make banking easier. And our best ideas come from our customers. You can apply for your loan from the privacy of your home or office by calling our 24-hour customer service phone line. You can talk directly with a Westfirst Representative any time of the day or night. Westfirst makes banking easier for you with access to over 3000 cash machines throughout the West, as well as 80,000 cash machines worldwide. And you may use your home computer as well. Computerized Banking Centers offer breakthrough technology of online banking. You can transfer money, check account balances, and pay bills 24 hours a day, seven days a week on your PCs.

Norma - Thank you, Mr. Torn. I think your customers feel sure that the bank management is staying on top of things. We have a few minutes more before we break for commercials. John Silver, a farmer from Bremerton and a Westfirst account holder, informed us that he was going to obtain installment credit for a new car and he wanted to know the credit terms.

Mr. Torn - What’s the price of the car?

Norma - Mr. Silver said it cost $15,000.

Mr. Torn - Well, let me think… My calculator is just what is wanted! A five year fixed-rate loan for a $15,000 new car, with 20 % down, requires a $12,000 loan. Based on an interest rate of 9.25 % and standard loan fees of $130, this loan would have 60 payments of $253.27 each month. The annual percentage rate would be 9.64 %.

Norma - I appreciate your competent advice for us very much, Mr. Torn. Dear friends, we’ll meet in a few minutes to go on with Business Matters. Thank you, and stay with us!