MODULE 3.

MONEY AND BANKING

UNIT 1. MONEY vs. CURRENCY

Lesson 1

Task 1. Study the etymology of the word “MONEY”.

Etymology: MONEY
Perhaps from Latin monere (advise, warn), with the sense of “admobishing
goddess,” which is “sensible”, but etymology is difficult → Latin monēta
(coinage) – a title of the Roman goddess Juno, in or near whose temple money
was coined; → Old French moneie → late 13th century English (coinage, metal
currency) → extended in the early 19th century to include paper money.

Task 2. Look at the following example sentences revealing the meaning of the
word “MONEY”. Make up similar sentences.
1. For my money, you’re just about the only one who does something useful
around here. – На мій погляд, ти єдина тут людина, яка займається
чимось корисним.
2. For my money, you were the only actor in the play who was worth watching.
– На мою думку, ти єдиний актор, якого варто було подивитися у цій
п’єсі.
3. Now that we’re in the money we can afford this journey. – Зараз, коли у нас
є гроші, ми можемо поїхати у цю подорож.
4. We’re in the money. – У нас знову завелася монета.
5. You must have money to burn. – У тебе, мабуть, повно грошей, раз ти їх
так витрачаєш.
6. With all that money to burn he had no particular place to go to. – Хоча у
нього були повні кишені грошей, йому не було особливо куди піти.
7. This is the only country in the world that can put its money where its mouth
is. – Це єдина в світі країна, яка може підкріпити свої слова ділом.
8. If this is such a good stock, you buy it. Put your money where your mouth
is! – Якщо це настільки надійні акції, то і купуй їх. А то ти лишень
радиш, а сам цього не робиш!
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9. These people are flush with money. – У них гроші кури не клюють.
10. Tom is always very flush with money or very hard up. – Том завжди або
розкидається грішми, або на мілині.
11. Babysitting is money for old rope if the children don’t wake up. – Догляд за
дітьми – це легкий хліб, якщо вони увесь час сплять.
12. Lend your money and lose your friend. – Хочеш втратити друга, позич
йому гроші.
13. Clearly, she married (into) money. – Було очевидно, що вона вийшла
заміж за розрахунком (“за гроші”).
14. Money answers all things. – З грішми можна досягнути всього. Гроші
можуть усе зробити. (Ecclesiastes X, 19).
15. “Money draws money,” the proverb says. – Як говориться, гроші до
грошей.
16. Money doesn’t grow on trees. – Гроші під ногами не валяються.
17. Money has no smell. – Гроші не пахнуть (pecunia non olet; слова, що
приписують римському імператору Віспасіану, який встановив
податок на громадські туалети).
18. Money is a good servant, but a bad master. – Людина повинна
розпоряджатися грішми, а не гроші людиною.
19. Here, you know, “money makes the man”, as the vulgar proverb has it. – У
нас “гроші роблять людину”, як говорить цинічне прислів’я.
20. Money spent on the brain is never spent in vain. – Гроші, потрачені на
освіту, завжди окупаються.
21. Don’t become dependent on soft money. – Не думай, що гроші тобі будуть
так легко діставатися.
22. “Your money or your life!..” said a rough voice. – “Гаманець або життя!..”
– вимовив хтось грубим голосом.

Task 3. Singular or plural?

WHICH WORD? MONEY vs. MONEYS / MONIES

 Money is what you can use to buy and sell things and earn through your
work, investments, sales, etc.; coins or paper notes; a person’s wealth
including their property;
 Moneys / monies [`mAniz] – a pecuniary sum or income; sums of money.

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Task 4. Translate into Ukrainian taking into account the meanings of the word
“MONEY”.
1. Гроші; фонди; фінанси; платіжний засіб; багатство; власність;
національна валюта;
2. грошові суми; монетні системи, валюти;

1. He lost all his money. 2. I counted the money carefully. 3. How much money is there
in my account? 4. Where can I change my money into dollars? 5. I make more money in
this job than in the last one. 6. It’s a statement of all monies paid into your account. 7. I
started my business because I wanted to make money. 8. Factory automation systems
can save you time and money. 9. If the item is not satisfactory, you will get your money
back. 10. Smaller companies have found it difficult to borrow money to invest in assets.

Task 5. a) Study the words meaning “MONEY”.

1. cash – coins or notes that can be spent immediately: I don’t have any
cash, I’ll have to pay with a card.
2. (small) change – coins that are not of high value: Do you have any change for the
phone?
3. currency – the specific type of money used by a particular country: We
don’t accept foreign currency, I’m afraid.
4. dosh [dO∫] / – (very informal) a slang word for money: Simon can pay, he’s
[dα:∫] got loads of dosh!
5. the readies – (very informal) money that you can spend immediately such as
[`rediz] banknotes or coins: Come on, hand over the readies!
6. means – money that allows you to survive: I just don’t have the means to
go on living in such a big house.
7. savings – money that you have saved in order to spend it later: We spent
half our savings on the lawyer’s fees.
8. legal tender – (formal) coins or notes that are officially accepted in a particular
[`li:gəl country: As of December 4th, the £1 note will no longer be legal
`tendə] tender.
9. specie [`spi:∫i] – coin money, as distinguished from bullion or paper money:
Immobilization is removing specie from circulation and holding
it as a reserve.

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b) Which of the above words means:
 бабки (про гроші);
 готівка (гроші);
 гроші; готівка; розрахунок готівкою; каса, грошові засоби;
 грошовий обіг; валюта, гроші;
 грошові засоби; багатство, достатки, статок;
 дзвінка монета; гроші; металеві гроші (на противагу паперовим грошам);
 дрібні гроші;
 законний платіжний засіб; законний засіб платежу;
 заощадження?
Task 6. Translate into Ukrainian paying special attention to the words in italics.
1. I’ll give you the rest of money in cash. 2. Some of the supermarket checkouts only
take cash. 3. Don’t forget you change! 4. The ticket machine gives change. 5. I had to
change my euros into local currency. 6. A weaker currency would help our exports. 7.
That would cost much dosh. 8. I have no dosh on me. 9. I need the readies by tomorrow.
10. They currently do not have the means to pay their bills. 11. Many consumers live
beyond their means. 12. He used his savings to start up his own company. 13. The money
for the flight came out of my savings. 14. These coins are no longer legal tender. 15.
Paper money is paper currency issued by the government or the central bank as legal
tender and which circulates as a substitute for specie. 16. In 1779 one paper dollar was
worth only two or three cents in specie.
Task 7. Study the derivatives of the word “MONEY”.
age lender box

MONEY-

changer bags grubber

b) Which of the above word-combinations means:
 the right to coin;
 (humorous) a rich person;
 a piggy bank;
 someone whose job is to exchange money of one country for money of another country;
 a person extremely interested in getting money;
 a person or organization that lends money to people, especially at a high rate of interest?

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Task 8. Think and answer.
1. Why do many people keep their money in piggybanks instead of depositing it to a
bank account? When do people tend to keep their money in piggybanks?
2. What can make a person a moneygrubber? Do all moneygrubbers become
moneybags? Would you like to be a moneybags? Why?
3. How do functions of moneychangers differ from those of moneylenders?
4. Who can act as a moneychanger? Where do moneychangers transact their business?
5. Do all banks have moneyage?
Task 9. a) Match the underlined phrases in column A with their interpretation in column
B.
A B
1. She spends money like water. a) BrE informal money that you earn very easily
2. Hold on – I’m not made of without much work or effort;
b) I have a lot of money and can buy what I want;
money, you know. c) suddenly has got a lot of money, (e.g. has won
3. This is money for old rope. it or has been given it);
4. I want the best car you’ve got. d) spends a lot of money on things he does not
Money is no object. need;
e) spoken don’t have large amounts of money;
5. He is in the money and throws f) informal spends too much money in a careless
his money around. way;
b) Translate into English.
1. Транжирити гроші; розкидатися, смітити грішми; 2. багатющий; 3. дармові
гроші; 4. гроші – не проблема; за ціною не постоїмо; 5. бути багатим; мати гроші.
c) Think and answer.
1. Have you ever earned money for old rope?
2. Why do some people throw their money around?
3. Are you not made of money?
4. Have you ever been in the money?
5. Do all people in the money tend to spend money like water? Why?
d) Learn more about the origins of some words and phrases.
1. To make money “earn pay” is first attested in the middle 15th century.
2. Highwayman’s threat “your money or your life” was first attested in 1841.
3. Phrase “in the money” (1902) originally meant “one who finishes among the
prize-winners” (in a horse race, etc.).
4. The challenge to put (one’s) money where (onene’s) mouth is is first recorded in
1942.
5. Moneybags – “rich person” is from 1818; money-grubber – “one who is sordidly
intent on amassing money” is from 1768.

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Task 10. a) Study the word usage.

WHICH WORD? MAKE or EARN?

 You can make or earn money, a living or a fortune.
 Earn emphasizes the work you have to do to get the money.
 If the money comes as interest or profit, and the subject is a person use make: She
earned a fortune on the stock market.
 If the subject is a business or factory, use either word: The plant will make / earn
£950 million for the UK.
 If the subject is the money itself use earn: Your money would earn (make) more in
a high-interest account.

Task 11. Practice reading the following words.

1. to accept [ək`sept] 23. ideal [(ֽ)aı`dıəl] / [(ֽ)aı`di:əl]
2. allowance [ə`lauənts] 24. intrinsic [ın`trıntsık]
3. array [ə`reı] 25. island [`aılənd]
4. available [ə`veıləbəl] 26. liquor [`lıkə] / [`lıkər]
5. bead [bi:d] 27. lure [ljuə] 58% / [luər] 42%
6. bullet [`bulıt] 28. moral [`mOrəl] / [`mO:rəl]
7. cigarette [ֽsıgə`ret] / [`sıgəret] 29. object [`ObGekt] / [`α:bGekt]
8. colonist [`kOlənıst] / [`kα:lənıst] 30. Pacific [pə`sıfık]
9. confusion [kən`fju:ჳən] 31. platinum [`plætınəm] / [`plætənəm]
10. cowries [`kauəriz] 32. salarium [sal`arium]
11. dishonesty [()ֽ dıs`Onısti] / 33. salt [sO:lt]
[()ֽ dıs`α:nısti] 34. to seduce [sı`dju:s] / [sı`du:s]
12. to distinguish [dı`stıŋgwı∫] 35. Sophocles [`sOfəkli:z] / [`sα:fəkli:z]
13. dynasty [`dınəsti] / [`daınəsti] 36. sure [∫O:] / [∫uər]
14. earth [ə:θ] 37. Tibet [tı`bet]
15. Ethiopia [ֽi:θi`əupiə] 38. tobacco [tə`bækəu]
16. evil [`i:vəl] 39. wampum [`wOmpəm] / [`wα:mpəm]
17. extensively [ık`stentsıvli] 40. to warp [wO:p] / [wO:rp]
18. fashion [`fæ∫ən] 41. whale [weıəl] / [hweıəl]
19. fiat [`fi:æt] 42. wheel [wi:əl] / [hwi:əl]
20. Fiji [`fi:Gi:] 43. worthless [`wə:θləs]
21. hearth [hα:θ] / [hα:rθ] 44. Yap [jæp]
22. honoured [`Onəd] / [`α:nərəd]

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Task 12. Read the text.
What is Money?
Money, like fire and the wheel, has been around for a very long time.
No one knows for sure how long or what the origins of money are. The first
instances of money were objects with intrinsic value. This is called commodity
money and includes any commonly-available commodity that has intrinsic value.
An incredible array of items have served as money – wampum (beads made
from shells) were used by North American Indians; cowries (brightly coloured
shells) were used in India; whales’ teeth were used in Fiji; large stone disks were
used in the Pacific island of Yap; cigarettes and liquor have been used in more
modern times; tobacco was used by early American colonists; throughout the
colonies, gunpowder and bullets were frequently used for small change; the first
paper money issued by the federal government consisted of $10 million worth of
“greenbacks,” printed in 1861 to finance the Civil War; even cakes of salt have
served as money in Ethiopia, Africa, and Tibet. The Roman army was paid in salt
– an allowance called salarium (which is the origin of the word salary). The first
known example of paper money occurred in China during the Ming dynasty (1368
– 1399 A.D.). This form of money was also used extensively throughout Europe
in the Middle Ages.
Sophocles [`sOfəkli:z], the ancient Greek playwright, had very strong opinions
about the role of money. As he saw it, “Of evils upon earth, the worst is money.”
It is money that sacks cities, and drives men forth from hearth and home; warps and
seduces native intelligence, and breeds a habit of dishonesty.”
In modern times, people may still be seduced by the lure of money and fashion
their lives around its pursuit. Nevertheless, it is hard to imagine an economy
functioning without money. Money affects not only morals and ideals, but also the
way an economy works.
What is money? Money isn’t exactly what we think it is. Much confusion
exits about money and currency. This confusion makes some experts claim that
there is no money at all.
People do distinguish between “cash” and “money,” and for good reason.
There are really three types of money: hard money, soft money and no-money.
Hard money, if there were any, would be gold, silver, or platinum. These are
the noble metals and are called hard money because they are hard assets with real
universal value.
Soft money would be paper money backed by hard money. This would
include silver or gold certificates which were backed by silver or gold. We do not
use hard or soft money anymore.

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 The third type of money is no-money. That is paper money backed by
nothing of value. This is also called fiat money. Really it is not money at all, it is
currency. Currency can take many forms. It is anything accepted as a medium of
exchange. The currency of the United States, for example, is the Federal Reserve
Note which is backed by nothing of value.
Fiat money is an intrinsically worthless (or almost worthless) commodity that
serves the functions of money. The term fiat means by government order. People
are willing to accept fiat money in exchange for the goods and services they sell
only because they know it will be honoured when they go to buy goods and
services. The bills and coins that we use today – collectively known as currency –
are examples of fiat money. Because of the creation of fiat money, people are
willing to accept a piece of paper with a special watermark, printed in ink, and
worth not more than a few cents as a commodity, in exchange for expensive goods
and services.

Vocabulary notes:
1. instance [`ın stən s] – приклад; випадок; зразок; окремий факт;
t t

2. intrinsic value [ın`trıntsık] – дійсна (реальна) вартість; внутрішня

вартість; внутрішня цінність; притаманне значення;
3. commodity money [kə`mOdəti] / [kə`mα:dəti] – товарні гроші;
4. array [ə`reı] – велика кількість, безліч, сила-силенна, сукупність;
5. wampum [`wOmpəm] / [`wα:mpəm] – намисто з черепашок (у індіанців);
6. cowries [`kauəriz] – каурі (мушля, що замінювала гроші в окремих
частинах Азії та Африки);
7. gunpowder [`gAnֽpaudə] – порох;
8. “greenbacks” [`gri:nbæk] – “грінбеки” (“зелені спинки”) – не забезпечені
золотом паперові гроші, які випускалися для фінансування
Громадянської війни за рішенням Конгресу від 25 лютого 1862 р.;
9. salarium [sal`arium] – соляний пайок (який видавався військово-
службовцям та цивільним чиновникам); оклад, утримання;
10. allowance [ə`lauənts] – утримання (річне, місячне і т.д.); кишенькові
гроші (на повсякденні дрібні витрати);
11. to sack cities – грабувати, віддавати на пограбування (захоплені міста);
12. hearth [hα:θ] / [hα:rθ] – дім; домашнє вогнище;
13. to warp [wO:p] / [wO:rp] – перекручувати, спотворювати;
14. to seduce [sı`dju:s] / [sı`du:s] – спокушати, зваблювати;
15. native intelligence [`neıtıv ın`telıGənts] – вроджений, природний інтелект;
16. to breed [bri:d] – породжувати; спричинювати;
17. lure [ljuə] / [luər] – спокуса; спокусливість;
18. to fashion [`fæ∫ən] – надавати вигляду (форми); утворювати, робити;
формувати, моделювати; змінювати, перетворювати; пристосовувати;
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19. pursuit [pə`sju:t] / [pər`su:t] – переслідування, гонитва; прагнення,
пошуки;
20. currency [`kArəntsi] – грошовий обіг; валюта, гроші;
21. to distinguish (between) [dı`stıŋgwı∫] – розрізняти; побачити, помітити;
відрізняти(ся), відзначати(ся);
22. for good reason [`ri:zən] – небезпідставно; обґрунтовано; з вагомих
(поважних) причин;
23. hard money – металічні гроші, монети; готівка; дзвінка монета;
24. soft money – паперові гроші; дармові гроші;
25. no-money – несправжні гроші, “не гроші”;
26. noble metal [`nəubəl `metəl] – благородний метал;
27. fiat money [`fi:æt `mAni] – паперові гроші (не забезпечені золотом);
нерозмінні (декретні) гроші;
28. intrinsically worthless [ın`trıntsıkəli `wə:θləs] – по суті нічого не вартий
(нікчемний);
29. to honour [`Onə] / [`α:nər] – оплатити (чек, тратту); виконати
(зобов’язання);
30. bill – амер. банкнота;
31. watermark [`wO:təmα:k] / [`wO:tərmα:rk] – водяний знак (на папері).

Task 13. Agree or disagree with the following statements.

1. The word “money” is of Greek origin.
2. The origin of money is closely connected with creating the wheel.
3. The first instances of money were intrinsically worthless objects.
4. Commodity money can be of various kinds.
5. Wampum, cowries, whales’ teeth, large stone disks, cigarettes and liquor are
some examples of fiat money.
6. “Greenbacks” were the first paper money issued by the U.S. federal
government.
7. The word “salary” derived from “salt”.
8. Of evils upon earth, the worst is money.
9. An economy could hardly function without money.
10. Money affects morals and ideals.
11. Money and currency are frequently confused.
12. Hard money has real universal value.
13. Soft money is backed by hard money.
14. Hard and soft money are widespread these days.
15. No-money is most common type of money these days.
16. Fiat money is not money at all, it is currency.
17. There are few forms of currency.

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18. The term fiat money means “assets of Fabrica Italiana Automobili Torino
(FIAT) [`fi:ət]”.
19. People are generally unwilling to accept fiat money in exchange for the goods
and services.
20. The bills and coins that we use today are examples of no-money.

Task 14. a) Match the terms in column A with their definitions in column B:
A B
1. allowance a) a hidden design on a piece of paper that you can
2. watermark only see when you hold the paper up near a light;
3. noble metals b) the real value that a company, an asset, etc. has,
4. intrinsic value rather than the current value as shown, for
5. native intelligence example, by share prices or its market value;
c) mental abilities that a person has had since birth;
d) valuable metals such as gold, silver, or platinum;
e) an amount of money that is paid to someone
regularly or on particular occasions by their
employer or by the state, to help them pay for
travel, food, somewhere to live or other expenses;

b) Translate into Ukrainian paying special attention to the words in italics.

1. The company gives me a travel allowance.
2. Watermarks make it difficult to counterfeit banknotes.
3. The company’s intrinsic value is well above $25 per share.
4. Students are encouraged to develop their native intelligence.
5. Backing is the support in gold or precious metals for a country’s issue of
money in notes.

Task 15. a) Find 11 pairs of synonyms among the words given below.
1. Allowance; 2. array; 3. beginning; 4. case; 5. to fashion; 6. incredible; 7.
instance; 8. item; 9. noble; 10. object; 11. origin; 12. payment; 13. to plunder; 14.
pocket money; 15. precious; 16. range; 17. to sack; 18. to shape; 19. small change;
20. unbelievable; 21. value; 22. worth.

Task 16. a) Find in the text “What is Money?” (Task 12) the words opposite in
meaning:
1. Cheap; 2. to doubt, to hesitate, to be uncertain; 3. extrinsic; 4. rarely; 5. to
reject; 6. specific; 7. unavailable; 8. unreasonably; 9. unwilling; 10. valuable.

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b) Use antonyms of the above words (Task 16 a) in the following sentences.
1. The first money were objects with _____ value.
2. No one _____ when and where money originated.
3. Fiat money is intrinsically _____ (or almost _____).
4. Commodity money is not commonly-_____ these days.
5. People do distinguish between “cash” and “money,” and _____.
6. Paper money was used _____ throughout Europe in the Middle Ages.
7. People are willing _____ fiat money in exchange for the goods and services.
8. Noble metals are called hard money because they are hard assets with real
_____ value.

Task 17. “Odd man out.” In each line cross out a word that in its meaning differs
from the others. Explain your choice.
1. Money – fire – wheel;
2. wampum – cowries – gunpowder;
3. stones – liquor – tobacco;
4. the Civil War – the Ming dynasty – the Middle Ages;
5. “greenbacks” – platinum – soft money;
6. native intelligence – a habit of dishonesty – lure;
7. cash – money – currency;
8. coin – watermark – ink;

Task 18. Fill in the blanks with noun or adjective forms. Use your dictionary if
necessary.
NOUN ADJECTIVE
1. ----------- moneyed
2. origin -----------
3. ----------- objective
4. value -----------
5. ----------- inclusive
6. extension -----------
7. ----------- intelligent
8. habit -----------
9. ----------- dishonest
10. confusion -----------
11. ----------- noble
12. worth -----------
13. ----------- willing
14. creation -----------
15. ----------- expensive

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Task 19. Use the correct noun or adjective forms in the sentences. Change the
grammatical form of the words if necessary.
1. moneyed
a) Standing for a limited monarchy, this political party represented the great
aristocracy and the _____ middle class.
b) She seems to be in _____ these days.

2. origin
a) The _____ of the Internet go back to the 1950s.
b) Our _____ plan was to go to Spain, but it was too expensive.

3. objective
a) The important thing is to be _____ when making decisions.
b) He had the appearance of a man to whom time was no _____.

4. value
a) Money is said to have time _____: the sooner received, the higher the
_____.
b) It’s rather attractive, but not _____.

5. inclusive
a) It’s a fully _____ price.
b) With the _____ of Italy next season, the number of member countries will
increase to six.

6. extension
a) _____ strategy is a plan for reaching new customers for an exciting product
by making small changes to it, finding new uses for it.
b) They made _____ use of computers.

7. intelligent
a) That’s a very _____ question.
b) He is a person of average _____.

8. habit
a) John’s boss discharged him because of _____ absenteeism.
b) He’s a _____ of habit.

9. dishonest
a) It would be unfair to accuse him of _____.
b) Moneygrubbers are not essentially _____.
12
10. confusion
a) There’s much _____ in word usage.
b) Don’t _____ “money” and “currency”.

11. noble
a) He followed his principles with _____.
b) _____ metals gain their value in the times of crisis.

12. worth
a) A job interview should enable applicants to show their _____.
b) The technology is practically _____ if people don’t know how to use it.

13. willing
a) People have not always been _____ to accept soft money as a medium of
exchange.
b) He can change his personality at _____.

14. creation
a) We encourage employees to engage in _____ thinking.
b) _____ of new terms often adds to existing confusion.

15. expensive
a) Labour is the airline industry’s biggest _____.
b) What is the least _____ option?

Task 20. Complete the sentences.

1. No one knows for sure when and where … . 2. Any commonly-available
commodity with intrinsic value can … . 3. Throughout the history a large number
of items have been … 4. “Greenbacks”, the first U.S. paper money were printed …
. 5. The Roman army was paid … . 6. The first known example of paper money
… . 7. Paper money was also used extensively … . 8. Of evils upon earth, … . 9.
Many people fashion their lives … . 10. Money affects both ideals and … . 11. There
are really three types of money: hard money, … . 12. Soft money is paper money
backed … . 13. Currency is anything accepted … . 14. Fiat money is an
intrinsically worthless … . 15. The bills and coins that we use today are … .

13
Task 21. Translate into English.
1. Гроші, як вогонь і колесо, поруч з людиною уже давно. 2. Ніхто не знає
напевне, звідки з’явилися гроші. 3. Першими грішми були предмети, які
мали реальну цінність. 4. Першими зразками грошей були товарні гроші. 5.
Величезна кількість речей використовувались як товарні гроші. 6. Перші
відомі історикам паперові гроші з’явились у Китаї наприкінці 14 століття.
7. “Грінбеки” стали першими паперовими грішми, надрукованими
федеральним урядом у 1861 році для фінансування Громадянської війни. 8.
Римським воїнам платили сіллю. 9. З усіх лих на землі найгіршим є гроші.
10. Гроші спотворюють та зваблюють природний інтелект. 11. У наш час
люди будують своє життя навколо гонитви за грішми. 12. Економіку, яка
функціонує без грошей, важко собі уявити. 13. Гроші – це не зовсім те, про
що ми звикли думати. 14. Через термінологічну плутанину дехто з фахівців
стверджує, що грошей не існує взагалі. 15. Насправді існує три типи
грошей: металеві гроші, паперові гроші та декретні гроші. 16. Металеві
гроші мають універсальну цінність. 17. Паперові гроші підтримуються
сріблом та золотом. 18. Декретні гроші є товаром, який не має власної
внутрішньої вартості і слугує як засіб обміну. 19. Банкноти і монети, які ми
сьогодні використовуємо, є прикладами декретних грошей. 20. Люди з
готовністю приймають клаптики паперу із спеціальними водяними
знаками, на яких надруковано чорнилом, в обмін на дорогі товари й
послуги.

Task 22. Answer the questions.

1. Are scientists sure about the origin of money?
2. What were the first instances of money?
3. Can any object serve as commodity money?
4. What examples of commodity money are given in the text?
5. Have large stone disks ever been used as money?
6. What is the origin of the word “salary”?
7. Were “greenbacks” the first known example of paper money? Explain.
8. When did the first known example of paper money occur?
9. Paper money was widespread in Europe in the Middle Ages, wasn’t it?
10. What strong opinions about the role of money did Sophocles have? Do you
share the opinion of the ancient Greek playwright?
11. What do you consider the worst evils upon earth? Give your reasons.
12. Does money sack cities, and drive men forth from hearth and home these days?
Why?
13. In modern times, the majority of people are still seduced by the lure of money,
aren’t they?
14
14. Do you fashion your life around money and its pursuit?
15. Is it easy to imagine an economy functioning without money?
16. How does money affect your (your friends’) ideals?
17. Why do some experts claim that there is no money at all?
18. What is your concept of money?
19. Can you see the difference between money and currency?
20. Most people do distinguish between “cash” and “money”, don’t they?
21. What are the three major types of money these days?
22. What is hard money?
23. What is soft money backed by?
24. Do we use hard and soft money these days?
25. What is known as fiat money?
26. Why can currency take many forms?
27. Fiat money is represented by intrinsically valuable objects, isn’t it?
28. What does the term “fiat” mean?
29. Why are people willing to accept fiat money in exchange for the goods and
services they sell?
30. Are modern bills and coins examples of fiat money?

Task 23. Say what you know about:

1. Etymology of the word “money”.
2. The development of money.
3. The importance of money for the economy.
4. The effect of money on morals and ideals.
5. The difference between “money” and “currency”.
6. The three types of money: hard money, soft money, and no-money.

Task 24. Comment on the following sayings.

1. Of evils upon earth, the worst is money.
2. Money answers all things.
3. Money draws money.
4. Money doesn’t grow on trees.
5. Money has no smell.
6. Money is a good servant, but a bad master.
7. Money spent on the brain is never spent in vain.

15
 Lesson 2

Task 1. a) The word “CURRENCY” has a range of meanings:

The system Money that

of money is used in a
used in a CURRENCY particular
particular country
country

The state of being approved of The period of time during

or used by many people in a which something is valid,
society accepted or in use
b) Which meaning of the word is revealed in the following sentences?
1. What is the currency of a contract?
2. The euro is the single European currency.
3. A weaker currency would help our exports.
4. I had to change my euros into local currency.
5. Since the Gulf war, the term has gained new currency.
6. All the modernist styles have become common currency.
7. The government has devalued the national currency by 29%.
8. The idea of withdrawing from the war has gained wide currency.
9. You can use credit cards but it’s best to take some currency as well.
10. The dollar rose against European currencies but fell against the Japanese yen.
11. The facts must remain true and accurate during the currency of the advertisement.
12. English has become the key to the international currencies of technology and
commerce.
c) Check your answers referring to the Ukrainian equivalents of “CURRENCY”.
 Грошовий обіг (рух грошей у процесі виробництва й обігу товарів, надання
послуг і здійснення платежів);
 валюта (національна грошова одиниця якоїсь країни);
 гроші;
 засіб обігу (гроші, а також будь-який актив, який використовують як засіб
обігу, наприклад, монети, банкноти, чеки, векселі, боргові розписки і т.д.);
 розповсюдження, застосовність, придатність; вживаність;
 тривалість;
 термін дії (чого-небудь, наприклад, контракту, страхового полісу і т.д.).

16
Task 2. a) Study the table illustrating the currency bloc for the dollar.
Letter Number
CURRENCY COUNTRY
code code
Australian dollar AUD 036 Australia Австралія
Bahamian dollar BSD 044 Bahamas Багами
Barbados dollar BBD 052 Barbados Барбадос
Belize dollar BZD 084 Belize Беліз
Bermudian dollar BMD 060 Bermuda Бермудські о-ви
Brunei dollar BND 096 Brunei Бруней
Canadian dollar CAD 124 Canada Канада
Cayman Islands KYD 136 Cayman Islands Кайманові о-ви
dollar
East Caribbean dollar XCD 951 East Caribbean Острівні держа-
ви Карибського
басейну
Fiji dollar FJD 242 Fiji Фіджі
Guyana dollar GYD 328 Guyana Гайана
Hong Kong dollar HKD 344 Hong Kong Гонконг
Jamaican dollar JMD 388 Jamaica Ямайка
Liberian dollar LRD 430 Liberia Ліберія
Namibia dollar NAD 516 Namibia Намібія
new Taiwan dollar TWD 901 Taiwan Тайвань
New Zealand dollar NZD 554 New Zealand Нова Зеландія
Surinam dollar SRD 392 Surinam Сурінам
Trinidad and Tobago TTD 780 Trinidad and Трінідад і Тобаго
dollar Tobago
US dollar USD 840 USA, Haiti, США, Гаїті,
Panama, Puerto- Панама, Пуерто-
Rico, Guam, East Ріко, Гуам, Схід-
Timor etc. ний Тимор і.т.д.
Zimbabwe dollar ZWD 716 Zimbabwe Зімбабве
b) Some other widespread currencies are:
Dinar [`di:nα:] / [dı`nα:r] (Bahrein, Jordan, Iraq, Kuwait, Tunisia); Peso [`peısəu]
(Argentina, Dominican Republic, Cuba, Mexico, Uruguay, Philippines); Franc (Congo,
Niger, Senegal, Central African Republic, Chad); Pound (Ireland, Egypt, Cyprus,
Lebanon, Syria).

17
c) Think and answer.
1. Why are some currencies particularly widespread worldwide?
2. What is the area of distribution of the euro? (What is the euro bloc?)

Task 3. a) The words below frequently occur after “CURRENCY”.

note exchange pair

snake CURRENCY market

peg cocktail bloc

b) Which of the above word-combinations means:

 a market in which traders buy and sell currencies;
 a group of countries that use the same type of money;
 money of a particular system in the form of banknotes;
 the relation in value between two particular currencies;
 the act of changing the money of one country to the money of another
country;
 an economic policy in which the value of a country’s currency is linked to
that of a foreign currency;
 a fixed group of different currencies which some countries use to set a value
for their own currency; the value that is calculated for this group;
 the mechanism of establishing exchange rates adopted by some European
countries in 1972 (the mechanism suggested that exchange rate fluctuations
between member countries could not exceed 2,25%).

Task 4. Translate the sentences taking into account the Ukrainian equivalents of
the above word combinations.
1. Зміна валютного курсу в рамках встановлених меж; європейська
валютна змія (1972-1979 рр.); “змія в тунелі” / “змія всередині тунелю”
(обмінні курси можуть “повзати” у певних межах, заданих “стінками
тунелю”);
2. “валютный коктейль” (розмовний термін, який застосовують
стосовно валютних корзин);
3. валюта; грошовий стандарт; курс іноземної валюти;
4. прив’язка однієї валюти до іншої;
5. валютний ринок;

18
6. валютний блок;
7. валютна пара;
8. банкноти.

1. The dollar fell against the currency cocktail including the yen, the euro and the
Canadian dollar. 2. The creation of the euro currency bloc facilitated integration
processes on the European continent. 3. The euro weakened against the dollar on
the currency markets. 4. The old currency notes have been taken out of
circulation. 5. The euro and the United States dollar are the most popular
currency pair. 6. The government was forced to abandon the one-to-one currency
peg with the dollar. 7. Is there a currency exchange office nearby? 8. European
currency snake was eventually replaced by the European Monetary System in
1979.

Task 5. a) The words below frequently occur in front of “CURRENCY”.

floating key wild cat

hard CURRENCY sound

blocked depreciated domestic

b) Translate into English.

1. Паперові гроші, які нічого не варті; 2. місцева (національна, вітчизняна)
валюта; 3. “плаваюча валюта” (валюта, курс обміну якої може падати чи
підніматися відповідно до попиту й пропозиції на ринку; при цьому вплив
таких органів, як центральний банк, зведено до мінімуму); 4. ключова
валюта (загальновизнана в світі валюта, що використовується для
міжнародних розрахунків, як база для визначення валютних курсів і для
створення резервів); 5. стійка (тверда) валюта (стійка валюта зі
стабільним курсом, від якої у найближчому майбутньому не чекають
знецінення); дефіцитна валюта; 6. знецінена валюта; 7. тверда (сильна,
стійка) валюта (валюта зі стабільним курсом по відношенню до інших
валют; такі валюти зазвичай вільно обмінюються на інші валюти й
широко використовуються у міжнародних угодах як засіб платежу);
металеві гроші (гроші у формі золотих або срібних монет на відміну від
паперових грошей); 8. блокована валюта (валюта, яку можна лише
тратити на потреби держави і заборонено вивозити за її межі або
обмінювати на інші валюти).
19
Task 6. Think and answer.
1. Why do some currencies get depreciated?
2. Have you ever held wild cat currency in your hands?
3. What is Ukraine’s domestic currency? Is it a sound currency?
4. Is the hryvnia a floating currency? What is needed to make a currency floating?
5. Is it wise to keep your savings in two or three hard currencies?
6. What are the advantages of keeping your savings in domestic currency?
7. Do people tend to get rid of depreciated currency? What do they do for that?
8. Why can a currency get blocked? Can you give examples of blocked currencies?
9. What is the key currency these days?

Task 7. a) Study the following words.

VOCABULARY Describing what happens to currencies

BUILDING
Deciding the value of a currency
 Many developing economies have their currencies pegged to the dollar.
 The government allowed the peso to float freely.
 Countries devalued their currencies to encourage exports.
 They revalued the currency to reflect the change in economic growth.
Increases in value
 The yen has appreciated around 7.5% against the dollar so far this year.
 The Swiss franc is strengthening against the euro.
Decreases in value
 The central bank cannot afford to defend a depreciating currency.
 The dinar weakened by 5% to the euro.

b) Think and answer.

1. Why do many developing economies have their currencies pegged to a sound
currency? Is our domestic currency pegged to a hard currency?
2. What are the risks and advantages of allowing a domestic currency to float
freely?
3. Why do some governments devalue national currencies?
4. Under what circumstances can the need to revalue a currency arise?
5. Has the hryvnia appreciated or weakened against the dollar so far this year?
6. Is the euro strengthening against the dollar these days?
7. Who is responsible for defending a depreciating domestic currency? What
measures can be taken by these institutions? Are they always efficient?

20
Task 8. Practice reading the following words.
1. actually [`ækt∫uəli] 21. imaginary [ı`mæGınəri]
2. allow [ə`lau] 22. intangible [ın`tændჳəbəl]
3. alter [`O:ltə] / [`O:ltər] 23. interchangeably [ֽıntə`t∫eındჳəbəl]
4. analogy [ə`næləGi] 24. merely [`mıəli] / [`mırli]
5. angle [`æŋgəl] 25. nonetheless [ֽnAnðə`les]
6. artist [`α:tıst] / [`α:rtəst] 26. to overestimate [ֽəuvər`estımeıt]
7. awkward [`O:kwəd] / [`O:kwərd] 27. participant [pα:`tısıpənt]
8. calculation [ֽkælkju`leı∫ən] 28. permanent [`pə:mənənt]
9. capture [`kæpt∫ə] / [`kæpt∫ər] 29. quote [kwəut] / [kwout]
10. circulate [`sə:kjuleıt] 30. relative [`relətıv]
11. conceptual [kən`sept∫uəl] 31. screeching [skri:t∫ıŋ]
12. confuse [kən`fju:z] 32. standardised [`stændədaızd]
13. convenient [kən`vi:niənt] 33. straight [streıt]
14. create [kri`eıt] 34. symbol [`sımbəl]
15. criteria [kraı`tıəria] 35. touch [tAt∫]
16. deposits [dı`pOzıts] 36. through [θru:]
17. enable [ın`eıbəl] 37. unreal [()ֽ An`rıəl] / [()ֽ An`ri:əl]
18. facilitate [fə`sıləteıt] 38. value [`vælju:]
19. grasp [grα:sp] / [græsp] 39. viewed [vju:d]
20. halt [hO:lt] 40. whereas [weər`æz] / [hwer`æz]

Task 9. Read the text.

Money vs. Currency
People are taught to believe there is money, but the value only exists in human
minds. We go through life believing we are working for money, when in reality we are
not.
Since money is unreal, it would be convenient to have something real to represent
it. We need something we can get our hands on to use in our daily lives. So, human mind
invented currency to represent money.
Most people confuse money and currency as the same thing. Although the two
terms are often used interchangeably, there is a difference between them.
Money is often viewed as a tool of economic calculation that enables the
communication of value, whereas currency is the medium that facilitates an exchange
between participants in a market.
Put another way, money is conceptual, whereas currency is physical – money
allows the mental calculation of relative value, whereas currency is the thing that actually
changes hands.

21
 Some analogies from our everyday life will help to explain the concepts of
“money” and “currency”. Let’s compare art with photographs. A picture painted by an
artist is that artist’s unreal conception. It may be of a real subject, but it is nonetheless the
artist’s conception, or unreal idea, of what it looks like. Most photographs, on the other
hand, are a true representation of the subject. A straight photo tends to be real. So,
understanding the idea that money as an imaginary concept should not be too difficult.
Thus, the two concepts can be understood in the following way:
1. Money is unreal, meaning imaginary, intangible. You can not hold money in
your hand, not you, not any one else.
2. Currency is NOT money, but merely represents money. Currency is physical.
We can not hold unreal money in our hands, but we can grasp and trade real
currency that represents our unreal money.
Money exists as an unreal concept to enable us to run our economy easier. Money
must only represent the value of human labour (including services) and the natural
resources labour touches.
Nonetheless, the importance of money cannot be overestimated. Without money,
we would be forced to trade eggs for shoes in the terribly awkward and slow process of
barter. Our economy would come to a screeching halt. The imaginary concept of money
is very useful in representing values (which are also unreal).
In a modern economy most of the money is made up of deposits at banks and other
financial institutions. These institutions can actually create money – by making loans.
Thus, money is created, not printed. It is created by the activities of commercial
banks and other financial institutions – by all those institutions whose deposits circulate
as a medium of exchange.
Of course, it is much too easy to start calling currency money. People get to thinking
that printing currency is printing money, but that is far from the truth. Printing currency
is just printing ink on paper. Currency is printed on paper or minted from cheap metal.
Basically, currency is the units in which prices are quoted. Examples of such units
of currency are U.S. dollars or Ukrainian hryvnia.
Currency is money in any form used as a medium of exchange. The real paper bills
and metal coins that we hold in our hands is currency. Checks, money orders, credit
cards, and cigarettes if you are in prison, are all accepted mediums of exchange, but they
aren’t money either.
Currency was introduced as a standardised money to facilitate a wider exchange of
goods and services. It speeds up the process, making it faster and easier. The amount of
currency we have depends on the amount of money in the economy. If we are short on
money, we run short on currency.
Three criteria must be met in order for something to be money. It must be an
accepted medium of exchange, it must be a store of value, and it must be the unit of
account. If there were any real money it would meet all three of these criteria.
At the same time, only one criterion need be met for something to be currency. It

22
only needs to be accepted as a medium of exchange. In most cases it is also a temporary
store of value, but not a permanent store of value.

Vocabulary Notes:
1. to go through life [θru:] – йти по життю;
2. to get hands on – взяти(ся); схопити(ся); вхопити(ся);
3. economic calculation [ֽi:kə`nOmık ֽkælkju`leı∫ən] – економічний розрахунок /
підрахунок;
4. to enable [ın`eıbəl] – давати змогу (право) (щось зробити); робити можливим,
полегшувати;
5. to facilitate [fə`sıləteıt] – полегшувати; допомагати; просувати; сприяти;
6. to allow [ə`lau] – дозволяти; надавати, робити можливим; допускати,
припускати, визнавати;
7. relative value [`relətıv `vælju:] – відносна вартість; відносна цінність (одних
цінних паперів щодо інших у даний момент);
8. conception [kən`sept∫ən] – розуміння; поняття; концепція; задум;
9. to tend – мати тенденцію; схилятися (до чогось); мати нахил (до чогось);
10. intangible [ın`tændჳəbəl] – невідчутний (на дотик); невловимий;
незбагненний, незрозумілий;
11. merely [`mıəli] / [`mırli] – тільки, лише; просто;
12. to grasp [grα:sp] / [græsp] – хапати; схоплювати; затискати (в руці);
13. value of human labour – вартість людської праці;
14. to overestimate [ֽəuvər`estımeıt] – переоцінювати; оцінювати занадто високо;
15. to be forced to do something – бути змушений щось зробити;
16. awkward [`O:kwəd] / [`O:kwərd] – незграбний; незручний; скрутний;
ніяковий;
17. to come to a screeching halt [skri:t∫ıŋ hO:lt] – загальмувати зі скрипом;
(різко) зупинитися зі скрипом гальм;
18. deposits at banks [dı`pOzıts] – вклади у банки;
19. to make a loan – надавати позику;
20. to circulate [`sə:kjuleıt] – обертатися, циркулювати; бути в обігу;
21. to get to thinking – стати думати; прийти до висновку;
22. to mint [mınt] – чеканити, карбувати (монети);
23. to quote price [kwəut] / [kwout] – публікувати ціну товару;
24. money order – платіжне доручення; грошовий переказ (поштовий);
25. credit card – платіжна пластикова картка, кредитна картка;
26. to be short on money – відчувати нестачу, брак (чогось); потребувати (щось);
не вистачати;
27. to run short – закінчуватися;
28. to meet criteria [kraı`tıəria] – відповідати критеріям; задовольняти критерії;
29. store of value – засіб заощадження;
30. unit of account – одиниця обліку; розрахункова одиниця;

23
31. temporary – тимчасовий;
32. permanent [`pə:mənənt] – постійний, незмінний; довгочасний; перманентний.

Task 10. Tick the correct sentence.

1. People believe there is money, but the value only exists in human minds. ____
People believe that the value only exists in human minds. ____
2. Most people are not working for money, when in reality they are. ____
Most people think they are working for money, when in reality they are ____
not.
3. Human mind invented money to represent currency. ____
Human mind invented currency to represent money. ____
4. Money and currency is the same thing. ____
Money and currency are interchangeable. ____
5. Money is physical, whereas currency is conceptual. ____
Money is conceptual, whereas currency is physical. ____
6. You can not hold money in your hand, not you, not any one else. ____
You can not hold currency in your hand, not you, not any one else. ____
7. Money is NOT currency, but merely represents currency. ____
Currency is NOT money, but merely represents money. ____
8. In a modern economy most of the money is made up of deposits at banks ____
and other financial institutions.
In a modern economy most of the money is made up of currency in ____
piggybanks.
9. Financial institutions can create money – by issuing it. ____
Financial institutions can create money – by making loans. ____
10. Money is created, not printed or minted. ____
Currency is created, not printed or minted. ____
11. Money is the units in which prices are quoted. ____
Currency is the units in which prices are quoted. ____

12. The real paper bills and metal coins that we hold in our hands is currency. ____
The real paper bills and metal coins that we hold in our hands is money. ____
13. Checks, money orders, credit cards aren’t money. ____
Checks, money orders, credit cards are money. ____

24
 14. If we are short on money, we run short on currency. ____
If we are short on money, we gain more currency. ____
15. Only one criterion need be met for something to be money. ____
Three criteria must be met in order for something to be money. ____
16. In most cases currency is a temporary store of value. ____
In most cases currency is a permanent store of value. ____

Task 11. Identify the features of money and currency.

FEATURE MONEY CURRENCY
1. real
2. unreal
3. physical
4. intangible
5. imaginary
6. conceptual
7. can be created
8. must be a store of value
9. people can grasp and trade
10. represents imaginary value
11. must be the unit of account
12. only exists in human minds
13. a tool of economic calculation
14. people cannot hold in their hands
15. medium that facilitates an exchange
16. is the units in which prices are quoted
17. is mostly made up of deposits at banks
18. enables people to run the economy easier
19. must be an accepted medium of exchange
20. only represents the value of human labour
21. a temporary (not permanent) store of value
22. allows the mental calculation of relative value
23. is printed on paper or minted from cheap metal

Task 12. a) Find synonyms among the following words from the text (Task 9).
1. To allow; 2. conceptual; 3. to enable; 4. imaginary; 5. to facilitate; 6. medium; 7. to
get hands on; 8. mental; 9. to grasp; 10. tool; 11. to make faster; 12. to speed up; 13.
unreal; 14. intangible.
25
b) Use the above words in the sentences of your own.

Task 13. a) In the text “Money vs. Currency” (Task 9) find the sentences which
contain the following word combinations. Translate the sentences.
1. To get hands on;
2. to change hands;
3. on the other hand;
4. hold money in your hand.

b) Translate the following sentences into Ukrainian. Use your dictionary if necessary.
1. A weakened currency and poverty go hand in hand.
2. Devalued domestic currency plays into the hands of exporters.
3. The Central bank took a hand in the domestic currency revaluation.
4. Depreciating currency made many families live from hand to mouth.
5. The government set its hands to strengthening of the national currency.
6. The Central Bank did not lend a hand to defend a depreciating currency.
7. By a floating currency the exchange rate gets out of hand of the Central
Bank.

Task 14. Fill in the blanks with the most appropriate terms from the box.
check to borrow facilitating
worth purchases store of value
income exchanges checkable deposits
balance to transfer financial institutions
to accept repayment medium of exchange
Our ability to use money in market transactions depends on sellers’ willingness
(1)_____ money as a (2)_____. Accordingly, money plays an essential role in
(3)_____ the continuous series of (4)_____ that characterize a market economy.
Money is also a useful (5)_____, that is, a mechanism for transforming current
(6)_____ into future (7)_____. Finally, common use of money serves as a standard
of value for comparing the market (8)_____ of different goods.
The most important component of money today is (9)_____ at banks and
other (10)_____. Neither checks nor credit cards are money.
A (11)_____ is an instruction to a bank (12)_____ money from one account
to another. Money is the (13)_____ in the account itself.
A credit card is an ID card that enables a person (14)_____ at the instant a
purchase is made on the promise of repaying later. When (15)_____ is made,
money (currency or a checkable deposit) is used for the payment.
26
Task 15. Answer the questions.
1. The value only exists in human minds, doesn’t it?
2. Why did human mind invent currency? What does currency represent?
3. Why do most people confuse money and currency as the same thing?
4. Are the terms “money” and “currency” often used interchangeably?
5. What is often viewed as a tool of economic calculation that enables the
communication of value?
6. What facilitates an exchange between participants in a market?
7. Does money allow the mental calculation of relative value?
8. Currency is the thing that actually changes hands, isn’t it?
9. What analogies from our everyday life can help to explain the concepts of “money”
and “currency”?
10. Is money tangible or intangible?
11. What unreal concept enables people to run the economy easier?
12. Why can’t the importance of money be overestimated?
13. What is most of the money in a modern economy made up of?
14. How is money created?
15. What is printed on paper or minted from cheap metal?
16. What is currency?
17. Are checks, money orders, credit cards money?
18. What does currency facilitate? What does it speed up?
19. How does the amount of currency depend on the amount of money in the economy?
20. What criteria must be met in order for something to be money? What about
currency?

Task 16. Translate into English.

1. Ми звикли вважати, що гроші існують, у той час як вартість існує лише в нашій
свідомості. 2. Людський розум винайшов валюту, щоб представляти гроші. 3.
Більшість людей ототожнюють гроші й валюту. 4. Хоча терміни “гроші” і
“валюта” взаємопов’язані, між ними існує різниця. 5. Гроші часто розглядаються
як інструмент економічного розрахунку. 6. Гроші роблять можливою передачу
(представлення; повідомлення) вартості. 7. Валюта – це засіб, який полегшує
обмін між учасниками ринку. 8. Гроші є уявними, в той час як валюта – фізична.
9. Валюта – не гроші, а лише те, що їх репрезентує. 10. Не можна недооцінювати
важливість грошей. 11. Без грошей наша економіка одразу ж зупинилася б. 12. У
сучасній економіці більшість грошей складається з депозитів у фінансових
установах. 13. Гроші створюються за рахунок надання кредитів. 14. Валюта – це
гроші у будь-якій формі, що застосовуються як засіб обміну. 15. Чеки, поштові
грошові перекази, кредитні картки є засобами обміну, але не грішми. 16. Валюта
27
друкується на папері або карбується з дешевого металу. 17. Валюта – це одиниці,
в яких заявляються ціни. 18. Сума валюти, яка у нас є, залежить від кількості
грошей в економіці. 19. Гроші повинні задовольняти три критерії. 20. Валюта є в
більшості тимчасовим засобом заощадження.

Task 17. Say what you know about:

1. The confusion which exists in public mind as to the essence of money and currency.
2. The reasons for inventing currency.
3. The importance of money for a modern economy.
4. Ways of printing currency / creating money.
5. Different forms of currency.
6. Criteria needed for distinguishing currency / money.

Task 18. Comment on the following statements.

1. Money only exists in human mind.
2. We haven’t the money, so we’ve got to think. (Lord Rutherford)
3. In reality people are not working for money.
4. “If you had your life to live over again – you’d need more money.”
(Construction Digest)
5. Devaluation and poverty go hand in hand.
6. It is much too easy to start calling currency money.
7. The importance of money cannot be overestimated.
8. “If money is your hope for independence you will never have it. The only
real security that a man will have in this world is a reserve of knowledge,
experience, and ability.” (Henry Ford)
9. English is the key to the international currencies of technology and
commerce.
10. “I am not interested in money but in the things of which money is symbol”
(Henry Ford)

28
UNIT 2. BANKS AND BANKING

Lesson 1

Task 1. The word “BANK” has a wide range of meanings.

An organization that provides various

financial services to people and
businesses
a large mass of an office of a
cloud or fog bank

BANK

a place where an amount or a

something is stored number of
ready for use something
collected together
a raised area of
land along the
side of a river

Task 2. a) The words below frequently occur in front of “BANK”.

snow soil earth

bottle BANK sand

data home far

b) Which of the above word combinations mean:

1. Вал ґрунту; 2. відмілина; 3. земляний насип; 4. кучугура снігу; 5. “банк
пляшок” (контейнер для використаних пляшок, скляних банок; зазвичай
встановлюється місцевими органами влади на автостоянках; скло йде на
виробництво нових пляшок); 6. протилежний берег; 7. свій (рідний) берег;
29
8. банк даних?
c) Translate into Ukrainian paying special attention to the words in italics.
1. Many generations of the Dutch worked hard to create earth banks which made
it possible for them to cultivate soil in the lowlands (the Netherlands).
2. It is very important to separate your glass into the three colours and place them
into the correct color-coded bottle bank.
3. River navigation is always complicated by treacherous sand banks.
4. After a long journey he was happy to set foot on the home bank.
5. Nothing troubled me at my parting from the home bank.
6. These soil banks are the remains of the ancient fortress.
7. The traffic was blocked by huge snow banks.
8. The library has an impressive data bank.
9. A man was fishing on the far bank.
10. Great snow banks lined the roads.

Task 3. Read the following example sentences and make up similar sentences of
your own.
1. You can’t put it in the bank. – Це ні до чого; від цього немає ніякого
толку; “спасибі” в кишеню не покладеш.
2. I have always banked with the Royal Bank. – Я завжди тримав свої гроші
в Королівському банку.
3. I’d like to come with you but that’s not a promise; don’t bank on it. – Я із
задоволенням пішов би з тобою, але я нічого не обіцяю.
4. Don’t bank on going abroad this summer; we may not have enough money.
– Не розраховуй на поїздку закордон наступним літом, у нас може не
бути на це грошей.
5. Within the banks of his remembrance he has always been homesick. –
Наскільки він міг згадати, він завжди погано переносив розлучення з
домівкою.
6. Every spring we have to bank up the river to prevent flooding. – Кожної
весни нам доводиться насипати вали вздовж річки, щоб нас не
затопило.
7. The wind had banked the snow up against the wall. – Від сильного вітру
біля стіни виросла велика кучугура снігу.
8. The morning began fine, but now clouds are banking up. – Ранок був
чудовий, але зараз небо затягується хмарами.
9. He gave me down the banks for no coming and telling him. – Він висварив
мене за те, що я не прийшов і не розповів йому про це.
10. Yesterday he broke the bank, so today he is in money again. – Учора він
зірвав куш (банк), отож сьогодні він знову з грішми.
30
Task 4. a) Read the notes revealing the meaning of a “bank holiday”.
1. банківський вихідний (будь-яке державне свято, під час якого банки
не працюють), офіційний вихідний день (окрім неділь, в англійських
закладах є ще вісім вихідних днів на рік: Різдво, Новий рік, Велика
(страсна) п’ятниця, перший понеділок після Великодня, останній
понеділок травня або перший понеділок червня, останній понеділок
серпня або перший понеділок вересня, День різдвяних подарунків
(Boxing Day) і з 1978 р. – Перше травня; у ці дні банківські працівники
відпочивають);
2. банківські канікули (вихідні);
3. банківські канікули (період, упродовж якого банківські операції
призупинено за рішенням державних органів; найбільш відомі банків-
ські канікули – період мораторію на банківські операції з 6 по 9 березня
1933 року, коли за наказом президента Ф.Д. Рузвельта всі банки США
були закриті з метою визначення їхньої платоспроможності в умовах
Великої депресії).

b) Answer the questions.

1. What is a bank holiday?
2. How many bank holidays are there in Great Britain?
3. What are they?
4. Is Christmas a bank holiday?
5. Does Boxing Day have anything to do with Christmas?
6. What are the most famous banking holidays in the USA?
7. What was the purpose of arranging bank holidays of the 6 th–9th of March
1933 in the United States?
8. What period in history is known as the Great Depression?
9. Can the economic and financial crisis of 2008-2009 be called the Great
Depression? Why?
10. Most bank holidays fall to Mondays, don’t they?
11. In the USA bank holidays are also known as national holidays. What
equivalent of the term is used in Ukraine?
12. What public holidays are celebrated in this country?
13. Is Good Friday a day off in Ukraine?
14. Since what time has the 1st of May been celebrated in the UK as a bank
holiday?
15. What about Ukraine?

31
 Task 5. a) Match the terms in column A with their definitions in column B:
A B
1. ethical banks a) the term that denotes main banks used by ordinary
2. Islamic banks people;
3. savings banks b) the term used for normal banks to distinguish them
4. offshore banks from investment banks; (modern usage) banks or
5. bankers’ banks divisions of a bank that mostly deal with deposits
6. high-street banks and loans from corporations or large businesses;
7. commercial banks c) savings bank associated with national postal
8. postal savings banks systems;
d) banks located in jurisdictions with low taxation and
regulation. Many of such banks are essentially
private banks;
e) banks that take their roots in Europe in the 18th –
19th centuries. Their original objectives were to
provide easily accessible savings products to all
strata of the population. Nowadays, they focus on
retail banking: payments, savings products, credits
and insurances for individuals or small and
medium-sized enterprises;
f) banks that prioritize the transparency of all
operations and make only what they consider to be
socially-responsible investments;
g) banks the activities of which revolve around several
well established concepts that are based on Islamic
canons. Since the concept of interest is forbidden in
Islam, all banking activities must avoid interest.
Instead of interest, the bank earns profit (mark-up)
and fees on financing facilities that it extends to the
customers;
h) financial institutions that provide financial services
to community banks in the USA. Such banks are
owned by investor banks and may provide services
only to community banks. They are able to provide
many services to community banks that typically
would be economically available only to large
national or multinational banks.

32
b) Translate into English.
1. Комерційний (торговельний) банк; 2. банк банків (назва, що
застосовується до Англійського банку, федеральних резервних банків і
великих банків США, які проводять операції з дрібними банками); 3.
ісламські банки; 4. офшорні банки; 5. поштово-ощадні банки; 6. ощадні
банки / каси; 7. роздрібні банки (орієнтовані на роботу з населенням, а не
організаціями); 8. банки соціальної відповідальності.

Task 6. Answer the questions about the above mentioned types of banks.
1. Which of the above banks are ruled by religious principles in their activities?
2. For which type of banks is social responsibility the corner stone of business
activities?
3. Which banks mostly deal with deposits and loans from corporations or large
businesses?
4. What makes services of high-street banks available for the general public?
5. What advantages do offshore banks provide to customers?
6. Who are the customers of bankers’ banks?
7. Which banks were originally directed at providing easily accessible savings
products to all strata of the population?
8. Which type of banks use in their activities the national postal system?

Task 7. Think and answer.

1. Can religious / ethical principles place limits on profit-seeking activities of
banks? Explain.
2. Can banking activities fall under the categories of retailing and wholesaling?
3. Are bankers’ banks charged with the function of supervising smaller banks?
4. Can all types of banks get access to the national postal system? Is it only the
prerogative of postal savings banks?
5. Why are many people suspicious of offshore banks’ activities?
6. Are there high-street banks in Ukraine?
7. Who do you bank with?
8. Have you ever banked with a savings bank?
9. What type of banks would you like to open an account with? Why?

33
Task 8. Study the following word-formation pattern.

-ER -ING

-RUPT
-ROLL
BANK

-ABLE -NOTE
-RUPTSY

Task 9. a) Match the terms in column A with their definitions in column B:

A B
1. banker a) (especially in AmE) a supply of money for a
2. banking particular purpose;
3. bankroll b) a person who owns a bank or who has an important
4. bankable job in a bank; an organization that lends money or
5. banknote provides the services of a bank;
6. bankrupt c) a piece of paper money;
7. bankruptcy d) likely to make money for somebody / something;
accepted to a bank. When used about an actor or
performer it denotes that they are very popular, and
therefore likely to make a film or show a financial
success;
e) the state of being bankrupt; (formal) a complete lack
of good qualities;
f) the work done by banks and other financial
institutions; the activity of using the services that a
bank offers (e.g. paying money into or taking money
out of a bank account);
g) without enough money to pay what you owe,
especially when this has been officially decided by
a court; not having something that has value;

34
b) Translate into Ukrainian paying special attention to the words in italics.
1. This is a bankrupt ideology.
2. Where do you do your banking?
3. You can now do your banking online.
4. The recession led to a flood of bankruptcies.
5. There is another bankrupt software company.
6. The company’s name is its most bankable asset.
7. About 20% of our customers use Internet banking.
8. We were given a bankroll of £1,000 to start the project.
9. There could be further bankruptcies among small banks.
10. The bank is looking at ways of retraining its senior bankers.
11. The company’s bankers are aiming to sell the studio for $7 bn.
12. You may find it difficult to get to a bank during banking hours.
13. Years of mismanagement had left the region virtually bankrupt.
14. The company has used some of its bankroll to bring in talented designers.
15. The quality of the paper, watermarks and intricate engravings make
banknotes extremely difficult to counterfeit.
Task 10. a) Make up word combinations with “bankrupt” and “bankruptcy”.
to go
to face BANKRUPT
to file for
to declare
to be declared BANKRUPTCY
to declare yourself

b) Translate into English.

1. Постати перед банкрутством / зазнати банкрутства.
2. Бути визнаним (названим) банкрутом.
3. Збанкрутувати. Припинити платежі.
4. Заявляти про неплатоспроможність.
5. Оголосити про банкрутство.
6. Оголосити себе банкрутом.
Task 11. Translate into Ukrainian paying attention to the words in italics.
1. They would face bankruptcy if they had to repay the loan. 2. The company
filed for bankruptcy (= asked to be officially bankrupt) earlier this year. 3. Her
husband went bankrupt two years ago. 4. The company was declared bankrupt
in the High Court. 5. Many of the companies that they had invested in went
bankrupt. 6. He declared himself bankrupt in 2008. 7. Many small farmers are
facing bankruptcy. 8. The company declared bankruptcy in 2009.

35
Task 12. a) Study the following words.

VOCABULARY When a company fails

BUILDING

Technical words
 To be / go insolvent (= to be unable to pay debts) – збанкрутувати; стати
неплатоспроможним;
 to liquidate / wind up a company (= to sell its assets, pay its debts, etc.)
– ліквідувати компанію;
 a company is put / goes into liquidation – ліквідується;

Neutral words
 to be / go bankrupt – збанкрутувати; припинити платежі;
 to go out of business – припинити свою діяльність; збанкрутувати;

Informal / idiomatic words

 to go broke – збанкрутувати; розоритися;
 to go under – зазнати банкрутства; збанкрутувати; розоритися;
 to go bust – розоритися, прогоріти; “вилетіти в трубу”;
 to go belly up – збанкрутувати; “випустити дух”;
 to go to the wall – збанкрутувати, розоритися, прогоріти; “вилетіти в
трубу”; зазнати невдачі, фіаско, провалитися; бути змушеним
поступитися місцем, зійти зі сцени.

b) Think and answer.

1. Do many companies go out of business these days?
2. Why do many businesses go to the wall?
3. Who has the right to wind up a company?
4. Can banks as “great money machines” go insolvent?
5. What can make a bank go bust?
6. Who undertakes the debts of a bank that goes belly up?
7. Who secures the rights of depositors of banks which go into liquidation?
8. Can the Central Bank go broke?
9. Are families likely to go under because of money mismanagement?
10. Can a country go bankrupt?

36
Task 13. a) The words below frequently occur after “BANK”.

card clerk debt

deposit BANK charge

account balance transfer

b) Which of the above word combinations means:

1. A person who works in a bank, receiving and paying out money, helping
customers, keeping records of accounts;
2. the sending of money from one account in one bank to an account in any
branch of the same bank or another;
3. an arrangement with a bank that allows you to keep your money there and to
pay money in and take money out;
4. a small plastic card that you use for making payments or for getting money
from the bank;
5. the amount that a customer pays their bank for the service it provides;
6. money that a company, an organization, etc. owes to a bank;
7. the amount of money that you have in your bank account;
8. an amount of money that you leave (deposit) in a bank?

Task 14. Translate into Ukrainian paying attention to the words in italics.
1. You can open a bank account with as little as €100. 2. Do we have enough
funds in our bank account? 3. We’ll pay the money directly into your bank
account. 4. They’re encouraging children to open bank accounts. 5. There are no
bank charges if your account stays in credit. 6. Banks sometimes do not incur
bank charges. 7. The airline is aiming to pay off its $100 million bank debt within
six months. 8. Bank deposits rose to €135 billion. 9. When the bank clerk showed
up in an expensive new car, tongues wagged. 10. Bank cards greatly facilitate
payments. 11. He spends without regard to his bank balance. 12. You should
allow five to seven working days for a bank transfer to be made. 13. Payment
may be made by bank transfer to the following account. 14. We accept cheques
supported by a bank card for payments over £50. 15. My bank balance is always
low at the end of the month.

37
Task 15. a) Read and translate the passage.
Bank Staff
Most people keep their money in bank accounts as it is dangerous to carry
around a sack of money to pay bills. A bank can have the accounts of thousands
of people in it! This means that a bank needs to have lots of workers doing many
different kinds of jobs.
Greeters help to welcome the customers. They should stand near the
entrance and welcome customers as they enter and exit the bank. This could be
by shaking hands or by saying hello. They should always make the customers
feel welcome and happy to be in the bank. Striking up a conversation with waiting
customers is another way to make the customers feel comfortable.
Bank “tellers” are the people who help customers with their bank accounts.
Customers come to tellers and tell them that they want to open an account, deposit
or withdraw money.
Whenever customers put money in their account, they make out a deposit
slip, a form stating their account number and the amount they are putting into the
bank. Customers give their money and deposit slip to a teller, who notes the
amount.
When the customer gives the teller his or her money, the teller must count it
and check to see that the amount of money is the same as the amount the customer
wrote down on the deposit slip. When customers need to take out money, they
make out a withdrawal slip and give it to the teller.
Security guards help to protect the money in the bank. Some of the guards
will bring money to the vault; others will keep the vault safe. Each time a teller
takes a deposit from a customer, a guard should bring the deposit box to the vault.
At least two guards should be watching the vault at all times.
Custodians help to keep the bank clean. They should have access to the entire
bank area, as they are responsible for the cleanliness of the bank. They can empty
trash cans, vacuum the carpets, scoop snow off of the sidewalks, etc.
Banks are very important in our society and that means bank workers are
important too.

Vocabulary notes:
ə
1. greeter [gri:tə] / [gri:t r] – людина, яка на вході вітає клієнтів банку,
відвідувачів ресторанів, готелів, казино;
2. to deposit (money) [dı`pOzıt] – покласти в банк, депонувати;
3. to withdraw (money) [wıð`drO:] – знімати, забирати (гроші з
банківського рахунку);
4. teller – касир у банку; банківський службовець;

38
5. to make out – складати (документ); виписувати (чек);
6. deposit slip – бланк, який заповнюють при внесенні суми на поточний
рахунок;
7. withdrawal slip [wıð`drO:əl] – витратний ордер;
8. vault [vO:lt] – приміщення для збереження цінностей; сховище; сейф;
9. deposit box – сейф для зберігання цінностей у банку;
10. custodian [kA`stəudiən] – амер. двірник, прибиральник; сторож, охоронець;

b) Answer the questions.

1. Where do most people keep their money?
2. Why is it convenient to keep money in a bank account?
3. When did you go to a bank last? Who greeted you at the entrance of the
bank?
4. Is it security guards who greet people as they enter and exit the bank?
5. What are the main tasks of greeters?
6. What requirements should greeters meet to perform their tasks efficiently?
7. Could you work as a greeter? Why?
8. What functions do bank tellers perform?
9. What do customers make out when they want to open an account?
10. When do customers make out withdrawal slips?
11. What should a guard bring each time a teller takes a deposit from a customer?
12. How many security guards should be watching the vault at all times? Why?
13. Who is responsible for the cleanliness of the bank?
14. Why should custodians have access to the entire bank area?
15. Who else do banks employ apart from greeters, tellers, security guards and
custodians?

Task 16. Translate into English.

1. Відкрити рахунок у банку – це зручно. 2. Щоб перевірити баланс рахунку
не потрібно звертатися до касира в банку: для цього є банківська картка. 3.
Банківські комісійні платежі за банківські перекази останнім часом істотно
зросли. 4. Існують різні категорії банківських службовців. 5. Банківські
клерки, що вітають клієнтів на порозі банку, мають створювати в них
відчуття комфорту. 5. Банківські касири повинні ретельно перевіряти
бланки, які клієнти заповнюють при внесенні суми на поточний рахунок. 6.
Клієнт заповнює витратний ордер, коли знімає гроші з рахунку. 7. Сховище
у банку має охороняти принаймні два охоронці. 8. Охоронці особисто
слідкують за тим, як гроші клієнта попадають у сейф для зберігання
цінностей у банку. 9. Прибиральники повинні мати доступ до всіх
приміщень банку. 10. Робота банківських клерків надзвичайно важлива.
39
 Lesson 2

Task 1. Practice reading the following words.

1. accept [ək`sept] 27. liquidity [lı`kwıdəti]
t
2. agency [`eıGən si] 28. mutual [`mju:t∫uəl]
3. allow [ə`lau] 29. occasional [ə`keıჳənəl]
4. alter [`O:ltə] 30. owe [əu]
5. ancient [`eın ∫ənt]
t
31. piggy [`pıgi]
6. association [əֽsəusi`eı∫ən] 32. private [`praıvət]
7. commercial [kə`mə:∫əl] 33. politics [`pOlətıks]
8. competitive [kəm`petətıv] 34. quasi-regulatory
9. corporate [`kO:pərət] [`kweızaıֽregju`leıtəri] /
10. crisis [`kraısıs] [`kweızaı`regjələtO:ri]
11. dealt [delt] 35. to refer [rı`fə:]
12. demand [dı`mα:nd] / [dı`mænd] 36. the Renaissance [rı`neısənts] /
13. deposit [dı`pOzıt] / [dı`pα:zət] [ֽrenə`sα:nts]
14. derive [dı`raıv] 37. resort [rı`zO:t] / [rı`zO:rt]
15. differential [ֽdıfə`rent∫əl] 38. retail [`ri:teıəl]
16. entity [`entəti] 39. spread [spred]
17. financial [faı`nænt∫əl] 40. supervise [`su:pəvaız]
18. Florentine [`flOrəntaın] / a. susceptible [sə`septəbəl]
[`flO:rənti:n] 41. systemic [sı`sti:mık]
19. Genoa [`Genəuə] 42. tablecloth [`teıbəlklOθ]
20. historically [hı`stOrıkəli] / 43. technically [`teknıkəli]
ə
[hı`stO:rık li] 44. tougher [`tAfə] / [`tAfər]
21. impact n [`ımpækt] 45. thrift [ֽθrıft]
22. income [`ınkAm] 46. trace [treıs]
ə
23. indispensable [ֽındı`spen səb l]
t
47. to transfer [trænts`fə:]
t
24. insurance [ın`∫uərən s] 48. wealth [welθ]
25. inventory [`ınvəntəri] / 49. withdrawal [wıθ`drO:əl]
[`ınvəntO:ri] 50. worth [wə:θ]
26. jar [`Gα:]

Task 2. Read the text.

What is a Bank?
Banks are very important. Just like a piggy bank or penny jar, banks are
places where we can save our money, keep track of how much we have, and keep
it safe.
Banks have influenced economies and politics for centuries. Traces of
banking activity can be found even in ancient times. Nowadays a bank account
is considered indispensable by most businesses, individuals and governments.
40
 The term bank derives from the Italian word banco – “desk / bench”, used
during the Renaissance by Florentine bankers, who made their transactions above
a desk covered by a green tablecloth. When a banker was broke his bench that is
his “banco” was broken by the angry people. So the English word “bankrupt”
consisting of “bank” (i.e. “banco”) and “rupt(ure)”, meaning “the act of
breaking”, actually reflects the procedure of “breaking the bench of a banker who
failed.”
The first modern bank was founded in Italy in Genoa [`Genəuə] in 1406; its
name was Bank of St. George (Banco di San Giorgio). In the 21st century
thousands of banks make up an extremely competitive industry of banking.
Competing in the field of financial services has become tougher with the entrance
of such players as insurance agencies, credit unions, savings and loan
associations, check cashing services, credit card companies, etc.
The definition of a bank varies from country to country. U.S. federal law, for
example, defines a bank as a “financial institution that accepts demand deposits
and makes commercial loans.” For that reason, savings and loan associations,
mutual savings banks, and credit unions are commonly called thrift institutions
or “thrifts.” The term “bank” technically refers only to a commercial bank.
Historically, the primary purpose of a bank was to provide loans to trading
companies. Banks provided funds to allow businesses to purchase inventory, and
collected those funds back with interest when the goods were sold.
For centuries, the banking industry only dealt with businesses, not
consumers. Banking services have expanded to include services directed at
individuals, and risks in these much smaller transactions are pooled.
Banks’ activities can be divided into:
 retail banking: dealing directly with individuals and small businesses;
 business banking: providing services to mid-market business;
 corporate banking: directed at large business entities;
 private banking: providing wealth management services to high net worth
individuals and families;
 and investment banking: relating to activities on the financial markets.
Most banks are profit-making, private enterprises. However, some are
owned by government, or are non-profits. Central banks are normally
government owned banks, often charged with quasi-regulatory responsibilities,
e.g. supervising commercial banks, or controlling the cash interest rate. They
generally provide liquidity to the banking system and act as the lender of last
resort in event of a crisis.
A bank generates a profit from the differential between the level of interest

41
it pays for deposits and other sources of funds, and the level of interest it charges
in its lending activities. This difference is referred to as the spread between the
cost of funds and the loan interest rate.
Lending activities still provide the bulk of a commercial bank’s income.
Many other financial activities were added over time. For example banks are
important players in financial markets and offer financial services such as
investment funds. Banks also accept and hold deposits, collect and transfer funds.
The changing economic environment has a significant impact on banks and
thrifts. They are susceptible to many forms of risk which have triggered
occasional systemic crises.
Risks include:
 liquidity risk (the risk that many depositors will request withdrawals
beyond available funds);
 credit risk (the risk that those who owe money to the bank will not repay);
 and interest rate risk (the risk that the bank will become unprofitable if
rising interest rates force it to pay relatively more on its deposits than it
receives on its loans), among others.
Banking crises have developed many times throughout history when one or
more risks materialize for a banking sector as a whole. Prominent examples
include the bank run that occurred during the Great Depression, the U.S. Savings
and Loan crisis in 1980s and early 1990s, the Japanese banking crisis during the
1990s, and, of course, the financial crisis of 2008 which altered the world’s
financial landscape.

Vocabulary Notes:
1. piggy bank [`pıgi `bæŋk] – скарбничка-свинка (дитяча скарбничка у
вигляді свинки);
2. penny jar [`peni `Gα:] – банка для зберігання грошей;
3. to keep track (of) – прослідковувати;
4. trace [treıs] – слід; відбиток; ознака;
5. indispensable [ֽındı`spentsəbəl] – необхідний, дуже потрібний;
обов’язковий, такий, що не припускає ніяких винятків;
6. to derive (from) [dı`raıv] – походити (від); виводити (з);
7. the Renaissance [rı`neısənts] / [ֽrenə`sα:nts] – епоха Відродження,
Ренесанс;
8. Florentine [`flOrəntaın] / [`flO:rənti:n] – флорентійський; флорентієць;
9. competitive [kəm`petətıv] – конкуруючий, суперницький; конкуренто-
спроможний; конкурсний;
10. insurance agency [ın`∫uərənts `eıGəntsi] – страхова агенція;
11. credit union – кредитна спілка, кредитний кооператив;
42
12. savings and loan association [`seıvıŋz ənd `ləun əֽsəusi`eı∫ən] – позиково-
ощадна асоціація;
13. check cashing – отримання готівки по чеку;
14. credit card company – компанія, що працює з кредитними картками;
15. demand deposit [dı`mα:nd dı`pOzıt] – безстроковий вклад; депозит,
видача якого здійснюється за першою вимогою;
16. commercial loan [kə`mə:∫əl `ləun] – комерційна позика; підтоварна
позичка;
17. mutual savings bank [`mju:t∫uəl `seıvıŋz bæŋk] – взаємно-ощадний
банк;
18. thrift institution (thrift) [ֽθrıft ֽıntstı`tju:∫ən] – ощадний заклад, ощадна
установа;
19. inventory [`ınvəntəri] / [`ınvəntO:ri] – матеріальні цінності; товарно-
матеріальні запаси; запаси, матеріально-виробничі запаси; наявні
товари;
20. interest [`ıntrəst] – відсоток, процент;
21. to pool (transactions) [pu:l] – об’єднувати в загальний фонд; об’єднувати
в пул;
22. retail banking [`ri:teıəl `bæŋkıŋ] – банківські послуги дрібним клієнтам;
23. business banking – банківське обслуговування комерційних клієнтів;
24. corporate banking [`kO:pərət `bæŋkıŋ] – корпоративні банківські послуги;
25. business entity [`bıznəs `entəti] – фірма, компанія, комерційна
організація; господарська (економічна) одиниця;
26. private banking [`praıvət `bæŋkıŋ] – приват-банкінг, банківське
обслуговування заможних фізичних осіб (надання VIP-клієнтам
ексклюзивного набору інвестиційних і пов’язаних з ними послуг);
27. wealth management [welθ] – керування багатствами (майном)
(комплекс високоякісних консультаційних послуг, які охоплюють усі
аспекти фінансового життя клієнта: фінансові вкладення,
планування, бухгалтерський облік та оподаткування, юридичні
питання та ін.);
28. high net worth individuals / families – особи / сім’ї із значним власним
капіталом (фінансовими засобами);
29. investment banking – інвестиційно-банківська діяльність; послуги
інвестиційного банку; послуги банку з інвестування; інвестиційна
банківська справа; розміщення нових випусків цінних паперів (банком,
що виступає в ролі посередника);
30. financial market [faı`nænt∫əl] – фінансовий ринок;
31. quasi-regulatory responsibility [`kweızaıֽregju`leıtəri] /
[`kweızaı`regjələtO:ri] – напіврегуляторні функції;
32. to supervise [`su:pəvaız] – наглядати, здійснювати нагляд (за);
43
 завідувати;
33. cash interest rate – касова відсоткова ставка;
34. the lender of last resort [rı`zO:t] – кредитор останньої інстанції;
35. differential [ֽdıfə`rent∫əl] – диференціал; різниця в оплаті;
36. spread [spred] – спред; маржа; надбавка до базисної ставки відсотка;
відсоткова надбавка;
37. loan interest rate – відсоток / процент позики 2) відсоткова / процентна
ставка позики;
38. income [`ınkAm] – прибуток; дохід; надходження; заробіток;
39. investment funds [ın`vestmənt `fAndz] – інвестиційні фонди; фонди
капітального будівництва;
40. to accept deposits [ək`sept dı`pOzıts] – приймати депозити;
41. to hold deposits – тримати вклади;
42. to collect funds – збирати, отримувати гроші;
43. to transfer funds [trænts`fə: `fAndz] – переказувати гроші;
44. impact (on) [`ımpækt] – вплив, дія; імпульс;
45. susceptible (to) [sə`septəbəl] – вразливий, сприйнятливий;
46. to trigger – ініціювати; дати початок;
47. occasional [ə`keıჳənəl] – випадковий, рідкісний; такий, що трапляється
час від часу;
48. systemic crisis [sı`sti:mık `kraısıs] – системний ризик; структурний
ризик; ринковий ризик; ризик несприятливих коливань цін;
49. liquidity risk [lı`kwıdəti `rısk] – ризик браку ліквідності; ризик
ліквідності; ризик, пов’язаний з браком ліквідності;
50. withdrawal [wıθ`drO:əl] – відкликання; виведення; взяття назад;
вилучення, видалення
51. credit risk – кредитний ризик; ризик неповернення кредиту;
позичальник (у банку); клієнт (у кредитній установі);
52. to owe [əu] – бути винним, заборгувати;
53. interest rate risk – ризик зміни відсоткової ставки; відсотковий ризик;
54. the Great Depression – Велика депресія;
55. to alter [`O:ltə] – змінювати(ся), переробляти.

Task 3. Agree or disagree with the following statements.

1. Piggy banks or penny jars act as the lender of last resort in event of a crisis.
2. Banks have influenced economies and politics since the time of the Great
Depression.
3. Traces of banking activity can be found even in ancient times.
4. Unlike businesses and individuals, governments do not have accounts in
banks.

44
5. The term “bank” derives from the word “ban” meaning a curse (прокляття,
анафема); when a banker was broke angry people banned (cursed) him.
6. The first modern bank was founded in Italy in the early 15th century.
7. Modern banks face severe competition.
8. Insurance agencies, credit unions, savings and loan associations, check
cashing services, credit card companies are tough competitors.
9. There is no one single definition of bank.
10. The term “bank” technically refers only to a commercial bank.
11. For centuries, the banking industry only dealt with individual consumers, not
businesses.
12. Banks’ activities can be divided into several categories.
13. Most banks are non-profit government enterprises.
14. Central banks are normally profit-making private enterprises.
15. A bank generates a profit from the spread between the cost of funds and the
loan interest rate.
16. Lending activities provide an insignificant part of a commercial bank’s
income.
17. Banks are affected by the changing economic environment.
18. Banks and thrifts are susceptible to many forms of risk.
19. Banking crises have developed four times so far.
20. The financial crisis of 2008 altered the world’s financial landscape.

Task 4. In the text “What is a Bank?” (Task 2) find the words similar in meaning.
1. Essential, necessary; 2. exceedingly; 3. to relate to; 4. to grant; 5. company;
firm; 6. financial management; 7. liable to; open to; impressionable; 8. to give
rise (to); set off; 9. removal; 10. responsible for.

Task 5. Find synonyms among the following words.

1. To accept; 2. to affect; 3. to alter; 4. to be in debt to; 5. to change; 6.
commercial; 7. comparatively; 8. to compel; 9. consumer; 10. controlling; 11.
credit; 12. deal; 13. to derive (from); 14. to differ; 15. differential; 16. duty; 17.
to establish; 18. establishment; 19. field; 20. to force; 21. to form; 22. to found;
23. funds; 24. goal; 25. to happen; 26. to hold; 27. industry; 28. influence; 29.
institution; 30. to keep; 31. loan; 32. to make up; 33. money; 34. to occur; 35. to
originate; 36. to owe; 37. profit-making; 38. purchaser; 39. purpose; 40. to
receive; 41. relatively; 42. responsibility; 43. severe; 44. spread; 45. supervising;
46. tough; 47. transaction; 48. to vary.

Task 6. Fill in the blanks with the most appropriate terms from the box.

45
went bankrupt effect altered lending bankruptcy
investment bank assets distrust bankers comes down
Even in the business world, what goes up sometimes (1)_____, and if the
company is big, the sound of the fall is louder and clearer. Lehman Brothers, one
of the oldest and largest banks in New York, (2)_____ on September 15, 2008
with no one to rescue it. A press release on that day by Lehman Brothers Holdings
Inc. (LBHI), the 158-year-old U.S. investment bank, (3)_____ the American
financial landscape. This is the largest (4)_____ in the history of the United States
with $638 billion in (5)_____ listed and the largest failure of an (6)_____. The
collapse of Lehman had a multiplier (7)_____ worldwide, severely weakening
other big banks and sharply increasing the level of fear and (8)_____ inside the
system that caused (9)_____ to sharply reduce their (10)_____.

Task 7. The words below are frequently confused. Study each pair of words.
Pronounce them and translate into your native tongue. Explain the
difference between the words in each pair.
1. law [lO:] – low [ləu] / [lou]; 9. to own [əun] / [oun] – to owe [əu] / [ou];
2. vary [`veəri] / [`veri] – very [`veri]; 10. found [faund] – founded [`faundıd];
3. loan [ləun] – lawn [loun]; 11. procedure [prəu`si:Gə] – proceed
4. track [træk] – trace [treıs]; [prə`si:d];
5. whole [həul] / [houl] – hole [həul] / 12. systemic [sı`sti:mık] / [sı`stemık] –
[houl]; systematic [ֽsıstə`mætık];
6. repay [ri`peı] – replay [ֽri:`pleı]; 13. liquidity [lı`kwıdəti] – to liquidate
7. accept [ək`sept] – except [ık`sept]; [`lıkwıdeıt];
8. politics [`pOlətıks] / [`pα:lətıks] – 14. competitive [kəm`petətıv] – competing
policy [`pOləsi] / [`pα:ləsi]; [kəm`pi:tıŋ].

Task 8. Study the following pairs of words. Mind the differences as well as
similarities in pronunciation of the nouns and verbs.
NOUN VERB
resort [rı`zO:t] – to resort [rı`zO:t];
deposit [dı`pOzıt] – to deposit [dı`pOzıt];
income [`ınkAm] – to income [`ınkAm];
transfer [`træntsfə:] – to transfer [trænts`fə:];
impact [`ımpækt] – to impact [ım`pækt];

Task 9. Some words can be used both as a noun and as a verb. Complete the table

46
 with the appropriate words from the text “What is a Bank?” (Task 2).
№ ІМЕННИК ДІЄСЛОВО ПЕРЕКЛАД
1. користь, вигода; прибуток, давати користь, бути
дохід; нажива корисним; користуватися;
мати користь; -----------
скористатися; отримувати
прибуток;
2. рівень; ступінь; плоска, зрівнювати, згладжувати;
горизонтальна поверхня; визначати різницю висот; -----------
нівелювати; вирівнювати;
рівнина; цілитися;
3. верхів’я, витік; отримувати; встановити
першопричина, початок; походження; -----------
джерело, криниця;
4. пропозиція; пропозиція пропонувати; траплятися;
ціни; спроба; висувати; пропонувати до -----------
уваги;
5. дія; акт, діяння; документ; діяти; чинити, поводити
закон; постанова себе; робити запис, -----------
(парламенту, суду); заносити (в акт тощо).

Task 10. Recollect the contexts in which the following words are used in the text
“What is a Bank?” (Task 2).
1. jar; 4. resort;
2. players; 5. landscape;
3. interest; 6. environment.

Task 11. “Odd man out.” In each line cross out a word (word combination) that
in its meaning differs from the others. Explain your choice.
1. chair – bench – bank;
2. to own – to repay – to owe;
3. spread – profit – investment funds;
4. piggy bank – bank account – penny jar;
5. credit union – thrift – commercial bank;
6. the lender of last resort – central bank – thrift;
7. mid-market business – retail banking – individuals;
8. large business entities – mid-market business – corporate banking;
9. liquidity risk –withdrawals beyond available funds – bad debt losses;
10. savings and loan association – commercial bank – mutual savings bank.

Task 12. Use the prepositions from the box in the following phrases. Refer to

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 the text “What is a Bank?” (Task 2) to check your answers.
into in ×4 on ×3 beyond
with at ×2 for ×2 from ×2 throughout
to ×6 of ×3 during between

1. … that reason; 14. to refer … a commercial bank;

2. to keep track …; 15. dealing directly … individuals;
3. … ancient times; 16. withdrawals … available funds;
4. sources … funds; 17. banks’ activities are divided …;
5. to pay … deposits; 18. services directed … individuals;
6. to receive … loans; 19. … the field of financial services;
7. … the Renaissance; 20. to develop many times … history;
8. the term derives …; 21. directed … large business entities;
9. the level … interest; 22. susceptible … many forms of risk;
10. the differential … smth.; 23. important players … financial markets;
11. to owe money … the bank; 24. a significant impact … banks and thrifts;
12. risks … smaller transactions; 25. to provide liquidity … the banking system;
13. to vary … country … country; 26. providing services … mid-market business.

Task 13. a) Make the difference between the following words.

WHICH WORD? CREDIT vs. LOAN

Consider the pros and cons of opening a line of credit from a bank versus
securing a loan.
Credit
Pros:
 Improves cash flow and financial independence;
 Only have to pay interest on the amount you’ve spent, not on the total amount
of credit line;
 Usually easier to qualify for a line of credit than for a commercial loan;
 Easily accessible funds for emergencies;
 Builds business credit;
Cons:
 Temptation to spend beyond ability to re-pay;
 Potential for high interest rates;
 Not best-suited for buying equipment or real estate;
 Can become entangled with personal credit;
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  Deepening of debt;
Loans
Pros:
 Lower interest rates than credit;
 Fixed borrowed amount;
 Better choice for making equipment, real estate and other significant
purchases;
 Potential for credit repair or improved credit score by paying off balance;
 Availability for loans to be tailored to give advantages to small businesses;
Cons:
 Acquiring approval for a bank loan is more difficult than getting a business
credit line;
 If your business fails, it might be necessary to sell other assets to re-pay debt;
 Acquiring a large amount of debt at once;
 Not as flexible as credit; does not work to improve cash flow.

b) Translate into Ukrainian paying special attention to the words in italics.

1. He exceeded his credit limit.
2. I don’t like buying things on credit.
3. Jim took out a loan to pay for his car.
4. The bank refused to extend their credit.
5. Borrowers can take out a loan for £84,000.
6. How soon do you have to pay off the loan?
7. You can get interest-free credit on all our products.
8. The group can’t get credit to buy farming machinery.
9. Some suppliers will not give credit to their customers.
10. The country has no access to foreign loans or financial aid.
11. Kenya was still paying off a multimillion-dollar loan to the IMF.
12. The president wants to make it easier for small businesses to get bank loans.
13. You can ask a dealer for a discount whether you pay cash or buy on credit.
14. Senator Bill Bradley outlined his own tax cut, giving families $350 in tax
credits per child.
15. Japan has provided about $2.5 billion in credits to Russia and about $50
million in direct aid.

Task 14. Translate into English.

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1. Банк – це місце, де ми можемо тримати свої гроші у безпеці. 2. Банки
впливали на економіку та політику впродовж століть. 3. Сліди банківської
діяльності можна віднайти у стародавні часи. 4. Термін “банк” походить з
італійської мови. 5. Перші банкіри вели свій бізнес за столами, покритими
зеленими скатертинами. 6. Банківська галузь у 21 столітті є надзвичайно
конкурентною. 7. Банк – це фінансова установа, яка приймає безстрокові
вклади і надає комерційні позики. 8. Термін “банк” суто технічно
стосується комерційного банку. 9. Ощадно-позичкові асоціації, взаємно-
ощадні банки, кредитні спілки не є банками, а ощадними установами
(ощадними касами). 10. Першочерговим завданням банків було надання
позик торговельним компаніям. 11. Упродовж століть банки мали справу
лише з торговельними підприємствами, а не споживачами. 12. Сучасні
банківські послуги спрямовані також і на фізичні особи. 13. Більшість
банків – це комерційні приватні підприємства. 14. Центральні банки
зазвичай перебувають у державній власності. 15. Центральні банки
контролюють комерційні банки, а також касову відсоткову ставку. 16. У
випадку кризи центральні банки діють як кредитори останньої інстанції. 17.
Позичкова діяльність забезпечує основну частку доходів комерційного
банку. 18. Банки є важливими гравцями на фінансових ринках. 19. Банки та
ощадні установи зазнають багатьох форм ризику. 20. Банківські кризи
виникали багаторазово впродовж історії.

Task 15. Answer the following questions.

1. What spheres of human life have banks influenced for centuries?
2. Does banking date back to ancient times?
3. Is having a bank account a commonplace these days?
4. What is the origin of the term “bank”?
5. When was the first modern bank founded?
6. What makes the banking industry highly competitive these days?
7. Why does the term “bank” technically refer only to a commercial bank?
8. What was the primary purpose of banks?
9. Has the banking industry dealt with consumers for centuries?
10. How can bank activities be divided?
11. Who does retail banking deal with?
12. What branch of banking is directed at large business entities?
13. Are there non-profits among banks?
14. What are central banks usually charged with?
15. Which banking institution acts as the lender of last resort in event of a crisis?
16. How does a bank generate a profit?
17. What activities provide the bulk of a commercial bank’s income?

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18. What other financial activities do banks perform?
19. What forms of risk are banks and risks susceptible to?
20. Have banking crises developed many times throughout history? What are the
recent examples?

Task 16. Say what you know about:

1. The origin of the word “bank”.
2. The activities of early bankers.
3. Types of financial institutions.
4. Branches of banking in the 21st century.
5. The importance of central banks.
6. Many forms of risk banks are susceptible to.
7. The reasons and consequences of financial crisis.
8. The most prominent banking crisis.

Task 17. Write a composition on one of the following topics.

1. Money answers all things.
2. Of evils upon earth, money is / isn’t the worst.
3. A piggy bank vs. a bank account.
4. Banking crises: the trouble for moneybags or the overall disaster?

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