Ex.II. Choose necessary word and put it in the sentence

1. Federal government … and … all national banks. 2. International cooperation between banks makes it possible … imports and exports. 3. It is possible to convert American dollars to Swiss francs in … department. 4. The … of the USA is the US dollar. 5. All … banks make loans to borrowers. 6. If the importer buys … from another country he will pay for it in the currency of this country

1 merchandise 2 currency     3 commercial   4.foreign exchange 5 to finance 6 to supervise   7 to charter

 

Lesson 2

TEXT

“ Money makes the world go round”

(proverb)

Money.

Money is anything that is generally accepted by people in exchange for the things they sell or the work they do.

Money refers to coins or paper notes with their value printed on them, given and taken in buying and selling. Money can be associated both with coins and notes.

When we receive money regularly we think of it as income, pension, benefit, salary, allowance, grant or scholarships. One more aspect of money is shown through what we gain or lose in business. When we start a business we become interested in the finance, funding, subsidies, investments or capital. If one become a loser, he or even the company may become or go bankrupt, having no money; be broke or go broke.

 

Foreign exchange

 

Importers and exporters do not use the same currency. When they buy and sell goods they change money from one currency to another. There are two ways of doing this. First, the importer can pay in his own currency and the exporter changes it on the international currency market. Secondly, the importer sells his own currency and purchases the exporter's. Then the importer pays. Usually the banks buy and sell currency for their clients.

The international currency market consists of a net of international banks. Exchange brokers and dealers deal in foreign exchange (Forex) transactions. The exchange rates change (or fluctuate) from day to day. Dealers and banks choose the best rates and profit by forex dealing.

 

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The unit of currency in Britain is the pound ₤, sometimes called the pound sterling. The pound is a yellow coin. There are 100 pence (p) in a pound. There are 1p, 2p, 5p, 10p, 20p, 50p coins. There are 5, 10, 20 and 50(pound sterling) notes.

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The unit of currency in the USA is US dollar $. This name comes from the old German word Taler. There are 100 cents in a dollar. The dollar is a bill, green on the back(“greenback”) and grey on the front.There are dollar bills for 1,2,5,10,20,50,100,500 and 1000 dollars.All these bills are the same size and the same colour.

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The euro (plural euro, banking code: EUR?) is the official currency of the European Union and single currency for over 300 million Europeans in the following 12 European Union member states: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, The Netherlands, Portugal and Spain: collectively also known as the eurozone. The euro was introduced to world financial markets in 1999 and launched as a currency in 2002.

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Active vocabulary

currency - валюта

way – путь, способ

way of doing – способ совершения чего-либо

rate – ставка, курс

pound sterling – фунт стерлингов

change - менять

exchange -обменивать

exchange broker – брокер, совершающий операции по обмену

валюты

deal – иметь дело, совершать сделку, сделка

dealer – дилер

dealing - дилинг, проведение сделок

foreign exchange – валютный рынок, операция на валютном рынке,

иностранная валюта

forex – сокр. от foreign exchange

exchange rate – обменный курс

fluctuate – колебаться (о курсах, ставках и пр.)

purchase – приобретать

the same – та же, тот же

another – другая (одна из многих)

consist of – состоять (из)

need- нуждаться

profit by – получать выгоду на чем-либо

bill – вексель

launch - выпускать

Speech practice:

 

Ex I. Answer the questions according to the text.

1. Do the importers and exporters use the same currency?

2. How do the importers get the currency they need?

3. What is the first way the importers use?

4. Where does the importer change money?

5. Who buys and sells currency for their clients?

6. What does the international currency market consist of?

7. Who deals in forex transactions?

8. Do the exchange rates fluctuate?

9. What rates do the dealers choose to profit by foreign currency transactions?

 

Text for additional reading.