Note on the Text

' ...and made subsidies and allowances more targeted. - ... сделали субсидии и по­собия более адресными.

164

Unit 4

II. The Financial System

165

Words and word combinations you may need

have an impact — повлиять на quarterly adj - ежеквартальный strengthen v — усиливать issue bonds - выпускать облигации painful adj — болезненный

reconsider v - пересматривать huge adj — огромный budget deficit — бюджетный дефицит force v — застаа!ять grant autonomy — предоставлять авто­номию (свободу действий)

Ex. 45. Say/Write whether the problems raised in the interview are Russian problems too at the present lime.

Ex. 46. Translate the texts into Russian and analyse grammatical and lexical problems of the translation with your teacher.

A) The Central Banking System

A major sector of any modern monetary system is the central banking system, which is important to the functioning of the private economy and the fiscal operations of the national government. Central banking is an activity separate from ordinary commercial banking.

It is difficult to give a brief definition of a central bank that is both com­prehensive and accurate. The nature of a central bank depends largely on its functions, which vary according to time and setting.

The most important characteristic of the modem central bank is its con­trol overthe monetary system. The central bank implements the government's monetary policy by regulating the supply, cost, and availability of money and credit.

The central bank is also a country's leading bank which acts as banker to the government and the banking system. Here the central bank receives, holds, 'transfers and disburses funds of the central government. Furthermore, the central bank provides services related to the public debt.

The central bank acts as the government's broker in its borrowing and lending operations, it issues and deals in government securities.

Services to the banking system include, for example, the clearing and col­lecting of checks and dislribution of coins and paper currency

B) The us Treasury

The US Treasury was created by Congress in 1789. Since that time it has been one of the major financial organisations in the US. At present the Trea­sury performs the following functions.

1. As the economic adviser to the President the Treasury has the responsibil­ity for formulating internal and external financial policy, including rec-

ommendaiions on taxation. The Treasury possesses some authority thai affects the working of the monetary system. Varied monetary influences are inherent in Treasury actions related to its management of the existing public debt.

2. In its role as a financial agent, the Treasury issues coins and banknotes, checks, saving bonds, and other securities. Treasury borrowing through the issuance ofnew government securities is the major method for financ­ ing a budget deficit.

3. A significant aspect of the work of the Treasury is law enforcement (реа­ лизация законодательства, применение закона) related to federal taxes and the customs as well as collection ot'taxes and import duties,

4. A distinguishing feature of the US Treasury is its responsibility for con­ ducting investigation and punishment of fraudsters, smugglers, and coun­ terfeiters.

5. Since the establishment of the Treasury its functions have been expanding as well as growing in complexity. In addition to its traditional activity the Treasury ensures the personal security of the President, exercises control over the sale of firearms, and arranges the training of personnel for law enforcement.

Role-play The Financial System Offers Interesting Careers

Discuss with a partner where you'd like to work and in what capacity. Justify your choice. Use information from the Unit.