- •English for the master’s programm
- •In finance Содержание
- •Unit 1 money and its functions
- •Match each of the word on the left with the correct
- •3. Which of the following are true or false?
- •4. Match the terms with their Russian equivalents:
- •5. Match the two parts of the sentences:
- •6. Translate the sentences into English:
- •7. Translate the text in writing: Careers in Finance
- •The function of financial markets
- •1. Answer the questions:
- •2. Match each of the words on the left with the correct explanation on the right:
- •3. Complete the text by inserting the following words in the gaps:
- •4. Translate the sentences into English:
- •Primary and Secondary Markets
- •Unit 3 regulation of the financial system
- •Internationalization of financial markets
- •Answer the questions:
- •Match each of the words on the left with the correct explanation on the right:
- •Speak on:
- •4. Make written translation of the text into Russian:
- •5. Translate the text into English:
- •How bonds and common stocks are valued
- •Match each of the words on the left with the correct explanation on the right:
- •3. Translate the text into English:
- •Voting rights of shareholders
- •Preferred Stock
- •Common stock
- •Answer the questions:
- •Complete sentences by inserting the following words in the gaps:
- •Complete the text by inserting the following words in the gaps:
- •Speak on:
- •5. Make written translation of the text into Russian:
- •6. Translate the text into English:
- •Forward exchange contract
- •Fixed and option contracts
- •Answer the questions:
- •2. Match each of the words on the left with the correct explanation on the right:
- •3. Complete the text using these words:
- •4. Speak on:
- •5. Make written translation of the text into Russian:
- •6. Translate the text into English:
- •Unit 7 banking
- •Match the words with the definitions:
- •2. Complete the sentences using the words from the box:
- •3. Which of the following sentences are true or false?
- •4. Match the terms with their Russian equivalents:
- •5. Match the two parts of the sentences:
- •6. Make written translation of the text into Russian:
- •Islamic Banking
- •Unit 8 commercial and central banks
- •1. Answer the following questions:
- •2. Match the terms with their Russian equivalents:
- •3. Fill in the gaps with the correct variants:
- •4. Complete the sentences by inserting the following words in the
- •5. Make the written translation of the text into Russian: micro credit
- •Insurance companies
- •Life Insurance Companies
- •Property and Casualty Insurance Companies
- •Answer the questions:
- •Match each of the words on the left with the correct explanation on the right:
- •Translate the sentences into English:
- •Unit 10 pension funds
- •Annuities
- •Answer the questions:
- •Complete the text by inserting the following words in the gaps:
- •3. Speak on:
- •4. Translate the text into English:
- •Unit 11
- •Investment Funds
- •Answer the questions:
- •2. Match each of the words on the left with the correct explanation on the right:
- •4. Make the written translation of the text into Russian:
- •5. Translate the text into English:
- •Unit 12 taxation
- •Match each of the words with the correct explanation on the right:
- •2. Complete the sentences by inserting the words in the gaps:
- •3. Which of the following sentences are true or false?
- •4. Match the terms with their Russian equivalents:
- •5. Translate the sentences into English:
- •6. Render the text: концепция платежеспособности
- •Unit 14 classification of taxes
- •1. Answer the following questions:
- •2. Match the terms with their Russian equivalents,
- •3. Fill in the gaps with the correct variants.
- •4. Complete the sentences by inserting the following words in the
- •5. Translate the sentences into Russian:
- •6. Render the text переложение налогового бремени
Answer the questions:
1. What is a forward exchange contract?
2. In what way is a forward exchange contract binding?
3. What will happen if the customer cannot meet the terms of the
contract? Why are the terms of the contract so rigid?
4. Who makes money by entering the contract?
5. What are the types of a forward exchange contract? What are the
differences between them?
6. Which of the two types of the contract is more risky for the bank?
For the customer?
7. Why does the customer try to avoid having to renew a forward
exchange contract?
8. How can the customer cover his risk?
9. How does the bank try to gain from an option exercise contract?
10. For what term is forward cover available?
11. In what situation will the customer enter into five-year forward
exchange contract?
12. What is the usual term of the contract? Why?
2. Match each of the words on the left with the correct explanation on the right:
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3. Complete the text using these words:
currency, forward rate, to gain, to hold on, interest, interest differential, to lose, to pay, spot rate
It is important to understand that a forward rate is not the best estimate of what the ......(1) will be in the future. It will be purely coincidental if the three month forward rate on, say, 1 June (the rate at which the bank contracts now to deal on 1 September) is the same as the spot rate on l September. The ......(2) is determined by taking the spot rate ruling on the day the forward exchange contract is made and adding or subtracting an ......(3) for the period of the contract.
This is easier to understand with an example. Suppose you have imported goods from Germany for which you have to pay in three months’ time. You think that the value of the Deutschemark will rise over the period so that you will have to pay more in sterling terms in three months’ time than you would if you ......(4) now. However, if you buy Deutschemarks now, you will lose interest on the sterling you could otherwise have deposited for that three months - whereas the bank gains that interest. On the other hand, you gain interest on your Deutschemarks.
Again, if you enter into a forward exchange contract now to buy Deutschemarks at a fixed rate of exchange in three months time, then you ......(5) the interest on sterling but ......(6) the chance of gaining interest on Deutschemarks.
The interest rate in Germany is likely to be lower than in the UK because its ......(7) is stronger. Therefore, if you buy forward rather than spot you will pay more for your Deutschemarks to reflect the higher interest you receive over the three months on your sterling - and which the bank necessarily loses because it has to pay you ......(8) instead of getting interest itself on the sterling you would have paid it. The bank will still get interest on its Deutschemark holdings but not enough to make up the difference.
If, however, the Deutschemark was weakening and German interest rates went above UK rates to encourage people to ......(9) to Deutschemarks, then the bank would charge you more for your Deutschemarks spot to reflect its lost opportunity to hold Deutschemarks at a high interest rate.