Word List

deposits denominated in currency – валютні депозити

foreign exchange market – валютний ринок

interbank market – ринок міжбанківських операцій

foreign currency – іноземна валюта

down to the last penny – до копієчки

foreign exchange department – валютний відділ банку

inventory position – стан запасів

execution of transactions – виконання операцій

to hedge foreign exchange risk – хеджувати валютні ризики

simultaneous – одночасний

to maintain access to … – забезпечувати доступ до …

to maintain large inventories of key foreign currencies – тримати великі запаси основних валют

a correspondent bank – банк –кореспондент

dollar denominated deposit – доларовий депозит

exchange rate – валютний курс

arbitrage opportunity – можливість арбітражної операції

floating exchange rate – плаваючий валютний курс

domestic (national) currency – національна валюта

currency fluctuations – коливання валют

to employ a wide variety of techniques – використовувати різні методи

to shelter risk exposure – захищати від ризику

fluctuating currency – нестабільна валюта

spot transaction – операція спот

forward transactions – операція форвард

settlement – розрахунок

volatility – волатильність, мінливість, нестабільність

currency option – валютний опціон

futures contract – ф’ючерсний контракт

currency swap – валютний своп

to eliminate – усувати, ліквідувати

Exercise 3. Give Ukrainian equivalents to the following words and word-combinations.

The volume of transactions, interbank market, to buy and sell deposits denominated in foreign currencies, to consist of two tiers, wholesale market, retail market, to involve large sums, down to the last penny, spread, to stand willing to buy and sell, multinational firms, to facilitate execution of commercial or investment transactions, to hedge foreign exchange risk, to seek profit, simultaneous, treasury, to acquire foreign exchange reserves, to facilitate trading, to find a counterpart, to be headquartered, to maintain large inventories, to deliver, dollar denominated deposit, holder, foreign exchange dealing, to quote the exchange rate, arbitrage opportunity, to employ a wide variety of currency-hedging techniques, to shelter currency risk exposure, fluctuating currency, spot and forward transactions, settlement, at a set price, respectively, volatility of foreign exchange rate.

Exercise 4. Find in the text English equivalents to the following words and word-combinations. Make up your own sentences using them.

У середньому дорівнювати, депозити в іноземній валюті, складатися з двох рівнів, оперувати великими коштами, до копієчки, валютний дилер, сприяти проведенню торговельних та інвестиційних операцій, отримувати прибуток від чого-небудь, ціна купівлі, ціна продажу, одночасний, казначейство, валютний відділ банку, бути готовим придбати та продати, міжнародний портфельний інвестор, хеджувати валютні ризики, спекулянт, арбітражер, прагнути отримати прибуток, поповнювати або витрачати резерви в іноземній валюті, знайти контрагента, в усьому світі, мати головний офіс, торгувати валютою, власник доларового депозиту, валютна операція, котирувати курси валют, плаваючий валютний курс, використовувати різні методи хеджування валютного курсу, захищати від валютних ризиків, нестабільна валюта, дата валютування, банківський день, за встановленою ціною, призводити до появи, коливання валютного курсу, валютні опціони, ф’ючерсні валютні контракти, валютні свопи.

Exercise 5. Here are some word-combinations from the text. Match and translate them into Ukrainian.

1.	to acquire	a.	large inventories
2.	to eliminate	b.	to a number of techniques
3.	to maintain	c.	risk
4.	to give rise	d.	foreign exchange reserves
5.	to shelter	e.	a wide variety of techniques
6.	to employ	f.	risk exposure

Exercise 6. A. Match the synonyms.

A B

fixed rate	owner
holder	to protect
to shelter	pegged rate
to acquire	stock
inventory	settlement date
volatility	instability
value date	to buy

B. Match the opposites.

A B

floating rate	forward
fluctuating	retail
spot	to prevent
wholesale	stable
to give rise	fixed rate

Exercise 7. Match the terms with their definitions.

1.	ask	a.	the exchange rate in one currency at which a dealer will buy another currency
2.	arbitrager	b.	the exchange rate at which a dealer will sell the other currency
3.	to hedge	c.	a person who buys and sells goods, property, currency or shares in a company in the hope of making a quick profit
4.	bid	d.	a person who profits by simultaneously purchasing and selling currency to take advantage of spreads created by market conditions
5.	business day	e.	an exchange rate for a currency that is not controlled by the government but changes as the demand for the currency changes
6.	speculator	f.	to protect oneself against the risk of losing money in the future because of changes in the value of shares, currencies etc., e.g. by buying or selling futures, options
7.	floating exchange rate	g.	a transaction that involves the immediate (two-day) exchange of bank deposits
8.	forward transaction	h.	a transaction that involves the exchange of bank deposits at some specified future date
9.	exchange rate	j.	the relation in value between one currency and another
10.	spot transaction	k.	every official working day of the week
11.	foreign exchange reserve	l.	deposits of a foreign currency held by a central bank
12.	currency fluctuations	m.	the action of paying money that you owe
13.	settlement	n.	changes in the value of one currency relative to another

Exercise 8. Fill in the missing prepositions.

On, at, for (2), from, with, in (5).

1. Dealing _____ currency risk involves such hedging instruments as currency options, currency futures contracts and currency swaps. 2. Dealing or trading _____ foreign currency is an increasingly popular investment activity. 3. Some of FX market participants deal _____ currencies as an investment. 4. When an American firm buys foreign goods, services, or financial assets U.S. dollars (typically, bank deposits denominated ___ U.S. dollars) must be exchanged _____ foreign currency (bank deposits denominated ___ the foreign currency). 5. Alpari (UK) Limited is an award-winning Forex broker headquartered ____ the heart of the City of London and with subsidiaries in Germany, Japan and India as well as a Representative Office in China. 6. Banks trade international currencies to profit ____ changes in exchange rates, obtain currency for direct foreign investments or secure currency needed by the banks' customers. 7. The task of a broker is to find a counterpart ____ a client quickly. 8. A futures contract is an obligation to exchange a good or instrument ______ a set price ____a future date.

Exercise 9. Match two columns. Use the correct forms of word-combinations to complete the sentences below.

to trade to charge currency exchange spot

currencies fluctuations rate commissions transaction

1. Banks may exchange currencies in a ____________ in which two parties agree on an _____________and make an immediate currency trade. Or they may agree to a forward transaction in which they will ________________at a specific future time. 2. Forex trading is a zero-sum game: one counterparty to the trade wins, the other side loses. Brokers who only ______________ do not assume the role of counterparty to customer trades, and thus have no reason to manipulate prices or spreads to the customers' disadvantage. 3. Any individual or company engaged in overseas business should be aware of the risks of ______________.

Exercise 10. Choose the correct part of speech to complete the sentences. Change the form if necessary.