5.5.2 Complete the following text using suitable words or phrases from the box below.

A	investment opportunities	E	deregulation
B	pool of savings	F	foreign corporations
C	important investors	G	financial markets
D	to expand	H	funds

Internationalization of financial markets

The growing internationalization of financial markets has become an important trend. Before the 1980s, US ____1____ were much larger than financial markets outside the United States, but in recent years the dominance of US markets has been disappearing. The growth of foreign financial markets has been the result of both large increases in the ____2____ in foreign countries such as Japan and the ____3____ of foreign financial markets, which has enabled them ____4____ their activities. American investors often seek ____5____ abroad. Similarly, ____6____ and banks raise ____7____ from Americans, and foreigners have become ____8____ in the United States.

5.5.3 Complete the text. Replace the Russian words and phrases by English equivalents.

International Bond Market, Eurobonds, and Eurocurrencies

The traditional instruments in the international bond market are known as foreign bonds. Иностранные облигации are sold in a foreign country and are denominated in that country’s валюте.For example, if the German automaker Porsche продает облигацию in the United States деноминированную in US dollars, it is classified as а иностранная облигация. Foreign bonds have been an важный инструмент in the international рынке капитала for centuries. In fact, a large percentage of US railroads built in the nineteenth century были финансированы by sales of foreign bonds in Britain.

A more recent инновация in the international bond market is the Eurobond, a bond denominated в валюте other than that of the country in which it is sold – на пример, a bond denominated in US dollars sold London. Currently, over 80% of the новых выпусков in the международный рынок облигаций are Eurobonds, and the market for these ценных бумаг has grown very rapidly. As a result, the Eurobond market is now larger than the US рынок корпоративных облигаций.

A variant of the Eurobond is Eurocurrencies, which are иностранные валюты deposited in banks outside the home country. The most important of the Eurocurrencies are евродоллары, which are US dollars задепонированные in foreign banks outside the United States or in зарубежных филиалах of US banks. Because these short-term deposits earn процент, they are similar to краткосрочные Eurobonds.

5.5.4 Text for discussion.

a. Look up the dictionary for the meaning and pronunciation of the following words and word-combinations and use them to discuss the problems outlined in the text.

Regulation, to issue securities, assets and liabilities, earnings, sales of stock, insider trading, to prohibit, soundness, licensing, financial books, deposit insurance, to subject to restrictions, branching, to abolish, legislation, a stake.

b. Briefly scan the text and outline the list of major points.

c. Read the text more carefully and comment on the following items:

- reporting requirements for financial intermediaries;

- restrictions on assets and activities of financial intermediaries;

- the necessity of deposit insurance.