Metodichka_-_Anglysky_yazyk

4. to implement monetary policy

instrument 1_________________________

its effect on the cost of liabilities:______

instrument 2________________________

its function:______________________

instrument 3________________________

its function:_________________________

*Discussion

What other functions do central banks perform? What do you think about central bank independence? Is the central bank in your country independent of the government?

Vocabulary

Ex. 5 Find in Text 1 English equivalents for the following Russian words and word combinations.

1.расчетное обслуживание

2.кредитор последней инстанции

3.проводить кредитно-денежную политику

4.односторонний

5.полноправие, полновластие

6.держать на плаву

7.погашать долги

8.пассивы, финансовые обязательства

9.избыток

10.неплатежеспособность

11.балансовый отчет

12.совокупность элементов денежной массы

13.счет

14.вклад

15.альтернативные издержки

16.операция постоянного доступа

17.процентная ставка

18.ставка рефинансирования

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19.операции на открытом рынке

20.государственные ценные бумаги

Ex. 6 Match the words and word combinations (1-19) from the text to their definitions (A-S).

1.a lender of last resort

2.monetary policy

3.settlement

4.liability

5.solvency

6.balance sheet

7.money aggregate

8.account

9.intervention

10.deposit

11.opportunity cost

12.money supply

13.interest rate

14.debtor

15.discount rate

16.open market

17.liquidity

18.auction

19.securities

A.ability to pay all debts

B.an arrangement with a bank in which the customer puts in and takes out money and the bank keeps a record of it

C.the value of the action that you do not choose, when choosing between two possible options

D.a financial statement that shows a company's assets and debts at a particular time

E.the amount of money that a person or organization owes

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F.a central bank or international organization that lends money to banks or countries in difficult financial periods when they cannot borrow from anywhere else

G.a public sale in which goods or property are sold to the person who offers the most money

H.a person, country, or organization that owes money

I.financial investments such as a bond or share that are traded on a financial market

J.involvement in a difficult situation in order to improve it or prevent it from getting worse, or an occasion when this is done

K.actions taken by a government to control the amount of money in an economy and how easily available it is, for example by changing the interest rate

L.the percentage amount that you pay for borrowing money, or get for lending money, for a period of time, usually a year

M.the state of having enough money or assets to pay any money that is owed

N.payment of a debt

O.one of the measures of the amount of money or other financial assets existing in an economy

P.an amount of money that someone pays into a bank account

Q.the total amount of money in a particular economy at a particular time

R.a situation in which a country's central bank buys and sells in a financial market to increase or reduce the money supply (= the amount of money in an economy)

S.the rate of interest that a country's central bank charges for lending money to other banks

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Ex. 7 Complete the sentences using the terms (a-l). There are two extra words you don’t need.

1.The central bank slashed its official_______________, at which it lends to commercial banks, to prevent the economy from sliding into recession.

2.The business no longer has sufficient __________________to meet its operational needs.

3.Most government ___________________are bonds that pay a fixed amount of interest per year; unlike commercial securities, their repayment is guaranteed.

4.We have to be mindful in implementing a rate freeze to avoid

___________________problems.

5.Some critics point out that all these unsettled debts represent a growing ____________ for the world's airlines.

6.The ____________________ of studying at university for three years is the three years of pay that you do not earn during that time.

7.The banks are able to transfer funds from one bank

________________to another by way of the clearing system.

8.______________fluctuations may affect present and future cash flows of the company.

9.Relaxing __________________left room for currency speculators to make big profits.

10.A ____________can also present a petition to the court in order to declare voluntary bankruptcy.

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Ex.8 Match the verbs and nouns below to make collocations.

relationships between the author’s ideas.

Listening

Ex.10 Gabriel Mangano is an economics research student, specializing in monetary policy. You will hear him outlining the functions of a central bank. [16; p.133]

a) Listen to the interview and fill in the gaps.

The first one is actually to implement monetary policy. There are roughly three ways to do it. First (a) _______________________ , which means limiting, upwards or downwards, the fluctuations of the interest rate. The second way to implement monetary policy is simply (b) ____________________________________________ - coins, banknotes. The third one, which is a bit more modern, is those

(c) _______________________________________ which are simply buying and selling government bonds to and from commercial banks.

So that was the first main task of a central bank. The second one is (d) _________________ I would say. [...]

The third main task, yes, (e) ___________________________ I would say - make sure that the commercial banks have enough liquidities, for instance, to avoid any bank run. [...]

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The fourth main task of the central bank would be to (f)

________________________________, in case, actually, one of these commercial banks goes bankrupt and the investors, the people putting money in the bank, have to get back their money.

b)Read the six sentences below. Match them with the six expressions (a-f) you have written in Ex. l0a.

1.controlling the amount of banknotes in circulation

2.establishing maximum and minimum lending rates, thereby controlling the credit system

3.ensuring that banks have a sufficient liquidity ratio to allow customers to withdraw their deposits when they want

4.intervening on foreign exchange markets, buying or selling large amounts of the national currency, to prevent major fluctuations

5.lending money to a commercial bank in danger of going bankrupt

6.selling government bonds to commercial banks or buying them back, in order to alter the amount of credit the banks can offer (and thereby alter the money supply)

Grammar

Notes

*But use be going to in predictions when there is evidence that something will happen in the near future. Look at those clouds – it’s going to rain.

**But use be going to for:

a)decisions you have made earlier I am going to quit as the team’s manager.

b)plans, intentions, ambitions you have for the future. I’m going to meet our agent next week.

(it’s only an intention; neither time nor place is fixed; nothing is arranged)

Use Present Continuous for arrangements. I’m meeting our agent next week. (the time is already fixed)

Use Present Simple for programmes, timetables. The flight leaves at 10 a.m. tomorrow.

Ex.11 Sort these time expressions into 3 categories:

1)used with Future Simple

2)used with Future Continuous

3)used with Future Perfect and Future Perfect Continuous.

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tomorrow, next week/month/year, this time next week/month/year, before, until/till, in a week/month/year, in two weeks/months/years, by, by then, by the time, by……for, the day after tomorrow, tonight, soon

Ex.12 Choose the correct alternative (Future Simple, be going to, Present Simple, Present Continuous). Explain your choice.

1.I am sure he will/is going to settle all the accounts without further delay.

2.Look at the Nikkei index. Share prices of several Japanese companies will/are going to drop.

3.Look at your diary. The meeting on the intervention policy will start/is going to start/ is starting/starts at 10 a.m. next Monday.

4.I expect this sudden change in the corporate policy will/is going to affect the market opportunities for their competitors.

5.The limitations on imports from European countries will probably/are going to pose a risk to purchasing capacity of population because of price increase in the market.

6.It certainly will not/is not going to be long before computers speak rather than display messages.

7.The securities of the company are undervalued at the moment and seem rather promising. I will buy/am going to buy/am buying them.

8.The securities of the company are undervalued at the moment and seem rather promising. I will buy/am going to buy/am buying them. I talked to my broker yesterday and charged him.

9.– Do you know that the securities of the company are undervalued at the moment.

-Oh, really? I will buy/am going to buy/am buying some of them.

10.Last week the central bank made a decision to increase its discount rate. Commercial banks will raise/ are going to raise/are raising their interest rates too.

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Ex.13 Complete the sentences using the verbs in brackets in the Future Simple, Future Continuous, Future Perfect, Future Perfect Continuous form. Explain your choice.

1.I believe our government _______ (implement) a coherent policy aimed at halting economic recession.

2.This time next year our government ___________ (implement) the reform policy in taxation.

3.By the end of next year, our government ____________

(implement) several reforms in taxation.

4.By the end of next year, our government _____________

(implement) a deliberate policy aimed at halting economic recession for five years.

5.Our company probably _________ (provide) this service. The decision will depend on calculating opportunity costs and on the current demand for it.

6.This time next month our company ______________ (provide) this service only to a group of its loyal customers.

7.By 2017 the company ___________ (provide) five comprehensive services in this market segment.

8.By 2017 the company ____________ (provide) this service in the housing market for three years already.

9.- ____________ you (work) on the balance sheet figures tomorrow morning?

-Sure. Why?

-I need some to launch a loan application process.

10.Shareholders ____________ (require) all financial data at the annual general meeting.

Ex.14 Choose the correct answer (a, b, c, d).

1.Could you lend me $1000? I _________ you back tomorrow.

a.will pay

b.will be paying

c.am paying

d.am going to pay

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2.By the end of the year we ____________ our initial investment.

a.will recover

b.are going to recover

c.will have recovered

d.will have been recovering

3.During the training seminar you ____________ how to cover the company’s financial liabilities.

a.will learn

b.will be learning

c.are going to learn

d.will have learned

4.- The central bank representatives ______________

tomorrow!

-Oh, really! When __________? I____________ meet them.

a.will come ……….. is the plane landing……… will

b.are coming ……… does the plane land………. will

c.are going to come ……will the plane land …am going to

d.come ……………..is the plane going to land …..will

5.I have been calculating possible risks. I ____________ in open market operations.

a.will be investing

b.will invest

c.am going to invest

d.invest

6.–I am afraid the charity auction records are not ready yet. -Never mind. I______________

a.am going to wait

b.will be waiting

c.will wait

d.am waiting

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