Учебное пособие: Методические указания для развития навыков чтения литературы по специальности «деньги и банки»

МИНИСТЕРСТВО ОБРАЗОВАНИЯ УКРАИНЫ

ПРИАЗОВСКИЙ ГОСУДАРСТВЕННЫЙ ТЕХНИЧЕСКИЙ УНИВЕРСИТЕТ

МЕТОДИЧЕСКИЕ УКАЗАНИЯ

Для развития навыков чтения литературы по специальности

«ДЕНЬГИ И БАНКИ»

У Т В Е Р Ж Д Е Н О

На заседании кафедры

Иностранных языков и перевода

Протокол № от

МАРИУПОЛЬ ПГТУ 2004 г.

Методические указания для развития навыков чтения литературы по теме «БАНКИ И ДЕНЬГИ». / Сост.: Кечеджи О.В. – Мариуполь, ПГТУ, 2004 г.

Данные методические указания предназначены для студентов V курса специальности «Перевод» по дисциплине «Аспектный перевод» (Банковское дело). Указания состоят из четырех разделов и двух приложений. Методические указания включают в себя банковскую лексику; тексты по данной дисциплине; видео урок; денежные единицы стран мира и список сокращений, принятых в деловой документации.

Методические указания предназначены для изучения банковской лексики, навыков перевода тематических текстов и документации.

Составители: О.В. Кечеджи, преп.

Отв. за выпуск: Л.Н. Лазаренко, к.п.н., доцент

SECTION I.

Watch the Video “ The Bank”

Excercise1.

Watch the whole video and say the correct answer.

a) The bank - opposite the department store.

- next to

- in front of

b) Paola changes - money.

- traveller’s cheques .

c) Paola finds her passport - in her bag.

- in her pocket.

- in David’s pocket .

d) Paola - shows her passport to David.

- Doesn’t show

e) The bank clerk gives Paola - f 100

- f 200

- f 1000

Exercise 2.

Put the words in the conversation in the correct order.

Paola: me, is, excuse, bank, here, near, there, is?

Man: opposite, street, in, yes, department, there’s, store, one, big, Milsom, the.

Paola: street, Milsom, where’s?

Man: first, the, right, the, take, left, second, then.

Exercise 3.

Fill in the gaps in the conversation.

Clerk:___________would you like__________cash, in tens or twenties?

Paola: Twenties,_________________.

Clerk: That’s twenty,_________, sixty,___________, one _________pounds. And there’s your receipt.

Paola:___________________.

Clerk: Thank you.

Paola: Good. I__________________ those jeans now.

Exercise 4.

Tick the correct verb.

Paola and David (arrive, leave) in town. Paola wants to (buy, shop) some jeans. But first, she wants to (find, change) some traveller’s cheques, so she (asks, tells) the way to a bank.

At the bank Paola (gives, takes) the traveller’s cheques to the clerk. The clerk (says, asks) her to (sign, write) them. Paola can’t (say, remember) what “sign” means.

Then Paola can’t (get, find) her passport. She (sees, checks) her pocket and her bag. Finally, she finds it in her bag, and the clerk (gives, asks) her the money.

SECTION II.

Unit One

Active Vocabulary

Account – счет

Accountant – бухгалтер

Board of directors – совет директоров

Current account – текущий счет

Deposit account – депозитный счет

Depositor – вкладчик

Dividend- дивиденд

Draw upon an account – снимать со счета

Interest – процент, процентный доход

Joint stock – акционерный капитал

Loan – ссуда, заем, кредит

Profit – прибыль

Reserve – резерв, запас

Run the bank – управлять банком

Shares –акции

Shareholder – акционер

Statement – выписка из банковского счета

Standing order – постоянное поручение клиента банку

Dialogue

Student: Who really owns the bank?

Banker: The stockholders own it. In the beginning, they put up the necessary capital and were granted a charter from the government.

S.: Are the members of the board of directors stockholders?

B.: Oh, yes. They’re chosen by the other stockholders to operate the bank.

S.: And the board hires the president and the vice-president to manage it?

B.: That’s right. Along with the cashier, the teller and the clerical workers.

S.: I guess most of your work has to do with checking and savings account and making loans.

B.: Yes. But we invest money too. Planning the bank’s investments is also very important.

S.: Do you divide all the profits among the stockholders?

B.: Not all of them. The stockholders receive regular dividends. But some of our earning are held in reserve accounts.

S.: I suppose that would be necessary.

B.: Here’s copy of our last published statement. You see, the reserves are shown here as surplus and undivided profits.

Questions on the dialogue :

1. Who owns the bank?
2. How does a bank start?
3. Who chooses the board?
4. What’s the board’s task?
5. Who hires the employees?
6. What are the bank’s main activities?
7. How are the profits distributed?
8. How are the stockholders kept informed?

The Structure and Functions of a Bank .

The English commercial banks have branches in all the major towns and a similar structure and mode of working is common to them all. The owners are the shareholders. At the outset they provide the necessary capital. They are all organized on the joint stock principle and registered public companies.

The Chairman and Board of Directors are elected by the ordinary shareholders at the Annual General Meeting and are responsible for the efficient management of the bank. The Board is concerned with the overall policy of the bank and major decisions which put that policy into effect.

The Board will appoint a Managing Director who is directly responsible to them and a member of the Board. They will also appoint the most senior executives who in turn appoint the rest of the clerical staff who will be responsible in different capacities for the day to day running of the bank.

The essence of a bank’s activities is the collection of deposits through current and deposit account and the use of these funds to provide loans or funds for investment. The current account is the one commonly held and is drawn upon by cheques and standing orders. The deposit account is more in the nature of a savings account. The pattern of investments which a bank decide upon is crucial because, on the one hand, the bank must use the funds wisely to make a profit and, on the other, funds must be available for depositors to withdraw when they wish to do so.

At the end of each business year the Directors recommend and the Annual General Meeting decides how much of the profit should be distribute to the shareholders as dividend, and how much should be retained in the business. In preparation for the Annual General Meeting, a bank publishes its Report and Accounts. These must be sent to every shareholder and are also available for anyone with an interest in the affairs of the bank. From the published accounts shareholders can easily determine the total profits the bank has earned and how much is available for distribution.

Questions on the text :

1. Who owns the English commercial bank?
2. How does a bank start?
3. Who chooses the Board?
4. What is the Board’s task?
5. Who hires the employees?
6. What are the bank’s main activities?
7. How are the profits distributed?
8. How are the shareholders kept informed?

Exercise1.

Find proper definitions.

TERMS DEFINITIONS

1.Capital a) a sum of money to a shareholder out of profits in relation to

2.Dividend his investment

3.Deposit account b) an account in a bank from which money can be drawn by

4.Retained profits cheque

5.Current account c) profits not paid out as dividends and added to the surplus

d) the money value of the shareholders stake in the bank or

company

e) an account in a bank on which the depositor receive interest

Exercise 2.

Choose the right answer:

1. The people who decide the general policy of the bank are:

a) shareholders,

b) the board of directors,

c) the executive staff.

2. The bank’s financial position can be discovered from:

a) a report,

b) an announcement,

c) a statement.

3. Bank profits kept back for later use are:

a) withdrawals,

b) surplus,

c) retained profits.

4. Earnings remaining after all the expenses of a business activity have been paid are:

a) dividend,

b) capital,

c) profit.

5. Money which one person allows another to use for a specified time and which will then be returned is:

a) investment,

b) loan,

c) interest.

Exercise 3.

Using the information in the passage, say what is true and what is false. Correct the false sentences .

1. Members of the Board of Directors are shareholders.
2. All the shareholders participate in running the bank.
3. All the bank’s profits are divided among the shareholders.
4. All the retained profits of the bank belong to the shareholders.
5. The reserves are shown in the statement as retained.

Exercise 4.

Find synonyms for the following. Use a dictionary whenever necessary :

To own to appoint

To run to distribute

To collect to receive

Exercise 5.

Fill in the blanks with proper words or phrases:

1. The board appoints the … and the … .
2. An employee in a bank who pays out and receives money is called a … .
3. The Board of Directors is elected by the … .
4. The Board may distribute … to the shareholders out of the profits once or twice a year.
5. The … may be high even after all the bank’s expenses are paid.
6. A bank will need to seek approval for a large … to a customer.
7. The Board will discuss the bank’s … in other businesses.

Unit Two

Active vocabulary

Accept a bill акцептовать вексель

Bank draft банковская тратта

Bank money order банковский денежный перевод

Bank note, note, bill (US) банкнота

Bearer предъявитель, держатель

Bill of exchange переводной вексель

Cash получать наличные, обналичивать

Cashier’s check кассирский чек

Certified check удостоверенный чек

Certify заверять, удостоверять

Cheque, check чек

Traveller’s cheque дорожный чек

Creditor кредитор

Credit standing кредитоспособность

Currency денежное обращение, деньги, валюта

Denomination достоинство, ценность, деноминация

Discount a bill дисконтировать вексель

Endorse/indorse индонсировать, делать передаточную надпись

Forms of exchange формы обмена

Honour a bill акцептовать вексель

Identification идентификация ценных бумаг

In lieu of вместо

Issue выпускать в обращение

Legal tender законное платежное средство

Mature наступать (о сроке платежа)

Negotiable отчуждаемый, передаваемый

Payee ремитент, получатель платежа по кредитным обязательствам

Payer плательщик по кредитным обязательствам

Sight draft вексель на предъявителя

Dialogue

Read the dialogue .

Student: The bank must use just about every form of exchange in a day’s work.

Cashier: Just about. Of course, we constantly handle coins and bills of every denomination.

S.: They’re what you call legal tender.

C.: Yes. Or currency. A nation’s currency is its legal tender.

S.: But a check isn’t legal tender.

C.: No. However checks are a very common form of exchange, and they are generally accepted in lieu of currency.

S.: Are traveller’s checks currency?

C.: Not in a strict sense. But they’re immediately negotiable everywhere. For instance, even merchants will cash them under most circumstances.

S.: The bearer need only present proper identification.

C.: That’s right.

S.: Well, what’s a bank note? Is that currency?

C.: Definitely. Bank notes are issued by the banks of the Federal Reserve System, and they’re legal tender just as silver certificates are.

S.: That’s what I thought. But getting back to checks, why are bank drafts sometimes preferred over checks?

C.: Well, in the case of a check, the party who signs it is the only one who guarantees payment. But a bank draft is issued and guaranteed by a bank.

S.: Is that true of cashier’s checks, too?

C.: Yes. And also of certified checks and bank money orders.

S.: What about sight drafts?

C.: Now, sight drafts are different. They’re form of request for payment through a bank.

Questions on the dialogue :

1. What forms of exchange are called legal tender?
2. Why are checks a common form of exchange?
3. How are treveller’s checks useful?
4. Which banks in the USA may issue bank notes?
5. What is the difference between a check and a bank draft?
6. What do cashier’s checks, certified checks and bank drafts have in common?
7. How do sight drafts differ?

Currency and other Forms of Exchange .

The work of bank centres around money and financial services. Virtually and activity involving money or advice about financial matters is undertaken by all the commercial banks. The immediate service offered by the bank is the receipt for deposit of coins, notes and cheques and the cashing of cheques, through current accounts. Coins and notes in circulation have the status of “legal tender” that is to say they must be taken in payment of a debt although the extend to which this applies in the case of coins is deliberately restricted for the sake of convenience.

The most common means of payment, particularly for significant sums of money, is the cheque since it is both safer and more convenient than using cash. However, it is not legal tender and creditors can refuse to accept it if they wish. Normally both nations cheques and traveller’s cheques are readily negotiable if the bearer has some means of proving his identity and the creditor can be sure that the cheque will be “honoured”. To assist the use of cheques banks now provide their customers with bankers cards which, when used in association with a cheque, will guarantee it up to a stated maximum. If a customer wishes to make payments of large amounts of money by cheque and is not known to the creditor, then he may obtain a “certified cheque” from his bank. Such a cheque is signed by the bank and therefore payment is guaranteed.

Those trading overseas, or in conditions where there may be a significant time lapse between sending out goods and their receipt by the customer, may use a Bill of Exchange as a means of payment. This is really a post dated cheque which assures the creditor payment but also gives the buyer opportunity to inspect the goods before the transaction is completed. Those whose credit standing is unknown may have to get the Bill “accepted” before a creditor will take it. Such a process guarantees payment and most work of this kind is undertaken by the merchant banks. Because Bills are post dated creditors may have to wait some time for their money. They can overcome this problem by endorsing the Bill and then either discounting it with a Discount House or a bank or passing it on to another trader in settlement of a debt of their own. By the time it comes to maturity a Bill may have passed through several hands and on each occasion it must be endorsed. The commercial banks participate in this activity in two ways: in part by lending money to the discount houses and in part by discounting bills for their own customers.

Questions on the text :

1. What forms of money are called legal tender?
2. Why are cheques a common form of exchange?
3. What is the main purpose of a banker’s card?
4. What is the special features of a certified cheque?
5. What is the main use of a Bill of Exchange?
6. Why does a Bill sometimes have to be “accepted”?
7. In which two ways might a creditor who needed the money dispose of a Bill?

Exercise 1.

Choose the right answer :

1. “We constantly handle coins and bills” means:

a) cash them under most circumstances,

b) deal with them,

c) receive them.

1. “ Bills of every denomination” denote:

a) bank notes of different values,

b) bank notes of various sizes,

c) other means of exchange.

1. “Legal tender” is:

a) A type of paper currency,

b) A requirement to accept in settlement of a debt,

c) Money guaranteed by a government.

1. “Both cheques and traveller’s cheques are readily accepted” means:

a) able to be given to another party,

b) certified by the bank that funds are available,

c) endorsed by an officer of the bank.

1. “The cheque will be honoured” means:

a) that it will be readily accepted by creditors,

b) that it will be treated with respect,

c) that the bank will be ready to cash it.

1. “A bearer” is:

a) a person who is named as payee on the exchange document,

b) an officer of the bank who endorses the cheque,

c) the person offering the exchange document and demanding payment.

Exercise 2.

Say what is true and what is false. Correct the false sentences :

1. Coins and bills of every denomination are called legal tender.
2. Cheques arq rarely accepted in lieu of currency.
3. To cash a traveller’s cheque the bearer need only present proper identification.
4. Bills of Exchange are not legal tender.
5. A cheque is always guaranteed by a bank.
6. Certified cheques are always guaranteed by a bank.

Exercise 3.

Fill in the blanks with proper words of phrases:

Bank note honoured

Bearer identification

Coins issued

Currency traveller’s cheques

1. While travelling I do not like to carry large amounts of … .
2. I prefer to have … which are immediately negotiable.
3. Traveller’s cheques are … in different denominations.
4. To cash the treveller’s cheque the … should present proper identification.
5. However, there are merchants who will not accept traveller’s cheques even though you present proper… .
6. I collect … of every denomination.

Unit Three

Active Vocabulary

Active account активный депозитный счет

Accrue накапливать

Balance сальдировать, подводить итог, закрывать счета

Cancel a cheque аннулировать чек

Compound interest сложные проценты

Credit кредитовать

Debit дебетовать

Deposit вклад, депозит, задаток

Fund запас, резерв, фонд

Genuine подлинный, неподдельный

Insurance страхование

Insure against страховать(ся)

Interest on bank credit процент по банковскому кредиту

Joint account совместный счет

Ledger бухгалтерская книга

Liquid ликвидный

Maturity срок платежа

Notice извещение, уведомление

Outstanding 1) выпущенный в обращение

2) не предъявленный к платежу, задолженный

Overdraft овердрафт, превышение кредитного лимита

Overdraw допускать овердрафт, превышать кредитный лимит

Passbook банковская расчетная книжка, депозитная книжка,

сберегательная книжка

Per annum ежегодно

Principal 1) номинал векселя

2) капитал

3) основной должник

Posting проводка

Rate of interest процентная ставка

Reconcile выверять счет

Commission комиссионный счет

Service charge ----------“------------

Term срок выполнения обязательств

Time certificate срочный сертификат

Transferable переводной

Dialogue

Read the dialogue .

Cashier: Now this is the checking account ledger. Each page is a record of a customer’s deposits and withdrawals.

Student: And you give a copy of this to the customer.

C.: That’s right. That’s his statement, which he receives with all his cancelled checks. Then he reconciles it with his own records.

S.: This one is a joint account, isn’t it? And pretty active.

C.: Yes, it is.

S.: What’s this debit?

C.: That’s our service charge.

S.: I notice an overdraft here in April.

C.: I’m afraid we’ve had to remind this customer and his wife several times that they must keep a sufficient balance to cover all outstanding checks.

S.: Will I have to learn to recognize all our customers signature.

C.: Yes, you will. Any check we cash must have a genuine signature. But we keep a file of them that you can refer to.

S.: Will I be doing any posting of this ledger?

C.: No, I’m afraid. Not till you are employed in our bank.

S.: Well, suppose one has some funds on hand, I’m wondering whether he ought to put them in a savings account.

C.: It’s good idea, if he wants to keep his investment fairly liquid. And he might also think of a time deposit.

S.: What’s the difference?

C.: Well, first of all, his time deposit is for a specified term, but he can make withdrawals from his savings account at any time, although as much as thirty days’ notice of withdrawal may be required.

S.: Do they draw the same rate of interest?

C.: The bank pats the maximum 4% per annum at maturity on a one year time certificate. Interest on a saving account accrues at the rate of 3%.

S.: How do you figure the interest on a savings account?

C.: It’s compounded and credited to the account semi-annually.

S.: You mean added to the principal?

C.: Yes. And we issue each customer a passbook on his saving account in which each deposit and withdrawal is entered.

S.: Is either type of account transferable?

C.: Only time certificates.

S.: Are these deposits insured?

C.: Yes. We’re a member of the Federal Deposit Insurance Corporation.

Questions on the dialogue :

1. What is a checking account ledger?

2. Why does the bank send a copy of the statement with all checks cancelled to every customer?

3. Are service charges debited or credited to an account?

4. What happens when a cashier notices an overdraft on somebody’s account?

5. What does a teller have to do before he cashes a check?

6. What advice would you offer to a customer who has some funds on hands?

7. Why is it profitable to deposit your funds for a specified term?

8. How is the interest on a savings account figure?

9. Which type of account is transferable?

10. How are customer’s deposits protected?

Depositing Money with a Bank .

There are two general reasons for using a bank account. The first and most common is the convenience and safety provided by a current account at a bank. The second is that small and perhaps regular surpluses are available to be saved, and for this purpose a bank provides deposits accounts.

A deposit account will not offer a high rate of interest and would not be the best way to save large sums of money for any long period of time, but it is designed to make saving simple, convenient and safe. It is especially appropriate for those who may save small amounts from time to time without any planned regularity or for those who wish to save for a particular purpose in the immediate future, for example for annual holidays or for the purchase of a major item such as a car.

Most customers of a bank who have opened a deposit account will also have a current account and this makes the transfer of amounts of money from one to the other an easy matter. Regular payments into a deposit account can be made through a standing order to the bank who will automatically transfer the agreed amount according to your instructions. Other payments are made on standard forms but it is most convenient and provides a useful record if the depositor uses a paying in book. Interest is calculated every six months and added to the account. The rate of interest varies from time to time and is publicly advertised in any bank. Because the bank uses money deposited with them to lend to others it normally requires about seven days notice of intention to withdraw money from a deposit account, but unless there is a heavy demand for money they are not likely to insist on this and cash is often immediately available to those who wish to withdraw it. There is an assumption that such notice was given and you would lose seven day’s interest on the money.

The increasing need for security and the use of computers in wage payments have combined to make it more common to have a bank account than to be without one. This kind of account is a current one and its most common use is a single regular payment in either a weekly wage or a monthly salary and regular payments out to meet the normal everyday expenses. Most payments are still made by cheque although the use, of the standing order or the direct debit is becoming very common. It is normally expected that a current account will remain in balance and customers who regularly maintain an agreed minimum balance are often given the services of the bank without charge. In general, however, charges are made which vary with the size of the balance, the amount of use of the bank’s services and the number of transactions. If the account is overdrawn a further charge, which is interest on the overdrawn amount, is also made.

Overdrafts are not permitted automatically and anything other than a small temporary overdraft would have to be by agreement with the bank manager. Such a facility is often useful particularly when there is a short term disbalance between income and expenditure. On the other hand, since money in a current account does not attract interest, it is not a good idea to maintain large cash balances, these would be better transferred to a deposit account or to an alternative form of saving.

Questions on the text:

1. What are the two main reasons for opening a bank account?

2. Which type of account is used by those who wish to save?

3. What kind of saving is this type of account most suited to?

4. What is a standing order?

5. Why does a bank sometimes need notice of intention to withdraw money from saving account?

6. What is the most common use of current account?

7. Why are some customers not charged for the facility of a current account?

8. Why is it not a good idea to retain large balance in a current account?

Exercise 1

Find proper definitions.

Exercise 2.

Choose the right answer :

1. “a current account” is:

a) one which is available for the time being,

b) one in which savings are held,

c) one which is used all the time for day-to-day transactions.

2. “a canceled cheque” means:

a) worthless cheque,

b) stamped to indicate that payment has been made,

c) crossed cheque.

3. “a genuine signature” is:

a) a person’s name written by himself,

b) a person’s name written correctly,

c) legible signature.

4. “an outstanding cheque” means:

a) unpaid cheque,

b) written but not yet presented for payment,

c) overdue cheque.

5. “a deposit account” is:

a) one from which regular payments are made,

b) one in which savings are held,

c) one from which withdrawals can be made by cheque.

6. “rate of interest” is:

a) the percentage of each unit of money paid for its use,

b) rate of profitability,

c) portion of an investment on which the interest is calculated.

7. “an overdraft” is:

a) an amount by which the balance in a current account exceeds the value of a cheque drawn from it,

b) an amount by which the value of a cheque exceeds the balance in the current account,

c) an excessive balance in a current account.

Exercise 3.

Say what is true and what is false. Correct the sentences :

1. The teller has to learn to recognize all customers’ signatures.
2. If you want to keep your investment fairly liquid, put it in a deposit account.
3. You cannot make withdrawals from your deposit account.
4. Interest is paid by the bank on both current account and deposit account.
5. Withdrawals are made from a deposit account by cheque or standing order.
6. Money is easily transferable from a current account to a deposit account.
7. The arte of interest on deposit account is fixed.
8. It is easier to get money out of a deposit account than it is from a current account.

Exercise 4.

Fill in the blanks :

Mr. Collins and his wife have a current account in both their names. They have a … . They both work and put money into the account. They both make … . Sometimes they get mixed up about the amount of money they have removed from their account. They get confused about their … . Once or twice the amount remaining in their account has become too low. They have had too small a … . The next cheque they wrote was for more money than they had in their account. They had an … . The only way they could restore the balance was to get a record of their deposits and withdrawals from the bank. So they asked for a … . They also had the cheques which had been stamped to indicate that payment had been made. They had their … cheques. Then they added up the cheques that had been written but had not been paid by the bank yet. They totaled their … cheques. They also subtracted from their balance the bank charges and interest on the … . Finally they managed to make their records agree with the bank’s statement. They … their account.

Unit Four

Active Vocabulary :

Amortize 1) погашать долг в рассрочку

2) обеспечивать постепенную выплату займа

Repaid by annual installments выплаченный в рассрочку

Appraise оценивать, определять стоимость

Assets имущество, достояние, средства, активы, фонды

Fixed assets основные средства, основные фонды

Current assets текущие активы

Balance sheet балансовый отчет

Chattel движимое имущество

Chattel mortgage (US) ипотечный кредит

Clear осуществлять клиринг векселей, чеков;

выплачивать по чеку клиента

Collateral security имущественное обеспечение, обеспечение ценными

бумагами

Collateral обеспечение, залог

Debt долг, задолженность, обязательство

Deed документ, скрепленный подписью и печатью

Discount 1) дисконт, учет векселей

2) процент скидки

Encumbrance закладная, долг, обязательство

Equity 1) маржа

2) доля акционера в капитале

3) обыкновенная акция

Estate имущество, состояние

Estimate 1) оценивать

2) подсчитывать

3) составлять смету

Holding 1) владелец акциями

2) пакет акций

Holdings вклады

Indebtedness задолженность

Instalment 1) очередной взнос

2) частичный платеж

Legal charge законная плата

Liabilities денежные обязательства

Liquidate ликвидировать, погашать

Mortgage ипотека, залог; закладная

Net value,

Net worth (US) чистая стоимость компании; собственный капитал

Obligation долговое обязательство; облигация

Pledge закладывать

Property 1) собственность

2) имущество

Real estate (US) недвижимость

Retire погашать долговое обязательство

Securities ценные бумаги, фонды

Title право собственности

Trust 1) траст, доверительный фонд

2) кредит \ давать в кредит

Trust deed (US) акт учреждения доверительной собственности

Dialogue

Read the dialogue .

Part 1. Application for Credit

Banker: Our discount committee is still discussing your application for credit. I wonder if you’d mind giving us some more information about certain items shown on your balance sheet.

Customer: Not at all.

B.: Is the mortgage on your fixed assets being amortized?

C.: Yes. We’re making semi-annual payment on this obligation.

B.: Your balance sheet show some indebtedness. Are any of your assets pledged as security?

C.: No. That’s just an open note.

B.: Would your company be willing to pledge part of its current assets as collateral security to our loan?

C.: We wouldn’t object to that. Part of this money will be used to retire preset debts and part to expand our operations. Then we can immediately being to liquidate this new liability.

B.: I think we’d better prefer that arrangement

Part 2. Granting the Loan on an Open Note

Builder: I received your notice that my note is due. I can pay it off now, but there is a piece of land right next to my property that I’d like to buy.

Banker: I don’t remember your situation exactly. Are your present holding free of encumbrance?

Bu.: My real estate is clear. But there’s a chattel mortgage on my construction equipment.

Ba.: Has this land you want to buy been appraised?

Bu.: Yes. It belongs to an estate and was appraised by order of the court. They estimated its value at $20000.

Ba.: Can it be bought for that figure!

Bu.: I think so. I’d like to make them that offer.

Ba.: Would you consider giving us a trust deed to secure your present note plus the additional funds you’ll need?

Bu.: I might. But I’d thought that my net worth is high enough that I could borrow the amount on my open note.

Ba.: Well, in that case, would your wife agree to be a co-signer?

Bu.: I’m sure she would, because title to the property will be in both our names.

Ba.: Well, it seems to me that you have enough equity in your property for us to make the loan on an open note.

Questions on the dialogue :

Part 1.

1. What is the customer applying for?

2. Has the banker decided whether to grant the credit yet or not?

3. What sort of information is the banker interested in?

4. How does the banker want to secure the bank’s credit?

5. How is the company going to use its current assets?

Part 2.

6. Why is the builder asking for the extension of his note?

7. What is his present financial standing?

8. Has the land he wants to buy been appraised?

9. What sort of guarantee does the banker insist on to secure the funds the builder will need?

10. What made the builder think that he could borrow the amount on an open note?

11. Who will hold the title to the property purchased?

12. Why has the banker agreed to grant the loan on an open note?

Applications for Loans

Banks make their profits by lending the money which customers deposit with them to others who need it for personal or business reasons. Most people need more money than they have currently available at some time in their lives.

To be a borrower you must be a customer of the bank because the money will be lent to you through a bank account. There are two ways in which you may borrow. The first, and easy, is to spend more money than you have in your current account – to overdraw. The second, and the normal way of borrowing larger amounts or for a long period of time is the loan.

If a manager permits an overdraft on current account he is likely to set a limit to the size of the overdraft and may stipulate a date by which the account is back in credit. Businesses whose payments and receipts are often irregular will frequently need to use overdraft facilities and they are often granted to private customers as well particularly when the manager knows that regular payments are made directly into the account.

If a loan is granted it will be a fixed sum immediately available for a fixed period of time. The principal and the interest on it may all become due for payment at the end of that period but for personal loans it is common to arrange that the loan and interest are repaid in equal regular instalments over the period of the loan. A separate account is opened to record the repayments as they are made.

Whether you are seeking money for business or personal reasons there are a number of things that the manager will want to know before he is prepared to grant your request. The obvious facts will be the amount that you seek and the arrangements for re-payment that you are able to suggest. You need to tell him something about the purpose of the loan, a business loan is likely to help you make profits out of which the loan can be repaid with interest and he will wish to judge for himself whether or not this is likely. Personal loans usually have to be repaid out of an income which will not get any bigger and the manager will be particularly anxious to ensure that you are not being too optimistic. In deciding this he will be considerably assisted by his knowledge of you and his estimate of your character.

Sometimes people do not ask for enough money because they are anxious about the burden of the repayments. The manager will be wise enough to try and ensure that you will have sufficient amount of money to do what you want to do. Finally we will consider whether or not you really will be able to repay and what kind of security you can offer against the possibility that you do not repay. In the case of a business the manager may well want to see well prepared, relevant documents such as profit and loss accounts and balance sheets for the most recent years. He would also ask about the expected return from the use of the money and want to see some figures upon which you have based your calculations. For a business good security might be one or more of the assets of the business while personal loans are often secured by such things as life insurance policies on which the bank is making regular payment for you or the deeds of your house.

Questions on the text :

1. What two kinds of borrowings are possible?

2. In what circumstances an overdraft on current account is permissible?

3. How are personal loans usually repaid?

4. Will you pay back more than you borrowed? What will the difference be?

5. What information will the manager require for a personal loan?

6. What information will he require for a business loan?

7. What other things will he take into account?

8. What will he need from you to make the loan safer for him?

9. What does a businessman mean by his expected rate of return?

10. Why might this be important to the bank manager?

11. What kind of things might you offer as collateral for a personal loan?

Exercise1.

Find proper definitions :

TERMS DEFINITIONS

1. Mortgage a) anything owned that has financial value

2. Collateral security b) an asset, such as real estate, which can not be readily

3. Asset changed into money

4. Open note c) assets other than real estate which can be readily changed

5. Current asset into money

6. To pledge d) to promise as security

7. Fixed asset e) some security in addition to the main security for money

8. Real estate lent

9. Chattel mortgage f) an agreement to give up collateral which has been pledged

10. Deed if a debt is not paid

11. Equity g) a note, the payment of which is not guaranteed by

12. Property collateral security

13. Principal h) anything owned, especially real estate or land

14. Instalment i) land including anything constructed on it

15. Loan j) a mortgage on any personal or movable possessions such

16. repayments as furniture or equipment

17. Balance sheet k) a document which proves legal ownership of real estate

18. Profit and loss account l) the value of the piece of property beyond any

19. Real property indebtedness held against it

m) a statement of the assets and liabilities of a business

which shows its position at a particular date

n) a payment towards a larger sum usually made at regular intervals

o) the amount of the loan itself before any interest is added

p) a statement which shows the calculation of the results of

doing business for a particular period of time

r) a fixed sum of money borrowed for a fixed period of time

s) land of buildings

t) amounts of money which are given to a creditor in settlement of a debt or a loan

Exercise 2.

Choose the right answer:

1. “application for loan” means:

a) granting loan,

b) asking to the granted loan,

c) refusal to grant loan.

1. “balance sheet” denotes:

a) total profit,

b) total revenues,

c) a document which shows the state of a business at a particular moment.

1. “indebtedness” here means:

a) repayment,

b) owing thanks,

c) debt, borrowing.

1. “security” in this sense is:

a) bonds, share certificates and other titles to property,

b) safety,

c) a guarantee of payment.

1. “principal” here means:

a) the most important information,

b) the amount of the original loan,

c) the chief item or person.

1. “my loan is due for repayment” means:

a) my loan has reached maturity,

b) my loan has been paid off,

c) my loan has been extended.

1. “holding free of encumbrance” means:

a) holding heavily in debt,

b) the encumbrance isn’t very large,

c) property or security clear of indebtedness.

1. “my net worth” means:

a) the value of one’s holdings after all obligations have been paid,

b) any personal or movable possession,

c) net earnings.

1. “a co-signer” denotes:

a) a person who holds a deed to the property,

b) a person who signs a document with another person and shares the obligation,

c) a lawyer who prepares a trust deed.

1. “title to property” is:

a) the record or proof of ownership of property,

b) the name of the person who owns the property,

c) a word indicating a high financial rank.

1. “my expected return” means:

a) when I expect to come back,

b) the amount of money I expect to have to repay,

c) the income I expect to receive from doing business.

1. “deeds” are:

a) actions,

b) documents showing how well my business is doing,

c) documents which prove that I own a particular piece of real property.

Exercise 3.

Fill in the blanks :

Last week Mr. Ager went to his bank to apply for a … as he wishes to purchase a piece of land right to his own. He applied for a … and the bank asked him for a statement of his business affairs including a … account and a … .

The bank manager was happy to grant the loan but wanted some form of … from Mr. Ager and asked him if he would offer one or more of his fixed … as … . The bank was prepared to make the loan for ten years expected Mr. Ager to pay off the annual … and some of … each year in two equal … every six months.

Unit Five

Active vocabulary

Advance 1) аванс, авансировать

2) ссуда, заем

Al, first class, AA-rating (US) первоклассный

Bond 1) облигация

2) закладная

3) долговое обязательство

Bonds issue выпуск облигаций, заем

Blue chips первоклассная ценная бумага

Capital market рынок долгосрочного ссудного капитала

Cash наличные деньги, кассовая наличность

Cash-in-banks банковская наличность

Diversify вкладывать капитал в различные предприятия

Fluctuation колебания, изменения курса

General obligation bond облигация под общее обязательство

Issue bonds выпускать облигации

Money market 1) денежный рынок

2) рынок краткосрочного ссудного капитала

Municipal bond облигация муниципалитета

Offering ценные бумаги, предлагаемые к продаже

Portfolio портфель ценных бумаг

Rate of return 1) норма прибыли

2) коэффициент окупаемости капиталовложений

Reconciliation приведение клиентом учета своих операций с

Учетом банка; согласование, выверка

Revenue 1) доходы

2) государственные доходы

Revenue bonds облигации, обеспеченные доходами от определенного

объекта

Share акция

Stock (US) акция

Speculative 1) спекулятивный

2) рискованный

Tax-exempt не облагаемый налогом

Working capital оборотный капитал

Yield 1) доход по ценным бумагам

2) доход в виде процентов на вложенный капитал

Yield interest приносить процентный доход

Dialogue

Read the dialogue in parts.

Board Member: I notice that our cash and cash-in-bank has been building up above the amount required by law.

President: I’ve had the same thoughts. And right now there is a new offering of municipal bonds that can be bought at a price that will yield 3.5%.

B.M.: Are they general obligation bonds?

P.: Yes, they are. I prefer those to revenue bonds, don’t you?

B.M.: I do. Does it issue have an AA rating?

P.: Yes. And they can be had in five to ten-year maturities. They’re tax-exempt, you know.

B.M.: Do you think we might also buy some stocks to keep our portfolio well diversified?

P.: Well, we might. But stocks are much more speculative.

B.M.: Unless we stick to blue chip issue. They show less price fluctuation.

Questions on the dialogue:

1. What problem is being considered by President and the Board Member?

2. How can the bank invest its funds profitably at present?

3. Why does the President prefer to invest in general obligation bonds?

4. What does the President know about a new offering of municipal bonds?

5. Where else can they invest the bank’s funds?

6. What sort of stocks are they going to invest in and why?

Bank Investments

The investment policy of a bank is based upon the reconciliation of two conflicting aims. On the one hand the bank wants to make as much profit as it can and for this reason it must take the risks of lending money. On the other hand its funds belong to its depositors and must be available whenever they wish to make withdrawals.

There are two things that the bank must therefore do. First, it must keep a proportion of its assets in the form of cash to met demands. The amount that this needs to be varies very little from one bank to another or from one day to another and experience suggests that it is about six percent. As a cushion against unexpected demands a further proportion of funds is invested at low rates of return in highly liquid lending mostly to firms in the money and capital markets.

The second thing that the bank must do is to ensure that the investments it chooses are safe. This also means that they are relatively low yielding since high yields are associated with risk and with lending for long periods of time. Much of a bank’s investment is in short and medium term government and local government bonds. They yield certain incomes and are readily saleable should the occasion demand.

Advances by a bank to its customers are the least liquid of their assets since there are few borrowers who could repay a loan at very short notice. However, they are also the most profitable of them yielding the highest rate of return. Advances to customers are likely to account for more than two thirds of the banks investment portfolio although this will vary on a day to day basis since overdrafts are the most common form of advance and are not immediately controllable by the bank.

In general banks do not lend to industry for long periods of time or for investment projects. They regard themselves as providing working capital rather than fixed capital.

Questions on the text:

1. What two conflicting aims must a bank reconcile in its investment policy?

2. What must the bank do to be ready to meet demand for cash on the part of its customers?

3. Why does the bank prefer rather low yielding investments?

4. Which investments do usually yield high returns?

5. Which investments are hardly controllable by the bank? Why?

6. Why don’t banks usually invest in industrial projects?

Exercise 1.

Find proper definitions:

TERMS DEFINITIONS

1. Tax a) the pattern of investments held by a bank
2. Yield b) a government or local government security
3. Cash c) the actual return from a particular investment
4. Bond d) a unit of ownership in a company
5. Stock/share e) a stock thought to be of highest quality
6. AA rating f) money collected by a government for its support
7. Portfolio g) the speed with which an investment can be redeemed for cash
8. Liquidity h) coins and bills

Exercise 2.

Choose the right answer:

1. “our portfolio” in this dialogue means:

a) a wallet,

b) a list of stocks and bonds belonging to the bank,

c) a list of bank’s fixed assets.

1. “a portfolio well diversified” is:

a) one yielding high interest,

b) entirely made up of blue chip stocks,

c) one made up of a variety of stocks and bonds.

1. “price fluctuation” is:

a) a price stability,

b) an increase in prices,

c) a changing back and forth in the price.

1. “speculative” means:

a) risky,

b) disequilibrating,

c) negotiable.

1. “yield 3,5%” means:

a) earn 3,5%,

b) treble the price,

c) rise by 3,5%.

1. “advances” here means:

a) approaches from one person to another,

b) improvements in a bank’s position,

c) loans and overdrafts for customers.

Unit Six

Active Vocabulary

Broker брокер, маклер

Brokerage 1) брокерское вознаграждение, комиссионные

Брокера

2) брокерское дело, маклерство, посредничество

Firm of (stock) brokers брокерская фирма

Brokerage house (US) брокерская фирма

Commercial bank коммерческий банк

Credit union кредитный союз

Disbursement выплата в порядке погашения

Exchange equalization account валютный уравнительный счет

Fiduciary доверенное лицо, фидуциар

Finance company финансовая компания

Lend ссужать, давать взаймы, одалживать

Lending institution кредитное учреждение

National bank национальный банк

Savings and loan Association (US) ссудно-сберегательная ассоциация

Ration нормировать

Security, securities ценные бумаги

State bank государственный банк

Stock exchange (S.E., St.Ex.) фондовая биржа

Scrutiny проверка

Subscribe (v) подписываться на ч.-л., приобретать по

подписке

Subject to подлежащий чему-либо

The Treasury казначейство, министерство финансов

United States Treasury (Department) (US) казначейство, министерство финансов (ам.)

To some extent в какой-то мере, до какой-либо степени

Transaction сделка

Trust траст, кредит

Trust company трастовая компания

Dialogue

Read the dialogue in parts .

Types of Banking Institutions

Student: What type of bank is this?

Banker: We’re a commercial bank.

S.: Does that mean that your services are limited?

B.: To some extent. For instance, we can’t offer the fiduciary services that a trust company can.

S.: What are they?

B.: Well, they have to do with the administration of trust and estates.

S.: Suppose I wanted to buy or sell some securities. Does your bank handle such transactions?

B.: Yes, through our brokerage house.

S.: Is your broker a member of the stock exchange?

B.: Yes.

S.: This is a state bank, isn’t it?

B.: That’s right.

S.: Do you offer fewer services that a national bank?

B.: No. In general, the only difference is that a state bank gets its charter from the state it’s in, and the national bank gets its charter from the federal government in Washington, D.C.

S.: Are there banks that don’t offer regular commercial services?

B.: Oh, yes. For example Savings and Loan Associations and the Federal Land Banks are only lending institutions.

S.: Would you say a savings and loan association is a bank?

B.: No. I’d rather call it a financial institution.

S.: How about a credit union?

B.: That’s not really a bank, either.

S.: And a finance company is something entirely different.

B.: Yes.

Questions on the dialogue :

1. What regular services does a commercial bank offer to its customers?

2. What is the difference between a national bank and a state bank?

3. Which institutions deal with fiduciary services?

4. What do you understand by fiduciary services?

5. What is the job of a broker?

6. Where are brokerage transactions concluded?

7. What services are offered by:

- Savings and Loan Associations?

- Federal Land Banks?

- Credit unions?

Types of Banking Institutions

The reason for which the Bank of England was founded in 1694 was to look after the Government’s debt, commonly called the National Debt, and this is still a most important function. A large proportion of the debt is made up of Government bonds, that is pieces of paper stating that the holder has subscribed such-and-such a sum of money and is entitled to so much interest per year. Two world wars have helped to swell the issue of bonds to some $ 40,000 million. Another sizable slice of debt is in the form of Treasury bills which are rather like bonds with a very short life span before the Government buys them back again and so repays the loan. Their purpose is to provide the government with day-to-day money to cover the inevitable gaps which occur between its disbursements, e.g. on such things as unemployment benefit and its receipts from taxation. A third type of debt is the group of National Savings Securities, of which ordinary Post Office (now National Savings Bank) accounts and Premium Bonds are perhaps the best-known examples.

The Bank of England is the ultimate source from which the general public can obtain cash. Other English banks used to issue their own notes, but now they all use the Bank of England notes. Scottish banks have continued to issue their own, but it is an expensive undertaking, and is closely controlled by the central bank in England.

The Bank also looks after the bank account of the Government just like an ordinary bank does for its customers. Into this account go all tax receipts and any other transfers of money from the various banks, and out of it go all payments.

Because all the important institutions in the City maintain accounts at the Bank, transfers of money between them and the Government, which go on every day, are made very easily. The Bank merely debits one account and credits another. The Bank also holds accounts for important international institutions like the World Bank, for just over a hundred central banks and also for some ordinary foreign banks, making a total of nearly two hundred accounts.

The Exchange Equalisation Account is the name of the fund in which are held the gold and foreign currency reserves of the country. The managers of the fund have the task of intervening from time to time in the otherwise free market for foreign currency, so as to influence the price of the pound in line with Government policy, or simply to try to maintain a reasonable orderly market.

The pound is not the only currency whose price has to be carefully controlled. Most of the major world currencies have the same problems, and all greatly benefit from international cooperation. Dealing with other central banks and managing money on an international scale has become an important side of the Bank’s work. Every month the Governor flies to Basle to spend a week-end in conference with his opposite numbers from the central banks of other western industrial countries.

The object of the bank’s management in the monetary field is to support the Government’s activities in other fields, e.g. taxation policy, export promotion and so on. The methods of control used by the Bank are based on a system in which money available to be borrowed should be rationed by price, not by orders from the Bank or The Treasury.

The Battery of instruments of control the bank has may be summarized as follows:

1. Suggestion and request. From time to time the Bank will make suggestions to the other institutions in the City, indicating the policy the authorities intend to pursue. If they want specific action, the Government makes a “request” like the following:

“Notice to banks.

All banks and finance houses are asked not to provide either loans to person or check trading facilities for the purchase of…”

2. Open market operations. This is the name given to the activities of the Bank in the financial market for control purposes. The point is that by its interventions the Bank can influence markets to move in the directions which it desires.

3. Special deposits and supplementary deposits. From time to time, the Government may wish to reduce the amount of money that people can borrow in order to reduce the amount they spend. An effective way of doing this is to reduce what the banks have available foe lending, and this is done by requiring them to deposit more money at the Bank of England in special accounts from which it cannot be withdrawn until the Bank says so.

Questions on the text :

1. Why and when was the Bank of England founded?
2. What type of securities make up the National Debt?
3. What is the money raised in this way spent on?
4. Enumerate the most important functions of the Bank of England.
5. What is the object of a central bank’s management in the monetary field?
6. What principle does the Bank of England follow in exercising its control over the monetary policy?
7. What instruments of control has the bank got at its disposal?

Exercise 1.

Say what is true and what is false. Correct the false sentences:

1. Commercial bank’s services are limited.
2. Fiduciary services are handled by trust companies.
3. Commercial banks don’t deal with brokerage services.
4. American state banks offer fewer services than a national bank.
5. The interest on deposits is usually higher in savings and loan associations.
6. Savings and loan associations offer regular commercial services.
7. Every English bank issues its own notes.
8. All the important institutions in the City maintain accounts at the Bank of England.
9. The amount of money available for British borrowers depends on The Treasury orders.

Exercise 2.

Complete the following:

1. We remit money orders.

A person who remits is a …

A person to whom the money order is remitted is a …

2. We transfer bank drafts.

A person who transfers them is a …

A person to whom they are transferred is a …

3. You draw out a cheque.

A person who draws a cheque is a …

The bank on which the cheque is drawn is a …

A person to whom the cheque is made payable is a …

4. One can pledge assets as security.

A person who pledges assets as security is a …

A person to whom assets are pledged is a …

5. Loans are granted.

A person who grants a loan is a …

A person to whom a loan is granted is a …

A person to whom one’s affairs are trusted is a …

Exercise 3.

Fill in the blanks :

In every capital city there are numerous institutions which make loans. There are numerous … institutions. One can also borrow money from the … , though their major function is accepting deposits. People who need a loan for the purchase of land can apply for it to a … . If you need to borrow money for the purchase or repair of your house or just make saving deposits you can call at a … . Many individual companies run … which are formed by combining savings of the people working there. They make loans to their members at a low … . Anyone having problems with trusts or estates can seek advice at a … . They deal with … matters. People interested in the purchase of stocks or shares usually go to a … which specializes in handling… .

Unit Seven

Active Vocabulary

At par по номинальной стоимости

Clearinghouse клиринговая палата

Clear (v) 1) осуществлять клиринг векселей и чеков

2) выплачивать по чеку

Collection инкассация

Collection charge расходы по инкассированию

Commercial paper (US) коммерческие бумаги

Correspondent bank банк-корреспондент

Debenture долговое обязательство, облигация акционерной

компании

Discount house учетный дом

Drawee bank банк-трассант; банк, на который выписан чек

Endorse (indorse) (v) индоссировать

Endorse with recourse (v) индоссировать с правом оборота

Face value номинал

Foreign exchange валюта

Honour a cheque (v) акцептовать чек, оплачивать чек

Incorporated акционерный

Industrial bank промышленный банк

Instalment взнос в уплату в рассрочку

Knock-down price сбитая (минимальная) цена

Liable обязанный, ответственный, подлежащий

Listed stocks акция, зарегистрированная на бирже

Money at call and short notice деньги до востребования или при краткосрочном

уведомлении

Payee получатель платежа

Quotation котировка

Recall (v) отзывать, аннулировать

Redeem (v) выкупать, погашать, изымать

Discount, rediscount (v) (US) учитывать

Refinance рефинансировать

Remit ремитировать, переводить, пересылать

Dialogue

Read the dialogue:

Interbank Relations in the USA

Student: How many correspondent bank accounts do you have?

Banker: We have reserves in six banks. Two of the accounts are inactive.

S.: Do you use any clearinghouse other than the Federal Reserve Bank?

B.: Yes, we also get a daily letter from our central bank in St. Lawrence.

S.: Are you allowed to make a collection charge on your items from your central bank?

B.: No. We’re agreed to clear them at par.

S.: Will your correspondent banks purchase any instalment loans that you’re not licensed to handle?

B.: Yes, any that our customers are willing to endorse to them.

S.: Do they advise you on your investments, like commercial papers and short-term debentures?

B.: Oh, yes. And each week our New York correspondent sends us their report on financial and economic trends, including quotations on listed and unlisted stocks.

S.: And they handle your foreign exchange?

B.: That’s right.

S.: Suppose I’m remitting by check on your bank an amount due on my note to a bank in California. Will that bank send the check directly to you for collection?

B.: It could do that. But it’ll probably send the check through the regular channels.

S.: What does that mean?

B.: Well, the bank to which your check will send it to the Federal Reserve Bank in its Reserve District. The transit department of that bank will send it to the Federal Reserve Bank in our Reserve District. From there it’s sent to us.

S.: How many Reserve Districts are there?

B.: There are twelve, with one Reserve Bank in each District. Also, most of our lager banking institutions like ours are members of the System, and all checks and other items of exchange flowing through the System are cleared at par.

S.: Par means face value?

B.: Yes. And every bank that handles an item endorses it with recourse.

S.: Does that mean that if a check isn’t honoured by the drawee bank, it’s finally returned to the payee, who is held liable for the amount?

B.: That’s right.

S.: To become member of the System, was your bank required to subscribe to any stock in the Reserve Bank in your District?

B.: Yes. And, to explain further, all national banks must be members of the System. Incorporated State Banks, including commercial banks, mutual savings banks, trust companies and industrial banks, may join the System.

S.: Other than handling items of exchange, what services do Federal Reserve Banks offer member banks?

B.: As fiscal agents of the United State Treasury, they assist in the issue and redemption of government bonds and the refinancing of bonds that have reached maturity. They’ll also accept from us any paper that can be rediscounted, if our cash reserve becomes low.

Questions on the dialogue:

1. What services do correspondent banks render each other?

2. What are the functions of central banks?

3. If you remit by the check drawn on one bank an amount due on your note to another bank, what route does your check usually take?

4. What does the United States Federal Reserve System consist of?

5. What is the collection charge on checks and other items flowing through the Federal Reserve Banks?

6. What does “endorsed with recourse” mean?

7. What does a bank have to do to become a member of the System?

8. Which banks must be members of the System and which banks may be?

9. What services do Federal Reserve Banks offer to member banks?

The Discount Houses and the Money Market

Dotted about the City, but mostly close to the Bank of England are the eleven discount houses. These relatively small City businesses make their living by borrowing money from those who have it to spare and investing it in various easily liquidated paper assets. In particular, they finance the Government by buying its Treasury bills each week. To the Bank of England this “covering” of the weekly Treasury bill issue by the discount houses is a useful service. The quid pro quo of this arrangement is that the Bank of England will act as “lender of the last resort” to the houses, if it so chooses, or buy paper assets from the houses to provide them with cash when they can’t obtain it elsewhere.

To understand the role of lender of last resort it is necessary first to have grasped the extremely delicate nature of the discount houses’ business. Practically all the money which they invest has itself been lent to them. What is more, most of it will have been lent to them for very short periods of time like a week or even overnight, or else it will be subject to recall at very short notice. Using this sort of money, the houses purchase bills and even bonds in the open market, some of which might not be repurchased or redeemed from them for months or years. This practice is known as “borrowing short and lending long” and can be hazardous. Should those who have lent to the houses recall their money, the houses would have some difficulty getting it back in a hurry. On any given day, each house will find some of its assets falling due for repayment and will also receive new loans, but it quite often happens that the proceeds of these transactions are insufficient to provide for all the calls that are made that day by those who have lent to the house. It is then that the Bank may help in one of a variety of ways. In particular, it may offer to buy back some Treasury bills to provide the necessary money, or it may lend the required sum charging at least the minimum lending rate. This rate is defined as the lowest rate at which the Bank of England will lend and is fixed each week a little above the Treasury bill rate for that week.

The chief sources for cash for the discount houses – often known collectively as the discount market – are the banks, particularly the commercial banks. These are the ordinary High Street banks with which we are all familiar. Their business requires them to hold a certain proportion of the money which the general public has deposited with them in a liquid form, that is in the form of cash or some assets which can be turned into cash quickly and without losing its value. For example, a building or something like that is not a liquid asset because it takes time to sell, a quick sale can only be achieved if the owner is prepared to see it go at a knockdown price. Loans to the discount market are ideal from the point of view of the commercial or any other type of bank. They can be at an agreed rate for an agreed period, although it can be for as short as they like, in which case the houses call them “fixtures”, or they can be simply “at call”, again at an agreed rate, and then they can be withdrawn whenever the lender needs them. An important part of the job of the money manager in a discount house is to make sure that he has the right balance between fixtures and call money. If there is general trend in the market for rates of interest to rise so that borrowers have to pay more this week than last and will have to pay more next week than this, it is in the interests of the house to persuade institutions to lend to it for fixed periods. Otherwise call money will be quickly withdrawn and offered back to them again at a higher rate. Similarly, when the rate in the market is rising, the houses themselves take care not to make too many long-term loans, the rate of interest on which will soon fall below the general market rate. The houses that can judge best which way things will go make the greatest profit.

Questions on the text :

1. In what way do the discount houses earn money?

2. On what terms is the money lent to the discount houses?

3. How do the discount houses invest the money lent to them?

4. Why can the practice known as “borrowings short and lending long” be hazardous?

5. In what circumstances does the Bank of England act as “lender of last resort”?

6. Why do commercial banks lend money willingly to the discount houses?

7. What are “fixtures” and “call money”?

8. What must the money manager in a discount house do to make the greatest profit?

Exercise 1.

Choose the best answer:

1. “to clear items of exchange at par” means:

a) to exchange checks between banks at their face value,

b) to make profit out of exchanging check between banks.

1. “commercial papers” in the USA are:

a) business letters,

b) short-term obligations of industrial companies.

1. “a quotation on listed stocks” is:

a) making a bid for stocks accepted for sale on a stock exchange,

b) a statement of the current price of stocks accepted for sale on a stock exchange.

1. “to endorse a check with recourse” means:

a) to be legally responsible for making payment of the amount due,

b) to endorse in such a way that the party which indorses it must make payment if the other party to the transaction refuses payment.

1. “to be held liable for the amount” means:

a) to be the party to whom a payment is made,

b) to be required to make payment.

1. “to be subject to recall at very short notice” means:

a) the money is lent on the condition that it will be returned any time,

b) the money is lent on the condition that the lender will call up the borrower first.

1. “borrowings short and lending long” means:

a) small amounts of money are borrowed and large amounts of money are lent,

b) money is borrowed for short periods and lent for longer ones.

Exercise 2.

Fill in the blanks:

The central banking system of the United States is called … . It differs from that of most other countries’ … in that it consists not of one bank but of twelve … and some twenty four branches under the control of the Federal Reserve Board in Washington. The Federal Reserve Banks perform a lot of services for … . Checks flowing through the System are cleared at … . These checks are endorsed in such a way that the parties who endorse them must payment if the other … to the transaction refuse … . The checks are … . The Federal Reserve Banks assist their … banks in many other ways. For instance when their cash … becomes low, The Federal Reserve Banks will accept from them any notes that can be sold below their value at maturity. They will accept any notes that can be … . They also help in the … of new bonds to replace ones that have matured.

Unit Eight

Active Vocabulary :

Payment in advance авансовый платеж

Open account открытый счет

Bill of Exchange переводной вексель, тратта

Documentary Letter of Credit товарный аккредитив; документарный аккредитив

Cash with order 1) платежное поручение

2) предъявительская тратта

Cash on delivery оплата наличными в момент поставки,

наложенный платеж

Remit переводить, перечислять деньги

Integrity целостность

Consignment 1) консигнация

2) партия груза

Methods of Payment

Read the text :

Compared to selling in the domestic market, selling abroad can create extra problems. Delivery generally takes longer and payment for goods correspondingly can take more time. So exporters need to take extra care in ensuring that prospective customers are reliable payers and that payment is received as quickly as possible.

In the first and in the last analysis, payment for exports depends on the conditions outlined in the commercial contract with a foreign buyer. As explained previously, there are internationally accepted terms designed to avoid confusion about cost and price.

The way exporters choose to be paid depends on a number of factors: the usual contract terms adopted in an overseas buyer’s country, what competitors may be offering, how quickly funds are needed, the life of the product, market and exchange regulations, the availability of foreign currency to the buyers, and, of course, whether the cost of any credit can be afforded by the buyer or the exporter.

There are four basic methods of payment providing varying degrees of security for the exporter:

1) payment in advance,

2) open account,

3) Bills of Exchange,

4) Documentary Letter of Credit.

I. Payment in advance .

Clearly the best possible method of payment for the exporter is payment in advance. Cash with order (CWO) avoids any risks on small orders with new buyers and may even be asked for before production begins. However, this form of payment is extremely rare in exporting since it means that an overseas buyer is extending credit to an exporter – when the opposite procedure is the normal method of trade.

Variations in this form of payment are cash on delivery (COD) where small value goods are sent by Post Office parcel post and are released only after payment of the invoice plus COD charges.

II. Open account.

An exporter receives the greatest security of payment from cash with order or from cash on delivery. At the other extreme payment on open account offers the least security to an exporter. The goods and accompanying documents are sent directly to an overseas buyer who has agreed to pay within a certain period after the invoice date – usually not more then 180 days. The buyer undertakes to remit money to the exporter by an agreed method.

The open account method of payment is increasingly popular within the EEC because it is simple and straightforward. 70 per cent of UK exports are paid for under open account terms. It saves money and procedural difficulties but the risk to the exporter is obviously greater. It is only successful if an exporter trusts the business integrity and ability of an overseas buyer, something that has probably been established through a sustained period of trading.

A variation of open account payment is the consignment account where an exporter supplies an overseas buyer in order that stocks are built in quantities sufficient to cover continual demand. The exporter retains ownership of the goods until they are sold, or for an agreed period of time, after which the buyer remits the agreed price to the exporter.

However, a large proportion of export contracts cannot be settled by payment in advance or by open account, particularly with sales outsides the EEC. So, parallel with the development of international trade throughout the world, the trading community has developed methods of payments which involve the transfer of documents for exported goods using the international banking system – with the aim of speedily settling export transaction at minimum risk to exporters and to overseas buyers.

Answer the following questions :

1. Why does selling abroad create extra problems as compared to selling in the domestic market?

2. What helps to avoid misunderstandings in payment for exports?

3. What factors does the choice of a method of payment depend on?

4. Which method of payment provides the best/greatest security for the exporter?

5. Why is payment in advance of order not frequently used in exporting?

6. Which method of payment offers the least security to an exporter?

7. If the open account method offers so little security to an exporter, why is it becoming more and more popular?

8. When does an exporter agree to deliver goods on open account?

9. How does the consignment account operate?

10. Besides payment in advance and by open account, what other methods of payment has the trading community worked out?

Exercise 2.

Fill in the missing words:

The methods of obtaining payment of an export order is usually a matter … negotiation … the exporter and his buyer and will in many instances be governed … the exporter’s knowledge of the buyer and the buyer’s financial standing. In deciding the terms … payment to negotiate, the exporter may perhaps wish the degree … security he obtains, the speed … remittance and any additional costs involved.

In rare cases an exporter is able to persuade his buyer to pay 100 per cent of the … value before … take place. It is quite common, however, for the buyer to make an … payment of a percentage of the contract value upon … of the contract with the balance being … by one of the agreed methods.

Where the exporter has complete faith in the buyer he may be willing to trade on an … account basis. This usually means that the buyer receives the …, takes … of the goods and thereafter makes … to the exporter in accordance with previously agreed … .

Unit Nine

Active Vocabulary :

Bill of exchange переводной вексель, тратта

Payment on presentation платеж по предъявлению

Payment on demand платеж по требованию

Bearer предъявитель, держатель

A bill drawn on … вексель, выставленный на …

Settlement заключение сделки

Sight draft 1) вексель на предъявителя

2) тратта на предъявителя

Term draft срочная тратта

Tenor of the bill срок векселя

Due date срок погашения кредитного обязательства,

Срок платежа

Acceptance 1) принятие, акцепт, согласие на оплату

2) акцептование векселя

Face of the bill номинал векселя

Forward a bill отправлять, посылать вексель

Collecting bank банк-инкассатор

Clean bill недокументированный вексель

Cash against documents платеж наличными против документов

Promissory note простой вексель, долговое обязательство

Direct collection 1) прямая инкассация

2) прямой денежный сбор

Reshipment перегрузка, перевалка

Recoup delay задержка окупаемости

Default невыполнение обязательств, неуплата

Notary нотариус

Notice of dishonour 1) уведомление о неакцептовании векселя

2) уведомление о неуплате векселя

BILL OF EXCHANGE (B/E)

Read the text :

An exporter can send a bill of exchange for the value of the invoice of goods for export through the banking system for payment by an overseas buyer on presentation. A bill of exchange is legally defined as “an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to which it is addressed to pay on demand or at a fixed or determinable future time a certain sum of money, to or to the order of a specified person, or to the bearer”.

In other words an exporter prepares a bill of exchange which is drawn on an overseas buyer, or even on a third party as designated in the export contract, for the sum agreed at settlement.

The bill is called a sight draft if it is made out payable at sight i.e. “on demand”. If it is payable “at a fixed or determinable future time” it is called a term draft, because the buyer is receiving a period of credit, known as the tenor of the bill. The buyer signs an agreement to pay on the due date by writing an acceptance across the face of the bill.

By using a bill of exchange with other shipping documents through the banking system, an exporter can ensure greater control of the goods, because until the bill is paid or accepted by the overseas buyer the goods cannot be released. Conversely, the buyer does not have to pay or agree to pay by some agreed date until delivery of the goods from the exporter.

An exporter can pass a bill of exchange to a bank in the UK. The UK bank forwards the bill to its overseas branch or to a correspondent bank in an overseas buyer’s country. This bank, known as the collecting bank, presents the bill to whomever it is drawn upon, for immediate payment if it is a sight draft, or for acceptance if it is a term draft. This procedure is known as a clean bill collection because there are no shipping documents required. Clean bill collections have become more popular, particularly in some European countries where the method is also used in internal trade. Also such collections provide more security than open account terms if there is some doubt about a buyer’s financial status.

However, it is more likely that bills are used in a documentary collection method of payment. In this case, an exporter sends the bill to the buyer through the banking system with the shipping documents, including the document of title to the goods, i.e. an original bill of lading. The bank then releases the documents on payment or acceptance of the bill by the overseas buyer.

An exporter can even use the banking system for a cash against documents (CAD) collection. In this case only the shipping documents are sent and the exporter instructs the bank to release them only after payment by the overseas buyer. This method is used in some European countries whose buyers often prefer CAD to a sight draft if the exporter insist on a documentary collection for settlement of the export contract.

In all the methods of payment using a bill of exchange, a promissory note can be used as an alternative. This is issued by a buyer who promises to pay an exporter a certain amount of money within a specified time.

It is even possible to send the documents and bill of exchange directly to an overseas buyer’s bank, by passing the UK bank. This system of direct collection is widely supported by US banks, but it dispenses with the help of the UK bank whose aid can be invaluable if something goes wrong in the collection. For example, there could be excessive shipping delays so that a buyer may refuse to accept or pay a draft on presentation. In this situation the UK bank can act as the exporter’s agent by arranging the warehousing of the goods or their reshipment, or even disposing of them at auction to recoup any outlay.

An overseas buyer may deliberately default on a term bill or just go bankrupt. In either case the UK bank can arrange legal action or act on instructions to initiate protests, i.e. engage a notary public in the buyer’s country to deliver a “notice of dishonour” to the defaulter, thus preparing a likely settlement in favour of the exporter if matter have to go to court.

Exercise 1.

Complete the following on the basis of the information given in the text.

1. An exporter draws a bill of exchange on a foreign buyer means … for … .

2. The bill is called a sight draft if it is payable … .

1. The bill is called a term draft if it is payable … .

2. The tenor of the bill is … .

3. To accept the bill means to … .

4. A term draft does not have to be paid at sight but at … .

5. The goods cannot be released to a foreign buyer until the bill … .

6. The foreign buyer does not have to pay or accept the bill until the goods … .

7. A clean bill collection means that … .

8. A documentary bill collection means that …, the most important of which is … .

9. Under a documentary bill collection the bank … on … .

10. The foreign buyer cannot get hold of the goods unless he … or … .

11. If the exporter insists on immediate payment he … .

12. A promissory note is issued by … who in this way guarantees … .

13. A direct collection means that … .

14. The system of direct collection is supported by … , but it involves a certain risk particularly when there is … .

15. If the buyer refuses to accept or pay draft on presentation, the exporter’s bank … .

16. To protest a draft means to … .

Exercise 2.

Explain the following terms and give your own examples :

Account

Cash

Collection

Date

Default

Draft

Note

Notice

Payment

Settlement

Exercise 3.

Fill in the missing words:

The bill of exchange is often used as a means of … payment particularly for goods exported. The importer might, for example, ask to … delivery of goods before paying for them. The exporter, on the other hand, will probably not wish to … his control over the goods before obtaining … or a legal undertaking from the … to pay on a given future date. By use of the international … system, a document of title and a bill of …, the needs of both parties may be satisfied.

The exporter might … a bill exchange on the buyer and pass it with the … documents and … instructions to a bank in the buyer’s country, which would … the bill of exchange to the buyer for immediate payment in the case of a … bill or for acceptance in the case of a … bill. Should the buyer refuse, the documents will not be … and if the documents include a full set of … of lading then the control of the relevant goods remains with the … acting as … agent for the exporter who thereby also retains … of the goods.

SECTION III .

TEXTS.

Banks in Britain .

The biggest banks of the United Kingdom are the Bank of England, Lloyds’ Bank, Barclays Bank, and the National Westminster Bank.

The Bank of England is the state or national bank, which controls the British banking system. Like any other national bank, it issues banknotes and mints coins.

The other four banks are commercial banks. Very often they are called “The Big Four”. The National Westminster Bank is often referred to as “NatWest”.

Moscow Narodny Bank Ltd. is incorporated as a British registered company. It specializes in the finance of East – West trade. Their close working relationship with banks in East – European countries and in the West enables them to provide a unique service in this field.

The First Bankers in Britain .

The first bankers in Britain were Italians who came to do business in the City of London a few centuries ago. They came from Lombardy, a region in Northern Italy where there was a group of independent cities. This group was called the Lombard League.

The Lombards settled down in the part of the City of London which was later called after those Italians, Lombard Street.

The Lombards did not stay in London long. After a century or so they left London because they were made bankrupt. It happened mostly because they loaned money to kings who did not repay the loans.

So the Lombards left, but their mane is still alive in London. Lombard Street is still the centre of British banking. This is the street where the head offices of the biggest English and foreign banks are located.

SWIFT and Banks.

SWIFT, the Society for Worldwide Interbank Financial Telecommunications, is a non-profit making bank-owned, cooperative society. It was set up in Brussels in 1973 and now it has more than a thousand member banks in more than fifty countries.

SWIFT is a service organization which processes and transmits banking transactions electronically between member banks on all the five continents.

Electronic systems transfer large sums around the world quickly and effectively. In this way a new type of international banking is being established.

But payment procedures in international trade still rely heavily on paper-based documents. And specialists say that one day all the data of invoices, shipping documents, various receipts and other documents will be provided in computer from instead. No paper documents will be used any longer. All the information will be sent electronically.

This will certainly lead to a lot of technical problems.

Bank Holidays in the UK .

An official public holiday in the UK (on a day other than Saturday and Sunday) when all banks are closed, as well as most factories and shops is called “a bank holiday”. At present the following days are bank holidays in England and Wales:

New Year’s Day (or the first working day after it) Good Friday,

May Day Bank Holiday (the first Monday in May),

Spring Bank Holiday (the last Monday in May),

August Bank Holiday (the last Monday in August),

Christmas Day (or the Monday after it, if it falls on a Saturday or Sunday),

Boxing Day (or the next working day following Boxing Day).

There are some other bank holidays in Scotland and Northern Ireland.

Most of the British holidays are of religious origin, as the word “holy-day” says. But nowadays they have long lost their religious significance for the greater part of the British population and are simply days on which people relax, eat, drink and enjoy themselves.

SECTION IV

Банковская корреспонденция.

Inquiry

Gentlemen,

We would like to open a current at your bank. We will appreciate your informing us of your conditions in regard to interest rates, service charges, handling fees, etc.

Yours sincerely.

Order

Gentlemen,

We kindly request to open a current account for us in the name of…

A check for … is enclosed here in as an initial deposit. We acknowledge that Mr … and Mr … have the right to sign jointly (individually) our newly opened account on our behalf.

Their signature are:

Mr. …:

Mr. …:

Yours sincerely,

Enclosure:

1 check

Opening an Account

1. Since we intend to do business with you, we would be grateful if you provided us by a current account.

2. Hereby is the request to open a current account at your bank in the name of … .

3. The following persons are empowered to sign all documents as well as to cover our liabilities.

1. … (name) (signature)

2. …

4. All correspondence is to be directed to … .

5. Bank statements are to be mailed daily/ weekly/ monthly/ at the end of year.

6. Payments received from third parties are to be forwarded by mail immediately/ shall be handled like bank statements.

Request for Credit

Gentlemen,

Please let us know about conditions for granting a credit on our current account in the amount of … . Our merchandise in stock which has an approximate value of … will be used as collateral.

We would greatly appreciate an early reply.

Yours sincerely.

Overdraft

Gentlemen,

With reference to our previous business relations, we would be pleased to receive the conditions, on which you would allow us to overdraw our account at your bank up to the amount of … .

We would like to inform you that we intend to make only occasional use of such overdrafts.

Yours sincerely.

Investment of Capital.

4. Gentlemen,

Could you please send us some information on how at present to invest temporarily available funds in the amount of … .

We are looking forward to an early reply.

Yours sincerely.

5. Gentlemen,

We intend to transfer an amount of … from our current account to a time deposit account for a period of … days. Please let us know the rate of interest you are ready to pay us.

Yours sincerely.

Presenting a Check for Payment

Gentlemen,

Enclosed please find a check in the amount of … which is to be deposited in our account No … . We would like to be informed of the results as soon as possible.

Thank you for your cooperation.

Yours sincerely.

Enclosure:

1 check

Payment Order

Gentlemen,

Please cable on our behalf … from our account No … to the order of … in … to their account with … (bank) in payment of invoice No … dated … .

Expenses are to be charged to he receiver.

Thank you for your cooperation.

Yours sincerely.

Closing the Account

1. As we no longer need our account No … with you, we request that the account be closed.

2. Due to the discrepancies which have arisen, we are sorry to inform you that we no longer wish to carry an account with you. Please close our account No … .

3. The closing balance in our account is to be directed to … (bank) in … .

4. The closing debit balance including your claims of interest and commission will be made good immediately after receipt of your final statement.

Приложение 1.

СТРАНЫ МИРА И ДЕНЕЖНЫЕ ЕДИНИЦЫ

Приложение 2.

СПИСОК СОКРАЩЕНИЙ, ПРИНЯТЫХ В ДЕЛОВОЙ ДОКУМЕНТАЦИИ

Abt about относительно, о

С/А current account текущий счет

а/с, асе, acct account счет

a/d after date от сего числа, от даты (векселя)

A.D.P. automatic data processing автоматическая обработка информации

Agt against против

Amt amount количество

Ans. Answer ответ

а/о, а.о. account of за счет кого-либо

Appd approved одобренный, утвержденный

arr. arrival прибытие

a/s after sight после предъявления

В/1), B.D. bank draft тратта, выставленная банком на другой банк

В/Е bill of exchange (переводной) вексель, тратта

Bk 1. Bank банк

2. book книга

B/L Bill of Lading коносамент

В.О., b.o. Branch office отделение фирмы

B/st Bill of sight предъявительный вексель

Bt bought купленный

С. 1. Collected полученный

2. currency валюта

с. cent (USA) цент

centime (France) сантим

centavo (Lat. America) сентаво

cubic кубический

ca. case ящик

C.A.D. Cash against documents наличными против документов

C.A.F. cost and freight стоимость и фрахт

Canc cancelled аннулированный

Ссу convertible currency конвертируемая валюта

cert., certif. certificate сертификат, удостоверение

c.f. 1. cost and freight цена и фрахт

2. carried forward к переносу (бухг.)

c.f.i. cost, freight and insurance стоимость, фрахт и страхование

chq cheque чек

C.I. consular invoice консульская фактура

c.i.f., CIF Cost, Insurance, Freight СИФ (стоимость, страхование, фрахт)

CL clause пункт, статья (договора, контракта)

CLD cleared оплаченный

C/N credit note кредит-нота

Co. Company компания

с/о, со. care of на почтовых отправлениях по адресу

C.O.D. Cash on Delivery уплата при доставке, наложенный платеж

Com., Comm. commission 1. комиссия

2. комиссионное вознаграждение, комиссионные

cont continued продолжение следует

C.R. at a company's risk на риск компании

Сг. 1. credit кредит

2. creditor кредитор

cur., curl. сurrent текущий

C.W.O., c.w.o. cash with order наличный расчет при выдаче заказа

D/A 1. documents against acceptance документы против акцепта

2. deposit account депозитный счет

3. ... days after acceptance... дней после акцепта

dd. delivered поставленный, поставлено

D/D demand draft тратта, подлежащая оплате немедленно по предъявлению

d/d ...days after date через столько-то дней после срока

D.D.P. Delivery Duty Paid поставлено с оплатой пошлины

deb. debenture таможенное удостоверение на возврат таможенных пошлин

Ded deductible вычитаемый

def. deferred отсроченный

def. а/с deferred account счет платежей в рассрочку

deld. delivered поставленный

dely delivery поставка

Dft draft тратта

D/N 1. Debit note дебет-нота, дебетовое авизо

2. delivery note накладная на груз, транспортная накладная

D/o Delivery order 1. заказ на поставку

2. деливери-ордер

Dols Dollars доллары

Doz dozen дюжина

D/P documents against payment документы против платежа

Dr, dr 1. debtor должник, дебитор

2. debit дебет

3. debit record дебетовая задолженность

dr drawer трассант (лицо, выставившее тратту)

d/s ...days after sight через столько-то дней после предъявления векселя

dis discount скидка

Е.Е., е.е. Errors excepted исключая ошибки
еа. each каждый

E.A.O.N., e.a.o.n. except as otherwise noted за исключением тех случаев, когда указано иначе

E.D.P. Electronic data processing электронная обработка данных

e.g. exempli gratia (for example) например

Enc, Encl. 1. enclosure(s) Приложение (я)

2. enclosed вложенный, приложенный

end. 1. endorsed индоссированный

2. endorsement индоссамент

ent., entd entered внесенный

c.o.d. every other day рая в два дня, через день

Е.О.Е. errors and omissions excepted исключая ошибки и пропуски

Е.О.М. end of month (платеж) в конце месяца

esp. especially особенно

est. 1. established установленный, доказанный

2. estimate оценка; подсчет; смета

3. estimated расчетный, согласно оценке
ЕТA estimated time of arrival расчетное время прибытия
ЕТD estimated time of departure расчетное время отправления

ex. 1. exchange 1. обмен

2. — " — 2. валюта

ex. int. exclusive of interest без процентного дохода

expend. expenditures расход(ы)

ехрn expiration истечение (срока)

exps. expenses расходы

exs expenses расходы

Fb., F.B. freight bill счет за фрахт

F.C.V. full contract value полная стоимость контракта

ff. following следующий, следующие

f.o.t. free of tax освобожденный от обложения налогом

FP fixed price фиксированная цена

f.p. fully paid полностью оплаченный

FPCR fixed-price contract with контракт с последующей корректировкой

redetermination фиксированной цепы

fwd. forward будущий, срочный; на срок

fwdd. forwarded отправленный

FX foreign exchange иностранная валюта

Gen., genl. general 1. главный, генеральный

2. (все)общий

GNS guineas гинеи

GTB, gtd, guar. guaranteed гарантированный

H.О. head office главная контора фирмы

I.В. 1. invoice book книга регистрации счетов

2. in bond на таможенном складе

i/c in charge руководит, ведает

I/L import license импортная лицензия

inc., incorp. incorporated зарегистрированный как корпорация; имеющий права юрид. лица

ins, ince. insurance страхование

inst. 1. instalment частичный или очередной взнос

2. instant текущего месяца

int. interest (ссудный) процент

int(n) international международный

inv. invoice счет-фактура

invt. inventory опись; инвентарная ведомость

IOU I owe you Я вам должен

irre(d) irredeemable не подлежащий выкупу

J/A, j/a joint account общий счет; объединенный счет (напр., при создании синдикатов)

jnt joint объединенный, совместны

jut. stk joint stock акционерный капитал

l.a. letter of advice авизо, извещение

L/A letter of authority доверенность

L/C, I/c letter of credit аккредитив

ld limited с ограниченной ответственностью

L.D. letter of deposit залоговое письмо

Liab. liability ответственность

lic. license лицензия, разрешение

L.L.C. limited liability company компания с ограниченной ответственностью

I.S. lump sum общая, единая сумма

Ltd.,ld limited liability с ограниченной ответственностью

l/u letter of undertaking письмо-обязательство

mat. maturity срок долгового обязательства

max maximum максимально, максимальный

m/d, M/D, m.d. months after date через столько-то месяцев от сего числа

mdse merchandise товары

mem. memo memorandum меморандум

merc. mercantile, merchant торговый, коммерческий

MGR manager управляющий, руководитель

min. minimum минимально, минимальный

mo(s) month(s) месяц(ы)

M. О. Money order денежный перевод

М. О. О. Money Order Office Отдел денежных переводов

M/S, M/s months after sight через ... месяцев после предъявления

М.Т. mail transfer перевод по почте

mut. mutual взаимный

N/A 1. no account нет (текущего) счета

2. new account новый счет

3. no advice нет извещения, авизо не поступило

4. nonacceptance неакцептование

N.C.V. no commercial value без рыночной стоимости

n.d. no date; not date дата отсутствует

N/f no funds без покрытия, нет средств

No. number номер, №

noibn not otherwise indexed by name другое наименование не указано

nop., N.O.P. not otherwise provided for только для указанных целей; только как предусмотрено

nos., N.O.S. not otherwise stated иначе не указанный

n/p nonpayment неуплата

ns not specified не уточнено, подробности отсутствуют

N.S.F. not sufficient funds недостаточные фонды; "не обеспечено денежным покрытием"

О 1. office контора, управление; министерство (Великобрит.)

2. owner владелец, судовладелец, фрахтовщик

о/а on account в счет причитающейся суммы

О/A open account открытый счет

О/С overcharge назначение завышенной цены

old, O.D., O/D on demand по требованию

О/О order of по получению, но распоряжению, приказу кого-либо

О. R. owner' s risk нa риск владельца

ord. ordinary обычный

ОТ. o/t old terms прежние условия

par. paragraph прежние условия

P. A. N. premium advice note извещение о премии

pd paid уплачено

P/N promissory note простой вексель, долговое обязательство

P.O.D Pay on delivery наложенный платеж; наложенным платежом

Р.Т.О. please turn over см. на обороте

Qlty quality качество, сорт

Qty quantity количество

R/D refer to drawer обратитесь к выдавшему чек

reсd received полученный

rect receipt квитанция

ref. reference ссылка

retd returned возвращенный

R.P. reply paid ответ оплачен

R.S.V.P. Repondez, s'il vous Plait (Fr.) ответьте, пожалуйста

sсh schedule график, расписание

S.D., S/D sight draft вексель на предъявителя

sgd signed подписанный

S.N. shipping note ордер на погрузку, погрузочный ордер

S.O. Seller's option опцион продавца

spec. specification спецификация

ster., stg. sterling стерлинг

T.M.O. telegraph money order денежный перевод по телеграфу

Т.О.С. Terms of Credit (of Lloyd's) условия кредита

Т.Т. telegraphic transfer телеграфный перевод

uncl unclassified несекретный, без грифа секретности

urgt urgent срочный

u.t. usual terms обычные условия

V. versus, against против

via by way or through через

vol. volume объем

War. warrant ордер; вариант

W/B way bill накладная, транспортная накладная

wd warranted гарантированный

wk. week неделя

yr. 1. year год

2. your Ваш