Text 5 the state budget of Ukraine

Exercise 5.1 Study the vocabulary:

1) estimate	1) оцінка, кошторис
2) national revenue(s)	2) державні доходи
3) fiscal year	3) фінансовий рік
4) expenditure	4) витрати
5) deficit	5) дефіцит, нестача
6) forecasting	6) прогнозування
7) budget preparation	7) підготовка бюджету
8) adequate planning	8) розумне планування
9) planning of recurrent and capital expenditure	9) планування поточних та капітальних витрат
10) critically	10) вирішальним чином
11) accurate forecast	11) точний прогноз
12. availability	12) наявність
13. determination of the overall deficit	13) визначення, розрахунок загального бюджету
14. macroeconomic impact	14) макроекономічний вплив
15. extrabudgetary and reserve funds	15) позабюджетні та резервні фонди
16. increasingly	16) в більшій мірі, все більше
17. autonomous budget	17) автономний бюджет
18. to compile and present the budget	18) скласти та представити бюджет
19. expenditure responsibilities	19) обов’язки за витратами
20. revenue-raising sources	20) джерела отримання доходів
21. execution of the budget	21) виконання бюджету
22. Accounts Chamber	22) Рахункова палата
23. National Treasury	23) система державного казначейства
24. elaborate	24) розробляти
25. treasury system	25) система казначейства
26. misuses of funds	26) порушення у використанні коштів
27. ex-post audit	27) аудит (ревізія) використання коштів

Exercise 5.2 Read and translate the text:

The major instrument of any financial system is the budget. In a market-oriented economy, the budget is the most important tool for achieving national priority and goals through the allocation and distribution of resources, and the maintenance of stable macroeconomic environment.

The budget is an estimate of national revenue and expenditure for the ensuing fiscal year. When expenditure exceeds the revenue the budget has a deficit.

Revenue and expenditure forecasting is the most fundamental step in the process of budget preparation. Adequate planning of recurrent and capital expenditure depends critically on an accurate forecast of revenue availability. The determination of the expected overall deficit in the public sector and therefore the macroeconomic impact of fiscal policy requires accurate forecast of tax collection and expenditures.

In Ukraine, public finance is a sum of the budgets of all levels of subjects of the state, extrabudgetary and reserve funds.

An accurate revenue forecast is most critical at the national level of government but it is also important for all level governments because over the last several years they have worked with increasingly autonomous budgets.

Budget preparation at the national level involves a number of institutions. The Ministry of Finance (MoF) is the central coordinating institution in charge of compiling and presenting the budget. It has major inputs from ministries in various sectors of the economy and the state tax bodies.

The budget process includes all activities of government bodies on formulation, consideration, approval and execution of the budget.

The system of governance is moving from a centralized one to a more decentralized. The local authorities have been given considerable budget autonomy now.

Different governing bodies are involved in the process. The executive branch is responsible for the preparation and execution of the budget; budget consideration and approval is the responsibility of the legislative branch. Deputies have submitted a lot of amendments to the draft budget about restructuring debts and paying off pensions and children benefits.

The Accounts Chamber and the National Treasury System controlling the execution of the budget. The Government has done a lot to create a new budget system and to elaborate a new budget policy and methods of budget planning.

Exercise 5.3 Read the text and match the equivalents:

1.Accounts Chamber	a) точний прогноз
2. The executive branch	b) автономний бюджет
3. Revenue-raising sources	c) джерела отримання доходів
4. National Treasury	d) збирання податків
5. System of governance	e) система управління
6. Autonomous budget	f) виконавча гілка влади
7. Tax collection	g) Державне Казначейство
8. Accurate forecast	h) Рахункова палата
9. Fiscal year	i) скласти та представити бюджет
10. To compile and present the budget	j) фінансовий рік

Exercise 5.4 Read the text and match word combinations from the text:

1.Budget	a) bodies
2. National	b) benefits
3. Fiscal	c) authorities
4. Accurate	d) budget
5. Financial	e) system
6. Autonomous	f) forecast
7. Local	g) year
8. Executive	h) revenue
9. Children	i) branch
10. Tax	j) preparation

Exercise 5.5 Read the text and choose the best to complete the sentence:

1. The executive branch is responsible for the preparation and ….

a) approval of the budget;

b) execution of the budget;

c) regulating revenue;

2. The Accounts Chamber and the National Treasury System controlling…..

a) the tax collecting;

b) the budget process;

c) the execution of the budget;

3. The Government has done a lot to create……

a) a new budget system;

b) a new financial system;

c) a sphere of economic relations;

4. The local authorities have been given considerable ……

a) the budget regime;

b) budget autonomy;

c) local benefits;

5. Budget preparation at the national level involves……

a) a number of ministries;

b) a number of local organizations;

c) a number of institutions;

Exercise 5.6 Read the paragraphs of the text and fill in the gaps:

The budget process includes all activities of 1….. on formulation, consideration, approval and 2….. of the budget. The system of governance is moving from a 3 …… one to a more decentralized. The local 4……. have been given considerable 5 …….. now.

Different governing bodies are involved in 6…… The executive branch is 7……. the preparation and execution of the budget; budget consideration and approval is the responsibility of the 8…… Deputies have submitted a lot of 9…… to the draft budget about restructuring 10 …… and paying off pensions and children benefits.

UNIT 6 MONETARY AND BANKING SYSTEMS IN UKRAINE

TEXT 1 BANKING SYSTEMS

Exercise 1.1 Study the vocabulary:

1) to acquire funds	1) брати кошти, мобілізувати кошти
2) checkable deposits	2)банківський депозит, по якому можливі розрахунки чеками
3) NOW (Negotiable Order of Withdrawal)	3) рахунок НАУ (рахунок з наказом про вилучення коштів)
4) ultimate borrower	4) безпосередній позичальник
5) pooling of risks	5) об’єднання ризиків
6) liquidity	6) ліквідність
7) to evaluate	7) оцінювати
8) creditworthiness	8) кредитоспроможність
9) rate of return	9) норма прибутку
10) to accrue	10) накопичувати
11) Federal Deposit Insurance Corporation (FDIC)	11) Федеральна корпорація страхування депозитів
12) custodian	12) фінансова установа, що управляє чужими капіталами
13) entry	13) бухгалтерське проведення
14) prudence	14) обачливість
15) ultimately	15) урешті-решт
16) to overstate	16) перебільшувати

На кожному екрані має бути кнопка vocabulary

Exercise 1.2 Re tad and translate the text:

The operations of individual banks (how they acquire, use, and manage funds to make a profit) are roughly similar throughout the world. In all countries banks are financial intermediaries in the business of earning profits.

Banks today accept checkable deposits such as a demand deposit or a NOW (Negotiable Order of Withdrawal) account as well as time deposits, and use their depositors' funds mainly to make loans and buy securities.

Banks thus operate as financial intermediaries standing between the primary lenders (depositors) and the ultimate borrowers. In this way they provide many services. One is the pooling of risks. A bank that makes many loans is spreading its risks. It is highly likely to experience losses on a few loans but most unlikely to experience losses on all or most. (In contrast someone who makes only a single loan faces an all-or-nothing situation.) Another service of banks is providing liquidity. Someone who opens a checking account in a bank can get his or her money back whenever required. The bank meanwhile can make loans with his or her deposits and others' deposits while keeping only a small fraction of such deposits as a liquid reserve. Because it has many depositors who usually want to withdraw deposits at different times a bank normally can meet the demands of those depositors who want to withdraw their deposits.

Another service that banks provide is expert judgment in making loans. Most savers cannot evaluate the creditworthiness of those who wish to borrow. Hence, instead of lending directly to the ultimate borrowers they ‘lend’ their savings to banks by depositing them, and the banks then use those savings to make loans to the ultimate borrowers.

- Banks have an incentive to take risks because risky loans have a higher rate of return. All of these higher earnings accrue to the banks. But most of the funds at risk belong to depositors. Accordingly much of the risk that banks take is borne by depositors and by the Federal Deposit Insurance Corporation (FDIC), which insures their deposits in the USA. This is one reason why banks are heavily regulated by the government. Another, perhaps even more important reason is that banks are custodians of the checkable deposits that make up most of society's circulating medium of exchange. If banks fail and there is no deposit insurance, then depositors have to reduce their expenditures. As a result sales fall and firms have to throw employees out of work.

Exercise 1.3 Decide if the statements are true or false. Correct the false ones.

1. The operations of individual banks considerably differ throughout the world.

2. Banks use their depositors’ funds to make loans and buy securities.

3. If you have a checking account in a bank you cannot get your money back whenever required.

4. Risky loans have a lower rate of return.

5. Banks are heavily regulated by the government.

6. Banks play a vital role in a country’s financial system.

Exercise 1.4 Match the term with its definition:

1. Profit motive	a) able to be trusted to pay back money that is owed
2. Depositor	b) an organization whose business is providing insurance
3. Loan	c) the part of an income that is kept for a particular purpose or for unexpected expenses in the future
4. Loss	d) money that an organization such as a bank lends and sb borrows
5. Liquidity	e) the desire to make money, which is the reason that most businesses exist
6. Reserve fund	f) money that has been lost by a business or an organization
7. Creditworthy	g) a person or an organization that puts money in a bank account
8. Insurance company	h) the state of owning cash or things of value that can easily be exchanged for cash in order to pay debts

Exercise 1.5 Fill in the gaps with the words and phrases:

deposit; borrowers; liquidity; loan; funds; interest rates; loss;

1. We are now operating at a _____.

2. The Central bank has cut ______ to try to stimulate economic growth.

3. The bank has a lot of money from lending to high-risk _____.

4. Payments are placed on ______ to earn interest.

5. Asset sales are intended to improve the company’s ______.

6. Many people take out a ______ to buy a new car.

7. They ran out of ______ before they could finish the building work.

Exercise 1.6 Complete the sentences choosing one of the options:

1. At this bank you can get 14% ____ on your savings.

c) interest b) rate c) rent

2. I want $ 500-worth of French francs. What is the _____ rate, please?

c) currency b) exchange c) money

3. Every Friday Fred ______ money out of the bank.

c) cashed b) drew c) stole

4. The ______ of the pound has fallen recently.

c) expense b) worth c) value

5. Miss Thrifty phoned the bank to _____ how much money there was in her account.

12) control b) inspect c) check

6. The _____ of the bank where I work is in the suburbs.

l) branch b) seat c) quarter

7. In order to buy his house Mr Not-Too-Rich had to obtain a large ____ from his bank.

a) loan b) capital c) debt

TEXT 2 MONEY

Exercise 2.1 Study the vocabulary:

1) to be any substance	1) бути будь-якою річчю
2) to be accepted as	2) бути прийнятим як...
3) payment	3) плата, платіж
4) to be converted into	4) бути конвертованим у...
5) to be very portable	5) тут: легко переносити
6) to be very durable	6) тут: довго використовуватися
7)... last a long time under normal use	7) за нормального використання довго перебувають в обігу
8) to go out of circulation	8) виходити з обігу
9) to rate high in divisibility	9) високо цінити за можливість поділятися
10) denomination of coin	10) вартість монети
11)money supply	11) грошова маса

Exercise 2.2 Read and translate the text:

Basically, money is what money does. This means that money can be any substance that functions as a Medium of Exchange, a Measure of Value, and a Store of Value.

As a medium of exchange, money is something generally accepted as payment for goods and services

As a measure of value, money expresses worth in terms that most individuals understand.

Money also serves as a store of value. This means goods or services can be converted into money that is easily stored until some future time.

The different forms of money are in use in the United States today. The most familiar are coin and currency. The term coin refers to metallic forms of money. The term currency refers to paper money issued by government. While money has changed in shape, kind or size over the years, modern money still shares many of the same characteristics of primitive money. Modern money is very portable when people carry checkbooks. For example, they really are carrying very large sums of money since checks can be written in almost any amount.

Modern money is very durable. Metallic coins last a long time under normal use and generally do not go out of circulation unless they are lost. Paper currency also is reasonably durable. Modern money also rates high in divisibility. The penny which is the smallest denomination of coin, is more than small enough, for almost any purchase. In addition, checks almost always can be written for the exact amount. Modern money, however, is not as stable in value. The fact, that the money supply often grew at a rate 10 to 12 per cent a year was considered as major cause of inflation.

Exercise 2.3 Define which of the following items best completes the statement:

Most of the money in circulation consists of

a. paper money.

b. coins.

c. checking accounts.

d. savings accounts.

In a money economy, money serves as a

a. medium of exchange.

b. measure of value.

c. store of value.

d. all of the above.

The value of money

a. can increase or decrease.

b. remains the same at all times.

c. increases with the passage of time.

d. rises when prices rise.

The purchasing power of money

a. increases during periods of inflation.

b. decreases during an inflation.

c. decreases during a deflation.

d. is unaffected by inflation or deflation.

Exercise 2.4 Find the equivalents:

1. Medium of exchange	a. Сучасні гроші
2. Measure of value	b. Грошова маса
3. Store of value.	c. Виходити з обігу
4. To be any substance	d. Бути будь-якою річчю
5. To issue money	e. Міра вартості
6. Modern money	f. Засіб обміну
7. To go out of circulation	g. Запас вартості
8. Paper/soft money	h. Випускати гроші в обіг
9. Money supply	i. Паперові гроші
10. To express worth	j. Виражати вартість
11. To be converted	k.Плата, платіж
12. Payment	l. Бути конвертованим

Exercise 2.5 Match the words with their definitions:

1.A salary	a) an amount of money which you lend to someone
2. A loan	b)extra percentage paid on a loan
3. A debt	c) money which is in the form of coins and notes, not cheques
4. Cash	d) paid as a punishment for breaking the law
5. Wages	e) money paid by a divorced father to his former wife for the upkeep of his children
6.Alimony	f) a fixed amount which is paid, usually monthly, to workers of higher rank
7. Interest	g) an amount of money you receive, usually weekly, in return for labor or service
8. A fine	h) paid at the restaurant after eating
9. A bill	i) a sum of money which is owed to someone
10.A grant	j) money paid by the state, usually to students

Exercise 2.6 Complete the sentences choosing one of the options:

1. When you retire at the age of 65, you receive a _____ from the government.

a) pension b) grant c) fine

2. If production in that factory exceeds the target, the workers get a _____.

a) premium b) bonus c) donation

3. Income tax is _____ to one’s annual income.

a) dependent b) related c) based

4. The _____ of living has risen by 25 % in the last six months.

a) expense b) price c) cost

5. The kidnappers demanded a _____ of $ 1,000,000.

a)reward b) penalty c) ransom

6. The President admitted taking ______ and had to resign.

a) bribes b) premiums c) fees

TEXT 3 BANKS

Exercise 3.1 Study the vocabulary:

1) to be concerned	1) бути пов’язаним
2) an effort	2) спроба
3) to prevent	3) запобігати
4) to originate	4) брати початок
5) current account	5) поточний рахунок
6) a profit	6) прибуток
7) an interest	7) відсоток
8) liabilities	8) пасиви
9) assets	9) активи
10) to lend excess fund	10) надавати кредит

Exercise 3.2 Read and translate the text:

Banks are closely concerned with the flow of money into and out of the economy. They often co-operate with governments in efforts to stabilize economies and to prevent inflation. They are specialists in the business of providing capital, and in allocating funds on credit. Banks originated as places to which people took their valuables for safe-keeping, but today the great banks of the world have many functions in addition to acting as guardians of valuable private possessions.

Banks normally receive money from their customers in two distinct forms: on current account, and on deposit account. With a current account, a customer can issue personal cheques. No interest is paid by the bank on this type of account. With a deposit account, however, the customer undertakes to leave his money in the bank for a minimum specified period of time. Interest is paid on this money.

The bank in turn lends the deposited money to customers who need capital. This activity earns interest for the bank, and this interest is almost always at a higher rate than any interest which the bank pays to its depositors. In this way the bank makes its main profits.

Exercise 3.3 Decide if the statements are true or false. Correct the false ones.

1. Nearly everyone deals with a bank.

2. Banks help circulate money.

3. Banks accept deposit from individuals and business.

4. Banks pay interest to depositors.

5. Banks do not receive interest from borrowers.

6. All people understand how banks make the economy grow.

7. Bank often co-operate with governments in efforts to stabilize economies and to prevent inflation.

8. Banks receive money from their customers in two distinct forms: on current account, and on deposit account.

9. The bank lends the deposited money to customers who need capital.

10. Banks are concerned with the flow of money into and out of the economy.

Exercise 3.4 Match the first part of the sentence (1-5) with the second one (a-e):

	The bank lends the deposited money	a	took their valuables for safe-keeping.
	Banks normally receive money from their customers in two distinct forms:	b	on current account, and on deposit account.
	Banks originated as places to which people	c	to customers who need capital.
	Banks often co-operate with governments in efforts	d	with the flow of money into and out of the economy.
	Banks are closely concerned	e	to stabilize economies and to prevent inflation.

Exercise 3.5 Put the words and phrases into their correct place in the text below:

(account; debtor; interest; safekeeping; bank; deposit; loan; save; bank income; depositors; paid; spend; credited; funds; pocket; withdraw; creditor; hide; record)

People 1)______ money in banks for future use. A man may be 2)______ each week for his work. He probably will not want to spend all his pay the day he receives it. It may be risky for him to carry all his unspent money in his 3)____, or to 4)_____ it at home. So he may decide to put some of his money in a bank for 5)______. The money he puts in the bank is called a 6)______. This money is 7)______, or added, to his 8)______. An account is a 9)_____ of the money a depositor has in the bank. When the depositor wants to 10)_____, or take out, part of his deposit, the bank must be ready to pay him.

Banks use the money of 11)______ for loans to those who need 12)_______. The 13)______ that makes the loan is called a lender, or 14)______. The bank charges the borrower, or 15)_______ interest for the use of the 16)______ Charging 17)_____ for the use of money is the chief source of 18)_______.

Exercise 3.6 Choose the correct answer:

1. Miss Positive _____ the bank manager that she would be able to repay the loan.

a) assured b) insured c) certified

2. The debt should be paid _____ within 30 days of receiving this statement.

a) all over b) in full c) as a whole

3. I have just _____ an account in this bank.

a) made b) opened c) registered

4. Miss Thrifty _____ only $15 out of the bank every week.

a) removes b) pulls c) draws

5. Please complete the ______ form and return it to the branch manager.

a) enveloped b) inserted c) enclosed

6. We ______ to inform you that settlement of your account is three months overdue.

a) regret b) dislike c)apologize

7. $1 is _______ to 1.6 German marks.

a) equivalent b) variable c) comparable

TEXT 4 BANKING IN UKRAINE

Exercise 4.1 Study the vocabulary:

1) to develop steadily	1) впевнено розвиватись
2) to offer services	2) пропонувати послуги
3) tight fiscal policy	3) жорстка фіскальна політика
4) to combat inflation	4) подолати інфляцію
5) settlement system	5) розрахункова система
6) to meet customers demands	6) відповідати запитам клієнтів
7) traveller's cheques	7) дорожні чеки
8) to pass the law	8) приймати закон
9) to pay a vital support	9) надавати життєво необхідну підтримку
10) currency operations	10) валютні операції

Exercise 4.2 Read and translate the text:

Starting from almost nil,- when even Ukraine's Central Bank was little more than a transit for funds coming from Moscow, a new Ukrainian banking system has managed to materialise in just a few short years. It has been steadily developing and growing. Our financial institutions range from credit unions to full-scale banks offering up to 30 different types of services.

The activity of these banks - most of them commercial - is overseen by the country's central bank, the National Bank of Ukraine (NBU). Although the NB is under jurisdiction of the country's legislature.

Regardless of the NB's tight fiscal policy – aimed to combat inflation - Ukrainian banks are still working at increasing their resources and capital shares, and technically improving their banking operations.

In so doing they hope to promote Ukraine's economic development, bring its banks to world standards, and enter the world banking system.

Most of the country's largest banks are already connected to the SWIFT international settlement system. As well, a number of banks, in the effort to meet growing customers demands have established correspondence accounts with foreign banks, and started working with credit cards and traveller's cheques. The Interbank electronic payment system was launched.

These new commercial banks have already gained experience from working in the Ukrainian and foreign financial markets. The Ukrainian Association ofBanks - the largest banking association in the country - views banks, both small and large, as paying a vital supporting role in the country's transitions to a market economy.

Banking activity in Ukraine is regulated by the law «On banks and banking» passed by Ukrainian Parliament in March 1990. So far, the law has undergone four revisions, and has also been amended by Government decrees.

Currency operations are regulated by the Decree issued by the government and the instructions of the NBU.

Exercise 4.3 Match the two parts of the sentences:

1. A new Ukrainian system	a) is regulated by the law
2. The activity of commercial banks	b) has been steadily developing and growing
3. NBU is under jurisdiction	c) system was launched
4. The Interbank electronic payment	d) is overseen by NBU
5. Banking activity in Ukraine	e) of the country's legislature

Exercise 4.4 Choose the word that best completes the sentence:

1.Our financial institutions range from (credit unions / trade unions) to (full-scale banks / public companies).

2. NBU (oversees / punishes) the activity of all commercial banks of Ukraine.

3. Tight fiscal policy is aimed (to combat inflation / to transit funds).

4. The Interbank electronic payment system was (launched / forbidden).

5. The Ukrainian Association ofBanks is the largest (industrial / banking) association in the country.

6. Banking activity in Ukraine is regulated by the (law / Decree issued by the government).

7. Commercial banks have already gained (experience / loss of liberty) from working in the Ukrainian and foreign financial markets.

8. NBU is under the (jurisdiction / supervision) of the country's legislature.

Exercise 4.5 Match the following banking terms with their definitions:

1. Banking system	a) The use of taxation and government spending to influence the economy.
2. Central bank	b) The network of institutions responsible for providing banking services.
3. Credit card	c) A cheque issued by a bank, to enable a traveller to obtain cash in a foreign currency when abroad.
4. Traveller's cheque	d) A bank that provides financial and banking services for the government of a country and its commercial banking system as well as implementing the government's monetary policy
5. Fiscal policy	e) A small plastic card issued by a bank, allowing the holder to purchase goods or services on credit

Exercise 4.6 Give English equivalents from the text for the following word combinations:

1. Почати з нуля

2. Під юрисдикцією

3. Світові стандарти

4. Працювати з кредитними картками

5. Кредитні спілки

6. Законодавство країни

7. Сприяти економічному розвитку

8. Банківська діяльність

9. Ринкова економіка

10. Набувати досвід

TEXT 5 NATIONAL BANK OF UKRAINE

Exercise 5.1 Study the vocabulary:

1) prior	1) колишній, попередній, до, перед
2) the collapse	2) крах, обвал, занепад
3) dire	3) жахливий, страшний
4) strait	4) скрутне становище, злидні
5) prolonged	5) тривалий, продовжений
6) foster	6) прияти
7) issuing center	7) емісійний центр
8) exchange rate	8) курс обміну
9) denomination	9) номінал купюри
10) custody	10) зберігання, схов
11) interest rate	11) відсоткова ставка
12) permission	12) дозвіл

Exercise 5.2 Read and translate the text:

National Bank of Ukraine, the central bank of Ukraine, is located at № 9 Institutska St., in Kiev.

Prior to the collapse of the USSR, the National Bank of Ukraine was a branch of the Central Bank of the USSR. Officially, the National Bank of Ukraine acted as the Central Bank of Ukraine since early 1992. Like institutions of many newly independent nations, it faced dire financial straits during the 1990s, leading to a prolonged period of hyperinflation.

The legal status of the National Bank of Ukraine and the principles of its organization and activities are determined by the Constitution of Ukraine and the Law of Ukraine "On the National Bank of Ukraine".

The National Bank of Ukraine is a legal entity with separated property, which is the object of the state property. Its authorized capital amounts to UAH 10 million and is the state-owned property which is in the full economic competence of the National Bank.

According to Article 99 of the Constitution of Ukraine, adopted in 1996, the main function of the country's central bank is to ensure stability of monetary unit - the Hryvnia. To carry out its main function, the National Bank shall foster the stability of the banking system and, within its competence, the price stability.

According to the Law of Ukraine "On the National Bank of Ukraine", the National Bank is the central bank of Ukraine, a specific central body of the state administration, its issuing center which pursue common state policy in money circulation, credit, strengthening of monetary unit; it coordinates functioning of the banking system in general; determines exchange rate of the monetary unit against foreign currencies. The National Bank determines a kind of bank notes, their denomination, distinctive features and their protection system. The National Bank of Ukraine ensures the accumulation and custody of the gold and currency reserves and the conduction of transactions with them and the banking metals. The National Bank of Ukraine sets up the order of determining a discount rate and other interest rates; it gives permission for commercial banks' registration and licenses banking business; determines the standard of emergency funds for commercial banks and other financial and credit institutions.

The National Bank of Ukraine has the power to initiate legislation.

The National Bank of Ukraine is governed by the Head of the National Bank of Ukraine and its directory, while its functions are coordinated by the Council of the National Bank of Ukraine. The council consists of 15 members including the Head of the National Bank as the ex-officio position. The other members of the council are appointed by an equal quota of seven members from the President of Ukraine and the Verkhovna Rada.

Exercise 5.3 Make up word-combinations using the words from two groups

1. Prolonged	a) status
2. State	b) capital
3. Authorized	c) stability
4. Legal	d) period
5. Price	e) property

Exercise 5.4 Fill in the gaps and translate in a written form:

A) The legal status b) the central bank c) a branch d) independent nations

E) hyperinflation

National Bank of Ukraine, 1 … of Ukraine, is located at № 9 Institutska St., in Kiev.

Prior to the collapse of the USSR, the National Bank of Ukraine was 2 … of the Central Bank of the USSR. Officially, the National Bank of Ukraine acted as the Central Bank of Ukraine since early 1992. Like institutions of many newly 3 …, it faced dire financial straits during the 1990s, leading to a prolonged period of 4 ….

5 … of the National Bank of Ukraine and the principles of its organization and activities are determined by the Constitution of Ukraine and the Law of Ukraine "On the National Bank of Ukraine".

Exercise 5.5 Decide whether the statements are true or false (T/F)

1. Officially, the National Bank of Ukraine acted as the Central Bank of Ukraine since early 1992.

2. The Law of Ukraine “On the National Bank of Ukraine” determines the legal status of the General Assembly of the UNO.

3. The main function of the country's central bank is to ensure stability of monetary unit.

4. The National Bank decreases the stability of the banking system.

5. The National Bank of Ukraine determines domestic and foreign policy of a state.

Exercise 5.6 Match the following terms with their definitions:

1. Institution	a) Relative social or professional position; standing
2. Nation	b) The value of one currency for the purpose of conversion to another
3. Status	c) The natural action or intended purpose of a person or thing in a specific role
4. Exchange rate	d) An organization founded for a religious, educational, professional, or social purpose
5. Function	e) A large body of people united by common descent, history, culture, or language, inhabiting a particular state or territory

Дата добавления: 2015-10-29