Варіант 10. 1. The financial market consists of different types of financial institutions

FINANCIAL MARKET

1. The financial market consists of different types of financial institutions. All of these institutions have one thing in common: they are intermediaries and act as agents between households, businesses, and governments that have funds available for lending and others who want to borrow these funds. Banks are the biggest borrowers and lenders. Other institutions came into existence because banks were originally forbidden to provide certain types of loans. Mortgage companies specialized in giving long-term loans (mortgages) for people wishing to purchase real estate like houses or apartments. Trust companies looked after pensions and trust accounts of both firms and individuals. Credit unions sprang up because many small firms were unable to obtain loans from the banks.

2. The financial market can be divided into the money market and the capital market. Money market usually deals in loans with terms of less than three years, whereas capital markets are for longer- term loans. Long-term loans take the form of bonds. Suppose, that you are a big firm interested in obtaining funds to finance a major expansion. You could, of course, apply for a loan from one of the various financial institutions. But why bother? Why not cut out the agent and go directly to the public? Consequently, many corporations, as well as the federal’ provincial, and municipal governments, sell bonds directly to the public. These bonds are for a fixed term and pay a fixed rate of interest. Generally speaking, shorter-term bonds pay a lower interest rate than longer-term bonds. As well, bonds issued by governments and larger corporations pay a lower interest rate than those of smaller or newer firms.

3. The capital market deals not only in bonds but also in stocks. A corporation could issue either bonds or stocks, and both bring new funds into the firm. These instruments are easily negotiable, which means holders can freely sell them in the market. The main difference between these two financial instruments is that the holder of a bond is a creditor of the corporation, whereas the holder of stock (the shareholder) is a part-owner of the firm. If the corporation is successful, the shareholder will share in that success and get part of the profits, in the form of dividends, but may get no return at all if the firm struggles. The bondholder, on the other hand, will simply receive a fixed amount of interest, regardless of the performance of the firm.

I. Знайдіть у тексті та випишіть еквіваленти таких слів та словосполучень:

фінансові установи, посередники, кредит, нерухомість, облігації, акції, поширення,

фіксований курс, акціонер, власник облігації.

Найдите в тексте и выпишите эквиваленты следующих слов и словосочетаний:

финансовые учреждения, посредники, кредит, недвижимость, облигации, акции,

расширение, фиксированный курс, акционер, владелец облигации

II. Перекладіть письмово абзац 2.

Переведите письменно абзац 2.

III. Випишіть з тексту приклади інфінітиву у Active Voice i Passive Voice. Перекладіть.

Выпишите из текста примеры инфинитива в Active Voice и Passive Voice. Переведите.

IV. Поставте 5 запитань до абзацу1 та запишіть їх.

Поставьте 5 вопросов к абзацу 1 и запишите их.

V. Дайте письмові відповіді на запитання.

Письменно ответьте на вопросы.

1. What do all financial institutions have in common?

2. How can the financial market be divided?

Дата добавления: 2015-07-14