Bank and its classes

Bank — an institution that deals in money and its substitutes and provides other financial services. Banks accept deposits and make loans and derive a profit from the difference in the interest rates. They also have the power to create money. The two major classes of banks are commercial and central banks. Commercial banks accept savings deposits, make loans and other investments, and offer financial services that facilitate the exchange of funds among individuals and institutions. In addition to the profit derived from the difference in the interest rates, commercial banks charge fees for various services. Central banks are involved in the issue of money and maintain the country’s foreign currency reserves. Central banks maintain the accounts of other banks and supervise their activities. Central banks act as bankers to governments, as the designers of monetary and credit policies, and as lenders of last resort to commercial banks in the case of a financial crisis. Central banks also play a significant psychological role as guarantors of the monetary system. Central banks may be nationalised organisations and are subject to government control, but some of them can have independence from governmental supervision.

1) What meant by the term “bank” is? 2) What banks do accept? 3) What banks make do? 4) What banks derive a profit do from? 5) What do power banks have? 6) What the two major classes of are banks? 7) What commercial banks accept do? 8) What do make commercial banks? 9) What commercial banks offer do? 10) What central banks are involved in? 11) What central banks do maintain? 12) What central banks supervise do? 13) What central banks do act as? 14) What role central banks do play? 15) Are subject to central banks government control or not?

II. Agree or disagree with the following statements.

1) Bank trades in money. 2) Bank gives various financial services. 3) Banks receive deposits. 4) Banks don’t make loans. 5) Banks derive a profit by skilfully deceiving people. 6) Commercial banks aid the exchange of funds among individuals and institutions. 7) Central banks act as bankers to organized crime. 8) Central banks act as the designers of default. 9) Central banks act as the designers of foreign policy. 10) Central banks act as lenders of last resort to counterfeiters. 11) Central banks play an important role as guarantors of the monetary system. 12) Central banks have the right to issue money. 13) Central banks keep the country’s foreign currency reserves. 14) Central banks back up the accounts of other banks. 15) Central banks oversee the activities of other banks. 16) Central banks may be private owned organisations. 17) Central banks are subject to shadow ministers. 18) Central banks are totally dependent on their bank customers.

III. Translate the following words, phrases and statements from Russian into English.

Торговать; сберегательный вклад на неопределенный срок под процент; способствовать; денежные средства; начислять комиссионные; валютная политика; кредитная политика; последний кредитор в критической ситуации; денежная система; вклад в банк; ссуда; извлекать прибыль; процентная ставка.

1) Банк торгует деньгами и их заменителями. 2) Банк обеспечивает различные финансовые услуги. 3) Банк принимает депозиты. 4) Банки предоставляют займы. 5) Банки получают прибыль из разницы в процентных ставках. 6) Банки могут быть независимы от правительственного контроля.