Vocabulary Exercises

1. Find the names of banking and financial institutions men­tioned in the dialogue and the text and rnatch them with the definitions given in the exercise.

1. A bank whose major services are accepting and protecting money for deposit and paying cheques issued by the deposi­tors, laws permit to invest for profit a portion of this money.

2. A bank which has a charter from the federal government.

3. A bank which has a charter from a state government.

4. A bank established by the government of the USA to make loans for the purchase of land.

5. An institution which handles brokerage.

6. A place where stocks are bought and sold.

7. An institution formed by a group of persons who combine their savings in order to make loans to members at a low rate of interest.

8. A lending institution without a bank charter which spe­cializes in making small loans on open note or secured by chattel mortgage.

9. An institution which accepts savings deposits and makes loans mainly for the purchase and repair of homes.

10. An institution which manages trusts and services.

11. A banker's bank and lender of last resort.

2. Using the words in brackets as a guide,explain the meaning of the following terms:

1) fiduciary services (trusts, estates, management, having to do with);

2) securities (units of fixed obligation, a company, govern-

ment, fixed term, stocks);

3) broker (stocks and bonds, for others, sells, buys);

4) charter (to carry on, give permission, an official paper);

5) lending institution (to make loans, empowered);

6) The Treasury (government, department, British, national economic policy, public expenditure, control, coordinate);

3. 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) American state banks offer fewer services than a national bank.

4) The interest on deposits is usually higher in savings and loan associations.

5) Savings and loan associations offer regular commercial services.

6) Every English bank issues its own notes.

7) All the important institutions in the City maintain accounts at the Bank of England.

8) The amount of money available for British borrowers de­pends on The Treasury orders.

4. Study the following example:

We employ people.

A person who employs is an employer.

A person who is employed is an employee.

The suffix -er is generally used for a person who does the action. The suffix - ee is generally used for a person to whom something is done.

It has passive meaning.

5. 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) 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 …..

6) A person to whom one's affairs are trusted is a ….

6. Using prefixes il-, im-, in-, ir-, un-, non -, etc., give nega­tive adjectives whichare related to the following:

expensive

negotiable

regular

important

orderly

spicified

legal

payable

stable

matured

proper

sufficient

movable

profitable

transferable

7. Combine the words listed below into meaningful two or three word expressions as possible:

account	credit	revenue
association	company	savings
bank	exchange	state
benefit	equaliza tion	stock
bond	finance	trust
business	government	transaction
brokerage	house	umon
board	loan	employment
central	land
charter	premium

8. For each of the following phrases, find the expression in the text that explains it:

1) restricted range of services;

2) services having to do with trusts and estates;

3) services having to do with buying and selling securities;

4) bank which gets its charter from the state;

5) stocks and bonds;

6) a place where stocks are bought and sold;

7) the fund in which the gold and foreign currency reserves of Great Britain are held;

8) bonds with a very short life span before the government buys them back again;

9) economic policy which regulates the level of money or li­quidity;

9. 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 …...