Некоммерческое акционерное общество

АЛМАТИНСКИЙ УНИВЕРСИТЕТ ЭНЕРГЕТИКИ И СВЯЗИ

Кафедра «Иностранные языки»

 

 

 

АНГЛИЙСКИЙ ЯЗЫК

Методические указания по выполнению семестровых работ для экономических специальностей

 

 

 

Алматы 2011 

СОСТАВИТЕЛИ: Нурходжаева Х.А.  и Серикбаева У.Б. Английский язык. Методические указания по выполнению семестровых работ для студентов специальности  5В050600- Экономика.– Алматы. АУЭС,  2011. – 29 с.

Данные методические указания предназначены  для студентов первого  курса экономических специальностей. В методической разработке содержатся задания по темам «Markets and Prices», «The Money Market», «Primary and Secondary Markets», «The Supply and the Demand for Money», для закрепления лексического материала по данным темам.

 

         Рецензент: ст. преподаватель М.Д. Курманбекова.

 

Печатается по плану издания некоммерческого акционерного общества «Алматинский университет энергетики и связи» на 2011 г.

 

© НАО «Алматинский университет энергетики и связи», 2011 г.

 

 

Unit 1

Markets and Prices

 

Grammar:     Modal Verbs : can, could, will, would, must, may,

                       Might, shall and should

 

         1.Underline the correct words.

 

1 Do you come / Can you come to the meeting next week?

2 I can come / can to come to the meeting next week

3 I don’t can come / I can’t come to the meeting next week.

4 Sorry  that  I couldn’t/ I didn’t could come to the meeting last week.

         5 When we can have / can we have the next meeting?

 

2.Complete the sentences with the following modal verbs.

 

Must, mustn’t, have to, don’t have to, can, can’t

 

1.You -------------- do it.      = You have a choice . It’s not necessary.

2.You -------------- do that.   = Don’t do that! It’s an order.

3.You  ------------- do it.       =  I’m telling you to do it. It’s necessary.

4.You --------------- do it.     =  The rules say to do it. It’s necessary.

5.You.--------------  do it.      = It’s OK to do it. It’ allowed.

6. You --------------do that    = It’s impossible to do it. The rules say  so.

 

3. Complete the dialogue: had to go, didn’t have to go, should have gone, shouldn’t have gone

 

Tom –  The conference was really boring. It was a mistake. I-----------------

Carol – So why were you there ? Surely you -----------------

Tom  -   No, you don’t understand. You see I --------------last year, but I didn’t. So this year  I ----------. My boss insisted.

 

4.Choose the right variant.

 

1. When I was a child I could / was able to play  the piano.

2. I lost my laptop, but I could / was able to borrow another one.

3.In those days the company had more money and we could / were able to take our clients to the most expensive restaurants.

4. The traffic was bad, but I could / was able to get to their offices on time.

 

 

5. Complete the dialogue: can’t be, might be, must be, shouldn’t be

 

Elena:     Who is that man over there with the pink tie? Is it Nick?

Manual:  I am not sure. It -----. But I always thought that Tom was older.

Elena      Yes, think you are right. But if it is not, Tom then it --------Remy.

Manual:  No, that’s impossible. It -----Remy. Remy is a lot shorter.

Elena:     Oh, I know who it is. It is Philippe. I would like to speak to him at  some point.

Manual:   OK, that ----- difficult. Let’s go and introduce ourselves right now.

 

6. Translate into Russian.

 

1.Next year we must launch a sales campaign in Japan.

2.They can  deliver on time.

3.I will pick you up at your hotel.

4.Shall we start the meeting.

5.It may rain tomorrow.

 

7. Read and translate the text. 

                                              

Procedure for holidays 

         The final item on the agenda is “ Procedure for holidays”. There was a lot of confusion in July and August when everyone wanted to take holidays at the same time, so I  need to explain this clearly. The most important thing is to give our Human Resources Manager, Sandra, as much notice as possible you can’t go  on holiday unless you have told her at least four weeks in advance. Also, some people seem to think that it’s necessary to take all their holiday time before the end of the calendar year. That’s not true -  you can  if you want to, but you  don’t have to. If you have some days remaining. You can carry them forward to the next year. I hope that’s clear now I don’t want the same thing to happen next summer.

 

         Vocabulary

 

Choice                выбор

An order             порядок, распоряжение

To allow             позволять

To understand    понимать

The rule              правило

Bore                     скука

Mistake              ошибка

To insist             настаивать

Agenda               повестка

Confusion           беспорядок, смущение, путаница

Explain               объяснять

Human Resources Manager

In advance           заранее, вперед

To remain            оставлять

To hope               надеяться

Notice                  замечать, извещение

Clear                    понятный, целый

To seem to           казаться

At least                 по крайней мере

Carry                    нести, поддерживать

Introduce              представлять

Possible                возможный

Impossible            невозможный

To be sure            быть уверенным

A lot (of)              много

Expensive             дорогой (товар)

Traffic                   уличное движение, транспорт

Bad                        плохой

To think                 думать

Delivery                доставка

Launch                  запускать

Deliver                  доставлять

 

8. Choose the right answer.

 

1 He must be out of the office         a) I saw him at the photocopier a moment ago

2 He might be out of the office        b) I have looked everywhere, but he isn’t here.

3 He can’t be out of the office         c) I’II just go and check with his secretary

 

9. Put questions.

 

1. The item on the agenda is “Procedure for Holidays.

2. There was a lot of confusion in July.

3, I need to explain clearly.

4. The most important thing is to give our boss the result.

5. Everyone wanted to take holidays at the same time.

 

Markets and Prices

 

A market is simply a mechanism, which allows individuals organizations to trade with each other. Markets bring together  buyers and sellers of goods and

services. In some cases, such as a local fruit stall, buyers and sellers meet physically. In other cases such  as the stock market, business can be transacted over the telephone, almost by remote control. There is no need to go into these details. Instead, we use a general definition of markets A market is a shorthand expression for the process by which household decisions about consumption of alternative goods, firm’s decision about what and how to produce, and worker’ s decisions about how much and for whom to work are all reconciled by adjustment of prices.

Prices of goods and resources, such as labour, machinery and land, adjust to ensure that scarce resources are used to produce those goods and services that society demands. For some goods, notably fresh fruit and vegetables, the traditional market is still the normal arrangement, but for most goods the market is a national one.

Most consumer goods, in development countries, are bought, and sold on a country wise basis. For other commodities the market is world-wide. The price of any economic goods, under market conditions  is determined by the forces of supply acting through the sellers and the forces of demand acting through the buyers, determine the market price.

 

          10. Complete the sentences using the following words.

 

 supply, transaction, determinants, concern, arise, advanced, value, meaning, markets, conditions, worth, demand.

1. In this chapter we discuss the basic … of price.

2. Price is not the same thing as …

3. This kind of subjective value is not the …. of the economist.

4. The economic ….. of value of a good can only be measured in some kind of market ….

5. Prices….in exchange transactions.

6. In the modern world the word ‘market’ has a much wider ….

7. Most of the products of ….. technologies also have world …

8. The price of any economic good under market ….. is determined  by the forces of …. and……

 

11. Find synonyms among the following words.

 

transaction, price, especially ,developed, cost, advanced, basic, take place, purchaser, particularly, buyer, happen, commodity, kind, good, sort, reveal, discover, main, dealing.

 

12. Find antonyms among the following words.

 

same, false ignorance, domestic,  true, new, different, wide, second-hand, foreign, narrow, knowledge.

 

13. Translate the following word combinations into English.

определяющий фактор то же самое по другой причине обмен товаров рыночная стоимость покупатели и продавцы рекламные колонки большинство потребительских товаров в развитых странах основные продукты питания в условиях рынка.

 

14.           Read the following words.

 

Society, civilization, adequately, frustrating, surplus, cumbersome, coincidence,  merely,  disposal, similar, triangular, major, acceptable,  medium,  amazing, valuation, wealth, deteriorate, purchase,  spread, pattern, installment.

 

15.Read and translate into Russian the following expressions.

 

 An essential tool of civilization, the direct exchange of goods and services, the great disadvantage of barter, a laborious system of exchange, an amazing variety of goods and services, a piece of furniture, the value of one commodity, a means of making deferred payments, in case of hire purchase  contacts.

 

Vocabulary notes.

 

Acceptable                    приемлемый

Adequately                   адекватно

Arrangement                устройство

Article                          изделия, товар

Coincidence                 совпадение

Consider                      рассматривать

Cumbersome               громоздкий, обременительный

Deferred payment       отсроченный платеж

Delivery                      доставка

Deteriorate                  портиться

Devote                         посвящать

Exchange rate             обменный курс

Face                            сталкиваться с чем-либо

Frustrating                  бесполезный

Hire purchase              аренда с опционом покупки

Hold                            держать

Invention                      изобретение

Installment                   рассрочка

Insure                            гарантировать, страховать

Laborious                      затрудненный

Medium                         средство, способ

Merely                            только, просто

Payment                                         платеж

Promise                                         обещание

Remove                                         удалять

Seek out                                        искать

Spread                                           распределять, распространять

Stock                                             запас                          

Store                                             хранить, запасать

Surplus                                         добавка, избыток, излишек

Trading                                        торговый

Whereby                                       посредством  чего-то

To swap                                        обменивать менять

A double coincidence of wants   двойное совпадение потребностей

A standard of value                     мера стоимости

Medium of exchange                  средство обращения

A store of value                          средство сбережения

Labour                                        труд

                              

                                               Money

 

         Money is one of man’s  greatest inventions and the fact that all human societies use money indicates that it is  an essential tool of civilization. In the absence of some form of money, exchange may take the form of barter. Barter will serve man’s requirements quite adequately. Each family will provide by its own efforts most of  its needs and perhaps some small surpluses. A farmer will exchange any small surplus of food, wool or hides for the surpluses of other producers.. But this system of exchange becomes very cumbersome as economic activities become more specialized.

         The great disadvantage of barter is the fact that it depends upon “ a double coincidence of wants”. A barter economy has no medium of exchange, Goods are traded directly or swapped for other goods,

         Money, the medium of exchange is used almost in all exchanges.  Workers exchange labour services for money. People buy and sell goods in exchange for money.

         Money can also serve as a measure of value. The problem of exchange rates is easily solved when all other commodities are valued in terms of a single commodity which then acts as standard  of value and when all economic goods are

given money values( i.e, prices)

         Money is a store of value because it can be used to make purchases in the future. It is possible to store wealth by holding a stock of the commodity.

         The great disadvantages of holding wealth in the form of money has become very apparent  during the period of inflation its exchange value falls.

         Finally, money serves as a standard of differed payment. When goods are supplied  on credit, the buyer has immediate use of them but does not  have to make an immediate payment.

 

 

1.     Find synonyms.

 

Means, form, tool, frustrating, obtain, useless, need, instrument, shape, get, medium, commodity, general, require, labour, store, common, article, work, stock, deteriorate, significant, spoil, essential, apparent, conduct, purchase, evident, carry out, buy.

 

2.     Find antonyms.

 

Absence, increase, major, spread, presence, same, reduce, minor, accumulate, different.

 

3.     Fill in the gaps with the following words.

 

Granted, convenience, monetary, commodity, money, direct,  inventions, barter, valuation.

 

1. Money is one of  man’s greatest------------.

2. In the absence of form of money, exchange may take the form of -----------.

3. If a ------is generally acceptable in exchanging for goods and services, it is------.

4  Such exchanges are taken for ----------.

5. The --------of goods for goods would raise all sorts of problems regarding -------.

6.  It is a great----- to hold wealth in  the form of money.

 

4. Give three   forms.

 

Take, prove, become, seek, need, find, set, spend, make, come, raise, give, store, fall, pay, spread, do.

 

5. Put the verbs  in brackets into the correct form.

 

1.Exchange may ----(to take) the form of barter.

2.Barter ----( to serve) man’s requirements quite adequately.

3.As the extent of specialization -------( to increase) the barter system---(to prove) inefficient.

4.This system of exchange ---- (to become) very cumbersome as economic activities -----(to become) more specialized.

5.The great disadvantage of barter --- (to be) the fact that it ---(to depend upon a “double coincidence of wants”.

 

6. Translate into English the following expressions.

 

Прямой обмен товарами и услугами,  с ростом специализации,  ряд подобных обменов, гораздо более удобное средство,  основная сложность бартерной системы, в развитом обществе, без использования денег, первый шаг, проблема обменных курсов, запас товаров, большое удобство, огромный недостаток, в период инфляции.

 

7. Complete the following sentences with prepositions.

 

1.Monetary policy is concerned with the cost ---------money.

2.Most countries have a central bank, which is responsible ---- the operation ----the banking system.

3.Bank-notes and coins are not the most important form --- money --- developed economies.

4.A payment from one person ---- another merely requires that the banker reduces the amount --- one deposit and increases it --- another.

5.Several merchant banks date back ----- the 19th century.

 

8. Put questions  in italics.

 

1. The use of money makes possible a great  extension of the principle of specialization.

2. The direct exchange of goods for goods would raise all sorts of problems regarding valuation.

3.The problem of exchange rates is easily solved when all other commodities are valued in terms of a single commodity.

4.It is a great convenience to hold wealth in the form of money.

5.The money value of wealth may fall when it is being stored.

 

9. Translate into English using all the active possible.

 

1.Деньги можно использовать при покупке и продаже товаров и услуг.

2.Деньги служат средством сбережения.

3.Деньги  являются очень удобной формой хранения богатства.

4.При высокой инфляции население будет хранить богатство в виде недвижимости.

5.Деньги имеют стоимость благодаря  товарам и услугам, которые приобретаются за них на рынке.

6.Деньги также являются  мерой стоимости.

7.В условиях рыночной экономики деньги приносят доход.

 

10. Answer the questions.

 

1.What is barter?

2.When  may exchange take the form of barter?

3.When is barter inefficient and frustrating?

 

11. Read the following words.

 

determinant, valuable, commodity, subjective, worth, transaction, reveal, nowadays, kind, arise, necessarily, familiar, meaning, arrangement, requirement, efficiently, foreign, participants, countrywide, world-wide, foodstuffs

.

12. Read and translate into Russian the following expressions.

 

The same thing, the basic determinants of price, subjective value, the economic worth of value, market transactions, exchange of goods and services, a much wider meaning, on a countrywide basis, under market conditions.

 

         Vocabulary notes

 

Buyer                       покупатель

Commodity              товар

Concern                   забота, интерес, дело, отношение, касательство

Consumer goods     потребительские товары

Dealing                   сделка

Ease                         легкость

Imply                      заключать в себя ,значить, подразумевать

Kind                        вид

Meaning                  значение

Participant               участник

Particularly              особенно

Represent                 представлять, означать

Reveal                     раскрывать

Seller                        продавец

Separate                  отдельный

Supply                     предложение

Transaction             сделка, операция

Demand                   спрос              

Countrywide basis 

                                                    PRICE

 

          Price is not the same thing as value. Things are “ valuable” because people think they are, and for no other reason. The “value “ which  an individual places on a commodity can not be measured and its value will be different for different people. This kind of subjective value is not the concern of economist who interested only in value in exchange. In some kind of market transaction which reveals the value of the good in terms of what is offered in exchange for it. Nowadays practically all exchanges represent an exchange of goods and services for money and prices in terms of money are the market value of the things they buy.

          Prices arise in exchange transactions and this implies some kind of market.

          The price of any economic good, under market conditions  is determined by the forcers of supply acting through the sellers and forces of demand acting through the buyers, determine the market price.

          Most consumer goods, in developed countries, are bought and sold on a countrywide basis. For other commodities the market is world-wide.

 

1. Give three forms.

 

Think, reveal, represent, buy, sell, imply, find, determine, have,

 

2. Compete sentences. Use verbs in brackets in the correct form.

 

1.  Things are valuable because people thing they ----(to be).

2. Nowadays practically all exchange ---- ( to represent) an exchange of goods and services for money.

3. Any effective arrangement for bringing buyers and sellers into contact with one another --- ( to define) as a market.

4. The economic worth of value of a good  can only be ---( to measure) in some kind of market transaction.

5. The price of any economic good, under market conditions ---- ( to determine ) by the forces of supply.

 

3.     Find synonyms.

 

Transaction, price, especially, developed, cost, advanced, basic, take place, purchaser, particularly, buyer, happen, commodity, kind, good, sort, reveal, discover, main, dealing.

 

4.     Find antonyms.

 

Same, false, ignorance, domestic, true, new, different, wide, second-hand, foreign, narrow, knowledge.

 

 

5.     Find in the text English equivalents for the following.

 

Определяющий фактор, то же самое, по другой причине, обмен товаров, рыночная стоимость, покупатели и продавцы, потребительские товары, в условиях рынка, в развитых странах.

 

 

6. Fill  in the gaps with the following words.

 

Supply, transaction, determinants, concern, arise, advanced, value, meaning, markets, conditions, worth, demand.

1. In this chapter we discuss the basic – of price.

2. Price is not the same thing as ---.

3. This kind of subjective value is not the --  of the economist.

4. The economic --- of value of a good can only be measured in some kind of market ----.

5. Prices --- in exchange transactions.

6. In the modern world the word “ market” has a much wider ---.

7. Most of the products of --- technologies also have world ---.

8. The price of any economic good under market -------- is determined by the force s of --- and ----.

 

7. Complete the sentences  with prepositions.

 

1. The economic worth --- value --- a good can only be measured – some kind – market transaction.

2. Nowadays practically all exchanges represent and exchange ---- goods and services --- money.

3. Prices  --- terms --- money are the market value --- the things they buy.

4. We are all familiar --- the open and covered markets --- the centre --- our towns.

5. Face --- face contact between buyers and sellers is not a requirement --- a market to be able to operate efficiently.

6. ---- the foreign exchange market, buyers and sellers are separated --- thousands --- miles. 

 

8. Put questions in italic words.

 

1. This implies some kind of market.

2. Buyers and sellers are separated  by several miles.

3. Most consumer goods are bought and sold on a countrywide basis.

4. Most of the products of advanced technologies also have world markets.

5. The forces of demand acting through the buyers determine the market price.

 

9. Answer the questions.

 

1. What is difference between price and value?

2. Where do prices arise?

3. What kind of goods are primarily sold and bought on a countrywide basis?

4. What is the price of economic goods determined by in the world?

 

10. Translate into Russian using all the active possible.

 

1. Your products are too expensive.

2. The owners of a company are shareholders who provide money for the business.

3. As we earn more, we spend more.

4. Prices are determined by supply and demand.

5. economic conditions are changing  all the time.

6. What are the main functions of money? 

 

Unit 2

 

TEXT:  THE MONEY MARKET

Grammar:  Past Simple

 

1. Complete the sentences with the following verbs.

 be, give, go, have, survive in Simple Past

 

           Enron ---- the biggest scandal in US financial history/ They ----- from dominance of the US energy market in the 1990s to bankruptcy in 2001.

 Investors at the time of  Enron’s collapse  were shocked. They asked  ---- anyone at the top------ what was happening ? And ---- the auditors, investment bankers or analysts ------- any warnings?. When the authorities started to investigate Enron, there was a problem: they ------- most of the important documents. The auditors, Arthur Andersen, had destroyed them. Arthur Andersen ------ ----- this scandal and closed down a few months later. 

 

2. Write the following verbs in Simple Past.

 

Become, begin, build, buy, come, develop, get, give, go, grow, have, know, leave, make, meet, need, put, sell, take, think.

 

3. Complete the following sentences with verbs and prepositions : decide, finish, get, put, renovate, at, at, in, in, on, on  в Past Tense

 

         1. We -------- decided to have the conference call ---Friday morning

             2. I worked hard last year and I ----- a good bonus ------ December.

          3. We ------ the meeting -------- seven o’clock in the evening.

          4. They say, they--------- the money  in our account -------- the 21st.

          5. We ------ the building -------- the beginning of the year.

          6. Klaus Kleinfeld ------chief executive of Siemens ------ 2005.

                            

 

Samsung Company 

In 1938 Bying Lee started a business in Korea called Samsung. He  sold vegetables and dried fish to China. Ten years later he had his own manufacturing and sales operations, and the business grew quickly. Over the next few decades Samsung bought several insurance companies and department stores. In the 1070 Samsung invested in heavy industries like chemicals and shipbuilding, but  in the 1980 they began to focus more on technology and electronic  products. In 1987

Run-Hee Lee took the place of his farther  as Chairman  of the company. In 1988

 he announced the Second Foundation of the company, directing Samsung towards becoming a world – class 21st century corporation.

 

Vocabulary

 

Dominance      господствующий преобладающий

Bankruptcy      банкротство

Investors          инвесторы

Collapse           разрушение упадок сил

Auditors           аудиторы

Investment        капиталовложение

Warnings          предупреждение предостережение

Authorities        власти

Destroy             уничтожать разрушать

Account            счет

Chief executive главный исполнитель

Insurance           страхование

Manufacture      производить

Heavy industry  тяжелая промышленность

Announce           объявлять

Chairman            председатель

Grow                  расти, увеличивать

To invest            вкладывать (деньги)

Century              век

Shipbuilding      кораблестроение

Product               продукт

To produce         производить

Producer             производитель

Survive               выжить, пережить

 

4. Put questions.

 

         1. The company started a business in Korea.

2. The company bought several insurance companies

3. The company invested in heavy industry like chemicals and shipbuilding.

         4. The business grew quickly.

 5.  In 1987 he  announced the Second Foundation of the company.

 

5. Choose the right answer.

 

1. Their share price goes up / went up last month.

2. I live / lived in London last year.

3. When I cross the road in London I forget / forgot to look the right way.

4. I forget / forgot her name! Can you remember it?

 

6. Translate into Russian.

 

I. I attended a meeting of that committee last week.

2. Bank – notes first came into use in Britain during the seventeenth century.

3. Theese products sold last month.

4. Profit played an important part in the company.

5. Economic position changed last year.

 

The money market

 

The money market comprises the demand for money and the money supply. The equilibrium in the money market is such a state of balance when the demand for money from households and businesses is satisfied by the quantity of the money supplied. The equilibrium in the money market is reached by changing bond prices.
          People can hold their wealth in various forms – money, bonds, equities and property. For simplicity we assume that there are only two assets; money, the medium of exchange that pays no interest, and bonds, which we use to stand for all other interest – bearing assets that are not directly a means of payment. As people earn income, they ad to their wealth. AS THEY SPEND, THEY DEPLETE THEIR WEALTH. How should people divide their wealth at any instant between money and bonds to gain the best profits possible and not to incur losses?

There is an obvious cost of holding money. The opportunity cost of holding money is the interest one would have gained if he or she had held bonds. It naturally follows that people will hold money rather than bonds only if there is a benefit to offer this cost, only if holding money is more profitable than holding bonds. It may happen only when interest rates on bonds are too low to make it profitable to hold bonds.

Suppose the money market is in equilibrium when the interest rate on interest – bearing assets( e.g. Treasury bills and other securities)is 6% and the amount of money demanded is $200. Now suppose the interest rate goes down, say, to 4%. In this case interest – bearing assets are no longer profitable as they can’t earn a sufficient return. Hence the demand for money will rise and will lead to a temporary lack of money in the money market. If they lack money, households and businesses are likely to sell bonds they possess for cash. That will cause an increase in the bond supply, which lowers bond prices and rises interest rates on interest – bearing assets. With a higher interest rate the amount of money people are willing to have in hand will decrease again. Consequently, the money supply will adjust to a current demand to reflect a new higher interest rate.

Conversely, the increase in the money supply creates its temporary surplus, which results in the demand for bonds and bond prices going up. The interest rate falls thus restoring balance in the money market, but at a new lower interest rate

Vocabulary notes equities to deplete to offset. Treasury bills conversely temporary surplus interest – bearing assets supply equilibrium demand comprise benefit to earn a sufficient return cash adjust current demand lack of money.

 

Assignments

 

1. Fill in the gaps with the words and expressions from the text.

 

1. The money market comprises ….. and ….

2. The equilibrium in the money market is such ….. when the demand for money from …. Is satisfied by the quantity of ….

3. The equilibrium in the money market is reached by

4. Money is the medium of …. that ….

5. We use bonds to stand for all other….. that are not directly ….

6. As people earn income, they ….. their wealth. As they spend, they …. their wealth.

7 …… of holding money is the interest one ….. if he or she ….. bonds.

8. People will hold money rather than bonds only if holding money is … than holding bonds, that is when …. on bonds are … to make it profitable to ….

9. In case the interest rate goes down …. Are no longer profitable as they can’t ….

10. The demand for money will rise and will lead to …. In the money market.

11. If they lack money, households and businesses are likely to …. They possess …..

12. If there is an increase in the bond supply, it will …. Bond prices and ….. interest rates on….

13. The money supply will …. to a current demand to …. A new higher interest rate.

14. The increase in the money supply creates its ….. which results in …..

 

2. Find in the text English equivalents for the following.

 

равновесие денежного рынка; временная нехватка (избыток) денег; иметь на руках; быть в равновесии; восстанавливать равновесие; достичь равновесия; активы (облигации); приносящие процентный доход; увеличивать богатства; исчерпывать ( истощать) богатство; для простоты допустим, что; альтернативные издержки владения деньгами; компенсировать издержки

 

 

3. Answer the questions.

 

1. Explain in your own words the term ‘opportunity cost”. What is the opportunity cost of holding money?

2. What is the equilibrium in the money market? How can it be reached?

3. How does the money market work?

 

4. Translate into English using all the active possible.

 

1.Для экономики плох как недостаток, так и избыток денег, так как первый ведет к снижению расходов во время упадка, а последний – к обесценению денег и снижению их покупательной способности во время инфляции

2. Денежный рынок объединяет спрос и предложение денег для определения равновесной ставки процент

3. Равновесие денежного рынка устанавливается посредством изменения цен на облигации

4. С изменением цен на облигации процентные ставки меняются в обратном направлении.

5. При равновесной ставке процента цены на облигации постоянны, а спрос и предложение денег равны.

6. Уменьшение предложения создает временную нехватку денег на денежном рынке.

7. Люди и учреждения пытаются получить больше денег путем продажи облигаций.

8. Поэтому предложение облигаций увеличивается, что понижает цену на облигации и поднимает процентную ставку.

9. Увеличение предложения денег создает временный их избыток, в результате чего увеличивается спрос на облигации и цена на них становится выше.

10. Процентная ставка падает, и на денежном рынке восстанавливается равновесие.

 

 5. Make sentences using construction, like this.

 

much money to invest – a high return. The more money you have to invest, the higher the return you can expect.

1. to produce goods and services – to enjoy a high standard of living

2. a high standard of living – a lot of expenditure on luxury items

3. wide advertising – high sales

4. high prices of some goods – low sales

5. a great demand – high prices – much profit

 

 

UNIT 3

        

Text: Primary and secondary markets

Grammar: Present Perfect

 

1. Complete  the sentences: already, ever, for, just, never, since, so far, yet

 

1 The project  is going very well – we have ------ finished phase one.

2. I haven’t finished the July sales report --------

3. Sorry, I have been really busy -------I have been in a meeting -------nine o’clock.

4. I am a bit nervous – I have ---------spoken to so many people before.

5. We have known each other ------ more than twenty years.

6. We have had 120 registrations for the conference -------- and the maximum is 150.

7. Have you ---- eaten sushi?

8 I have -------- heard about your promotion! Congratulations!

 

     2. Complete the following sentences  Present Perfect or Past Simple.

 

1. A: ----------( you/ ever/be/) to Latin America?

     B. Just once I ---------(go) on a walking holiday in Patagonia.

          2. A. ---------(you/ever/use) the London Underground/

B. Yes, I have. I remember the voice that ------(say) “ Mind The Gap”.

          3. A.--------( you/ever/give) a presentation to a large audience?

           B. Yes. I have. It --------(not/be/) too bad after I ------- (start)

 

3. Complete and translate the text: already, ever, for, just, never, since, up to now, yet и переведите текст.

 

         What a terrible day! I haven’t replied to all my emails ----and I have been here --- eight  o’clock. And I have to write a report this afternoon. My boss has ---- reminded me about it three times this week. Honestly, I have been in this job ----- three years and I have ---- had so much work to do. --------I haven’t complained, but if things continue like this, I am going to say something. Oh, sorry I have to go now. I have-----seen my boss come in and I don’t want him to hear me chatting on the phone. Maybe we could go out for a drink one evening. Have you -----been to that Salsa Bar near the cathedral? They say it’s very good. Anyway, speak  to you soon. Bye.

  

Nike: the brand that keeps growing

                   

         An accountant and a sports coach started a small shoe company called Blue Ribbon in 1964. In 1971 it changed its name to Nike, and since then it has become one of the world’s most successful brands. Originally Nike was only associated with basketball, but recently it  has expanded into new markets like football. Now Nike has started buying other fashion brands that are not even connected with

sport.

 

Vocabulary

 

Already           уже

Ever                 когда - либо

Just                  только

Never              никогда

Since               с тех пор, как

So far               пока, что

Yet                   Cathedral           собор

An accountant    бухгалтер

Change               менять

To expand          расширять

Market                рынок

To connect          соединять, связывать

Success               успех

Brand                  марка, сорт (товара)               

Associateе            ассоциировать

Up to now        в плоть до

To sell              продавать

To finish           закончить

To be busy        быть занятым

To be nervous   быть нервным

Promotion         продвижение

To eat                есть

To reply             отвечать

To remind         оставлять

To complain      жаловаться

To continue       продолжать

To chat              болтать

To drink             пить

 Profit                прибыль

 Influence           влиять

 To solve            решать

 

         4. Put questions.

 

1. An accountant started a small shoe company.

2. In 1971 it changed its name to Nike.

3. Nike was only associated with basketball.

4. Nike expanded into new markets like football.

5. Nike has started buying other fashion brands.

 

7. Complete the dialogue in Past Simple and Present Perfect.

 

 Tom: I -----(have) a meeting with Andy yesterday. He mentioned your name. I -----------(never/ do) business with him before.

 Frank: Oh, I ---------- (know) Andy all my life. Actually we ( go) to university together. He is a good man – you can trust him.

 

5. Translate into English.

 

1.Проблема уже решена.

2. Компания  уже сделала прибыль.

3. Цена повлияла на  спрос.

4.Она проработала в компании 10 лет.

5. Он  никогда не был в Италии.

 

 Primary and secondary markets 

Fixed – interest securities and ordinary shares are the main stock in- trade of the securities markets and the Stock Exchange is the main securities market in the UK. By buying one or the other, investors are helping – directly or indirectly – to provide the finance that government or industry needs. Why “ directly or indirectly”?. Because the stock market is two markets in one: a primary market and a ordinary market.

A primary is one in which the government,  companies or other bodies can sell new securities to investors to raise cash.

A secondary market is a market in which the investors can buy and sell these securities among each other. The buying and the selling in the secondary market does not directly affect the finances of government and companies. But if investors did not know they could buy and sell securities in the secondary market they might well be reluctant to put up cash for the government or companies by buying securities in the primary market when they were first issued. And the prices established by the buying and selling by investors in the secondary market help to determine the price that government and companies will have to pay next time they need to issue further securities for cash in the primary market. A reasonably liquid secondary market is normally considered vital for a healthy primary market.

 

Vocabulary notes

 

Stock-in-trade- товарная наличность; товар

The Stock Exchange- Лондонская фондовая биржа

To be reluctant to do smth – неохотно делать что-либо 

 

Assignments

 

1.     Suggest the Russian equivalents.

 

Sell securities, to raise cash, might be reluctant, to put up cash for the government, to issue further securities for cash

 

2. Replace the parts in italics by synonyms.

 

Might be reluctant to put up cash for the government, directly affect the finances, are helping to provide the finance, is considered vital

 

3. Fill in the gaps with the words and expressions from the text.

 

1. By buying ----- and---- investors are helping to----- that government or industry needs.

2. The stock market is two markets in one: a  --- market and ---- market.

3. A primary market is a market in which the government, companies or other bodies can sell ---- to investors to

4.A secondary market is a market in which --- can buy and sell these securities -----.

5. If investors did not know they could trade securities in ---- they might ---- to put up cash for the government or companies by buying securities --- when they were -----.

6. The prices established by investors in the secondary market help to --- the price that government and companies will have to pay next time they need to --- further securities --- in ----.

7. A secondary market is normally considered ---- for a -----. 

 

4. Find in the text English equivalents for the following.

 

Рынок ценных бумаг, фондовая биржа, первичный рынок, вторичный рынок

 

5. Answer  the questions.

 

1. What is a primary market?

2. What is a secondary market?

3. How are they interconnected?

 

6. Translate into English using all the active possible.

 

Все рынки взаимосвязаны; процентные ставки влияют на цены облигаций и акций на фондовом рынке; цены акций и облигаций влияют на состояние финансов компаний и правительства, что меняет ситуацию на денежном рынке. Это, в свою очередь, имеет огромное значение для состояния экономики в целом и поднимает или понижает стоимость национальной валюты на внешнем валютном рынке ( the foreign  exchange market). 

 

UNIT 4

 

The supply and the demand for money 

         The narrowest measure of the money supply is currency in circulation outside the banking system plus the sight deposits of commercial banks against, which the private sector can write cheques, thus the money supply is partly a liability of the Bank (currency accounts of the general public).

         The demand for money is the quantity of liquid assets people are willing to have in hand at any given moment. It depends on the income they gain and the opportunity costs connected with the interest rate. But why do people hold money at all?

         Money is a stock. It is the quantity of circulating currency and bank deposits held at any given time. Holding money is not the same as spending money when we buy a meal or go to the cinema. We hold money in order to spend it later.

          The distinguishing feature of money is its use as a medium of exchange, for which it must also serve as a store of value. It is in these two functions of money that we must seek the reasons why people wish to hold it.

         The transactions motive for holding money. In a monitory economy we use money to purchase goods and services and receive money in exchange for the goods and services we sell. Without money, making transactions by direct barter would be costly in time and effort. Holding money economizes on the time and effort involved in undertaking  transactions. We need to hold money between receiving payments and making subsequent purchases.

         How much money we need to hold depends on two things, the value of the transactions we wish to make and the degree of synchronization of our payments and receipts. We do not know how much $ 100 will buy until we know the price of goods. If all prices double, we will need to hold twice as much money to make the same transactions as before.

The demand for money is a demand for real money. We need a given amount of real money to undertake a given quantity of total transactions.

The Precautionary Motive for holding money. Thus far we have assumed that people know exactly when they will obtain receipts and make payments. But of course we live in an uncertain world. This uncertainty about the precise timing of receipts and payments gives rise to a  precautionary motive for holding money. Suppose you decide to buy a lot of interest – earning bonds and try to get by with only a small amount of money holdings. You are walking down the street and spot a great bargain in a shop window. But you do not  have enough money to take advantage immediately of this opportunity. By the time you have arranged for some of your interest- earning bonds to be sold off in exchange for money, the sale may be over. Someone else may have snapped up the video recorder on sale at half – price. This is the precautionary motive for holding money. In advance, we decide to hold money to meet contingencies the exact nature of which we cannot foresee.

Together, the transactions and the precautionary motives provide the main reasons for holding the medium of exchange. They are the motives most relevant to the benefits from holding money.

The asset motive for holding money. Suppose we forget all about the need to transact. We think of wealthy individual or a firm deciding in which assets to hold wealth. At some distant date there may be a prospect of finally spending some of that wealth, but in the short run the objective is to earn a good rate of return.

Some assets, such as industrial shares, on average pay a high rate of return but are also quite risky. Some years their return is very high, but in other years it is negative. When share prices fall, shareholders can make a capital loss, which swamps any dividend payment to which they are entitled. Other assets are much less risky, but their rate of return tends to be much lower than the average return on risky assets. since people dislike risk, they will not put all their eggs in one basket. As well as holding some risky assets, they will keep some of their wealth in safe assets. Although on average this portfolio will earn a lower rate of return, it will help avoid absolute disaster at hard times.

The asset motive for holding money arises because people dislike risk. People are prepared to sacrifice a high average rate of return to obtain a portfolio with a lower but more predictable rate of return.

 

 Vocabulary notes 

Currency in circulation – наличность в обращении

The opportunity costs – альтернативные издержки владения деньгами

The transactions motive for holding money –транзакционный мотив накопления денег (категория кейнсианского анализа )

To undertake transactions – проводить, совершать сделки

Receipts {risi:ts}-  денежные поступления

The precautionary motive for holding money- мотив накопления денег на непредвиденные цели

The precise timing – точное время

To get by – прожить, сводить концы с концами

To spot – увидеть, заметить

A great bargain- хорошая вещь, которая предлагается по специальной (сниженной) цене, удачная покупка

To take advantage of - воспользоваться

To snap up – подхватить, перехватить

Contingencies- случайности, непредвиденные обстоятельства

To foresee - предвидеть

The asset motive for holding money -  мотив накопления денег в качестве активов

On average – в среднем

To swamp – поглощать, сводить на нет

Risky assets –неликвидные активы (долгосрочные инвестиции и ссуды, ценные бумаги с колеблющимся курсом)

A portfolio – портфель (напр. ценных бумаг)

Disaster – бедствие, крах

To sacrifice – жертвовать, приносить в жертву

Predictable rate of return –предсказуемая норма прибыли

 

 

Assignments

 

1. Suggest the Russian equivalents. 

The distinguishing feature of money; in a monetary economy; the time and effort involved in undertaking transactions; snapped up the video recorder on sale at half – price; the motives most relevant to…; a capital loss; which swamps any dividend payment to which they are entitled; will not put all their eggs in one basket; avoid absolute disaster at hard times; to sacrifice a high average rate of return; in the short run

 

2. Fill in the gaps with the words and expressions from the text.

 

         1. The narrowest measure of the money supply is …. outside the banking system plus … of commercial banks.

          2. The money supply is partly …. of the bank and partly a liability of …. .

         3. The demand for money is ….. people are willing to have in hand at any given moment.

         4. Holding money is not the same as …. money, as we hold money in order to ….

         5. It is in two main functions of money, that is, its use as a medium of … and a store of …, that we must seek the reasons why ….

          6. Without money, making transactions by … would be …. in time and effort.

         7. We need to hold money between … and ….

8. How much money we need to hold depends on …. we wish to make and the degree….

9. We need a given amount of …. to undertake a given quantity of ….

10. The uncertainty about --- of receipts and payments gives rise to ---.

11. The precautionary motive for holding money is a decision to hold money to meet --- the exact nature of which we cannot ----.

12.Together, ----and---- provide the main reasons for holding the medium of exchange as they are the motives --- to the benefits from ---.

13. Some assets, such as ---, on average pay a high rate of return but are also ---.

14. When share prices fall, ---- can make --- , which --- any dividend payment to which ----.

15. Since people dislike risk, they will not ---.

16. Although on average ---- will earn a lower rate of return, it will help avoid --- at hard times.

17. People are prepared to sacrifice ---- to obtain a portfolio with a lower but --- rate of return. 

 

3. Find in text English equivalents for the following.

 

Наличность в обращении, денежные обязательства банка, текущий счет, путем непосредственного обмена, транзакционный мотив. накопления денег, мотив накопления денег на непредвиденные цели, прожить на небольшие деньги, быть готовым к случайностям, непредвиденным обстоятельствам, получать доходы и производить платежи, мотив накопления денег в качестве активов, портфель ценных бумаг.

 

4. Translate into English using all the active possible.

 

Одна из причин спроса на деньги состоит в том, что люди нуждаются в деньгах как в средстве обращения, то есть в удобном способе приобретения товаров и услуг. Домашние хозяйства должны иметь достаточное количество денег, чтобы делать покупки, платить по счетам и т.д. Предприятиям  деньги нужны для оплаты труда, материалов, энергии и т.д. Необходимые для этих целей деньги называются спросом на деньги для сделок.

Другая причина, по которой люди держат деньги, вытекает из их функции как средства сбережения. Люди могут держать свои финансовые активы в различных формах, например в виде акций, частных или государственных облигаций или в деньгах. Отсюда, естественно, следует, что существует спрос на деньги, как на финансовые активы.

В узком смысле предложение денег, обозначаемое М1, состоит из двух элементов, наличности, то есть металлических и бумажных денег, находящихся в обращении, и чековых ( бессрочных) вкладов, то есть вкладов в коммерческих банках, различных сберегательных учреждениях, на которые могут быть выписаны чеки.

 

5. Answer the questions.

                                                                                

1. What is the money supply?

2. What determines the demand for money?

3. What are the reasons for holding money? How do people hold their money?

4. Dwell on each motive for holding money?

 

6. Read the article about Kenshion Oshima and answer the questions that follow.

 

Kenshion Oshima making money out of money

 

For seven years, Kension Oshima had a very good job at the firm Mitsui and Co. But, at the age of 29 , he did something very rate for a Japanese manager in his position – he resigned.

Oshima earned a good salary at Mitsui, but he wanted to make a lot of money, and to be very rich he needed to have his own company. He couldn’t afford to start a company immediately, but during his years at  Mitsui he spent very little money and saved  as much as he could.

In 1978 he invested his money, $236 500 in total, in his new company, Shohkoh Fund and Co. Shohkoh Fund  specialized in lending money to businesses, but in small sums. This decision was a risk, as money – lending by private companies was not a respectable job in 1978.

His first client was a firm in Tokyo, which paid back the money that it owed at an interest rate of 24%.

But his idea was good his profits rose by 25% a year, and reached $35.5 million in 1992. He owns 80% of Shohkoh, and his shares in the company are now worth $997 million.

So, Oshima  is now a billionaire, or nearly, but his strategy for the company is still the same: even now he specializes in smaller loans ( a typical client borrows only $40000, and he personally examines the references of every new client. 

 

A When did Kenshion Oshima join Mitsui and CO.?

 

1. At the age of 22

2. At the age of 29

3. In 1978

 

B Why did he resign from his job?

 

          1. Because his salary was very high.

          2. Because he wanted to work for another company.

          3. Because he wanted to earn a lot of money.

 

C Why didn’t he start his company before 1978?

 

          1. Because he spent a lot of money.

          2. Because he didn’t want to be rich.

          3. Because he didn’t have enough money.

 

 

D Where did he get the money to launch his business?

 

          1. He saved money from his salary.

          2. He borrowed it from a bank.

          3. A friend lent it to him.

 

 

E What does his company do?

 

          1. It owes money.

          2. It lends money.

          3. It borrows money.

 

7. Fill in the spaces in these sentences with words from the text (in an appropriate form).

 

A bank makes a ----- when it ---- money to its customers. For example, a customer wants to buy a new car, but he can’t ---- to pay for it, because he doesn’t --- enough money at work. So he goes to his bank manager and asks to some money. But when he ------ the loan he also has to pay ----- on the money that he ----.

A bank is also a place where customers can make money. For example, they can ---- their money in a fixed interest account. With this type of account, they usually know what their money will be ----- in three or four years time.

Alternatively, customers can ---- their capital in a portfolio of company ----- which is managed by the bank.

                              

 

Список литературы

1. English File. Intermediate. Student,s book”. Oxford university press.  Oxford, 2005.

2. “Across cultures”. Elizabeth Sharman. Longman, 2004.

3. “New Cutting Edge”. Intermediate. Student,s book. Workbook. Sarah Cunningham, Peter Moor. Longman, 2005.

 

Содержание

 

Unit 1. Markets and Prices                                                                              3

Unit 2. The Money Market                                                                            14

Unit 3. Primary and Secondary Markets                                                        19

Unit 4. The Supply and the Demand for Money             

 

Сводный план 2011г., поз. 283