Central Banking System

Министерство экономического развития и торговли Российской Федерации





Российский Государственный Торгово-Экономический Университет








Кафедра английского языка











ECONOMY AND FINANCE



(пособие для студентов экономическогофакультета 2 курса)


























Москва - 2008

Contents


Unit 1. Central Banking System…………………………………………………………….2
Unit 2. Commercial Banks…………………………………………………………………..6
Unit 3. Money Supply……………………………………………………………..……….10
Unit 4. Business Organizations………………………………………..……………………13
Unit 5.Taxation………………………………………………………….…………………17
Unit 6. The Stock Exchange, Shares………………………………………………………..20
Unit 7. The Stock Exchange, Bonds………………………………………………..……….25
Unit 8. The Foreign Exchange Market…………………………………………….……….29
Words and expressions…………………………………………………………………….33

UNIT 1 Central Banking System


The central banking system is a major sector of any modern monetary system.Central banks such as The Bank of England, The Federal Reserve System (the Fed) in the USA, the Central Bank of Russia work together with the governments to control their countries’ economy. They are responsible for the implementation of monetary policy and supervision over the banking system.
Central banks have a number of different functions. They act as bankers for the government and forother banks, function as lenders of last resort to commercial banks with liquidity problems. To ensure the safety of the banking system, central banks impose reserve requirements, obliging commercial banks to deposit a certain amount of money with the central bank at zero interest.
Central banks look after the countries’gold reserves, issue banknotes and coins, the countries’ currency. Thesenotes and coins are legal tender in the country where they are produced; this means that traders in that country may not refuse them when they are offered as payment. Banks also make sure that the countries` currency keeps its value.
Central banks keep inflation under control. Inflation happens when there is a lot more money (in the form of banknotes and credit) available than there are goods forsale. In other words, when demand for the goods exceeds supply. When this happens, prices increase sharply and often. To stop it, the central bank needs to take money out of circulation, for example by increasing interest rates. This method makes borrowing more expensive and means that fewer people will apply for credit. And the central bank can increase the amount of money that all banks have todeposit with it.


Words and expressions


central banking system - система центрального банка
retail banking - операции банков с широкой клиентурой
wholesale banking - операции банков с крупными промышленными предприятиями
banking services, facilities - банковские услуги
major (adj) - значительный, главный
be responsible for smth. - отвечать за что-либоe.g. He is directly responsible for the efficient running of the office. - Он напрямую отвечает за эффективную работу офиса.
responsibility (n) - ответственность
to accept responsibility for smth. - взять на себя ответственность за что-либо
implementation (n) - выполнение, осуществление, проведение
supervision (n) - надзор, наблюдение, контроль
under smb.'s supervision - под чьим-либоконтролем
lender of last resort - кредитор последней инстанции (к кому можно обратиться за деньгами в критической ситуации)
liquidity (n) - ликвидность (степень, в которой активы какой-либо организации являются ликвидными, т.е. могут быть быстро проданы)
ensure (v) - гарантировать, обеспечивать
impose reserve requirements - налагать резервные требования
oblige (v) - обязывать, заставлять
be...