THE TYPES AND FUNCTIONS OF FINANCIAL INSTITUTIONS

1. In financial economics, a financial institution is an institution that provides financial services for its clients or members. Financial institutions are private or public organizations. Financial institutions in most countries operate in a heavily regulated environment as they are critical parts of countries' economies. Some countries have one consolidated agency that regulates all financial institutions while others have separate agencies for different types of institutions such as banks, insurance companies and brokers.

2. Broadly speaking, there are three major types of financial institutions: a) depositary institutions (deposit-taking institutions that accept and manage deposits and make loans, including banks, building societies, credit unions, trust companies, and mortgage loan companies); b) contractual institutions (insurance companies and pension funds); c) investment institutions (investment Banks, brokerage firms).

3. Some experts see a tendency of global homogenisation of financial institutions, which means that institutions tend to invest in similar areas and have similar investment strategies. Consequences might be that there will be no banks that serve specific target groups and e.g. small scale producers are left behind.

 4. Probably the greatest important financial service provided by financial institutions is acting as financial intermediaries. Financial institutions are responsible for transferring funds from investors to companies in need of those funds. They facilitate the flow of money through the economy. The functions of financial institutions, such as stock exchanges, commodity markets, futures, currency, and options exchanges are very important for the economy. These institutions are involved in creating and providing ownership for financial claims.

5. These institutions are also responsible for maintaining liquidity in the market and managing price change risks. As part of their various services, these institutions provide investment opportunities and help businesses to generate funds for various purposes.
        

Вправа № 7

Дайте відповідь на запитання до тексту:

1. How can the notion of a financial institution be defined?

2. What are the major types of financial institutions?

3. What is a current tendency for the operation of financial institutions?

4. What are the functions of financial institutions?

Варіант 4

Вправа №1

Вставте артиклі a, an, або the, де необхідно. Перекладіть речення.

1. My brother is in the navy. He is at … sea for months sometimes.

2. Who is going to open the new trade centre? I heard that … Queen is going to do it.

3.  I’ve just read … saddest story ever written.

4. They paid … hundred pounds for the table.

5. I was determined not to put my mother in … institution.

Вправа №2

Виберіть правильну форму присвійного відмінка іменника.            Перекладіть речення.

1. At the moment I’m staying with a friend/friend’s of mine.

2. It is three hours’/hour’s drive to the station.

3. Last month’s/months’ storm caused a lot of damage.

4. The importance of/with good government in developing countries is great.

5. My friends’/friend’s mobile phone is updated.

Вправа № 3

Вставте необхідне модальне дієслово. Речення перекладіть.

1. We … apply for more cash yesterday because we ran out of money.

          A had to    

B will have    

C might

2. The venture capital firm … lend you about $20,000 to start your business with.   

A can    

B mustn’t    

C needn’t have

3.  The lender … become a shareholder in a corporation.          

A have to    

B mustn’t    

C can

4.  You … exceed the cash surrender value when you borrow from the insurance company.

A mustn’t        

B couldn’t 

C are allowed to

5.  Our online business is bad. We … develop a better website. 

A should    

B mustn’t    

C are able to

Вправа № 4.

Розкрийте дужки , вживаючи необхідну форму дієслова в пасивному стані. Речення перекладіть.

1. Public transport (need) in the future as well. 

2. In the future big cities (block) by cars. 

3. Each year thousands of airplanes (produce) by American companies. 

4. Since World War I tanks (use) by armies all over the world. 

Вправа № 5

Розкрийте дужки і поставте дієслово в дужках у потрібному часі групи Perfect. Перекладіть речення.

1. She (to plan) her holiday in the sun already.

2. The house was very quiet when I got home. Everybody (to go) to bed.

3. They (to finish) their meeting by four o’clock this afternoon.

4. How long he (to be) a Maths teacher?

5. He (to make) an appointment with Mr Black by that time.

Вправа № 6

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Пояснення до тексту:

WHAT COMPRISES A BANKING SYSTEM?

1. Banking system is the structural network of institutions that offer financial services within a county. The members of the banking system are as follows: (1) commercial banks (2) investment banks, and (3) national central banks.

2. A commercial bank is a financial institution that provides services, such as accepting deposits, giving business loans and auto loans, mortgage lending, and basic investment products like savings accounts and certificates of deposit. The traditional commercial bank is an institution with tellers, safe deposit boxes, vaults and ATMs. However, some commercial banks do not have any physical branches and require consumers to complete all transactions by phone or Internet. In exchange, they generally pay higher interest rates on investments and deposits, and charge lower fees

3. An investment bank is a financial institution that assists individuals, corporations, and governments in raising capital by underwriting or acting as the client's agent in the issuance of securities (or both). An investment bank may also assist companies involved in mergers and acquisitions (M&A) and provide ancillary services such as market making, trading of derivatives and equity securities. Unlike commercial banks, investment banks do not take deposits.

4. The primary function of a central bank is to manage the nation's money supply (monetary policy), through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis. Central banks usually also have supervisory powers, intended to prevent bank runs and to reduce the risk that commercial banks and other financial institutions engage in reckless or fraudulent behavior. Central banks in most developed nations are institutionally designed to be independent from political interference.

Вправа № 7

Дайте відповідь на запитання до тексту:

1. How can the notion of a banking system be defined?

2. What is a commercial bank?

3. What are the functions of an investment bank?

4. What is the primary function of a central bank?

Варіант 5

Вправа №1

   Вставте артиклі a, an, або the, де необхідно. Перекладіть речення.

1. We saw the children in their classrooms as we walked past … school.

2. … Duponts, who live next door to us, are French.

3. Fiona is by far …most intelligent girl in the class.

4. There were … dozen people in the room and not one of them knew how to use a computer.

5. She made … effort to change the subject of the conversation.

Вправа №2

Виберіть правильну форму присвійного відмінка іменника.               Перекладіть речення.

1. He has never done a hard day’s/days work in his life.

2. Mr Jones’s/Jones’ car is being sent to the garage.

3. Tourism is the regions’/region’s  main industry.

4. The dining room is on the ground floor from/of the building.

5. The worker’s/workers’ flats in that region are quite old.

Вправа № 3

Вставте необхідне модальне дієслово. Речення перекладіть.

1. He had been working for more than 11 hours. He … be tired after such hard work. He would prefer to get some rest.

       A should B must C ought to

2. The meeting is very important. We … be late.

          A can B have to C shouldn’t

3. We have to cut costs. You … buy an expensive computer.

          A had to B must C shouldn’t 

4. …you like any duty-free goods?

           A may B would C should

5. …you show me how to turn on the light, please?

         A Ought to B Have to C Could    

Вправа № 4

Розкрийте дужки , вживаючи необхідну форму дієслова в пасивному стані. Речення перекладіть.

1. The dress (cannot wash) in hot water.

2. This bag (find) in the bus yesterday.

3. One of the clerks (make) to fill the robbers' bags with money when they broke into the bank.

4. This problem (can solve).

5. Prospectus is a document that gives information about a company's shares before they (offer) for sale.

Вправа № 5

Розкрийте дужки і поставте дієслово в дужках у потрібному часі групи Perfect. Перекладіть речення.

1. Fiona just (to go) to the gym.

2. When I got home, I found that someone (to break) into my flat and (to steal) my fur coat.

3. Mark thinks he (to start) his own business by the time he’s thirty.

4. I (to type) 5 reports so far.

5. We (to buy) the tickets before we went to the theatre.

Вправа № 6

Перепишіть та перекладіть письмово 1-3 абзаци тексту.

Пояснення до тексту: