Vocabulary Exercises. draw upon an account (v)

Active Vocabulary

account

accountant

board of directors

capital

clerk

current account

deposit account

depositor

dividend

draw upon an account (v)

invest (v)

interest

joint slock

loan

profit

reserve

run the hank (v)

shares

shareholder

slateinen t

standing order

— счет

— бухгалтер

— сонет директором

— капитал

— служащий

— текущий счет

— депозитный счет

— вкладчик

— дивиденд

— снимать со ('чета

— инвестировать

— процент, процентный
доход

— акционерный капитал

— ссуда, заем, кредит

— прибыль

— резерв, запас

— управлять банком

— акции

— акционер

— выписка из
банковского счета

— постоянное поручение
клиента банку

Dialogue

Read Иге dialogue in purls.

Student: Who really owns the bank?

Banker: The stockholders own it. In the beginning, they put up the necessary capital and were granted a char­ier from the government.

5..- Are the members of the board of directors

stockholders?

В.: Oh, yes. They're chosen by the other stockholders to operate the bank.

S.: And the board hires Ihc presidcnl and Ihc vice-prcsi-

denls lo manage H?

B.: Thai's right. Along with the cashier, the tellers and the clerical workers.

5.: 1 guess most of your work has lo do wilh checking

and savings accounts and making loans.

B.: Yes. But we invest money loo. Planning the bank's investments is also very important.

S.: Do you divide all the profits among the stockhold-

ers?

B.: Not all of them. The stockholders receive regular dividends. But some of our earnings are held in reserve accounts.

S.: 1 suppose thai would be necessary.

B.: Here's a copy of our lasl published statement. You see, the reserves are shown here as surplus and undivided profits.

Questions on the dialogue:

1. Who owns the bank?

2. How does a bank start?

3. Who chooses the board?

4. Whal's the board's lask?

5. Who hires the employees?

b¹. Whal are the bank's main activities?

7. How are the profits distributed?

8. How are the stockholders kept informed?

Text 1

As you read the passage, find the. answers to the questions given below.

The English commercial banks have branches in all the major towns and a similar structure and mode of working is common to them all. The owners are the shareholders. At the outset they provdde the necessary capital. They arc all organised on the joint stock principle and are registered pub­lic companies.

The Chairman and Board of Directors are elected by the ordinary shareholders at the Annual General Mectingand arc responsible for the efficient management of the bank. The Board is concerned with the overall policy of the bank and the major decisions which put that policy into effect.

The Board will appoint a Managing Director who is directly responsible to them and a member of the Board. They will also appoint the most senior executives who in turn appoint the rest of the clerical staff who will be responsible in differ­ent capacities for the day to day running of the bank.

The essence of a bank's activities is the collection of depos­its through current accounts and deposit accounts and the use of these funds to provide loans or funds for investment. The current account is the one commonly held and is drawn upon by cheques and standing orders. The deposit account is more in the nature of a savings account. The pattern of in­vestments which a bank decides upon is crucial because, on the one hand, the bank must use the funds wisely to make a profit and, on the other, funds must be available for deposi­tors to withdraw when they wish to do so.

At the end of each business year the Directors recommend and the Annual General Meeting decides how much of the profit should be distributed to the shareholders as dividend, and how much should be retained in the business. In prepara­tion for the Annual General Meeting, a bank publishes its Report and Accounts. These must be sent lo every sharc-

holder and are also available for anyone with an interest in the affairs of the bank. From the published accounts share­holders can easily determine the total profits the bank has earned and how much is available for distribution,

Questions on the text:

1. Who owns the English commercial bank?,

2. How docs a bank start?

3. Who chooses the Board?

4. What is the Board's task?

5. Who hires the employees?

6. What are the bank's main activities?

7. How are the profits distributed?

8. How are the shareholders kept informed?

Vocabulary Exercises

Comparison of American and British terms. The dialogue deals with the structure and functions of an American bank, while the text describes an English commercial bank. There are some differences in American and British terminology. Find American terms corresponding to the British ones given below.

American terms

accountant

cheque

current account

deposit account

managing director

rej>orl and accounts

retained and undistributed profits

to run a bank

shareholder

6

Find proper definitions

Definitions

a) a sum of money paid to a shareholder out of profits in relation to his in­vestment

h) an account in a hank from which money can be drawn hy cheque

c) profits not paid out as dividends
and added to the surplus

d) the money value of the sharehold­
ers stake in the hank or company

e) an account in a hank on which the
depositor receives interest

Money which one person allows another to use for a speci­fied-time and which will then he returned is: a) investment, h)loan, c) interest.

IV

Using the information in the passage, say what is true and ivhal is false. Correct the false sentences

1. Members of the Board of Directors are shareholders.

2. All the shareholders participate in running the hank.

3. All the hank's profits arc divided among the shareholders.

4. All the retained profits of the hank belong lo the share­
holders.

5. The reserves are shown in the statement as retained.

III

Choose the right answer:

1. The people who decide the general policy of the hank are:
a) shareholders,

h) the hoard of directors, c) the executive staff.

2. The hank's financial position can he discovered from:

a) a report,

b) an announcement,

c) a statement.

3. Bank profits kept -hack for later use are:
a) withdrawals,

h) surplus,

c) retained profits.

4. Earnings remaining after all the expenses of a business ac­
tivity have l)een paid arc:

a) dividend, h) capital, c) profit.

Using suffixes -er, -or, -ier, -ent, -ial, etc., give nouns
which are related to the following:
hank invest

cash manage

direct office

deposit own

execute work

hold

•for the following. Use a dictionary when-

lo appoint lo distribute to receive

8

VII

Find the nouns lhal are qualified in the passage by these
adjectives and make, up sentences of you own:
clerical over-all

necessary day to day

published total

VIII

Explain the following:

1. to raise capital

2. to become a public company

3. to put money into business

4. an account in a bank from which money can be drawn by
cheque ^! -

5. profits not paid out as dividends

IX

Fill in the blanks with proper words or phrases:

1. The board appoints the..... and the...............

2. An employee in a bank who pays out and receives money is

called a...

3. The Board of Directors is elected by the......

4. The Board may distribute.............. to the shareholders out of

the profits once or twice a year.

5. The........ may be h igh even after all the bank's expenses are

paid.

6. A bank will need to seek approval for a large............... to a cus-

tomer.

7. The Board will discuss the bank's.............. in other businesses.

3. to run a bank

4. the board of directors

5. shareholders

6. current account

7. deposit account

8. to make a loan

Поиск по сайту: