A) Financial Policy

Все темы данного раздела:

Любимцева С.Н., Коренева В.Н.
Л 93 Курс английского языка для финансистов. Учебник – М.: ГИС, 2004. – 376 с.   ISBN 5-8330-0120-Х Учебник предназначен для студентов финансово-эко

WHAT IS ECONOMICS ALL ABOUT?
  It is characteristic of any society that while wants of people are growing constantly, the economic resources required to satisfy these wants are limited and scarce. Economic resour

BUSINESS CLIMATE IN RUSSIA
Foreigner: You represent the Independent Centre of Market Research, Mr. Pronin, don't you? What did the recent poll conducted by your centre reveal? Russian: Yes, I'm head

VOCABULARY LIST
A. wants[wOnts] потребности economic resources[" ek@nOmIk rI'sO:sIz] экономические ресурсы limited['lImItId] adj (зд.)

EXERCISES
Ex. 1. Answer these questions: A. 1. What is characteristic of any society? 2. How can economic resources be classified? 3. What is t

Ex. 7. Work on vocabulary and grammar.
a) Study the key words of the unit in the dictionary at the back of this book: economy, enterprise, policy, allocation, price, resources. b) Think

F) Scan the dialogue and write out all the irregular verbs used in it.
g) Make sentences putting the words in the correct order: 1. are, different, today, in, world, there, systems, economic, the 2. demand, if, price, exceeds, tends,

B) Has the situation changed since 1995? Prove your point of view.
  ... oil and gas industries of... former USSR were one of... very few industrial success stories of the final years of ... Soviet regime. Today, those same industries, now operating

C) Act out the interviews that might have taken place during the survey.
Small Businesses in Russia   Russia now has more than 900,000 enterprises, their number having increased ... 5% in 1995. According ... the State Committee for Statistics, sma

B) Sum up the text in 5-7 sentences. Present you summary in class.
minimum rational profit (2) scarcity interests compromises classified agents purchased hand represent factors resources utilizatio

Ex. 12. Read and discuss the text. Single out the mam facts and present them in a short review.
Economic System   The functions of an economic system may be defined as follows: a) to match supply to the effective demand for goods and services in an efficient ma

B) Compare the situation in 1992 with the present-day situation.
  In 1992 the economic situation in the Russian Federation continued to be very difficult, owing to large macroeconomic imbalances and to the unavoidable difficulties arising in the i

С) Reread the article more carefully and complete the sentences given below, using information from the article.
  1. In 1992 ... situation ... difficult. 2. Large macroeconomic imbalances ... in the initial stages of ... economy. 3. ... progress was achieved in ... policies. 4

B) Say how they characterize the UK economy.
The UK Economy   The UK economy has recently experienced economic growth combined with low inflation and falling unemployment. In 1997 it achieved the first surplus on the cu

FINANCE AND FINANCIAL SYSTEM
  Finance is the provision of money at the time when it is needed. It is a system of monetary relations leading to formation, distribution and use of money in the process of its turno

BUDGET ORGANIZATION AND BUDGET PROCESS
Foreigner: Could you give me a general idea of budget organization and budget process in the Russian Federation? Russian: Certainly. First of all, by the budget organizati

VOCABULARY LIST
A. public finance(s) государственные финансы provision

Equalization nвыравнивание
interbudgetary relationsмежбюджетные отношения per cap

EXERCISES
Ex. 1. Answer these questions:   A. 1. What is finance and financial system? 2. What parts does finance comprise? 3. Wh

Ex. 5. Sum up the content of the main dialogue. Use the opening phrases from Ex. 5 (Unit 1).
Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out: Foreigner. It's impossible to overestimate the importance of a good, balance

Ex. 7. Work on vocabulary and grammar.
a) Study the key words for the unit in the dictionary at the back of this book: provision, to provide, benefit, to benefit, expenditure, revenue, budget, deficit;

B) Write down 3-5 questions about the text.
The World's Major Financial Centre   The financial heart of England is the City. It is ... square mile in London on the bank of ... Thames. In the centre there is the Bank of

B) Write down six questions about the text.
Budgetary Policy   The transformation of the economic and political systems in Russia has been accompanied ... substantial reforms in the budget process, including budget pre

Ex. 11. a) Fill each gap with a suitable word from the box.
b) Sum up the text in 5-7 sentences and present your summary in class. coin known invented handle forms small using big used objects money in

April 27, 1995
  To Members of the City Council: The budget for fiscal year 1996 has been prepared in the context of the directions for the City of New York set forth in the budget for 1995

Ex. 13. Read the dialogue, sum up its content and act it out.
Setting up a Treasury in Russia Foreigner: When was it decided to set up a treasury in Russia? Russian: The decree on setting up a treasury was signed in December

FINANCIAL POLICY. FISCAL SPHERE
  Financial policy is a very complex notion covering measures aimed at working out basic concepts, major guidelines, goals and objectives, as well as at creating an adequate financial

EFFECTIVE FISCAL POLICY
Russian: What's the essence of effective fiscal policy? Foreigner. You are raising a difficult question. In general, fiscal policy is the policy adopted by a government fo

VOCABULARY LIST
A. fiscal management["fIsk@l 'm{nI³m@nt] управление государственным бюджетом fiscal sphereбюджетно-налоговая сфера notion

EXERCISES
Ex. 1. Answer these questions:   A. 1. What does the notion "financial policy" mean? 2. Do many countries face financi

Ex. 7. Work on vocabulary and grammar.
a) Study the key words for the unit in the dictionary at the back of this book: macroeconomic performance, deficit, management, taxes, revenues, expenditure, policy, taxation, balanc

D) Make your own sentences with any five word combinations from (b) and (c).
e) Match the verbs from (a) with the nouns from (b) below:   a) to establish b) difficulties to face efforts

B) Fiscal Policy in the UK
  Fiscal policy in ... UK is guided by two strict rules: • ... Government will borrow only to invest and not to fund current spending; and • net public debt

B) Write down 3-5 questions about the text.
Focus on Fiscal Consolidation   The past two decades have seen the development of a worrisome and unprecedented phenomenon – the ballooning of public debt in industrial count

B) Sum up the text in 5-7 sentences and present your summary in class.
repaid reliance leads supply adversely bank occur reduced limit Financing the Deficit   Since the early 1970s quite a

A) Multiyear Budgeting
  It has become quite common for ministries of finance around the world to practise some variety of multiyear budgeting. For example, Canada, Germany and the United Kingdom all have m

B) Types of Budget Classification
  A system of budget classification enables the myriad government operations and transactions to be organized into relatively homogeneous categories that facilitate the analysis of th

A) Fiscal Policy in Transition Economies: a Major Challenge
Russian: It is recognized that fiscal policy has been at the centre of the economic reform programs pursued by economies in transition. Foreigner. Yes, practically all pro

B) On Macro- and Microeconomics
Russian: Economists know that there is considerable controversy about macroeconomic models because some of them do not match the fluctuations in actual economies. Besides, a lack of clear

B) Reread the article more carefully and compare the facts about the UK and the US with the situation in Russia.
Balance of Payments   Balance of payments is a country's set of accounts with the rest of the world, reflecting the relation between the payments of all kinds made from one c

Transition Economies Need to Reform Social Safety Nets
  The former centrally planned countries undergoing economic transition have experienced a sharp decline in output, income and employment in recent years. This has resulted in severe

Ex. 19. Look through the article and find the answer to the following question: What can help improve the lives of people in transition economies?
Decentralizing Fiscal Systems in Transition Economies   Since 1989, extensive political and fiscal decentralization has been under way in almost all countries in Central and

CENTRAL BANKING SYSTEM
  The central banking system is a major sector of any modern monetary system. It is of great importance to the fiscal policy of the national government and the functioning of the priv

BANKING SYSTEM IN RUSSIA
Foreigner: What is characteristic of the Russian banking system these days? Russian: The banking system in Russia is organized as a 2-tier system. The first tier is repre

VOCABULARY LIST
A. central banking systemсистема центрального банка monetary

EXERCISES
Ex. 1. Answer these questions:     A. 1. What is the major sector of any modern monetary system? 2. What are central

Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out.
Foreigner. Western bankers unanimously admit that your banking system has changed rapidly since Russia embarked on economic reforms. Russian: Да, это так. Я рад слышать та

Ex. 7. Work on vocabulary and grammar.
a) Study the key words for the unit in the dictionary at the back of the book: requirements, deposit, check, reserves, capital, assets, liabilities;

C) Describe the principal instruments of credit policy.
Credit Policy   Credit policy is ... component of economic policy. It is a combination of measures taken by ... Central Bank to affect the supply of credit. The aims of ... c

B) Describe the impact of "easy" and "tight" monetary policy on an economy.
  Monetary policy is the branch of financial policy that is concerned ... controlling the supply of money and credit. Monetary policy is important because of its impact... inflation a

B) Compare the FED, the CBR and the Bank of England, using information from the unit.
The Bank of England   The Bank of England is Britain's central bank. Founded in 1694, it (to be) the world's second oldest central bank, being six years younger than S

US Activities of Foreign Banking Organizations
  The International Banking Act of 1978 (IBA) provided for federal regulation of the US operations of foreign banks and granted important new responsibilities to the Federal Reserve f

A) Is Monetary Policy Needed?
  Many people believe that central banks should conduct an active, interventionist monetary policy even though most countries are abandoning other forms of state intervention in their

B) Payment Systems
  Public policy responsibility for the payment system usually rests with central banks. Central banks are naturally interested in the payment system because it is a key component of t

B) Reread the article more carefully and underline the parts where conditions for avoiding banking problems in transition economies are mentioned.
  The number of countries experiencing significant banking problems has increased substantially in recent years. It should be stressed that the problems are hitting industrial and dev

B) Reread the article and find the options for an exchange rate policy different countries have these days. Say what they imply.
Exchange Rate Policy   Exchange rate policy involves choosing an exchange rate system and determining the particular rate at which foreign exchange transactions will take pla

B. Peg to a basket of currencies.
An alternative approach is to peg the currency to a weighted average of several currency values or a basket of currencies. It helps to avoid large swings in its exchange rate with respect to severa

C. Independent floating.
Independent floating means that an exchange rate of any currency is free to float to any level which supply and demand may determine. Independent floating potentially provides a mechanism

B) Reread the article again and sum up the conclusions of the meeting described in it.
Central Banking Reforms Advance in Baltic and CIS Countries   On May 13-14, 1996, the IMF arranged the ninth coordinating meeting on central banking technical assistance to t

Ex. 20. a) Read the text quickly for the main points.
  Money is as hard to measure and define as it is to control. Money is graded according to its LIQUIDITY – notes and coins being completely liquid, whereas some kinds of bank deposits

COMMERCIAL BANKS
  By definition, banks are institutions which accept money from people for safe keeping, lending it out to others, but particularly creating money by lending their credit, i.e. by mak

Interview With a Bank Manager
Reporter. As far as we know, last year was a year of substantial progress for your bank, wasn't it? Banker. Yes, our bank made excellent progress. We increased market shar

VOCABULARY LIST
A. by definition по определению loanп с

EXERCISES
Ex. 1. Answer these questions:   A. 1. What services do banks offer? 2. What is the nature of banking? How do banks earn a living?

Ex. 5. Sum up the contents of the main dialogue. Use the phrases from Ex. 5 (Unit 1).
Ex. 6. Read the dialogue below, translate the Russian remarks into English and act it out: Foreigner. In my opinion, the main objective of your crisis-hit banks

Ex. 7. Work on vocabulary and grammar.
a) Study the key words of the unit in the dictionary at the back of this book: credit, loan, account, interest, bill, check, maturity, deposit;

C) Say a few words about services provided by commercial banks.
  a)A bank was originally ... bench set up in the marketplace for ... exchange of money. In a commercial sense, a bank is ... establishment where money is received on

B) Bank Accounts
  When money in placed in ... bank it is said to be "deposited". The money may be put into ... account from which it can be drawn at any time, or into ... account w

B) Write down 3-5 questions about the texts.
  a) The first bankers in Britain were Lombards, ... Lombardy in northern Italy. Merchants and traders from this part of Italy came to do business in the City of Lond

B) The Nature of Banking
  The nature ... banks can best be understood ... examining both their long-established functions and new emerging roles. The former include the provision of payment services and inte

B) Say what you have learnt from the text about international banks.
  Basic principles of commercial banking best (to demonstrate) in the case of international banks. These institutions are the dominant traders in the Euromarkets and the foreig

B) Sum up the text in 5-7 sentences and present your summary in class.
  level mergers competition brought shows survey cause

A) Bank Loans and Overdrafts
  There are two principal ways in which a businessman can borrow money from his bank: by means of a loan and by means of an overdraft. An overdraft is "a sum of money dr

С) Discuss the kinds of banks described in the text and their functions.
  b) In a country with a developed banking system there are different kinds of banks with widely varying activities: They are: 1. The Universal banks

Ex. 17. Read the article below quickly to find out the functions the discount market performs.
The Discount Market   The discount market is the fusion of the London markets for sterling money-market security and short-term sterling deposits in the operations of the dis

Ex. 18. Look through the text and name the facts which are new to you.
  A crucial aspect of the development of a country's domestic banking system and financial markets is the payment system, which is used by enterprises and individuals to discharge obl

WHAT ARE TAXES?
  Taxes are a compulsory financial contribution by a person or body of persons towards the expenditure of a public authority. In modern economies taxes are the most important source o

TAXATION IN RUSSIA
Foreigner: I hear that many Russians complain that taxes are too high in Russia, personal income tax, for example. Russian: I can't agree with you here. The existing 12% i

VOCABULARY LIST
A. taxation n налогообложение, взимание налогов

EXERCISES
Ex. 1. Answer these questions:   A. 1. What are taxes? 2. What are the purposes of direct and indirect taxation? 3. Are bu

Ex. 5. Sum up the contents of the main dialogue. Use the phrases from Ex. 5 (Unit 1).
Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out: Foreigner: The tax system in Russia has changed significantly over the years

Ex. 7. Work on vocabulary and grammar.
a) Study the key words of the unit in the dictionary at the back of the book: tax, taxation, tax allowance, tax breaks, tax concessions, tax benefits, tax exemptions

C) Say if you have ever reclaimed your VAT.
a)If you thought duty-free was... only way to buy cut price goods in ... Europe, you'd be wrong. Tax-free shopping offers ... even greater number of discounts to visitors from outs

What Is an Excise Duty?
  Indirect taxes are divided ... general and special taxes ... consumption. The general tax on consumption, value-added tax, or VAT, is levied ... more or less all products and a larg

Tax Reform in Developing Countries
  In 1985, the government of Jamaica (to embark) on a comprehensive tax reform. This reform (to include) changes in the personal income tax, the company tax, and indirec

B) Sum up the text in 5-7 sentences and present your summary in class.
  over major taxes present intended times change improve

C) Give your opinion on "tax havens".
Tax Havens Explained   What do the Bahamas, Bermuda, Hong Kong, Liberia, the Netherlands, the New Hebrides, Panama, and Switzerland have in common? They are all "tax hav

Eх. 13. Read the dialogue, sum up its content and act it out.
Russian: I'm sure you know that one of the most serious problems in Russia now is poor tax collection causing sharp decline in tax revenue. Foreigner. Yes, we know that an

Ex. 17. Read the text below carefully and underline the parts of it giving basic ideas about the desired features of a tax system.
Tax System Design   Recent studies have singled out some of the desired features of the tax system that should emerge as countries develop. They are as follows:

B) Reread the text carefully and explain all figures used in it.
Slovakia   Major Sources of Revenue for the Local Government Budget   The principle sources of revenue available to local governments are local taxes a

INTERNATIONAL MONETARY INSTITUTIONS
  There is little exaggeration in saying that international monetary developments affect all individuals as workers, consumers, travellers, businessmen producing goods for domestic or

INTERNATIONAL MONETARY INSTITUTIONS
  There is little exaggeration in saying that international monetary developments affect all individuals as workers, consumers, travellers, businessmen producing goods for domestic or

VOCABULARY LIST
A. international monetary systemмеждународная валютная система

EXERCISES
Ex. 1. Answer these questions:   A. 1. In what ways are individuals affected by international monetary developments? 2. What is the

Ex. 5. Sum up the content of the main dialogue. Use the phrases from Ex. 5 (Unit 1).
Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out: Russian: Общеизвестно, что Всемирный Банк имеет одну основную цель – содейст

Ex. 7. Work on vocabulary and grammar.
a) Study the key words of the unit in the dictionary at the back of this book: adjustment, balance of payments, exchange rate, trade, parity, disequilibrium;

C) Describe the purposes for which the IMF was set up.
International Monetary Fund   The International Monetary Fund, an association of governments, was set up on 27th December, 1945, as a result of the Bretton Woods Agreements w

Your Partner EBRD
  The EBRD (European Bank for Reconstruction and Development) is a multinational institution set ... with the specific aim of assisting the countries of Central and Eastern Europe to

Your Partner EBRD
  The EBRD (European Bank for Reconstruction and Development) is a multinational institution set ... with the specific aim of assisting the countries of Central and Eastern Europe to

Your Partner EBRD
  The EBRD (European Bank for Reconstruction and Development) is a multinational institution set ... with the specific aim of assisting the countries of Central and Eastern Europe to

C) Explain the "conditionally" principle of the IMF.
  The IMF's financial resources are made available to its members under a variety of facilities and policies, depending on the circumstances, especially the nature of the macroeconomi

Ex. 17. a) Read the text quickly for the main information.
Some Facts About the SDR   The Special Drawing Right (SDR) is an international reserve asset created by the IMF in October 1969. SDRs first came into operation in 1970 as a s

B) Reread the text carefully and underline all parts saying about the Paris Club.
  Debt rescheduling is a form of debt reorganization in which debtors and creditors negotiate to defer payments of a principal and interest falling due in a specified interval for rep

B) Reread the article to find the sentence describing the present-day relations between the IMF and the World Bank.
  It was not only Brazil that ran up the white flag last week when it halted the defence of its currency on the world foreign exchanges. The defeat of Brazil was also a defeat for the

TRADING IN THE BOND MARKET
  People and organisations wanting to borrow money are brought together with those having surplus funds in the financial markets. There are a great many different financial m

THE BOND MARKET
Foreigner: Financial markets are generally classified as money or capital markets and primary or secondary markets. Do you follow this classification? Russian: Yes, we do.

VOCABULARY LIST
A. financial market финансовый рынок bond market

EXERCISES
Ex. 1. Answer these questions:   A. 1. What role do financial markets play? 2. In what ways do financial markets differ? 3

Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out.
Russian: С моей точки зрения, мы вступили в очень сложный период развития рынка облигаций. Все более важную роль играют крупные институциональные инвесторы, объемы выпусков облигаций возр

Ex. 7. Work on vocabulary and grammar.
a) Study the key words of the unit in the dictionary at the back of this book: bond, maturity, debt financing, equity financing, placement, surplus, issue, trading,

C) Explain how the Eurobond Market operates.
The Eurobond Market   The Eurobond Market is ... major source of corporate financing in ... unregulated international capital market. This market permits lenders to

B) Say what you have learnt about the debt market in India.
  The door is slowly opening on India's debt markets. Foreign investors can now invest 100% of their Indian portfolios in corporate debt as against the 30% allowed previously. The mar

B) Explain the essence of public debt management in France.
French Government Securities   France (to begin) to modernize the management of its public debt in 1985, and this effort now (to bear) fruit. The market in Fren

C) Describe the problems the authorities are trying to solve in China.
  attention discovered take ago bonds transaction kind dealing

B) Discuss the reasons which led to the creation of the UK debt market and its structural changes in the late 80s.
  The UK Government bond market is generally the market of gilt-edged securities. These securities are considered to be very safe. The market origins go back to 1694 when the

B) Reread the text more carefully and explain how the US government uses debt instruments.
US Government Securities   The US government relies heavily on debt financing. Since the 1960s, revenues have seldom covered expenses, and the differences have been financed

B) Reread the text more carefully to describe the changes in the Yankee offerings and the interests of US investors.
Borrowers Pile Up the Yankees   During the past six years, according to the Federal Reserve, foreign non-financial borrowers placed $170 billion of public and private bonds i

STOCKS AND MARKETS
  Stock Markets are the means through which securities are bought and sold. The origin of stock markets goes back to medieval Italy.1 During the 17th and 18th centuries Ams

THE CORPORATE SECURITIES MARKET IN RUSSIA
Foreigner. What's your opinion of the present-day position of the corporate securities market in Russia? Russian: The market is still rather weak and sluggish. Compared wi

VOCABULARY LIST
A. stock markerфондовый рынок origin n

EXERCISES
Ex. 1. Answer these questions:   A. 1. What is the Stock Market? What contributed to the emergence and growth of stock exchanges? 2

Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out.
Foreigner. We know that the board of directors of your steel plant announced the decision to issue new shares. Why was the decision made? How much are you going to raise? Russ

Ex. 7. Work on vocabulary and grammar.
a) Study the key words of the unit in the dictionary at the back of this book: securities, market, equity capital, options, quotation; b) Think

С) Name the problems of emerging markets mentioned in the text and say which of them are typical of Russia.
  In 1990 the fastest rising stock markets in ... world were those emerging in the developing countries. There are now more than 50 stock exchanges in ... developing world: some are i

C) Describe the trends in the major equity markets mentioned in the text.
Equity Market   In return ... the use of their funds, investors in a corporation are issued certificates, or securities. Corporate securities represent claims ... the assets

B) Describe the changes on the London Stock Exchange brought about by Big Bang.
  The London Stock Exchange (LSE) (to be) the principal market for the trading of equities, other corporate securities and government debt in the UK. The London equity

C) Say what you have learned about trading on the New York Stock exchange.
  stockholders start exchange conduct traded (2) meets assigned tr

A) Bulls, Bears and Stags
  The buying of something cheap at one time for the purpose of selling the same thing dearer at another time is speculation. Whilst in a sense all deals are speculations, the term is

B) Options and Short Selling
  Not all stock market speculation takes the form of buying and selling stocks whose prices are likely to change. Options and short selling allow a speculator to profit from movements

B) Reread the text carefully and explain what the Fourth Market implies and what prompted its emergence.
Third and Fourth Markets   Until the 1970s the New York Stock Exchange required its member firms to trade all NYSE-listed stocks at the exchange and to charge fixed commissio

The New Issue Market
  The mere buying of securites traded on the Stock Exchange does not create new capital. The stock exchange does not itself issue new shares to the public. Fresh capital is provided t

INVESTMENTS
  In economic science, investment is capital expenditure on physical productive assets, e.g. machinery, factory buildings, roads, bridges, houses, and stocks. Real investment

INVESTMENT CLIMATE
Russian: How do you assess the investment climate in your country? Foreigner. As quite favourable. Foreign investments have been flowing into our country at an acceleratin

VOCABULARY LIST
A. investment activityинвестиционная деятельность capital expenditure

EXERCISES
Ex. 1. Answer these questions:   A. 1. What is investment? 2. Define the difference between real investment and financial invest

Ex. 5. Sum up the content of the dialogue. Use the phrases from Ex. 5 (Unit 1).
Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out: Russian: Известно, что ваше правительство успешно проводит политику привлече

B) Think of word combinations with these nouns: investor, investment, accounts, securities, yield.
c) Think of the verbs most commonly used with: portfolio, intermediary, risk, loans, purchase, contributions, funds, money. d) Match the verbs f

C) Say what advantages individuals have when they invest in investment companies.
Investment Companies   Investment companies are ... type of financial intermediary. They obtain money from investors and use it to purchase financial assets such as stocks an

C) Explain how most dynamic institutional investors today – pension funds and mutual funds – work.
  The most dynamic institutional investors today are pension funds and mutual funds. Pension funds are a relatively recent phenomenon, which emerged ... the early 1950s. Pens

Food Giants Build Local Yogurt Plants
  Foreign oil companies may pull out of Russian projects and several automobile joint ventures have been postponed, but international food processing companies feel now is the time to

A) Say what hinders the influx of foreign capital to Russia.
a)Foreign investors participating in the Russian market see that there are many difficulties and important differences in the structure and behavior of the Russian market. Though r

B) Brazil Attracts Foreign Investors
  Increasing numbers of foreign investors are looking toward Brazil as their gateway into the Latin American market. As a result, there has been a dramatic increase in merger and acqu

C) Investment in the UK
  In recent decades the UK has invested a smaller share of GDP than other industrialised countries – around 18% of GDP, compared with the OECD average of almost 21%. This has left a l

Ex. 13. Read the dialogue, sum up its content and act it out.
Foreign Investments in Russia Foreigner. Speaking about investment you often say "capital investment". Do you use the two words interchangeably? Ru

B) Reread the text more carefully and explain how administrators of funds make decisions about choosing the assets to invest.
Investment Skill Is a Rare Commodity   Administrators of pension and endowment funds might be surprised to find themselves referred to as investment engineers. Yet these part

B) Reread the text more carefully to find parts of the text describing the specific features of the funds.
Investment Trusts   Small shareholders who do not have enough money to invest in a wide-range portfolio buy shares in investment trusts. Investment trust is a public

TRADING IN THE FOREIGN EXCHANGE MARKET
  Any one country's currency is a legal tender only within its national boundaries. To trade beyond these boundaries involves exchange of monies. Exchange of currencies is possible if

CORNERSTONE OF THE GLOBAL FINANCIAL MARKET
Russian: As far as we know, the cornerstone of the global financial market is the Foreign Exchange Market. In this connection, how is it developing? What affects its development?

VOCABULARY LIST
A. foreign exchange marketвалютный рынок legal tender

EXERCISES
Ex. 1. Answer these questions:   A. 1. Why is exchange of currencies necessary? 2. What makes exchange of currencies possible?

Ex. 5. Sum up the content of the dialogue. Use the phrases from Ex. 5 (Unit 1).
Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out: British economist: Your participation in the world financial markets is incr

Ex. 7. Work on vocabulary and grammar.
a) Study the key words of the unit in the dictionary at the back of this book: option, rate, transaction, currency, quotation; b) Think of the verb

C) Say what exchange rate policies are practised by different countries.
  In ... late 19th century ... major trading nations fixed their currencies in terms of gold. Exchange rates were therefore fixed and these countries had essentially one common curren

C) Describe the components of the global financial markets.
Global Financial Markets   The global market for finance encompasses a complex web of financial instruments and institutions. Its structure and functioning are affected in fu

B) Explain what are hedging techniques mentioned in the text.
Managing Exchange Rate Risk. Hedging   In general, hedging is a technique of insurance against loss from future price movements. For instance, in Britain in 1970s, when infla

The Eurocurrency Market
  One of the most well-developed sectors of the Global Financial Market is the Eurocurrency Market. The Market refers to funds channelled via financial intermediaries from internation

C) Discuss the problem raised in the text, offer your solution to the problem.
Tougher Measures Needed to Counter Macroeconomic Effects of Money Laundering   The globalization of the world economy and the growing efficiency of capital markets allow indi

READING PRACTICE
Ex. 17. Read the text quickly to find the types of most widely used swaps: Foreign Exchange Swaps   Swaps are transactions in which two parties swap

What are the prospects for the option markets?
Foreign Exchange Options   Options as a financial instrument have a reasonably short history in financial markets, with the first option contracts being traded in Chicago in

FINANCE FUNCTION
  Any business – whether large or small, profit-seeking or not-for-profit – has important financial concerns: How to get the funds needed to run the business on favourable te

FINANCIAL RATIOS
  A financial ratio is a relationship between particular groups of assets or liabilities of an enterprise and corresponding totals of assets or liabilities, or between assets or liabi

RATIO ANALYSIS
Russian: Are there any guidelines which enable the businessman to conduct his affairs efficiently and profitably and to compare his company's performance with those of other companies?

VOCABULARY LIST
A. financial managementуправление финансовой деятельностью, финансовый менеджмент Finance

EXERCISES
Ex. 1. Answer these questions:   A. 1. What financial concerns face every enterprise? 2. What problems do finance managers face

Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out.
Foreigner. What funds are most typically generated at enterprises? Russian: Для осуществления своей деятельности предприятию необходимы основные и оборотные фонды. Основны

Ex. 7. Work on vocabulary and grammar.
a) Study the key words of the unit in the dictionary at the back of this book: assets, exchange rate, interest rate, management, return, value, flow;

C) Say in what activities financial managers are involved.
  a) Financial Management explains how ... financial managers can help maximize the value of their firms by making better decisions in such areas as capital budgeting

B) Mergers and Acquisitions
  Profitable growth constitutes one of... prime objectives of most of the business firms. It can be achieved "internally", either through ... process of introducing or devel

B) Say what classes of shares are usually issued by companies and what rights they give their holders.
Financial Capital   Financial capital includes the liquid assets of a company as opposed ... physical assets. Companies can have a variety of types of capital. The principal

B) Describe the development of financial management.
  Prior to the 1930s the field of financial management basically (to confine) to descriptive discussions of the various financial markets and the securities traded in those mar

C) Explain the differences between macroeconomics and microeconomics.
operation policy familiar businesses says demand notions lead affects whole operates success microeconomics   Contemporary

A) Corporate Governance
  The financial manager's duties include different tasks aimed to maximize the shareholders' wealth. It has been observed, however, that in practice not all management decisi

B) Investment Management
  Investment management relates to the selection of assets in which funds will be invested by a firm. The assets which can be acquired fall into two broad groups: long-term assets and

A) Investment Decision Making
Financial manager. Our company is working on an investment project. What do you think we should take into account in our work? Consultant: First, I'd like to know somethin

B) Investment Project Appraisal
P.M.: How can an investment project be evaluated? Con.: There are different techniques. Most common today are UNIDO techniques based on payback period, net discounted cash

READING PRACTICE
Ex. 17. Read the text quickly to find the sentences giving a definition of the cost of capital: Capital Structure and Cost of Capital   The capital

What happens after a winding-up order is granted by the court?
Liquidation   If a company is unsuccessful in its operations, or if for any other reason it decides to go out of business, it goes into liquidation. There are two kinds of li

Ex. 19. Read the text quickly to find the part of the text explaining how managers can solve the problem of a cash shortfall.
The Cash Flow Concept   The concept of cash flow is one of the central elements of financial analysis, planning, and resource allocation decisions. Cash flows are important b

ACCOUNTING PRINCIPLES AND CONCEPTS
  The accounting system in any given country is one of the key elements of the economic system. It is determined to a significant extent by the level and direction of the economic sys

ACCOUNTANCY IN A FREE-MARKET ECONOMY
Russian: What is the role of accountancy in a free-market economy? American: Well, in a free-market environment, accounting provides sort of a vehicle for transmitting inf

PUBLIC AND PRIVATE ACCOUNTANTS
Russian: I'm sure you know that we are engaged in developing the accounting profession in our country at the moment. In this context we would like to know how the members of the accountin

VOCABULARY LIST
A. accountingn бухгалтерский учет to a significant extent

EXERCISES
Ex. 1. Answer these questions:   A. 1. What role does an accounting system play in an economy? 2. Into what phases is accounting br

Ex. 5. Sum up the content of the dialogues. Use the phrases from Ex. 5 (Unit 1).
Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out: Foreigner. As far as I know, in the past the major function of your accounta

Ex 7. Work on vocabulary and grammar.
a) Study the key words of the unit in the dictionary at the back of this book: balance sheet, account, depreciation, cost, expenses, assets, loss;

B) Explain the objective of Financial Statements and say what ensures usefulness of information disclosed in them to the users.
  The objective of financial statements is to provide useful information ... users. Among the users are present and potential investors, lenders, suppliers and customers, employees, g

B) Say what is a Chart of Accounts in Russia and what it provides for.
  In the West each company (to have) a certain freedom in the design of its own set of accounts so as to reflect the nature of its business and the needs of its management in d

C) Name the most important events in the development of the accountancy profession in the world.
  accountants principles organized members back profession creation throughout number role organizations function

B) Present them in a short review and compare the information and viewpoints in Text (a) and Text (b).
a)For many years the accounting system in Russia was criticized by Western academicians for its failure to adhere to Western accounting principles. Such criticism is no longer vali

IAS – international accounting standards
divergencen отклонение Ex. 13. Read the dialogue, sum up its content and act it out: Accounting Methods American: Accou

Balance Sheet
    А. Неоплаченный акционерный капитал A. Called up share capital not paid    

A. BALANCE SHEET
  The position of the enterprise is presented in the balance sheet. That statement shows resources and the claims to or interests in them and provides an indication of the financial s

PERFORMING AN AUDIT
  Auditing is a process in which an independent accountant-auditor examines a firm's accounting records and financial statements and offers an opinion on their accuracy and reliabilit

AUDITING IN RUSSIA
Englishman: In most industrialized countries audit is a statutory requirement applying to limited companies. Are there any similar regulations in force in Russia? Russian:

VOCABULARY LIST
  A. auditing n аудит auditor

EXERCISES
Ex. 1. Answer these questions:   A.1. What is auditing? 2. What audits are practised nowadays? 3. What does the auditor

Ex. 5. Sum up the content of the main dialogue. Use the phrases from Ex. 5 (Unit 1).
Ex. 6. Read the dialogue, translate the Russian remarks into English and act the dialogue out: Foreigner. As far as we know, you are Russia's leading provider of

Ex. 7. Work on vocabulary and grammar.
a) Study the key words of the unit in the dictionary at the back of this book: audit (ing), auditor, auditor's opinion, auditor's report, records;

Sweden.
  The Swedish National Audit Office (SNAO) is ... independent institution for central government auditing and accounting in ... Sweden. The main task of ... organisation is to audit t

Sweden.
  The Swedish National Audit Office (SNAO) is ... independent institution for central government auditing and accounting in ... Sweden. The main task of ... organisation is to audit t

B) Discuss the content of the article.
Misuse of Public Funds   It is a universally accepted truth in Russia that the heads of many public funds habitually (to divert) trillions of rubles away from the stat

Ex. 11. Fill each gap with a suitable word from the box. Sum up the text in 5-7 sentences and present your summary in class.
free proper standards audit (2) opinion (2) preparing performed management statements responsibilities accordance view   Independent Audit

B) Read the text carefully to say what CPE implies.
Continuing Professional Education   The Audit Registration Committees of the Institutes of Chartered Accountants in Britain are extremely interested in and concerned about co

B) Reread the text more carefully and pick out information about the JMU.
  The EU 8th Company Law Directive set out the requirements for each member state to have a common minimum regulatory system for auditors of limited companies. The United Kingdom enac

BANKING CORRESPONDENCE
  Most correspondence in banking is done through letters and telexes, fax messages and SWIFT ones. Special forms are also widely used. Here is a layout of a typical letter:

To announce объявлять
seniorстарший effectiveвступающий в силу to be composed ofсостоять из divisionотделение (управление)

DICTIONARY OF KEY WORDS
account[@'kaunt] n счет contra account["kOntr@ @'kaunt] контрарный счет memorandum accountзабалансовый счет

Direct investment прямые инвестиции
financial investmentфинансовые инвестиции fixed capital investmentвложения в основной капитал foreign investmentиностранные инве

Contents
    ПРЕДИСЛОВИЕ.. 2 UNIT 1. ECONOMIC ENVIRONMENT.. 4 A. TEXT. WHAT IS ECONOMICS ALL ABOUT?. 4 B. DIALOGUE. 4BUSINESS CLIMATE IN RUSSIA.