VOCABULARY EXERCISES

Date: 2015-10-07; view: 445.

TEXT

Money, money, money… People love to dream about having it but hate to talk about how to get it. It takes time, discipline, persistence, and diligence to make the dream of having money come true and the financial difficulties become a thing of the past. The hardest part is to change your spending habits to a habit of managing your money. Regardless of our financial state, what we decide to do with our money today will have an impact on our lives tomorrow.

At the present time managing money is very complicated. Not only do we have more spending options than in the past, we now have more choices of how to pay – by cash, check, credit card, debit card, pre-authorized* withdrawals and through the Internet.

Part of personal money management is using credit. In order to take bachelor's or master's degree, buy a house, a car, an appliance, take a holiday or even invest, many of us must borrow. The advantage of credit is that we can enjoy new purchases today while spreading repayment into the future.

In today's financial world, there are many types of credit available to you. Keep in mind that each one has its own benefits and drawbacks. The following list is an overview of what is available.

· Credit cards. The different cards offer a variety of options. Some financial institutions offer all-purpose* credit cards like VISA, MasterCard and American Express. They can be used to extend payment for the purchase of goods and services over time. If you make full payment each month, there are no interest charges. However, if you take a cash advance on your credit card, you are charged interest from the moment you make a withdrawal until the money is paid back.

· Debit cards allow you to shop in stores that accept these cards, as well as pay for things online or over the phone without paying cash. Debit cards also let you withdraw cash from an Automatic Teller Machine*.

· Charge accounts allow you to charge purchases to your accounts for payment at a later date. These accounts are usually offered by retailers in several forms such as the 30-day account which requires payment within 30 days, the installment plan (equal payments including interest are made for a specified number of months) and all-purpose accounts (payments made in full or over a period of time).

· Consumer credit is short-term, intermediate-term, and long-term consumer loans used to finance the purchase of commodities or services for personal consumption. The loans may be supplied by lenders in the form of loan credit or by sellers in the form of sales credit. The difference between a loan credit and a sales credit is that a loan credit enables to borrow money to finance a purchase while a sales credit enables consumers to buy goods and services and to pay for them later.

Consumer loans refer to installment loans. They include automobile loans, home repair loans, mortgage loans, educational loans, loans for other consumer goods, and credit card purchases.

Before buying something on credit you should bear in view that credit requires the necessary monthly installments. You pay for the credit costs through interest charged on the principal, the original amount borrowed. What the lender charges depends on many factors, including the cost of money, the risk involved and other costs of doing business.

Another way of good money management issavings. Saving is one of the most important things you do with your extra cash. What makes saving money just a pleasant experience is interest. You aren't just saving your money, you are actually letting it grow. Your money is making more money.

Bank accounts are a basic part of managing your personal finances. Before starting any savings program it pays to choose* the type of an account you will keep your money with a bank.

In choosing a bank account, it is important to keep a close watch on such features as safety, liquidity, interest rate, compound interest, сredit fees, and limitations on withdrawals.

· Safetymeans protecting your money against fire, theft and other disasters.

· Liquidity refers to how quickly your savings can be converted into cash.

· The rate of interest is a percentage that an account will earn if funds are kept for a full year. The amount that you earn is known as the rate of return.

· Compound interest is an interest which is payable not only on the original sum of money but also on sums of interest as they accumulate. So the interest begins to earn interest along with the principle. The yield, the actual amount of interest earned, goes up as interest is paid more frequently.

The accounts offered by depository institutions generally fall within one of these types:

· Checking account or demand deposits are accounts the main function of which is to provide check-writing privileges therefore most lenders either pay no interest or pay a low interest rate on credit balances. Money placed in these accounts doesn't generate interest.

· Savings accounts are accounts which pay somewhat higher interest but cannot be used directly as money (by, for example, writing a cheque). These accounts let you set aside a portion of your liquid assets that could be used to make purchases while earning a monetary return.

· Time deposits are money deposits that cannot be withdrawn for a certain time period. The longer the term, the better the yield on the money. Money placed on a time deposit enables you to maximize the interest generated.

· Certificates of Deposit (CDs) are funds deposited with the bank for a specific period of time in return for a guaranteed, pre-determined interest rate. They are insured by government agencies and thus risk-free.Deposit Certificateshave different maturities, from three months to five years, andconverting them into cash before maturitywill result in a penalty, so they are not quite as liquid as the other investments mentioned. Financial institutions usually charge the highest interest rates, since money may not be withdrawn on demand.

· Money market accounts are accounts insured by government. They pay a little higher interest than both checking or savings accounts but limit the number of transactions you can make without a fee. Don't confuse them with money market funds accounts.

· Money market funds accountsoffered by mutual fund companies pay a higher rate of return than savings and checking accounts but are not insured like money market accounts.

The key to effective money management is time. The more time you are willing to invest in managing your financial affairs, the greater the return on that investment. If you're interested in reaching your financial goals, you have to do more than simply store your money. You have to manage it actively, using the following money-management tools:

· Saving. Deposit your money in a government-insured account for security and convenience.

· Investing. Help your money grow by purchasing bonds, shares of stock* and other interest-bearing securities.

· Borrowing wisely. Manage your debt so that you borrow what you need, but don't overestimate your ability to repay.

COMMENTS

pre-authorized withdrawals– попередньо-схвалені платником зняття грошей;

Automatic Teller Machine (ATM) –банкомат;

it pays to choose –варто обрати;

bonds, shares of stock– облігації, акції.

Exercise 1. Read, translate into Ukrainian in written form and learn by heart the definitions of the following economic terms and concepts.

Exercise 2. Give Ukrainian equivalents for the following words and phrases from the text.

1. a habit of managing your money – _____________________________________

2. to take bachelor's or master's degree – __________________________________

3. a variety of options – ________________________________________________

4. to take a cash advance – _____________________________________________

5. to pay for the credit costs – ___________________________________________

6. a pleasant experience –_______________________________________________

7. to start any savings program –_________________________________________

8. limitations on withdrawals – __________________________________________

9. along with the principle – ____________________________________________

10. a monetary return – _________________________________________________

11. a pre-determined interest rate – ________________________________________

12. to result in a penalty – _______________________________________________

13. to limit the number of transactions – ____________________________________

14. to store your money – _______________________________________________

15. to overestimate your ability to repay – __________________________________

Exercise 3. Find in the text English equivalents for the following words and phrases from the text.

1. Ставати справою минулого – _______________________________________

2. вибори щодо витрачання – _________________________________________

3. користуватися новими покупками – _________________________________

4. переваги та недоліки – ____________________________________________

5. здійснювати повну оплату – ________________________________________

6. мати на увазі/ пам'ятати – _________________________________________

7. відкладати гроші – ____________________________________________

8. зберігати гроші в банку – __________________________________________

9. захищаючи ваші гроші від пожежі, крадіжки чи інших нещасть – ________ ____________________________________________________________________

10. надавати право виписувати чеки – __________________________________

11. ліквідне майно – _________________________________________________

12. покласти кошти/гроші в банк – _____________________________________

13. компанії інвестиційних фондів відкритого типу – ______________________

14. засоби управління коштами – _______________________________________

Exercise 4. Match the verbs/verbal phrases, prepositions and nouns/noun phrases as they occur together in the text. Translate the expressions they make into Ukrainian.

Exercise 5. Copy out from the texts the sentences containing the following words and word-combinations and translate these sentences into Ukrainian.

Exercise 6. Choose words and word-combinations that have the same or similar meaning to the words listed below. More than one is possible.

1. готівка (3) ________________________________________________________

2. дохідність (2) _____________________________________________________

3. здійснювати платіж (3) _____________________________________________

4. знімати з рахунку (4) ______________________________________________

____________________________________________________________________

5. класти гроші в банк (3) _____________________________________________

____________________________________________________________________

6. класти гроші на рахунок (3) _________________________________________

____________________________________________________________________

7. користуватися (2) __________________________________________________

8. кредит/позика (4) __________________________________________________

9. мати рахунок у банку (3) ___________________________________________

____________________________________________________________________

10. надавати позику (3) ________________________________________________

11. накопичувати відсоток (2) __________________________________________

12. платити готівкою (4) _______________________________________________

13. план заощаджень (2) _____________________________________________

14. споживча позика (2) _______________________________________________