Английский язык для экономических специальностей (English for economists)

Milton Friedman sees things differently. Like the classical economists of old, he regards supply and demand as the most powerful and potentially beneficial economic forces. The best that government can do to help the economy, in Friedman's view, is to keep its hands off business and allow the market to "do its thing." The minimum wage laws are a case in point. Whereas Samuelson endorses minimum wage laws as a means of helping workers at the bottom of the income ladder, Friedman would argue that by adding to unemployment, they harm the very people they were designed to help. That is, he explains, by increasing labor costs, minimum wage laws make it too expensive for many firms to hire low-wage workers. As a result, those who might otherwise be employed are laid off.

On the one hand, Samuelson endorses the concept of government-sponsored programs such as public housing and food stamps as a means of reducing poverty. Friedman, on the other hand, would prefer to give the poor additional income and allow them to use the funds to solve their problems without government interference. To apply this concept, Friedman suggested the "negative income tax." The graduated income tax takes an increasing amount in taxes as one's income rises. The negative income tax would apply a sliding scale of payments to those whose income from work fell below a stated minimum.

Unit 10

Grammar: 1. Функции инфинитива.

2. Инфинитив в функции определения и обстоятельства.

I. Language Practice

1. Practise the fluent reading and correct intonation:

Asking the Way.

-- Excuseme, `can you `tell me the `way to Tra`falgar Square?

-- Certainly. `Go `down Regent Street | into Piccadilly Circus | and `then `go `down the Haymarket.

-- Excuse me, sir, | but `would you `tell me where Hyde Park is?

-- I really have no idea. I'm also a stranger here. You'd `better ask the policemen over there. He'll give you `all the infor`mation you want.

-- `Would you `mind telling me `how I can `get best from here to `Hyde Park?

-- Oh, | that's a pretty `long way from here. Go as `far as the next corner | and `wait for a `bus with «Hyde Park» on it.

-- Excuse me, | `can you `tell me the `way to Hyde Park?

-- Certainly. It's about `fifteen `minutes' run by `bus 9 from here. If you `tell the conductor, | he'll `put you down there.

-- `One moment, sir. `Can I `get to `Hyde `Park by the Underground?

-- Sure. `Take the Underground | from Mansion, House.

-- Excuse me, | `am I right for Farringdon Road?

-- No, madam. You are `going the wrong way. In fact, | in the opposite direction.

-- No. You'll `have to `go back to the `bottom of `this road, | take the first `turning on your left (`turn to the left), and `walk straight on as `far as the `third cross-to-ads. You `can't `possibly miss it.

2. Listen to the speaker; read and memorize the following words and phrases:

to survive - выжить

internal funds - внутренние средства

expenses - расходы

depreciation - амортизация

replacing assets - замененные средства

wear out - изнашивать

retained earnings - нераспределенная прибыль

external funds - внешние средства

to borrow - брать взаймы

proprietorship - собственность

Text. The Sources of Business Funds

In many ways, money is to business what water is to plants. Plants need water to begin life, to survive and to grow. Similarly, firms need money to begin operations, to meet their day-to-day expenses and to expand. Most of the money used by business comes from the sale of its products and services. Since these funds come from within the firm they are described as internal funds. The rest must come from outside, or external sources.

Internal Funds. As a firm sells its products or services, it receives money, which it uses to meet its expenses. One of these expenses, depreciation, represents the cost of replacing assets (like tools, machinery, and buildings) that wear out. Typically, businesses use internal funds to cover the cost of depreciation.

The funds that remain after paying expenses are a firm's profits or earnings. Although the owners or stockholders could take it all for themselves, in most instances some portion of the profits will be retained by the business. Since its "retained earnings," along with the sum it set aside for depreciation came from within the firm, they are known as internal funds. About 60 to 70 percent of a business firm's financing come from its internal sources.

External Funds. Sales do not remain constant from one season, or month or week to the next. There are times when more money comes in to a business than is needed to pay its bills. Similarly, at other times there is not enough money coming in to cover operating costs. When this happens, there are only four things that the firm can do:

dip into savings,

borrow,

sell shares of stock (if it is a corporation) or seek additional capital from the owners (if it is a partnership or proprietorship),

reduce spending.

II. Exercises on the Text:

3. Give English equivalents to:

во многих случаях; чтобы покрыть каждодневные расходы; большая часть денег; остальные должны исходить извне; поскольку фирма продает свою продукцию или услуги; чтобы покрыть издержки за амортизацию; в большинстве примеров; выделять на амортизацию; они известны как внутренние фонды; бывают времена; когда это происходит; продать долю в акционерном капитале.

4. Complete as in the text and translate into Russian:

1. In many ways, money is to business what ... 2. Plants need water ... 3.Similarly, firms need money ... 4. The rest must come from outline, or ... 5. As a firm sells its products or services, it receives money which it uses ... 6. Typically, business use internal funds...7.The funds that remain after paying expenses are ... 8. About 60 or 70 percent of a business firm's financing comes... 9. There are times when more money comes in to a business than ... 10. Similarly, at other times there is not enough money coming in ...

5. Sum up what the text says about:

money is to business;

the sources of coming money from;

the usage of internal funds

the four things that the firm can do

III. Grammar Exercises

Синтаксические функции инфинитива и способы их перевода на русский язык.

Подлежащее
1. To answer is not easy	Отвечать ...
Часть сказуемого
To live is to create. We are to create	... творить
Дополнение
3. Science teaches you to create.	... творить
Определение
4. The work to be done isn't easy.	... которую нужно сделать ...
He was the first to answer this question.	... кто ответил ... ответил
Обстоятельство
5. To answer this question you are to know the subject well.	Чтобы ответить ... Для ответа ...
In order to work here you are to be an experienced specialist	Для того, чтобы...

6. State the forms and functions of the infinitive. Translate the following:

1. To complete a journey round the sun requires nearly 29 1/2 years. 2.Steel output is to go up in the next years. 3. To prolong this discussion is to waste time. 4. I only want to be given my chance. 5. Does this mean that to think is the same thing as to utter words? 6. This record, one may assume, is to serve some subsequent purpose. 7. To move in space calls for quite new concepts of energy. 8. He linked to be looked upon as businessman. 9. Then an incident occurred to disturb the monotony of life. 10. I have turned aside to discuss these matters.

7. Translate the following into Russian paying attention to the Infinitive as an attribute:

1. There is one more phenomenon to be involved into this solution. 2. The data to be analysed involve knowledge of production management's methods. 3. Dalton's atomic theory was the first to make successful use of the old Greek theory of atoms in chemistry. 4. The traditional role of science is to make people healthy and the world a brighter place to live in. 5. The Sun is the first object to be studied by rocket astronomy. 6. All the attempts to confirm this suggestion have failed. 7. She gave him a list of a few books to be read. 8. I was present at an experiment - perhaps, the thousandth to have taken place.

8. Translate the following into Russian paying attention to the Infinitive as an adverbal modifier:

1. Laws were not made to be broken, laws were made to stay within. 2.Sometimes you retreat in order to advance. 3. The foreperson was too busy to see anyone. 4. He was so weak as to unable to work. 5. The executives found the problem too difficult to solve. 6. It's still too early to speak about the efficiency of this method. 7. In these areas the land is too unproductive to support a flourishing agricultural population. 8. The results of voting are enough to generate discussion on the pages of learned periodicals.

9. Read and translate the dialogue:

Jay Richards is consulting his financial adviser:

Jay: As a matter of fact, I'm thinking of starting an automobile agency. Could you tell me how I should finance this business?

Adv: Sure, Jay. If you've got some money of your own, you can operate on a cash basis: no credit given, no money borrowed. But a firm of this kind is usually a short lived one.

Jay: Shall I get credit from the bank then?

Adv; Not necessarily. You may just as well go to any insurance company and they will be only glad to help you, or at least they will try to show it.

Jay: Suppose I get their money to construct a building. But I'll need a lot more money to pay for the tools and equipment.

Adv: Oh, that's not a problem either. The car manufacturers will pay for it on a credit basis. And of course, you will get a loan from the bank to pay other expenses.

Jay: But that will mean a lot of money! How shall I pay it back?

Adv: Don't worry! The more money you invest the more rapid the progress you will make. You will certainly have idle money very soon. But do not let it stay idle. Invest and get profit out of it.

Jay: O.K. Thanks for the advice. I'll call in later for more details, if you don't mind.

Adv: Of course I don't. I'll be glad to see you any time of the day.

10. Form abstract nouns with the help of given suffixes:

1. noun + -age

coin, cover, pilot, parent, pack, percent,

2. noun/adjective + -dom

free, wise, king

3. noun + -hood

neighbour, child, brother, mother

4. adjective + -(i)ty

mortal, electrical, minor, major

5. verb + -al

refuse, propose, arrive, dispose

11. Chose antonyms:

payment - a). expense; b). expenditure; c). nonpayment.

agreement - a). disagreement; b). refusal; c). reduction.

employment - a). occupation; b). unemployment; c). freedom.

useful - a). helpless; b). applied; c). harmful; d). useless.

12. Read the text and retell it in Russian:

Birmingham

Birmingham (England), city, seat of the metropolitan county of West Midlands, central England. In 1974 the former municipal borough of Sutton Coldfield was incorporated into the city. A major industrial center, Birmingham is the second largest city in Great Britain. It is the hub of the British metal goods industry and is served by a network of railroads and highways. Among the principal metal products manufactured are motor-vehicle parts, machine tools, brassware, household utensils, sporting guns, and jewelry. Other important manufactures include electrical equipment, glass, rubber products, and chemicals. The city is located in an important coal-mining region.

Birmingham is the seat of the University of Birmingham (1900), the University of Aston in Birmingham (1895), the University of Central England in Birmingham (1992, formerly a polytechnic college), and several technical schools. Cultural facilities include the large Birmingham Museums and Art Gallery (1867), the Museum of Science and Industry, the City of Birmingham Symphony Orchestra, and the Birmingham Repertory Theatre (1913). The city's Municipal Bank (opened 1916) is the only one of its kind in Great Britain. Birmingham churches include Saint Philip's Cathedral (1715), Saint Martin's Parish Church in the Bull Ring (13th century), and the Roman Catholic Saint Chad's Cathedral (1841). Other notable buildings are the neoclassical Town Hall (1834), the Renaissance-style Council House (1881), and the modern Bull Ring Shopping Centre.

Heavily bombed during World War II, the city has undergone extensive rebuilding. Population (1981) 1,006,908; (1991 preliminary) 934,900.

Unit 11

Grammar: 1. Объектный инфинитивный оборот (The Objective Infinitive Construction).

2. Субъектный инфинитивный оборот (The Subjective Infinitive Construction).

I. Language Practice

1. Practise the fluent reading and correct intonation:

-- `How did you `get on in your exams?

-- I passed.

-- Congratulations! What `marks did you `get?

-- Three fives and a four.

-- `Well done. `Now you can relax and enjoy your`self for a `bit.

-- Yes. It's a `big relief.

2. Listen to the speaker; read and memorize the following words and phrases:

to engage - заниматься

trade - ремесло

occupation - занятие

county clerk - служащий округа

at will - по желанию, по усмотрению

power - право

charter - устав

consent - согласие

to terminate - заканчивать, завершать

to dissolve - расторгать, аннулировать

bankruptcy - банкротство

misconduct - дурное поведение

authority - полномочие

cash - наличные деньги

debt - долг

to mortgage - закладывать

good faith - добросовестность

dealings - торговые дела

to account - отвечать (за что-либо)

liability - ответственность

to permit - разрешать

Text. Partnership

Partnership, in law, term applied to an association of two or more persons who have agreed to combine their labor, property, and skill, or some or all of them, for the purpose of engaging in lawful business and sharing profits and losses between them; in this definition the term business includes every trade, occupation, and profession. The parties forming such an association are known as partners. Partners may adopt a fictitious name or use a real family name. In the U.S., most states require the filing of a certificate of partnership with the county clerk when an assumed name is used. The agreement to form a partnership is known as a partnership contract, the most important provision of which spells out the manner in which profits are to be distributed.

A partnership can be formed only by contract; the Statute of Frauds requires the agreement to be in writing if the term exceeds one year; failure to comply results in a partnership at will. Any number of persons may contract to form a partnership, and firms of partners may enter into partnership with one another. By contrast, in most states, a corporation has no power to enter into a partnership unless such power is expressly given in the corporate charter. New members may be admitted into an existing partnership only with the consent of all the partners. The agreement of partnership generally is for a definite term of years; if no duration is specified, it is said to be a partnership at will and can be terminated at any time by any partner. By agreement of the members, a partnership may be dissolved or terminated and the terms of the partnership agreement modified at any time. Death or bankruptcy of a partner, the insanity or misconduct of a partner, and the end of the period fixed for the duration of the partnership also operate to terminate the partnership.

A partner acts as an agent of the firm in the conduct of its business. Authority to act depends not only on the express powers given to a partner by the partnership agreement, but also on the implied powers resulting from the partnership relation and the nature of the business conducted. In the case of a partnership formed to conduct a wholesale or retail business, for example, a partner has implied power to borrow money for trade purposes, to buy on cash or credit, to make contracts and negotiable instruments to hire employees, to pay firm debts and sell or mortgage property for that purpose and to receive payment of debts owed the firm. A partner must, however, exercise the highest degree of good faith in all dealings with the other partners, devote time and attention to the partnership business, and must account to the other partners for any secret profits made in the conduct of the partnership business. The liability of a partner for partnership debts is said to be unlimited, except when the partner is a limited one in a limited partnership organized in accordance with the provisions of a state statute permitting such limitation of liability.

II. Exercises on the Text:

3. Give English equivalents to:

термин, касающийся объединения двух или более лиц; термин деятельность (бизнес) включает любое ремесло, занятие или профессию; фиктивное название; заполнение сертификата товарищества; означает способ; если срок превышает один год; корпорация не имеет права вступать в товарищество; корпоративный устав; если не указана продолжительность; в любое время любым партнером; умопомешательство или дурное поведение партнера; осуществление своей деятельности; характер осуществляемой деятельности; партнер приобрел право занимать деньги для торговых целей; условия договоров для найма служащих; уделять время и внимание; в соответствии с законом штата.

4. Complete as in the text and translate into Russian:

1. The parties forming such an association... 2. Partners may adopt a fictitious name or use... 3. A partnership can be formed only... 4. New members may be admitted into an existing partnership only with ... 5. ... it is said to be a partnership at will and can be terminated at ... 6. A partner acts as an agent to the firm in the conduct... 7. ... for example, a partner has implied power to borrow money for trade purposes? To buy on cash or credit? To make contracts and negotiable instruments to hire employees? To pay...8. The liability of partner for partnership debts is said to be unlimited, except when partner is a limited one in a limited partnership...

5. Sum up what the text says about:

partnership as a term in law;

the formulation of a partnership;

the terms of partnership agreement; partner's authority;

the liability of a partner.

6. Imagine you are a firm's manager. Using the following scheme answer the questions:

1. How many departments are there at the company?

2. How many managers do work at the company?

3. What is in your opinion the most important department?

4.Are there any overseas branches?

III. Grammar Exercises

The Objective Infinitive Construction

V + (действ. залог)	N(общ.п) Pron(объект.п)	+ Inf.

1. He considers the workers (them) to do it. Он считает, что рабочие (они) сделают это. 2. It enabled the workers (them) to do it. Это заставило рабочих (их) сделать это.	1. Придаточным дополнительным предложением с союзами что, чтобы, как. 2. Простым предложением.

Объектный инфинитивный оборот употребляется после глаголов, обозначающих:

Чувство и желание	Чувственное восприятие	Предполо-жение	Умственную деятель-ность	Побуждение
to want - хотеть to wish - желать to desire - желать to like - хотеть to love - любить to hate - ненавидеть	to hear - слышать to see - видеть to watch - наблюдать to observe - наблюдать to feel - чувствовать to notice - замечать	to expect - ожидать to suppose - предпологать to consider - считать to assume - полагать to believe - полагать to hold - полагать	to think - думать to know - знать to understand - понимать to find - обнаружить to report - сообщать to note - отмечать	а) с “to” to order - приказывать to tell - велеть to ask - просить to get - заставлять б) без “to” to make - заставлять to let - позволять

The Subjective Infinitive Construction

N(общ.п) + Pron.(им.п.)	V (страд. залог) (действ. залог)	+ Inf.

1. The workers (they) are considered to do it. Считают, что рабочие (они) сделают это. 2. He appeared to be a brave man. Он, как оказалось, храбрый человек. 3. This is likely to be the truth. Это, вероятно, правда.	1. Придаточным предложением. 3. Простое предложение.

7. Express the following using simple sentences with Complex Object:

Example: I see how this woman goes to the factory every day.

I see this woman go to the factory every day.

1. I saw how the director explained the details of the plan. 2. We heard how they spoke about their Institute. 3. The manager watches how the employees enter the office. 4. I heard how the workers discussed the problems they had to solve to increase the output. 5. We saw how they used the equipment we sent them last month. 6. I heard how the engineer explained the new methods of production.

8. Fill in the blanks with one of the following verbs in the form of the Infinitive:

arrive, cry, do, explain, go, get, hear, know.

1. Please stay with me, I don't want you .... 2. David's parents didn't want him ... married. 3. She didn't understand the story, so she asked me ... it to her. 4. Talk quietly. I don't want anybody ... us. 5. You're here early. We expected you ... later. 6. It was a very sad film. It made me .... 7. Please don't tell Tom about my plan. I don't want him .... 8. What do you think about my problem? What do you advise me ...?

9. Express the following using simple sentences with Complex Subject:

1. It is known that new economic theory is tested by practice. 2. It seems that this approach ignores the objective conditions. 3. It is said that you know the data very well. 4. It is understood that the seller will help us to choose the necessary goods. 5. It is known that the first reference to cotton has been made 2,500 years ago. 6. It is believed that the wage incentive program will be adopted in May.

10. Transform the sentences using Complex Subject and the words in brackets:

Example: He has lost weight (seem).

He seems to lose weight.

1. You know a lot of our customers (seem). 2. Our product line is getting better (appear). 3. That car has broken down (appear). 4. Our executing officer forgets things (tend). 5. They have solved the problem of variable expenses (claim). 6. The situation in this warehouse is more difficult than we thought (seem).

11. Translate into Russian:

1. With more and better goods and services available everyone's living standard is likely to improve. 2. If producers expect prices to increase in the future, they may increase their production. 3. When a budget has expenses that exactly equal income, it is said to be balanced. 4. When proposed expenses are greater than expected income, the budget is said to have a deficit. 5. The proportional tax seems to be fair because everyone pays the same rate. 6. When dollar values are down, overseas sales are likely to increase. 7. Sellers in each country expect to be paid in their own currency for the goods they sell to other countries. 8. The management of the firm wants them to report about the results or their negotiations. 9. Such times of inflation and deflation are likely to create hardships for many sectors of the economy. 10. Overall employment in the industry is sure to decline as small farms are consolidated into large farms and technology further reduces the need for farm labour.

12. Give the meaning of the following words:

to employ, employee, employer, employment, unemployment, employed.

to pay, paid, payment, paying, payable, payer.

to own, own, ownership, owner.

to buy, bought, buyer.

to sell, seller, selling, sold.

to manage, management, manager, managing, manageable, managerial.

to market, market, marketing, marketability, marketable.

13. Read the text and retell it in Russian:

The United States of America

After its 200th birthday the United States of America still holds the leading position in the western world. A country that inspired many appelations - "Land of Opportunity," "Melting Pot," "God's Country," is still referred to us as a land of superlatives -"the richest," "the greatest," "the most."

What makes the USA the leader of the western world is its economic, political and military dominance over other countries.

The United States lies in the central part of the North American Continent between the two oceans: the Atlantic Ocean to the East and the Pacific Ocean to the West. Friendly Canada to the north and friendly Mexico to the south are the only countries bordering it.

The USA consists of three separate parts. They are the Hawaiian Islands, situated in the central part of the North American continent of the Pacific Ocean, Alaska separated by the Canadian territory and the rest major part of the USA. The states differ very much in size, population and economic development.

There are many big cities and towns in the USA: New York, San Francisco, Washington, Chicago, Los Angeles are the biggest of them.

The United States of America is a parlamentary republic. The government is divided into three branches: legislative (the US Congress), executive (the President and his Administration) and judicial (the US Supreme Court).

There are two main political parties in the USA: the Democratic (symbolized by a "donkey") and the Republican (its symbol is an "elephant"). The US President is both head of state and government. He is elected for a four-year term. Presidential elections are held every leap year on first Tuesday after first Monday in November. The President is assisted by Secretaries who are the heads of the executive departments. The Supreme Court consists of Chief Justice and eight Associate Justices who are appointed for life. It is supposed to decide whether a law of the Congress or an executive order of the President is constitutional or not.

The form of US government is based on the Constitution of September 17, 1787, adopted after the War of Independence. In December 1791, the Congress adopted ten amendments to the Constitution, known as the Bill of Rights. The latter enumerated what the government controlled by the oligarchy was not going to be allowed to do, which was, of couse, an important democratic gain for people.

The Congress of the United States is composed of two houses, the Senate and the House of Representatives. The Senate represents the states and the House represents the population according to its distribution among the states. All states have electoral requirements of the same nature. First of all they are residence requirements.

Through its power over the purse, the US Congress can control much that relates to foreign policy, also it is a governmental body that determines taxation.

Each of the fifty states of the USA has a constitution patterned after the federal Constitution, with its divisions of power: legislative, executive, and judicial.

The Presidency means not only a man: means an institution - the "executive branch" of the government.

Unit 12

Grammar: 1. Герундий.

2. Герундиальные обороты.

I. Language Practice

1. Practise the fluent reading and correct intonation:

-- `Can you re`duce your `prices at `least by 3 per `cent?

-- Well, I don't `think we can, the `world `prices have `recently `gone `up, you know. Besides, we've `made some modifi`cations and improved the design.

-- That's `true, We've `seen that, but we'd `like you to reduce the `prices be`cause we are `going to `place a `very `big `order.

-- Will a `two per `cent dis`count off the `price be acceptable?

-- That's `just what we were `going to ask you about.

-- Settled.

2. Listen to the speaker; read and memorize the following words and phrases:

money supply - денежная масса

advice - совет, консультация

lender - кредитор

to rediscount - переучитывать

discount rate - учетная ставка

to withdraw - изымать

currency - деньги, валюта

account - счет

deposit - вклад

for collection - на инкассо (денежный сбор)

to transfer - перевод, перечисление

the Treasury - казначейство

to issue - выпускать

to redeem - погашать

securities - ценные бумаги, акции

Text. The Federal Reserve System

The Federal Reserve System, or the Fed as it is often called, was created by an act of Congress in 1913. The Fed, the nation's central bank, is made up of a Board of Governors, 12 district banks, and two committees: the Open Market Committee and the Federal Advisory Council.

Board of Governors. The Board of Governors establishes policies for the system. It consists of seven persons appointed by the President for 14-year terms.

Twelve District Banks. The Federal Reserve System is built around 12 geographic districts. District Federal Reserve banks supervise banking in each of these areas.

Open Market Committee. The Open Market Committee is made up of the seven members of the Board of Governors and presidents of five of the district banks. Its primary responsibility is to regulate the nation's money supply.

Federal Advisory Council. The Federal Advisory Council does just that: it offers advice on the nation's financial problems. It is comprised of 12 prominent commercial bankers, one selected from each district.

As the nation's central bank, the Federal Reserve System has four separate and distinct roles that profoundly affect the economy:

Provides banking services for financial institutions;

Serves as federal government's bank;

Supervises member banks;

Manages the nation's supply of money and credit.

Provides banking services for financial institutions. The Fed provides the kinds of services for banks that banks provide for public. The Federal Reserve Banks hold the reserves of the member banks, i.e. the commercial banks which are members of the Federal Reserve System. The FR Banks supply the member banks with currency if necessary and act to them as lenders by rediscounting bills. The Board determines the reserve requirements of the commercial banks. The Board too really determines discount rates. The Board discount rate corresponds in nature to the English Bank rate, though the Federal Reserve Banks do not always have the same discount rate.

Hold deposit accounts. Banks keep their reserves and other funds on deposit in a kind of checking account at their district bank.

Make loans. Financial institutions, like most businesses must borrow from time to time. When this happens they can go to the Fed for a loan.

Transfer funds. The Federal Reserve System's wire services and computers enable local banks to transfer funds from one to the other almost instantaneously.

Banker to the Federal Government. The Federal Reserve banks function as the federal government's banker. They maintain the Treasury Department's «checking account» and issue and redeem government bonds and other securities.

Supervises and regulates the nation's banking system. The Federal Reserve System, along with a number of other agencies, is charged with establishing the rules of behaviour for the banking system in general, and its individual institutions in particular. The purpose of these rules is to ensure the safety and soundness of the agencies that handle our funds.

Managers the supply of money and credit. One of the principal responsibilities of the Fed is to see what the nation needs. In addition to the Controller of the Currency and the FDIC (Federal Deposit Insurance Corporation), the Federal Reserve supervises nationally chartered and state-chartered banks and state banking agencies.

All national banks must be members of the Federal Reserve System. Incorporated state banks including commercial banks, mutual savings banks, trust companies, and industrial banks may also join the System.

Incorporated banks are those which have a charter from the state to act as an individual. Mutual savings banks are savings banks owned by their depositors. Industrial banks make loans for the purchase or manufacture of industrial products.

II. Exercises on the Text:

3. Give Russian equivalents to:

the nation's central bank; Board of Governors; the Open Market Committee; the Federal Advisory Council; for 14-year terms; supervise banking; is made up of the seven members; the nation's money supply; it offers advice; prominent commercial bankers; profoundly affect; to act as lenders; corresponding in nature; banks draw currency; the checks are credited to the deposits' accounts; are presented for collection; from time to time; wire services; almost instantaneously; government bond and other securities; establishing the rules of behavior; in general; in particular; the safety and soundness; the amount of money and credit in circulation; nationally charted; state-charted; incorporated state banks; mutual savings banks; trust companies.

4. Answer the following questions:

1. What is the Fed? 2. When was the Fed created? 3. What is the structure of the Fed? 4. What are the main functions of the Board of Governors? 5. How many Reserve Districts are there in the U.S.A? 6. What is the primary responsibility of the Open Market Committee? 7. Does the Federal Advisory Council offer advice on the nation's financial problems? 8. What are the main roles of the Fed? 9. How does the FR Banks work with the member banks? 10. What are presented to the district banks for collection? 11. What are the ways at transferring funds? 12. What does the FR Banks issue and redeem? 13. How does the Fed supervise and regulate the Nation's Banking System? 14. What financial institutions may be members of the Fed?

5. Sum up what the text says about:

the structure of the Fed;

what the Fed does;

incorporated state banks;

mutual savings banks;

industrial banks;

6. Translate into Russian paying attention to other bank services:

Other Bank Services

Trusts. A trust arrangement exists when a bank provides safekeeping and management of funds for individuals, estates or institutions such as pension funds. The bank's job is to administer the money entrusted to it wisely and for the benefit of the owner. The bank receives a fee for managing these funds.

Currency Exchange Banks can buy or sell foreign currencies for their own benefit or for their clients. Importers, exporters and travelers are major users of these services. Even domestic travelers may purchase travelers' checks issued by banks.

Safekeeping. Many banks rent safety deposit boxes in their vaults to persons seeking a safe and secure place for their valuables.

Credit Cards. Some banks derive significant revenues from operating bankcard programs. There is usually an annual fee to use the credit card, and the consumer pays interest on the unpaid balance. Merchants pay a fee to the bank as well.

Brokerage. In very recent times (and still on a highly limited basis) some banks have entered the brokerage business. As brokers they buy and sell stocks and bonds for their clients.

Insurance. In a number of states certain banks can sell their customers life insurance policies.

Letters of Credit. Banks may aid commerce by writing letters of credit. In these documents, the bank guarantees one party (such as a seller) that payment will be made if certain conditions are met (such as the delivery of merchandise). Letters of credit are common when goods are bought or sold abroad. There is a fee for providing this letter of credit.

Investments. Banks are permitted to buy U.S. government bonds for their own accounts. Banks may make money in trading such bonds and from the interest paid by the government to the holders of such securities.

Underwriting. When companies (or even units of government) raise money by issuing shares of stocks or by the sale of bonds, they use the services of certain financial specialists. Some very large banks provide such assistance, as do major brokerage companies.

Consulting. A growing business for banks is to give advice to other businesses. Especially significant in recent years is the assistance provided to firms involved in corporate mergers and takeovers.

III. Grammar Exercises

Forms of the Gerund.

	Active	Passive
Indefinite	asking (V-ing) спрашивать	being asked (being + V3) быть спрашиваемым
Perfect	having asked (having + V3) уже спросить	having been asked (having been + V3) уже быть спрошенным

Синтаксические функции герундия и способы их перевода на русский язык.

Подлежащее
1. Reading is useful	Чтение...
Часть сказуемого
2. Our aim is mastering English	...овладеть...
Дополнение
3. She likes singing	...пение
Определение
4. There are many ways of solving it	...решения
Обстоятельство
5. He went there for studying.	...учебы

Герундиальные обороты

Prep. + Noun (прит.п.) + Gerund

Pronoun (прит.)

(Prep.) + N (общ.п.) + Gerund

Example: He speaks of the workers' (their) doing it.

...что рабочие сделают это.

7. Form gerunds using the suffix -ing:

read; explain; govern; create; develop; increase; provide; delivery; establish; distribute; visit; enter.

8. Make the following sentences simple using the Gerund:

1. Do you mind if I take your warranty card for a moment? 2. We must consider the matter thoroughly before we come to any conclusion. 3. I remember that we have seen our department head only once. 4. When he received another letter from his firm he changed his mind. 5. Before he left the office he called on his sales manager.

9. Translate the following sentences into Russian:

1. Cleaning up the river will require a major effort, and considerable expense. 2. Scientists' working together and their sharing ideas with one another is of great advantage for science. 3. Economists have two ways of looking at economics and the economy. 4. Sellers compete by trying to produce the goods and services buyers want at the lowest possible price. 5. The next step in preparing a personal budget is to draw up a list of all your sources of income. 6. There are numerous reasons people think about owning a business of their own. 7. Instead of using that temporary opportunity to increase the market share for American autos by holding prices at current levels or lowering prices, the auto companies raised their prices. 8. Monetary policy refers to regulating the supply of money as a way of stabilizing the economy. 9. Ricardo is especially famous in international economies for demonstrating the advantages of free trade. 10. Hardly a day passes without hearing a commercial or reading an ad describing the advantages of one kind of program over another. 11. A firm of under 20 employees has a 37 percent chance of surviving four years. 12. Scientists' constantly exploring the unknown, their looking for new knowledge and the answers to unsolved questions cannot be overestimated.

10. Try to understand the following song paying attention to the Gerund:

I LIKE HAVING A WALK

On Sunday afternoons in the middle of July

I like having a rest just looking at the sky.

I like listening to the birds singing in the trees

- In July...

I like having a walk when the sun shines.

And walking in the rain.

I love thinking of you and all the things you do

- On Sunday afternoons.

On rainy April Sundays I like staying at home.

I like reading a book or simply being alone.

I like watching a film or listening to some music

- In April...

11. Read the text and retell it in Russian:

David Ricardo (1772-1823) Classical Champion of Free Trade

David Ricardo is one of history's most influential economists. Born in England, Ricardo made a fortune on the London Stock Exchange. This wealth gave him the time to write and to serve in Parliament's House of Commons. His most famous work. Principles of Political Economy and Taxation (1817), marked him as the greatest spokesman for classical economics since Adam Smith.

Ricardo is especially famous in international economics for demonstrating the advantages of free trade. Free trade is a policy in which tariffs and other barriers to trade between nations are removed. To prove his point, Ricardo developed a concept we now call the principle of comparative advantage. Comparative advantage enabled him to demonstrate that one nation might profitably import goods from another even though the importing country could produce that item for less than the exporter.

Ricardo's explanation of comparative advantage went as follows:

Portugal and England, both of whom produce wine and cloth, are considering the advantages of exchanging those products with one another.

x barrels of wine are equal to (and therefore trade evenly for) у yards of cloth.

In Portugal 80 workers can produces barrels of wine in a year. It takes 120 English workers to produce that many barrels.

Portuguese workers can produce у yards of cloth in a year. It takes 100 English workers to produce у yards of cloth.

We can see, Ricardo continued, that even though Portugal can produce both wine and cloth more efficiently than England, it pays them to specialize in the production of wine and import English cloth. This is so because by trading with England, Portugal can obtain as much cloth for 80 worker-years as it would take 90 worker-years to produce themselves.

England will also benefit. By specializing in cloth, it will be able to obtain wine in exchange for 100 worker- years of labor rather than 120.

As a member of Parliament, Ricardo pressed the government to abandon its traditional policy of protection. Though he did not live to achieve that goal, his efforts bore fruit in the 1840's when England became the first industrial power to adopt a policy of free trade. There followed 70 years of economic growth during which the nation became the world's wealthiest industrial power.

Unit 13

Grammar: 1. Participle I

2. Причастные обороты.

3. Независимые причастные обороты.

I. Language Practice

1. Practise the fluent reading and correct intonation:

- `What do you `usually `do after work, Ann?

-Oh, a lot of things. There's `always a `lot of `work to do about the house, washing up, doing the rooms, mending clothes.

- No, I `don't `mean that. `What's your `favourite pastime?

- Again - `nothing very special. Sometimes I read a little, watch TV or `listen to the music.

- `What's your father's hobby?

- He `enjoys carpentry, just making shelves, boxes, stools and so on.

- Oh, his `hobby `seems to be both interesting and useful for the house. By the way, do you know `what are the most `common `hobbies of Englishmen?

- Well, it `isn't an easy question. As `far as I know, `many `Britishers like `sports and games, others, `gardening or `collecting `different things.

- I see. `What about dancing? Do you like it?

- Oh, very. Actually I'm crazy about dancing. `Do you `mean to `say we'll `go to a dance?

- Yes, I'd like to. There's a very good disco at the College Club.

2. Listen to the speaker; read and memorize the following words and phrases:

1. incorporate - регистрироваться

2. subchapter S - раздел в налоговом кодексе США, касающийся налогообложения малых корпораций

3. income tax - налог на прибыль, подоходный налог

4. to prorate - распределять пропорционально

5. returns - отчет, налоговая декларация

6. tax return - налоговая декларация

7. to incur - потерпеть убытки

8. retained earnings account - счет о нераспределенной прибыли

C-corporation - (амер.) частная компания с ограниченной ответственностью

tax rate - налоговая ставка

Text. Small Business in the USA: An S-Corporation is not always best

Small companies are generally believed to incorporate as S-corporations. S-corporations take their name from a Congressional addition to the income tax law known as subchapter S. The S-corporation enjoying many corporate attributes (the main is that the owners of a corporation do not expose their personal assets to corporate liability), it is treated like a partnership for purposes of determining its Federal income tax liability. At the end of each fiscal year, its total earnings (or losses) are prorated to each shareholder, and these earnings (or losses) are incorporated into their individual income tax returns.

Among the advantages of the S-corporation for small business is no "double taxation" - paying an income tax on corporate net income, and then paying an individual income tax on the dividend income subsequently distributed by the corporation.

Thus, the S-corporation "generally will not be liable for federal income tax." If losses are incurred during the start-up period (or any other period), these losses can be deducted each year from the shareholders' tax returns. All income, losses, credits, and deductions are "washed through" the S-corporation at the end of each fiscal year, and carried directly to the individual tax return for each shareholder. Being emptied out at the end of each fiscal year, the S-corporation has no retained earnings account.

For most of small businesses, the S-corporation has long been the preferred corporate structure. The operational accounting is simpler, and accounting, legal, and administrative expenses are minimized. Shareholders receive the immediate benefits of earnings without "double taxation". There are sound reasons to state that this is generally the most popular corporate structure.

However, for small businesses that are growing rapidly, the conventional C-corporation status may turn out to be more preferable. The primary motivation for such a change would be the ability to retain and reinvest earnings in the expanding business.

The maximum Federal income tax rate for C-corporation is 34 percent for taxable income up to $10.0 million, whereas the maximum tax rate on S-corporation income is now the maximum individual rate of 39.6 percent. If the business is striving to retain and reinvest all possible cash during a period of strong growth, it will obviously forgo distributing cash dividends thereby avoiding the problem of "double taxation."

II. Exercises on the Text:

3. Give English equivalents to:

корпоративные свойства; личное имущество; корпоративная ответственность, задолженность по федеральным налоговым платежам; финансовый год; общие поступления (или убытки); «двойное налогообложение»; «отмываются»; заносятся прямо в индивидуальную налоговую декларацию; операционный учет; бухгалтерские расходы; управленческие расходы; немедленная прибыль от доходов; серьезные причины; способность сохранить и инвестировать; доход, подлежащий налогообложению; оно очевидно откажется от распределения дивидендов наличными; учитывая влияние амортизационных отчислений.

4. Combine the words into sentences:

1. like, its, a partnership, is, Federal, it, liability, for purposes, income, of determining, tax, treated.

2. no, among, of the S-corporation, is, the advantages, «double taxation», for small business.

3. «washed through», all income, at the end, losses, of each fiscal year, credits, and deductions, are, the S-corporation.

4. the most popular, sound, are, to state, corporate structure, there, reasons, this, that, generally, is.

5. 34 percent, up to $10 million, income tax rate, is, the maximum, for taxable income, Federal, for C-corporation.

5. Sum up what the text says about:

the advantages of the S-corporation;

the charge to conventional C-corporation.

6. US government defines a small business as one that has fewer than 500 employees. Why do you think that most small business are in the service and retail fields?

A. Transportation/Communication - taxi service, trucking, warehousing, radio station.

B. Finance - insurance, real estate, banking.

C. Wholesale - distributor, grain elevator.

D. Other - mining, landscaping, fishing, unclassified.

E. Service - motel, barber shop, advertising agency.

F. Manufacturing - machine shop, printing, brewing.

G. Retail - gas station, shoe store, restaurant, florist.

H. Construction - general constructor, plumbing and heating, electrical.

III. Grammar Exercises

Forms and Functions of Participle I.

	Active Voice	Passive Voice
Present Participle	using 1. определение: применяющий (иногда: -вший) 2. обстоятельство: применяя	being used 1. определение: применяющийся, применяемый, который применяется 2. обстоятельство: будучи применен, когда применяется
Perfect Participle	having used обстоятельство: применив (-яв, -вшись)	having been used обстоятельство: после того как применили, так как применили, когда применили.

7. Define the form of Participle I:

enjoying, being emptied out, having asked, having developed, working, having been invited, being built, living, being assisted.

8. Translate the following sentences into Russian paying attention to the forms and functions of Participle I: