TALKING ABOUT BANKS – Mr. Carter, we’ve seen quite a few changes in the Bank Rate in recent years. How do you account for this?

– That’s a very wide question. Inflation has clearly played its part, but one must also take into consideration the shift in the structure of overseas investment, and the chronic deficit of payments balance that has constantly worried our ministers of finance for many years.

– What do you think, can a rise in the Bank Rate have the affect of

attracting foreign capital into the country?

- Oh, yes. When the Bank Rate rises, the general level of interest rates goes up too, and investors and speculators abroad who want the highest possible yield on their money may find the pound sterling more attractive than formerly.

– What other effects can a rise in the level of interest rates have?

– Well, if you happen to be paying off a mortgage on a house, you’re not going to welcome it, are you? Raised interest rates should encourage saving, of course, but investment involving borrowing will on the other hand tend to slow down.

– To come close to the commercial bank’s day-to-day activities, what securities apart from cash does a modern bank rely on?

– It’s often said that the bill of exchange is the banker’s first line of defence. Then, the most liquid of the bank’s investments are their holdings of gift-edged securities. What about loans and overdrafts for industrial and commercial concerns?

– Since these are less liquid, banks prefer their advances to be on a short term or medium term basis, with a definite agreement regarding dates of repayment.

– Could you say a few words about overseas payments? What is the form of settlement?

– There is a number of facilities offered by banks. There is the banker’s draft, and the rather safer transfers – the mail transfer, the cable transfer and the telex transfer. These have to a larger extent superseded the bill of exchange.

– And how does a British exporter receive payment for the goods he delivers abroad?

– Well, let’s start with the open account method, which is often used in the USA and South America. Then there are the documents for collection system – this gives the exporter a much greater degree of security. The arrangement here may be documents against acceptance. Another one used to a considerable extent is called cash against documents. The other important method I should like to mention is the system of credits.

– Thank you, Mr. Carter. Your explanations about money matters have been very informative.

Упражнение 1. Переведите на русский язык слова и выражения:

shift (in) –

overseas investment –

deficit of payments balance –

Bank Rate –

interest rate –

yield on the money –

a mortgage (on) –

securities –

cash –

bill of exchange –

liquid –

gift-edged securities –

overdraft –

draft –

open account –

to bank (on) –

Упражнение 2. Найдите в тексте эквиваленты(слова, которые обозначают тоже самое только на английском языке) на английском языке к ниже перечисленным словам:

В последние годы; изменения; учетная ставка; объяснять; инфляция; принимать во внимание; структура зарубежных капиталовложений; дефицит платежного баланса; министр финансов; привлекать капитал; общий уровень процентных ставок; повышаться;

подниматься; вкладчики и биржевики; максимальный доход от денег; последствия; выплачивать закладную; стимулировать накопление; тенденция к снижению; повседневная деятельность банка; ценные бумаги; наличные деньги; переводной вексель; ликвидные банковские ценные бумаги; гарантированные ценные бумаги; ссуда; превышение кредита; ликвидный; авансирование на короткий или средний срок; твердое соглашение о сроках выплаты; тратта; перевод денег; получать платеж за товар; открытый счет; инкассо; соглашение; акцепт; наличные против документов; система кредитов; финансовые проблемы.

Упражнение 3. Замените выделенные слова синонимичными словами из текста.

1. We have seen some changes in the Bank Rate.

2. How do you explain this?

3. Inflation has definitely played its role.

4. But one must take into account some more problems.

5. In that case the general level of interest rates is increased.