Important Nu Sterge Engleza4.doc

I. Fill in the blanks with suitable words from the list at the end of the text and then answer the questions that follow. Banks fall mainly into two main categories: retail banks and wholesale banks. The term retail and wholesale are primarily used in trade, where the former refers to selling in small quantities by the provider to individual customers, and the latter to selling in bulk to retailers. Hence retail banking refers to banks which offer services to individual customers, while wholesale banks deal mainly with corporations. The most obvious type of retail bank is the commercial bank. Commercial banks receive money on deposit, pay money according to customers’ instructions, negotiate loans, buy and sell foreign exchange. They also offer investment advice. Commercial banks make a profit from the spread, the difference between the interest rate paid to account holders, people who hold deposits with the bank, and the interest rate charged to borrowers. The most important building of funds for the accounts opened with commercial banks in the USA is the household sector, which, according to some sources, credit for two thirds of the increase of such deposits. There are different types of accounts opened with commercial banks cheque accountschecking accounts in American English- have no restrictions as concerns the withdrawal of funds. However, the rate of interest is rather low. On the other hand, deposit accounts (also called notice or savings accounts) offer a higher rate of interest, but withdrawals are restricted by the fact that the depositor has to keep the funds for a specified period in the bank account or must notify his withdrawal decision some time in advance. Loans are offered to customers in need of funds and are conditional upon the supplying of security and interest by borrowers. They are offered in different forms adopted as far as maturity is concerned to customers’ special needs. Besides loans banks offer overdrafts to their customers. An overdraft- in fact a special type of loan- means that customers who have an account with the bank are allowed- if they have negotiated such a facility- to draw more money from their account then there actually is in it. That means they can overdraw their account. They will repay within a stipulated period and be charged a rate of interest for the amount. The customers can use certain banking products. Thus banks can pay regular bills for their clients, according to the instructions of the latter, this instrument being called standing order. Irregular payments can be made collateral from cheque books the banks make available to their customers. Savings deposits are also a service offered by retail banks. In the USA, according to some sources, these banks pay much higher interest rates than commercial banks, although the latter still attract a high proportion of savings deposits. A special type of bank in Britain is represented by the current societies. These attract available funds on deposit by paying higher interest rates than other banks and make them available in the form of savings to those who want to buy a house. Accounts, advice, building, bulk, charged, cheque, cheques, collateral, corporations, credit, current, deposit, dispenser, draw, holders, individual, interest, low, negotiate,

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notice, notify, overdraw, piece, profit, provider, retail, savings, spread, standing, time 1. What are the main types of banks presented in the text? Briefly explain each of them. The main types of banks presented in the above text are the retail and the wholesale banks. The retail banks usually work with individual customers. These kinds of banks refer to selling in small quantities. The wholesale banks handle mainly corporations as customers.

2. What is the difference between retail banks and wholesale banks? The main difference between retail banks and wholesale banks consists mainly in the type of customer they deal with. While the wholesale banks deal with big companies and corporations, the retail banks work mainly with individuals as customers. 3. What are the main banking products and services presented in the text? The main banking products are the standing order, savings deposits, credit cards, and travelers’ cheques. 4. Name a few types of bank accounts presented in the text and explain the difference between them. The checking accounts and the deposit accounts are the most common bank accounts. The main difference is the interest rate: this is low for the checking accounts and is higher for the deposit accounts.However, the deposit accounts are much more restrictive when it comes to money withdrawing. 5. Translate the text into Romanian. Bancile se impart in doua mari categorii: bancile de tip retail si cele de tip wholesale. Termenii de wholesale si retail se refera in principal la schimburi; primul se refera la vanzari in cantitati mici unor clienti individuali, pe cand al doilea se refera in principal la vanzari in cantitati mari unor firme de tip retail. Bancile retail ofera servicii in principal clentilor individuali, iar cele wholesale au ca si clienti corporatii. Banca comerciala este cel mai evident tip de banca retail. Banca comerciala primeste bani la depozit, plateste bani conform cu instructiunile clientilor, negociaza imprumuturi, cumpara si vinde valuta. Banca comerciala ofera deasemenea si consultanta. Bancile comerciale fac profit din conturi, diferenta dintre rata dobanzii platita titularilor de depozite, si rata dobanzii perceputa celor care imprumuta. Cel mai important venit de fonduri pentru conturile deschise la bancile comerciale din USA il reprezinta sectorul creditelor personale, care reprezinta doua treimi din cresterea acestor tipuri de depozite.

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Exista diferite tipuri de conturi deschise la bancile comerciale – conturile de tip cec nu au restrictii in privinta retragerii de fonduri. Totusi, rata dobanzii este relativ scazuta. Pe de alta parte conturile de tip depozit, ofera o rata a dobanzii mai mare, dar retragerile de sume din cont sunt restrictionate de faptul ca depunatorul trebuie sa mentina banii in cont pentru o anumita perioada de timp sau trebuie sa isi anunte intentia de a efectua o retragere din cont cu o perioada de timp inainte. Imprumuturile sunt oferite clientilor care au nevoie de fonduri, dar sunt conditionate de gradul de securitate si de plata dobanzii de catre client bancii. Pe langa imprumuturi, bancile mai ofera si facilitatea de overdraft clientilor. Un overdraft – de fapt este un tip mai special de imprumut – presupune ca un client care are un cont deschis la banca are posibilitatea, daca a negociat in prealabil, sa retraga mai multi bani decat are in cont. Asta inseamna ca pot sa supra-retraga bani din cont. Clientii vor achita intr-o perioada stipulata si vor plati cu dobanda suma imprumutata ca overdraft. Clientii pot beneficia deasemenea si de anumite produse bancare. Astfel, bancile pot plati regulat facturile clientilor urmand instructiunile acestora, acest instrument(facilitate) se numeste "standing orderr". Plati neregulate pot fi facute colateral cartilor(carnetelor) de cec pe care bancile le pun la dispozitia clientilor. Depozitele de economii sunt deasemenea un serviciu oferit de bancile tip retail. Acestea atrag fondurile disponibile la depozit. In SUA, conform cu unele surse, aceste banci platesc dobanzi mult mai mari, desi acestea din urma atrag un mare procent din economiile la depozit. Un tip mai deosebit de banca in Marea Britanie, o reprezinta societatile de.......Acestea atrag fondurile disponibile la depozit paltind rate ale dobanzii mult mai mari si le fac disponibile sub forma a.....celor care vor sa-si cumpere o locuinta. II. Match the words with the definitions. 1. mortgage 2. maturity 3. retail bank 4. withdraw 5. spread

6. standing order 7. deposit

a. automatic teller machine - 14 b. a loan to buy property which serves as security for the loan - 1 c. difference between interest rate paid by a bank to its depositors and the rate it charges from its borrowers - 5 d. set of shares and bonds or other securities owned by a bank’s customer. - 15 e. a type of account with a higher rate of interest for money in deposits but requiring notification in advance for withdrawing the funds - 10 f. a type of account with low interest but with no restrictions for withdrawal - 9 g. an arrangement with a bank which pays the customer’s regular bills charging them to his account - 6

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8. cash dispenser 9. current account 10. notice account 11. security 12. SWIFT

13. bank statement 14. ATM 15. portfolio 16. IBRD 17. IMF

h. guarantee for a loan - 11 i. the time when a debt must be repaid - 2 j. money in a bank account - 7 k. Society of Worldwide Inter-bank Funds Transfer - 11 l. a statement sent regularly by a bank to a customer, showing the money that has gone into and out of theit account over a particular period of time. - 13 m. an automatic cash machine from which the customer can withdraw cash at any time using a cash card. - 8 n. type of bank dealing with individual customers - 3 o. take money from a bank account - 4 p. The International Monetary Fund - 17 r. The International Bank for Reconstruction and Development - 16

III. Translate into English. 1. Va rugam sa deschideti un cont pe numele Smith, Jones and Co. Please open an account on the Smith, Jones and Co name. 2. Pentru a deschide contul, anexam un cec emis de Banca Comerciala in valoare de RON 10 mil. For opening this account, we attach a check submitted by the Commercial Bank for 10 mil RON. 3. Acest cec in valoare de $1000 tras asupra Bancii de Dezvoltare, va constitui depozitul nostrum initial. This check for $1000 on the Bank of .Development. bank, will be our initial deposit. 4. Plata se va face prin transfer bancar. The payment will be done by bank transfer. 5. Contul dumneavoastra este descoperit cu RON 5 mil. Your bank account is ...... with 5 mil RON. 6. Suntem gata sa va acordam un imprumut, cu conditia sa fie garantat. We are willing to offer you a loan as long as it is secured.

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7. Noi oferim credite clientilor nostril si le oferim conditii avantajoase de rambursare. We offer loans to our customers and also provide very good refund (repayment) solutions (conditions).

8. Graficul de rambursare este prezentat in sectiunea 2 a contractului de imprumut. The refund graphic is presented in section2 of the loan contract. 9. Sucursala dumneavoastra va lua masurile necesare pentru ca prelevarile sa apara in borderoul de varsamint. Your branch office will take the necessary measures so that .... 10. Conturile curente cu dobinda sint din ce in ce mai utilizate in Anglia. Current accounts with interest are more and more used in England. IV. Fill in the blanks with suitable words from the list at the end of the text and then answer the questions that follow. Assets are the economic inventories of an entity or we may say that assets are what the company owns the claims of different parties against the assets of a company/entity are called equities. They are subdivided into liabilities and owners’ (shareholders’) equity. Liabilities are the claims of the creditors of a company, people from outside the organization. In a double- entry bookkeeping system of accounting, the basic accounting equation is Assets= Equity, as the two parts of an account must be balanced. An extended formulation of the equation will be Assets= Liabilities + owners’ (shareholders’) equity. Assets are subdivided into two broad categories: liquid assets and fixed assets. Current assets are those that are part of the operating cycle of a business and are likely to be turned into cash within one year. Here we include what is sometimes called payable assets, that is funds readily available such as cash deposited in current accounts in banks, Treasury bills, that can be redeemed in three months, certificates of deposit, marketable securities, debtors (UK) or accounts receivable(USA). Stocks ready for sale, or resources should also be included here. Insurance policies expiring within one year can be added to the category of current assets. Fixed assets include tangible assets such as plants, buildings, factories, land, that is those assets that cannot be turned into cash as they are required for the operation of the entity. Some intangible assets, that cannot be readily computed and turned into cash, can be added to the category of fixed assets. Examples in this respect are patents, trademarks, copyrights. Liabilities are what the company owes to people/corporations outside the entity. Here we include obligations of the company to supply money, goods or services to other parties.

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Current liabilities are those falling due for payment within one year. They refer to creditors (UK) or current accounts (USA), taxation payable, and other debts due for payment in the near future. Long-term liabilities are to be paid at some distant time. Examples are long-term borrowings and mortgages. Bills, cash, current (2 times), entry, equation, equities, fixed, falling, intangible, inventories, liabilities, liquid, owes, owns, paid, payable, receivable, resources, turned. 1. What are current assets? Give three examples. The assets are the sum of liabilities and the owner's shareholders. The current assets are estimated to be turned into cash within one year. - financial assets - financial fixed assets - financial non-current assets - investment assets 2. What are current liabilities? Give three examples. The current liabilities are what the company has to pay to outside parties within one year. - creditor debts - taxation payable - accounts payable - bills 3. What is the basic accounting equation? The basic accounting equation says that assets equals equities. 4.

Translate the text into Romanian.

V. Read the definitions below, then complete the phrases that follow by combining an appropriate word from the box with costs. 1. Usual expenses such as rent, heating, lighting, which are not changed by the volume of production. fixed costs. 2. Expenses which increase with increased production, e.g. labour, raw materials. labour costs. 3. All costs directly related to production. production costs. 4. The costs of employing workers and staff. variable costs. 5. The costs for the day-to-day running of a company or business operating costs. 6. Selling at a price which is exactly what the product has cost to make. Cost price. 7. The study of all likely costs associated with a product. Cost analysis. 8. The total costs of all products sold. Cost of sales.

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Operating, sales, fixed, labour, analysis, price, variable, production VI.

Translate into English.

1. Noi intocmim fiecare factura in trei exemplare. We make three copies of every bill. 2. Activele imobilizate includ terenuri, cladiri, masini si vehicule. The fixed assets are made of lands, buildings, cars and vehicles. 3. Cheltuielile noastre de exploatare au crescut mult timp de un an, desi productia a ramas constanta. Our operating expenses have increased a lot for a year, although the production remained constant. 4. Cu ce fond de rulment lucreaza ei? What is the working capital they deal with? 5. Fondul de rulment se calculeaza scazind obligatiile curente din activele curente. The working capital is calculated by substracting the liabilities from the current assets. 6. Dividendul s-a platit in ianuarie. The dividends were paid in January. 7. Profiturile inaintea impozitarii obtinute de companiile americane au crescut cu 15% in primul semestru al anului trecut. The profits obtained by the american companies before taxation have increased by 15% in the first quarter of last year. VII. How do you see the future of the Romanian banking system? The future of the Romanian banking system looks promising for the next few years . Probably, the banking system has never been in a better shape than it is now but the positive evolution can continue in the years to come taking into account that Romania will become EU member starting with 1st of January 2007. However, the romanian banks will have to face the competion from the foreign banks and in order to resist in a highly competional environment like the E.U. bank system, they will have to improve their sevices and to promote new products that can defeat the competition. VIII.

Describe a few banking products that you use.

· The bank products I use are the loans, the credit cards and the standing order. I use the loans every time I need extra money. · The credit card I use mainly to get my salary every month from the bank which works with the company I work for.

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· I use the standing order service to avoid paying by myself the monthly bills. The bank takes care of paying these with the money I have in my account.

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