Контрольная: Переведенная на английский лекция по теме Money and banking (деньги и банковское дело), the role of banks (роль банков), modern banking (современная банковская система)
MONEY AND BANKING
(ДЕНЬГИ И БАНКОВСКОЕ ДЕЛО)
Money and its Funсtions. Деньги, их функции.
Although the crucial feature of money is its acceptance as
the means of payment оr medium of exchange, money has other functions. It
serves as a standard of-value, a unit of account, a store of value and
ft a standard of deferred payment. We discuss each of the functions of
money in turn.
The Medium of Exchange. Средство обращения.
Money, the medium of exchange, is used in one-half of almost аЦ exchange.
Workers exchange labour services for money. People buy and sell goods in
exchange for money. We accept money not to consume it directly but because it
can subsequently be used to pay things we do wish to consume. Money is
the medium through, which people exchange goods and services.
To see that society benefits from a medium of exchange, imagine a barter
A barter economy has no medium of exchange. Goods are traded
directly or swapped for other goods.
In a barter economy, the seller and the buyer each must want something the other
has to offer. Each person is simultaneously a seller and a buyer. In order to
see a film, you must hand over in exchange a good or service that the
cinema manager wants. There has to be a double coincidence of wants.
You have to find a cinema where the manager wants what you have to offer in
Trading is very expensive in a barter economy. People must spend a tot of
time and effort finding others with whom they can make mutually satisfactory
swaps. Since time and effort are scarce resources, a barter economy is
wasteful. The use of monеу - any commodity generally accepted in payment for
goods, services, and debts - makes the trading process simpler and more
Other Functions of Моnеу. Другие функции денег
Money can also serve as a standard of value. Society
considers it convenient to use a monetary unit to determine relative
costs of different goods and services. In this function money appears as
the unit of account, is the unit in which prices are quoted and
accounts are kept.
In Russia prices are quoted in roubles; in Britain, in pounds sterling; in the
USA, in US dollars; in France, in French francs. It is usually convenient to
use the units in which the medium of exchange is measured as the unit of
account as well. However there are exceptions. During the rapid German
inflation of 1922 - 1923 when prices in marks were changing very quickly,
German shopkeepers found it more convenient to use dollars as the unit of
account. Prices were quoted in dollars even though payment was made in marks,
the German medium of exchange.
The situation in Russia nowadays reminds of that of in Germany.
Money is a store of value because it can be used to make
purchases in the future.
To be accepted in exchange, money has to be a store of value. Nobody would
accept money as payment for goods supplied today if the money was going to
be worthless when they tried to buy goods with it tomorrow. But money is
neither the only nor necessarily the best store of value. Houses, stamp
collections, and interest-bearing bank accounts all serve as stores of
value. Since money pays no interest and its real purchasing power
is eroded by inflation, there are almost certainly better ways to store
Finally, money serves as a standard of deferred payment or a
unit of account over time. When you borrow, the amount to be repaid next year
is measured in pounds sterling or in some other hard currency. Although
convenient, this is not an essential function of money. UK citizens can get
bank loans specifying in dollars the amount that must be repaid next year. Thus
the key feature of money is its use as a medium of exchange. For this, it must
act as a store of value as well. And it is usually, though not invariably,
convenient to make money the unit of account and standard of deferred payment as
Different Kinds of Money. Различные виды денег
In prisoner-of-war camps, cigarettes served as money. In the 19th
century money was mainly gold and silver coins. These are examples of
commodity money, ordinary goods with industrial uses (gold) and
consumption uses (cigarettes), which also serve as a medium of exchange. To use
a commodity money, society must either cut back on other uses of that commodity
or devote scarce resources to producing additional quantities of the commodity.
But there are less expensive ways for society to produce money.
A token money is a means of payment whose value or purchasing
power as money greatly exceeds its cost of production or value in uses other
than as money.
A $10 note, is worth far more as money than as a 3 x 6 inch piece of
high-quality paper. Similarly, the monetary value of most coins exceeds the
amount you would get by melting them down and selling off
the metals they contain. By collectively agreeing to use token money, society
economizes on the scarce resources required to produce money as a medium of
exchange. Since the manufacturing costs are tiny, why doesn't everyone
make $10 notes?
The essential condition for the survival of token money is the restriction of
the right to supply it. Private production is illegal:
Society enforces the use of token money by making it legal tender. The
law says it must be accepted as a means of payment.
In modern economies, token money is supplemented by IOU money.
An IOU money is a medium of exchange based on the debt of a
private firm or individual.
A bank deposit is IOU money because it is a debt of the bank. When you
have a bank deposit the bank owes you money. You can write a cheque to yourself
or a third party and the bank is obliged to pay whenever the cheque is
presented. Bank deposits are a medium of exchange because they are generally
accepted as payment.
the means of payment - средство платежа
medium of exchange - средство обращения
a standard of value - мера стоимости
a unit of account - единица учета
a store of value - средство сбережения (сохранения стоимости)
a standard of deferred payment - средство погашения долга
subsequently - впоследствии
a barter economy - бартерная экономика
to swap (also swop; syn. to exchange, to barter) - обменивать, менять
to hand over in exchange - передать, вручить в обмен
a double coincidence of wants - двойное совпадение потребностей
a monetary unit - денежная единица
to remind of - напоминать
to be worthless - обесцениваться
an interest-bearing bank account - счет в банке с выплатой процентов
to pay interest - приносить процентный доход
to erode - зд. фактически уменьшать
hard currency - твердая (конвертируемая) валюта
soft currency - неконвертируемая валюта
invariably - неизменно, постоянно
prisoner-of-war camp - лагерь военнопленных
commodity money - деньги - товар
token money - символические деньги (дензнаки)
inch - дюйм (равен 2,5 см)
to melt down - расплавить
tiny costs - мизерные затраты
legal tender - законное платежное средство
to supplement - дополнять
IOU money - I owe you - я вам должен; деньги - долговое обязательство
a bad deposit - вклад в банке
THE ROLE OF BANKS (РОЛЬ БАНКОВ)
The following story is going to explain the role of banks. In the past most
societies used different objects as money. Some of these were valuable because
they were rare and beautiful, others- because they could be eaten or
used. Early forms of money like these were used to buy goods. They were also
used to pay for marriages, fines and debts. But although everyday
objects were extremely practical kinds of cash in many ways, they had some
disadvantages, too. For example, it was difficult to measure their value
accurately, divide some of them into a -wide range of amounts, keep
some of them for a long time, use them to make financial plans for the future.
For reasons such as these, some societies began to use another kind of money,
that is, precious metals.
People used gold, gold bullion, as money. Those were dangerous times,
and people wanted a safe place to keep their gold. So they deposited it
with goldsmiths, people who worked with gold for jewellery and
so on and also had a guarded vault to keep it safe in. And when people
wanted some of their gold to pay for things with, they went and fetched
it from the goldsmith.
Two developments turned these goldsmiths into bankers. The first was that people
found it a lot easier to give the seller a letter than it was to fetch some
gold and then physically hand it over to him. This letter transferred
some of the gold they bad at the goldsmith's to the seller. This letter we would
nowadays call a cheque. And, of course, once these letters or cheques,
became acceptable as a way of paying for goods, people felt that the gold
they had deposited with the goldsmith, was just as good as gold in their own
pockets. And as letters or cheques, were easier to carry around than gold, and
a lot less dangerous, people started to say that their money holdings
were what they had with them plus their deposits. So a system of deposits was
started. The second development was that goldsmiths realized they had a great
deal of unused gold lying in their vaults doing nothing. This development was
actually of greater importance than the first.
Now let's turn to the first bank loan ever and see what happened. A firm
asked a goldsmith for a loan. The goldsmith realized that some of the gold in
his vault could be lent to the firm, and of course he asked the firm to pay it
back later with a little interest. Of course, at that moment the
goldsmith was short of gold, it wasn't actually his gold, but he
reckoned it was unlikely that everyone who had deposited gold with him would
want it back at the same time, at any rate - not before the firm had
repaid him his gold with a little interest. He thought it safe enough.
To understand what actually happened in this simple transaction let's
consider the following table.
Таbl. 6. Goldsmiths as bankers
The first row shows what the goldsmith did before he made this loan- He had a
hundred dollars of gold, which he owed to the people who had deposited
it with him, so his assets and liabilities were the same. But when he
lent, say, $10 of gold to the firm, he actually had only $90 of gold in his
vault plus the value of his loan. His assets still equalled his
liabilities, but he was going to get some interest
It so happened that the firm, that took out the loan, didn't really
want to carry that $10 of gold around, so It asked me goldsmith if, instead of
actually taking the gold, it could be given a deposit. The third row of
Tabl. 6 shows what happened then. Although the goldsmith's assets and
liabilities were the same, but were then worth $110, not $100.
When the firm wrote a cheque for $10, and that person came in to
collect his $10 worth of gold, the goldsmith's assets failed, but so
did his liabilities (the fourth row of the table). The important point to
notice here is that it made no difference to the goldsmith whether his
initial loan was in actual gold or in a form of a deposit.
Now let's turn to the question of reserves. Reserves are the amount
of gold that is immediately available in the vault to meet depositors'
demands. People originally deposited $100 of gold with the goldsmith. The
goldsmith lent $10, leaving himself with $90. As a banker he was
relying on the fact that not everyone would want their gold back at the
same time. If they had done, be couldn't have paid out. His reserves of $90
were not enough.
The goldsmith in the table has a 100% reserve ratio. The reserve ratio
is the ratio of reserves to deposits. Once he has made his loan, he has a 90%
deposit ratio. This is a small risk with a small profit. How much dare
he lend out in order to make a profit through his interest charges? What
are the risks involved? Suppose the goldsmith took too much of a risk. He
lent 80% of the gold he had. This panicked people. They doubted
he could pay them all back, he was bound to lose some of the gold he had
lent, so they rushed to get their gold back before it was too late. That was
what we would now call a run on the bank, a financial panic. And
the financial panic leads to exactly what people fear: the bank
cannot pay them, goes bankrupt, and they go bankrupt as well.
rare - редкий
lines - штрафы
to measure their value accurately - точно измерить их стоимость
to divide into a wide range of amounts - разделить на много частей
(маленьких или больших)
precious metals - драгоценные металлы
gold bullion - золотой слиток
to deposit with - хранить, вкладывать
a goldsmith - золотых дел мастер
worked with gold for jewellery - делал золотые украшения
a guarded vault - охраняемый подвал, хранилищ:
to fetch - приносить, доставать
to transfer - переводить, передавать
once these letters or cheques,
became acceptable as a way of paying for goods - как только
(когда) эти письма, или чеки, стали приниматься при
their money holdings- деньги, которые им принадлежали, которыми они владели
a bank loan - банковская ссуда, заем
a little interest - небольшой процент
the goldsmith was short of gold - у мастера не было достаточно золота
to reckon - полагать, считать
at any rate - во всяком случае
a transaction - сделка
to owe - быть должным
assets and liabilities - активы и пассивы
the vа1uе of his loan - стоимость ссуды, которую он дал
to equal - равняться, быть равным
the firm didn't really want to саrry that gold around, so it asked the
goldsmith If, instead of actually taking the gold, it could be given a deposit
- фирма не хотела держать золото при себе (носить золото с собой) и вместо
того, чтобы на самом деле его забрать, попросила мастера принять это золото на
хранение в виде вклада
(they) were worth $110 - их стоимость составляла, они оценивались (имели
ценность) в 110 долларов
to write (syn. to draw, to issue, to make out) a cheque - выписать чек
his assets failed - зд. его активы снизились
to fail - (о банках) обанкротиться
initial loan - первоначальная ссуда
reserves - резервы
the amount of gold that is immediately available in the vault - запасы
(количество) золота, которое всегда находится (и может быть немедленно
получено) в хранилище банка
depositors' demands - требования вкладчиков
leaving himself with $90 -оставив себе только 90 долларов
to rely on - рассчитывать, надеяться на что-либо
the reserve ratio • резервная норма
dare - осмеливаться
to make a profit through his interest charges - получить прибыль за счет
What are the risks involved? - Чем он рискует?
to panic (panicked) -пугать, приводить в панику
to doubt - сомневаться
he was bound to lose some of the gold - он непременно должен был
потерять часть золота
a run on the bank - натиск вкладчиков на банк
the financial panic - финансовая паника
to fear - опасаться, страшиться
to go bankrupt - обанкротиться
(СОВРЕМЕННАЯ БАНКОВСКАЯ СИСТЕМА)
The goldsmith bankers were an early example of a financial intermediary.
A financial intermediary is an institution that specializes in
bringing lenders and borrowers together.
A commercial bank borrows money from the public, crediting them
with a deposit. The deposit is a liability of the bank. It is money owed to
depositors. In turn the bank lends money to firms, households or governments
wishing to borrow.
Banks are not the only financial intermediaries. Insurance companies,
pension funds, and building societies also take in money in order to relend
it. The crucial feature of banks is that some of their liabilities are used as
a means of payment, and are therefore part of the money stock.
Commercial banks are financial intermediaries with a government licence to make
loans and issue deposits, including deposits against, which cheques can
Let's start by looking at the present-day UK banking system. Although the
details vary from country to country, the general principle is much the same
In the UK, the commercial banking system comprises about 600 registered banks,
the National Girobank operating through post offices, and a dozen
trustee saving banks. Much the most important single group is the London
clearing banks. The clearing banks are so named because they have a
central clearing house for handling payments by cheque.
A clearing system is a set of arrangements in which debts between
banks are settled by adding up all the transactions in a given period and
paying only the net amounts needed to balance inter-bank accounts.
Suppose you bank with Barclays but visit a supermarket that banks with
Lloyds. To pay for your shopping you write a cheque against your deposit at
Barclays. The supermarket pays this cheque into its account at Lloyds. In turn,
Lloyds presents the cheque to Barclays, which will credit Lloyds'
account at Barclays and debit your account at Barclays by an equivalent
amount. Because you purchased goods from a supermarket using a different bank,
a transfer of funds between the two banks is required. Crediting or debiting
one bank's account at another bank is the simplest way to achieve this.
However on the same day someone else is probably writing a cheque on a
Lloyds' deposit account to pay for some stereo equipment from a shop banking
with Barclays. The stereo shop pays the cheque into its Barclays' account,
increasing its deposit. Barclays then pays the cheque into its account at
Lloyds where this person's account is simultaneously debited. Now the
transfer flows from Lloyds to Barclays.
Although in both cases the cheque writer's account is debited and the cheque
recipient's account is credited, it does not make sense for the two banks
to make two separate inter-bank transactions between themselves. The clearing
system calculates the net flows between the member clearing banks and these are
the settlements that they make between themselves. Thus the system of clearing
cheques represents another way society reduces the costs of making
The Balance Sheet of the London Clearing Banks.
Балансовый отчет лондонских клиринговых банков
Таbl. 7 shows the balance sheet of the London clearing banks. Although
more complex, it is not fundamentally different from the balance sheet of the
goldsmith-banker shown in Таbl 6. We'll begin by discussing the asset
side of the balance sheet.
The Balance Sheet of the London Clearing Banks.
1. Old-fashioned goldsmith
2. Gold lender
3. Deposit lender Step 1
4. Deposit lender Step 2
Gold $90 + loan 10 Gold $l00 + loan $10 Gold $90+loan $10
Cash assets are notes and coin in the banks' vaults. However,
modem banks' cash assets also include their cash reserves deposited with
the Bank of England. The Bank of England (usually known as the Bank) is
the central bank or banker to the commercial banks.
Apart from cash, the other entries on the asset side of the balance sheet show
money that has been lent out or used to purchase interest-earning assets.
The second item, bills and market loans, shows short-term
lending in liquid assets.
Liquidity refers to the speed and the certainty with which an
asset can be converted back into money, whenever the asset-holders desire.
Money itself is thus the most liquid asset of all.
The third item, advances, shows lending to households and firms.
A firm that has borrowed to see it through a sticky period may not be
able to repay whenever the bank demands. Thus, although advances represent the
major share of clearing bank lending, they are not very liquid forms of bank
lending. The fourth item, securities, shows bank purchases of
interest-bearing hug-term financial assets. These can be government
bonds or industrial shares. Although these assets are traded daily
on the stock exchange, so in principle these securities can be cashed in any
time the bank wishes, their price fluctuates from day to day. Banks cannot be
certain how much they will get when they sell out. Hence financial investment
in securities is also illiquid.
The final two items on the asset side of the balance sheet show lending
in foreign currencies and miscellaneous bank assets.
Total assets of the London clearing banks were £200,1 billion. We now
shall examine how the equivalent liabilities were made up.
Deposits are chiefly of two kinds: sight deposits and time deposits.
Whereas sight deposits can be withdrawn on sight whenever
the depositor wishes, a minimum period of notification must be given before
time deposits can be withdrawn. Sight deposits are the bank accounts
against, which we write cheques, thereby running down our deposits
without giving the bank any prior warning. Whereas most banks do not pay
interest on sight deposits or cheque (checking) accounts, they can
afford to pay interest on time deposits. Since they have notification of any
withdrawals, they have plenty of time to sell off some of their high-
interest investments or call in some of their high-interest loans
in order to have the money to pay out deposits.
Certificates of deposit (CDs) are an extreme form of time deposit
where the bank borrows from the public for a specified period of time and knows
exactly when the loan must be repaid. The final liability items in Таbl.
7 show deposits in foreign currencies, miscellaneous liabilities, such
as cheques, in the process of clearing.
a financial intermediary - финансовый посредник
to bring together - соединять, сводить вместе
insurance companies - страховые компании
pension lands - пенсионные фонды
the money stock - денежная масса, деньги в обращении
to issue deposits - открывать вклады
the National Girobank - англ. Национальный жиробанк
trustee saving banks - доверительные сберегательные банки
London clearing banks - лондонские клиринговые банки (банки - члены
a central clearing house - центральная расчетная палата
inter-bank accounts - межбанковские счета
Barclays - Барклайз банк (Великобритания)
Lloyds - Ллойдз банк (Великобритания)
to credit - кредитовать
to debit - дебетовать
cheque recipient - получатель чека
cash assets - денежные активы
the Bank of England - Банк Англии, Английский банк
interest-earning (syn. interest-bearing) assets - активы,
приносящие процентный доход
bills and market loans - векселя и рыночные займы
short-term lending - краткосрочное кредитование
liquid (ant. illiquid) assets - ликвидные активы
liquidity - ликвидность
advances - ссуда в вида аванса
a sticky period - трудный период
securities - ценные бумаги
interest-bearing long-term financial assets - долгосрочные финансовые
активы, приносящие процентный доход
government bonds - государственные облигации
industrial shares - промышленные акции
the stock exchange - фондовая биржа
niscellaneous bank assets - прочее имущество банка
sight deposit - депозит до востребования; бессрочный вклад
time deposit - срочный вклад
to withdraw - отзывать (вклад)
to run down a deposit - уменьшать вклад
cheque (checking) accounts - текущий (чековый) счет
to sell off - распродавать
cad in high-interest loans - требовать возврата займов (требовать уплаты
certificates of deposit - депозитные сертификаты
miscellaneous liabilities ' прочие (другие) пассивы
1. GENERAL DEFINITION OF ACCOUNTING
Today, it is impossible to manage a business operation without accurate and
timely accounting information. Managers and employees, lenders, suppliers,
stockholders, and government agencies all rely on the information contained
in two financial statements. These two reports — the balance sheet and the
income statement — are summaries of a firm's activities during a specific
time period. They represent the results of perhaps tens of thousands of
transactions that have occurred during the accounting period.
Accounting is the process of systematically collecting, analyzing, and
reporting financial information. The basic product that an accounting firm
sells is information needed for the clients.
Many people confuse accounting with bookkeeping. Bookkeeping is
a necessary part of accounting. Bookkeepers are responsible for recording (or
keeping) the financial data that the accounting system processes.
The primary users of accounting information are managers. The firm's
accounting system provides the information dealing with revenues, costs,
accounts receivables, amounts borrowed and owed, profits, return on
investment, and the like. This information can be compiled for the entire
firm; for each product; for . each sales territory, store, or individual
salesperson; for each division or department; and generally in any way that
will help those who manage the organization. Accounting information helps
managers plan and set goals, organize, motivate, and control. Lenders and
suppliers need this accounting information to evaluate credit risks.
Stockholders and potential investors need the information to evaluate
soundness of investments, and government agencies need it to confirm tax
liabilities, confirm payroll deductions, and approve new issues of stocks and
bonds. The firm's accounting system must be able to provide all this
information, in the required form.
2. THE BASIS FOR THE ACCOUNTING PROCESS
The basis for the accounting process is the accounting equation. It shows
the relationship among the firm's assets, liabilities, and owner's equity.
Assets are the items of value that a firm owns —'cash,
inventories, land, equipment, buildings, patents, and the like.
Liabilities are the firm's debts and obligations — what it owes to others.
Owner's equity is the difference between a firm's assets and its
liabilities — what would be left over for the firm's owners if its assets were
used to pay off its liabilities.
The relationship among these three terms is the following:
Owners' equity = assets - liabilities
(The owners' equity is equal to the assets minus the liabilities)
For a sole proprietorship or partnership, the owners' equity is shown as the
difference between assets and liabilities. In a partnership, each partner's
share of the ownership is reported separately by each owner's name. For a
corporation, the owners' equity is usually referred to as stockholders '
equity or shareholders ' equity. It is shown as the total value of
its stock, plus retained earnings that have accumulated to date.
By moving the above three terms algebraically, we obtain the standard form of
the accounting equation:
Assets = liabilities + owners' equity
(The assets are equal to the liabilities plus the owners' equity)
3. A BALANCE SHEET
A balance sheet (or statement of financial position), is a summary of a
firm's assets, liabilities, and owners' equity accounts at a particular time,
showing the various money amounts that enter into the accounting equation. The
balance sheet must demonstrate that the accounting equation does indeed
balance. That is, it must show that the firm's assets are equal to its
liabilities plus its owners' equity. The balance sheet is prepared at least
once a year. Most firms also have balance sheets prepared semi-annually,
quarterly, or monthly.
4. AN INCOME STATEMENT
An income statement is a summary of a firm's revenues and expenses during
a specified accounting period. The income statement is sometimes
called the statement of income and expenses. It may be prepared
monthly, quarterly, semiannually, or annually. An income statement covering the
previous year must be included in a corporation's annual report to its
5. THE IMPORTANCE OF THE ABOVE TWO STATEMENTS
The information contained in these two financial statements becomes more
important when it is compared with corresponding information for previous
years, for competitors, and for the industry in which the firm operates. A
number of financial ratios can also be computed from this information. These
ratios provide a picture of the firm's profitability, its short-term
financial position, its activity in the area of accounts receivables and
inventory, and its long-term debt financing. Like the information on the
firm's financial statements, the ratios can and should be compared with
those of past accounting periods, those of competitors, and those
representing the average of the industry as a whole.
1. General Definition of Accounting
Sterling: Cash Bills and market loans
Lending in other currencies Miscellaneous assets
Sterling: Sight deposits
Deposits in other currencies Miscellaneous liabilities
2. The Basis for the Accounting Process
accounts (debt) receivables
return on investment
and the like compile
(бухгалтерский) учет ведение счетов
зд. руководить, управлять
зд. ведомство, орган
балансовый отчет, баланс
отчет о доходах
обобщенный отчет, итоги
сделка, деловая операция
зд. происходить, иметь место
смешивать (в уме), путать
счетоводство, ведение бухгалтерских книг, бухгалтерия
записывать, вести учет
зд. иметь отношение (к)
дебиторская задолженность (долг, который следует получить компании, счета дебиторов, счета к получению
занимать, брать взаймы
прибыль на инвестированный капитал
и тому подобное собирать
|individual salesperson||отдельный продавец|
|in any way|
зд. в любой форме
|set goals||ставить цели|
|potential investor||потенциальный инвестор|
зд. пассив; задолженность
|payroll ||платежная ведомость (по зарплате)|
зд. утверждать, одобрять
амер. акции, англ. ценные бумаги
|be able||быть способным|
|in the required form||в требуемом виде|
3. A Balance Sheet
(дебет и кредит)
активы, авуары, зд. актив баланса
|item of value||материальные ценности|
собственный (уставной) акционерный
зд. понятие, значение
|is referred (to)|
|stockholder's equity||доля акционера|
|retained earning||нераспределенная прибыль|
зд. к определенному времени
4. An Income Statement
|summary ||сводка, краткое изложение|
|that is ||то есть|
|at least ||по крайней мере|
|once ||один раз 1|
|semiannually ||раз в полгода|
5. The Importance of the above two Statements
|income statement |
отчет, счет прибылей (и убытков)
|cover ||охватывать, учитывать|
|annual report ||годовой отчет|
a number (of)
сумма, причитающаяся к получению, дебиторская задолженность
|debt financing |
(т.е. путем получения займов)
зд. заменяет слово «отчеты»
|accounting period ||отчетный период|
|average ||средняя величина|
|as a whole ||в целом|