Homework – FB 2 sem.

1 1

Student Localitatea Specializarea Anul de studiu

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: …………………..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
………………….to individual customers, and the latter to selling in …………..to retailers. Hence retail
banking refers to banks which offer services to ……………….customers, while wholesale banks deal
mainly with ………………
The most obvious type of retail bank is the commercial bank. Commercial banks receive money on
………………., pay money according to customers’ instructions, ………………….loans, buy and sell
foreign exchange. They also offer investment …………………….. Commercial banks make a
…………… from the ………………., the difference between the interest rate paid to account
……………., people who hold deposits with the bank, and the interest rate …………….to borrowers.
The most important ………………..of funds for the accounts opened with commercial banks in the USA
is the household sector, which, according to some sources, ……………………for two thirds of the
increase of such deposits.
There are different types of accounts opened with commercial banks. …………………accounts-
checking accounts in American English- have no restrictions as concerns the withdrawal of funds.
However, the rate of interest is rather …………… On the other hand, deposit accounts (also called
……………..or ……………….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
………………….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
…………………..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 …………….more money from their account then there
actually is in it. That means they can ………………their account. They will repay within a stipulated
period and be charged a rate of ………………..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 ………………….order. Irregular
payments can be made ………………….from cheque books the banks make available to their customers.
………………cards can be used when ordering things by post or over the telephone. When a customer
needs cash he can withdraw it from an automatic cash …………….by means of a cash card. When
traveling overseas, customers can use travellers’ ……………made available by their banks, as it
minimizes the risk of your cash being stolen.
Savings deposits are also a service offered by ………………..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 …………………..societies. these attract available
funds on deposit by paying higher interest rates than other banks and make them available in the form of
…………………. to those who ant to buy a house.

Accounts, advice, building, bulk, charged, cheque, cheques, collateral, corporations, credit, current,
deposit, dispenser, draw, holders, individual, interest, low, negotiate, notice, notify, overdraw, piece,
profit, provider, retail, savings, spread, standing, time
Homework – FB 2 sem. 1 2

1. What are the main types of banks presented in the text? Briefly explain each of them.

2. What is the difference between retail banks and wholesale banks?

3. What are the main banking products and services presented in the text?

4. Name a few types of bank accounts presented in the text and explain the difference between them.

5. Translate the text into Romanian.

II. Match the words with the definitions.

1. mortgage a. automatic teller machine

2. maturity b. a loan to buy property which serves as
security for the loan
3. retail bank c. difference between interest rate paid by a
bank to its depositors and the rate it charges
from its borrowers
4. withdraw d. set of shares and bonds or other securities
owned by a bank’s customer.
5. spread e. a type of account with a higher rate of
interest for money in deposits but requiring
notification in advance for withdrawing the
funds
6. standing order f. a type of account with low interest but
with no restrictions for withdrawal
7. deposit g. an arrangement with a bank which pays
the customer’s regular bills charging them to
his account
8. cash dispenser h. guarantee for a loan
9. current account i. the time when a debt must be repaid
10. notice account j. money in a bank account
11. security k. Society of Worldwide Inter-bank Funds
Transfer
12. SWIFT 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. bank statement m. an automatic cash machine from which
the customer can withdraw cash at any time
using a cash card.
14. ATM n. type of bank dealing with individual
customers
Homework – FB 2 sem. 1 3

15. portfolio o. take money from a bank account

16. IBRD p. The International Monetary Fund
17. IMF r. The International Bank for Reconstruction
and Development

III. Translate into English.

1. Va rugam sa deschideti un cont pe numele Smith, Jones and Co.

2. Pentru a deschide contul, anexam un cec emis de Banca Comerciala in valoare de RON 10 mil.

3. Acest cec in valoare de $1000 tras asupra Bancii de Dezvoltare, va constitui depozitul nostrum
initial.

4. Plata se va face prin transfer bancar.

5. Contul dumneavoastra este descoperit cu RON 5 mil.

6. Suntem gata sa va acordam un imprumut, cu conditia sa fie garantat.

7. Noi oferim credite clientilor nostril si le oferim conditii avantajoase de rambursare.

8. Graficul de rambursare este prezentat in sectiunea 2 a contractului de imprumut.

9. Sucursala dumneavoastra va lua masurile necesare pentru ca prelevarile sa apara in borderoul de

varsamint.

10. Conturile curente cu dobinda sint din ce in ce mai utilizate in Anglia.

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 …………………of an entity or we may say that assets are what the company
……………….. the claims of different parties against the assets of a company/entity are called
………………… They are subdivided into liabilities and owners’ (shareholders’) equity.
…………………….are the claims of the creditors of a company, people from outside the organization.
In a double-………………bookkeeping system of accounting, the basic accounting ……………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: …………….assets and fixed assets.
Homework – FB 2 sem. 1 4

Current assets are those that are part of the operating cycle of a business and are likely to be turned into
………………..within one year. Here we include what is sometimes called ………………assets, that is
funds readily available such as cash deposited in ………….accounts
in banks, Treasury ……………., that can be redeemed in three months, certificates of deposit, marketable
securities, debtors (UK) or accounts ………………. (USA). Stocks ready for sale, or ……………..should
also be included here. Insurance policies expiring within one year can be added to the category of current
assets.
…………………..assets include tangible assets such as plants, buildings, factories, land, that is those
assets that cannot be ……………….into cash as they are required for the operation of the entity. Some
……………..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 ……………….to people/corporations outside the entity. Here we
include obligations of the company to supply money, goods or services to other parties.
Current liabilities are those ………………..due for payment within one year. They refer to creditors (UK)
or accounts ……………….(USA), taxation payable, and other debts due for payment in the near future.
Long-term liabilities are to be ………………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.

2. What are current liabilities? Give three examples.

3. What is the basic accounting equation?

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. ……………..costs
2. Expenses which increase with increased production, e.g. labour, raw materials.
……………………costs
3. All costs directly related to production. ……………………..costs
4. The costs of employing workers and staff. ………………….costs
5. The costs for the day-to-day running of a company or business. ………………..costs
6. Selling at a price which is exactly what the product has cost to make. Cost……………
7. The study of all likely costs associated with a product. Cost………………..
8. The total costs of all products sold. Cost of ……………………..

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

VI. Translate into English.

1. Noi intocmim fiecare factura in trei exemplare.

Homework – FB 2 sem. 1 5

2. Activele imobilizate includ terenuri, cladiri, masini si vehicule.

3. Cheltuielile noastre de exploatare au crescut mult timp de un an, desi productia a ramas constanta.

4. Cu ce fond de rulment lucreaza ei?

5. Fondul de rulment se calculeaza scazind obligatiile curente din activele curente.

6. Dividendul s-a platit in ianuarie.

7. Profiturile inaintea impozitarii obtinute de companiile americane au crescut cu 15% in primul

semestru al anului trecut.

VII. How do you see the future of the Romanian banking system?
VIII. Describe a few banking products that you use.