1.Money.

Economists define money as anything that is regularly used in economic transactions or exchanges. We use money regularly, every day. In an ice cream store, we hand the person behind the counter some dollar bills and coins, and we receive an ice cream cone. This is an example of an economic exchange. One party hands over currency the dollar bills and the coins and the other party hands over goods and services (the ice cream cone). Why do the owners of the ice cream stores accept the dollar bills and coins in payment for the ice cream? The reason is that they will be making other economic exchanges with the dollar bills that they accept. At other times and in other societies, different items have been used as money: precious stones, gold, shells and so on. Money serves several functions: a. As a medium of exchange. Suppose money did not exist and you had a car you wanted to sell in order to buy a boat. You can trade your car directly for a boat. This would be an example of barter: trading goods directly for goods. But barter presents obvious problems in making transactions. In a barter system there must be a coincidence of wants before two people can tradeone must want exactly what the other has to offer, when and where it is offered, so that the exchange may occur. A medium of exchange permits the value of goods to be assessed and rendered in terms of the intermediary, most often, a form of money widely accepted to buy any other good. Money is accepted in economic exchanges, it makes economic transactions much easier.
b. As a unit of account. A unit of account is a standard unit of measurement of value/cost of goods,

services, or assets. It lends meaning to profits, losses, liability, or assets. Money provides a convenient measuring rod when prices for all goods are quoted in money terms.
c. As a store of value. A recognized form of exchange can be a form of money or currency. To act

as a store of value, this form must be able to be saved and retrieved at a later time, and be predictably useful when retrieved. If you sell your car to purchase a boat, you may not be able to purchase the boat immediately. In the meantime, you will be holding the money you received from the sale of the car. During that period of time, the value of the money doesnt change. Here is the function of money to be a store of value. Modern forms of money. When using money anonymously, the most common methods are cash (coins or banknotes), stored-value cards or gold. When you leave a financial record of the transaction, the most common methods are checks, debit cards and electronic money. Electronic money (or e-currency, emoney, electronic cash) refers to money which is only exchanged electronically. This involves the use of computer networks, the Internet. Electronic Funds Transfer, direct deposits, digital gold currency and virtual currency are all examples of electronic money. Electronic money provides many benefits: convenience, privacy, increased efficiency of transactions, lower transaction fees, and new business opportunities with the expansion of economic activities on the Internet. Words to know To exchange- a schimba/ Value-valoare/ Cash-numerar, bani lichizi/ Counter-tejghea/ Currency-moned naional/ , Goods-bunuri, marf/ Service-serviciu/ Payment-plat/

Rod-tij/ Measure-unitate de msur, a msura/ , To quote-a indica/, To purchase- a procura/ Terms to know Barter is the direct exchange of goods or services between parties involved in a commercial transaction without money being employed Medium (of exchange), pl. media or mediums-something that is used for a particular purpose Transaction-an individual act of reciprocal giving and receiving in the exchange process Debit card-a plastic card that can be used to take money directly from your bank account when you pay for something Credit card-a small plastic card that you can use to buy goods and services and pay for them later Store card-a card that a particular shop/store provides for regular customers so that they can use it to buy goods that they will pay for later Exercises I Find in the text English equivalents of the following word combinations Bancnote i monede, bunuri i servicii, mijloc de schimb, unitate de msur, stocarea valorii, a procura o barc, nregistrare financiar a tranzaciei, orice ce este folosit regulat n tranzacii economice, a nmna bancnote, moned naional, proprietar, plat, comercializarea bunurilor pentru bunuri , , , , , , , , , , , , II Choose from among the given meanings the one that fits the context 1. A bill means here Check Money Suggestion for a new law A program of entertainment at a theatre 2. An exchange means here An argument A building where business people met in the past Giving and receiving 3. An account means here An arrangement with a bank A regular customer A description Business records 4. A store means here

A large shop Goods of a particular kind A place where goods are kept III State whether these statements are TRUE or FALSE 1. Money is used irregularly in economic transactions or exchanges. 2. The owners accept money in payment because they will be making other economic exchanges with it. 3. Barter means trading goods directly for other goods. 4. Money is considered to be a medium of exchange. 5. Money doesnt provide a convenient measuring rod. 6. No matter how long you hold the money from the sale, its value doesnt change. 7. Today modern forms of money are bones, shells and feathers. IV Complete the following sentences using words from the text 1. Money is anything that is regularly used in 2. In an ice cream store, we hand the person behind..some dollar bills and coins. 3. An example of an economic exchange is when one party.currency and the other partygoods and services. 4. At other times, differenthave been used as money. 5. Money makes economic transactions.. 6. If you sell your car to..a boat, you may not be able to..the boat immediately. 7. When using money anonymously, the most common methods are 8. When you leave a financial record of the transaction, the most common methods are V Answer the following questions 1. What is money? 2. Why do the owners accept money in payment for their goods and services? 3. What is barter? 4. What items have been used as money? 5. What are the functions of money? 6. What are the modern forms of money? VI Talk on the following topics 1. Why isnt barter efficient?

2. Modern forms of money. 3. The items that have been used instead of money.

2. Marketing.
The American Marketing Association defines marketing as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. The process that leads any business to success is the following: First, the firm must talk to its potential customers to assess their needs for its products or services. Then the firm must develop a product or service to satisfy those needs. Finally, the firm must continue to seek ways to provide customer satisfaction. This process is an application of the marketing concept. To implement marketing concept a firm must first obtain information about its present and potential customers. Next, the firm must mobilize its marketing resources to provide a product that will satisfy its customers and price the product at a level that is acceptable to buyers. Then the firm should promote the product so that potential customers will be aware of its existence. And finally, the firm must ensure that the product is distributed so it is available to customers where and when needed. At the end the firm must again obtain marketing information regarding the effectiveness of its efforts. Markets and their classification. A market is a group of individuals, organizations or both who have needs for products and who have the ability, willingness and authority to purchase such products. Markets are classified are consumer, industrial and reseller markets. Consumer markets consist of purchasers who intend to consume and who do not buy products to make a profit. Industrial markets purchase specific kinds of products for use either in day-to-day operations or in making other products for profit. Reseller markets consist of intermediaries such as wholesalers and retailers who buy finished products and sell them for a profit. After classifying and identifying its market, an organization must develop marketing strategies to reach the audience. A marketing strategy is a plan that will enable an organization to make the best use of its resources and advantages to meet its objectives. A marketing strategy consists of: 1) the selection and analysis of a target market and 2) the creation and maintenance of an appropriate marketing mix that is a combination of a product, price, distribution and promotion developed to satisfy a particular target market. Words to know. Customer client, consummator / To assess a aprecia, a evalua / To seek a cuta / To provide a asigura, a aproviziona / To be aware of a fi contient de / To ensure a (se) asigura, a garanta / , Available accesibil, disponibil / , Willingness bunvoin / , Reseller / Wholesaler angrosist / Retailer comerciant cu amnuntul / Maintenance meninere, ntreinere / , Terms. 1. target a result that you try to achieve, e.g. business goals and targets Synonyms: objective, goal, object, end. Patterns and collocations:

to work towards a target impossible / ambitious / difficult / tough / unrealistic target economic / financial/ business / sales targets to set / reach / succeed in / meet / exceed / fall short of / agree / identify a target to achieve a target 2. to purchase to buy smth 3. to price to fix the price of something at a particular level Idiom: to price yourself / smth out of the market the charge such a high price for your goods, services that nobody wants to buy them. Price the amount of money that you have to pay for smth. Synonyms: cost, value, expense, worth. Patterns and collocations: The high price of smth The real / true price of smth To put / set price on smth To lower / reduce / cut the price of smth To increase / raise the price of smth To drop / fall / go down in price To go up / increase / rise in price 4. consumer a person who buy goods or uses services 5. customer a person or an organization that buys smth from a shop / store or business 6. advantage a thing that helps you to be better or more successful than other people Exercises 1. Find in the text English equivalents for these word combinations. A satisface obiectivele individuale i organizaionale, clieni poteniali, a evalua necesiti, a cuta ci pentru prestarea satisfaciei clientului, a obine informaie, resurse comerciale, a promova produsul, a ti despre existena lui, produsul este distribuit, a procura astfel de produse, consumatorii nu cumpr produse pentru profit, operaiuni zilnice, vnztori en gros sau cu amnuntul, a folosi ct mai bine resursele i avantajele sale, piaa vizat. , , , , , , , , , , , (), , , . 2. Insert if necessary prepositions. 1. The firm must talk its potential customers to assess their needs its products or services. 2. A firm must obtain information its present and potential customers. 3. A firm provides a product that will satisfy its customers and price the product a level that is acceptable buyers. 4. Potential customers will be aware the products existence. 5. Industrial markets purchase specific kinds of products use either in day-to-day operations or in making other products for profit. 6. Retailers buy finished products and sell them a profit. 3. Form nouns from the given verbs using the suffix - er and translate them. To buy, to sell, to purchase, to consume, to produce, to work, to write, to read, to manage, to retail, to trade, to research, to lead. 4. Find the synonyms of the words below.

Objective, to buy, value, goods, requirement, advertisement, to know, readiness, to allow. 5. a) b) c) d) e) f) g) h) i) j) Answer the following questions. How does the American Marketing Association define marketing? What first step should a firm make to achieve success? What is the second step? What is the third step? What is the fourth step? What is a market? What do consumer markets consist of? What do industrial markets purchase? What are reseller markets? What is the definition of a marketing strategy?

6. Translate the following patterns and collocations and make up sentences using them. The high price of smth., to set a price on smth., to lower / reduce the price of smth., to increase / raise the price of smth., to achieve a target, to set / reach a target.

3. Unemployment.
The unemployed are those individuals who do not currently have a job but who are actually looking for work. The employed are individuals who currently have jobs. Together the unemployed and employed comprise the labour force. We can divide unemployment into three basic types. During periods of crisis, recession firms will not want to employ as many workers as they do in good times because they are not producing as many goods and services. The result will be fewer workers with jobs and rising unemployment. This is cyclical unemployment. Frictional unemployment is the unemployment that occurs naturally during the normal workings of an economy. People change jobs, move across the country, and search for new opportunities. These are the reasons of frictional unemployment. During the six months in which you are looking for a good job, you are among those unemployed who make up frictional unemployment. Structural unemployment occurs because of a mismatch between the jobs that are available and the skills of workers who are seeking jobs. Workers with low skills may not find opportunities for employment. If the government requires employers to pay wages, taxes and benefits that exceed the contribution of these workers, firms will not be likely to hire them. The level of unemployment at which there is no cyclical unemployment is called the natural rate of unemployment. In the United States today economists estimate that the natural rate of unemployment is between 4% and 5.5%. The natural rate of unemployment can vary over time and will differ across the countries. In Europe, for example, the natural rate of unemployment is between 7% and 10%. The actual unemployment rate can be higher or lower than the natural rate of unemployment. Different groups of people suffer more unemployment than other groups. Adults have lower unemployment rates than teenagers. On average men and women have the same unemployment rates, but the unemployment rates for married men and women are lower than unemployment rates of women who maintain families alone. Words to know. To employ a angaja / Employment serviciu / , Employer angajator / Employee salariat / Unemployment omaj / Unemployed omer /

To search = to seek = to look for a cuta / To occur a aprea, a avea loc / , Mismatch nepotrivire / Wage salariu / Tax tax, impozit / To exceed a depi / Terms. 1. Labour force the people who work or are available for work in a country or company. Synonym: workforce 2. To hire to give smb a job 3. To vary to change or be different according to the situation 4. Rate a measurement of the speed at which smth happens 5. To maintain to make smth continue at the same level, standard Synonyms: preserve, insist, keep 6. Job work for which you receive regular payment Idioms: Do the job to be effective in doing what you want e.g. This extra strong glue should do the job. Do a good/bad job e.g. They did a very professional job. Good job e.g. Its a good job you were there to help. Synonyms: post, position, placement, appointment, opening. e.g. 1) Hes trying to get a job in a bank. 2) a key post in the new government 3) a senior position in a large corporation 4) We have several vacancies for casual workers. 5) a summer placement with a computer firm 6) This is a permanent appointment, requiring commitment and hard work. 7) There are several openings in the sales department. Patterns: A permanent / temporary job A full-time / part-time job To apply for a job To resign from / leave / quit a job Exercises 1. Find in the text English equivalents for these word combinations. omer, serviciu, a cuta serviciu, muncitor, fora de munc, omaj, criz, a angaja, omaj ciclic, omaj fricional, a cuta noi oportuniti, a forma, omaj structural, nepotrivire, competene joase, angajator, a plti salarii, rata natural a omajului. , , , , , , , , , , , , , , , , , . 2. Match the words as in the text. Have Unemployment Labour Force Cyclical Skills to search for a job

Low to pay Natural to maintain

wages, taxes, benefits families alone new opportunities rate of unemployment

3. Find the antonyms of the given words. Employment, prosperity, to hire, match, unnatural, high, adult, men, single. 4. Complete the sentences. 1. The unemployed are those people . 2. comprise the labour force. 3. Cyclical unemployment occurs when . 4. Frictional unemployment is . 5. Structural unemployment occurs . 6. is called the natural rate of unemployment. 7. In Europe the natural rate of unemployment is . 8. Adults have than teenagers. 9. The unemployment rates for married men and women are lower than . 5. Make up sentences with the following patterns. A permanent/ temporary job, a full time / part time job, to apply for a job, to resign / leave / quit a job, to do a good/bad job. 6. Answer the questions. a) What is the definition of unemployment? b) What is the labour force formed of? c) What are the three basic types of unemployment? d) Define the cyclical unemployment. e) What is frictional unemployment? f) When does structural unemployment occur? g) What is called natural rate of unemployed? h) What groups of people suffer more unemployment? 7. Word box. The synonyms of the word job are: post, position, vacancy, placement, appointment, opening. Note their use in the sentences and translate them. 1. He is trying to get a job in a bank. 2. He occupies a key post in the new government. 3. They offered me a senior position in a large corporation. 4. We have several vacancies for casual workers. 5. I have got a summer placement with a computer firm. 6. This is a permanent appointment requiring commitment and hard work. 7. There are several openings in the sales department.

4. How businesses compete.

Markets differ in the number of firms that compete against one another for customers. At one extreme is a monopoly: a market with a single seller. The other extreme is a perfectly competitive market with four features: - There are many firms.
The product is standardized.

- Firms can freely enter or leave the market in the long run. - Each firm takes the market price as given. The first three featurfect competition imply the fourth. If there many firms selling a standardized product, each firm has a tiny fraction of the market, and no matter how much any individual firm

produces and sells, the market price wont change. There is no reason to raise the price because a firm doing so would lose all its customers to other firms selling the standardized product at the market price. A monopoly is a market served by a single firm. In contrast with a perfectly competitive firm, a monopolist can pick any price he wants. A monopoly occurs when there is one firm and a barrier to entry a barrier that prevents other firms from entering a market. The possible barriers to entry are: - a patent that is granted by the government, giving an inventor the exclusive right to sell a new product for some period of time; e m- under a franchise or licensing scheme the government designates a single firm to sell aparticular good; - in som onopolistic markets a second firm could enter a market but if it did, both firms would lose money. Thats why a single firm serves the entire market in what is called a natural monopoly. There are markets that lie between the two extremes: monopoly and perfect competition. In a market subject to monopolistic competition dozens of firms enter the market. Here are the characteristics of each market: - Many firms in the market. - Differentiated products. The firms sell slightly different products - No artificial barriers to entry. Oligopoly is a market with just a few firms. An oligopoly occurs for three reasons: - Economies of scale in production (when a large firm can produce at a much lower cost than a small firm). - Government barrier to entry - Advertising campaigns (when a firm can not enter without investment in advertising). The result is that just a few firm will enter the market. Words to know. Market pia / Seller vnztor / Competitive competitiv / To compete a concura / Feature trstur, aspect / , To imply a sugera, a da de neles / , Tiny nesemnificativ, micu / To pick a alege / , To occur a avea loc / To grant a acorda / , , To designate a desemna / , Entire ntreg / , Subject subiect, materie de studiu / , Advertising publicitate / 1. 2. 3. 4. 5. Terms. barrier ['br] a problem or situation that prevents smb from doing smth or that makes smth impossible patent [ 'ptnt] an official right to be the only person to make, use or sell a product or an invention; a document that proves this. franchise ['frntaz] formal permission given by a company to smb who wants to sell its goods or services in a particular area to achieve economies of scale in production to produce many items so that the cost of each one is reduced campaign [km'pen] a series of planned activities that are intended to achieve a particular social, commercial or political aim

Exercises 1. Translate the following word combination from the text. A concura, clieni, vnztor unic, trstur, piaa perfect competitiv, a ntra sau prsi piaa liber, a accepta preul , a sugera produsul standardizat, o parte mic a pieii, a produce, a ridica preul, a pierde toi clienii, pre de pia, o singur firm, a stabili orice pre, a avea loc, barier de intrare, a mpiedica de a ntra in pia, patent acordat de guvern, pentru o perioad de timp, a desemna schem de liceniere, a pierde bani, a deservi ntreag pia, subiect a competiiei, monopolist, produse difereniate, campanii de publicitate, un pre mai mic, economicitate de scar. , , , , , , , , , , , , , , , , , , , , , , , , , , . 2. Match the words with their transcription. Advertising [km'pi:t] Barrier [km'pettv] Compete [m'npl] Competitive ['fi:t] Differentiate ['stnddaz] Entire ['tan] Feature ['br] Franchise ['frntaz] Government ['lasns] License [ski:m] Monopoly [n'ta] Oligopoly [df'renet] Patent ['vnmnt] Scheme ['dvtaz] Standardize ['petnt] Tiny [li'gpli] 3. Insert prepositions where necessary. 1. Markets differ the number of firms that compete one another customers. 2. Firms can freely enter or leave the market the long run. 3. A firm doing so would lose all its customers other firms selling the standardized product the market price. 4. Monopoly is a market served a single firm. 5. A barrier to entry prevents other firms entering a market. 6. There are markets that lie the two extremes. 7. A large firm can produce a much lower cost. 4. Match the terms with their definitions. barrier to produce many items so that the cost of each one is reduced campaign an official right to be the only person to make, use or sell a product or an invention; a document that proves this. franchise a problem or situation that prevents smb from doing smth or that makes smth impossible patent formal permission given by a company to smb who wants to sell its goods or services in a particular area

to achieve economies of scale in production

a series of planned activities that are intended to achieve a particular social, commercial or political aim

5. . Find synonyms of the given words Business, client, characteristic, cost, small, to increase the price, to happen, unnatural, publicity. 6. a) b) c) d) e) f) g) h) i) Answer the following questions. What is a monopoly? What are the features of a perfectly competitive market? How do the first three features of the perfectly competitive market imply the fourth? Can a monopolist pick any price he wants? What is a barrier to entry? List the possible barriers to entry. Why cannot a second firm enter the market? What is monopolistic competition? What is oligopoly?

5. What causes Technological Progress.

To understand what economic growth means, consider how people lived in 1783. An average home at that time had no central heat, one fireplace, no hot water and outdoor toilets. Houses had no electricity or gas, a solitary candle provided light at night. For women things were particularly hard: they were expected to bake more than half a ton of bread a year. One of the mechanisms affecting economic growth is technological progress. In economy the term technological progress means that an economy operates more efficiently by producing more output without using any more inputs. In practice, technological progress can take many forms. The invention of the light bulb made it possible to read and work indoors at night; the invention of the thermometers assisted doctors and nurses in their diagnosis. Technological progress can be thought of as the birth of new ideas. These new ideas enable us to rearrange our economic affairs and make us more productive. Economists have identified a variety of factors that may influence the pace of technological progress in an economy. One way to induce more technological progress in an economy is to pay for it. If the government or large firms employ workers and scientists to advance the frontiers in physics, chemistry and biology, their work can lead to technological progress. But not all technological progress is high tech. an employee of a soft-drink company who discovers a new and popular flavour for a soft drink is engaged in technological progress, just as scientists and engineers are. Another way to develop technological progress is when a firm tries to come up with new products and more efficient ways to produce products to get high profit from its innovation. Education can contribute to economic growth in two ways. First, increased knowledge and skills can be a form of investment in human beings that complements our investments in physical capital. Second, education can enable the workforce in an economy to use its skills to develop new ideas or to copy ideas or import them from abroad. Words to know. a soft drink butura care nu conine alcool/ abroad - n strintate / average medie / () flavour arom, gust / , input input, intrare / , a light bulb bec electric / on average n medie /

output producie, cantitate produs / to bake a coace / to come up a aprea / to enable a da posibilitate, a facilita / to induce a convinge, a incita / , to lead a duce la / - Terms. 1. outdoor [atdr] (adj.) used, happening or located outside rather than in a building 2. the outdoors [atdrz] (n.) the countryside away from buildings and busy places 3. outdoors (adv.) outside rather than in a building Compare: 1. There is an outdoor swimming pool in this centre. 2. The rain prevented them from eating outdoors. 3. Come to Canada and enjoy the great outdoors. Antonyms: indoor, indoors. 4. output [atpt] (n.) the amount of smth that a person, a machine or an organization produces, e.g. Manufacturing output has increased by 8%. 5. input [npt] (n.) time, knowledge, ideas that you put into work, a project in order to make it succeed, e.g. There has been a big input of resources into the project from industry. 6. high-tech [ha tek] (adj., also hi-tech) 1) using the most modern methods and machines, e.g. high-tech industries; 2) very modern in appearance, using modern materials, e.g. a high-tech table made of glass and steel innovation [nven] (n.) the introduction of new things, ideas or ways of doing smth, e.g. recent innovations in steel-making technologies Exercises 1. Translate the following word combination from the text. Creterea economic, o cas medie, afar, a produce mai mult producie, input, a scrie i a citi n ncpere, a ajuta la stabilirea diagnozei, naterea noilor idei, a influena pasul progresului tehnologic, a incita mai mult progres tehnologic, a plti pentru el, a angaja muncitori i savani, a lrgi frontierele, a descoperi o nou arom, a aprea cu produse noi, cunotine i abiliti sporite, fiine umane, capital fizic, a importa de peste hotare. , , , , , , , , , , , , , , , , , , - . 2. Write the transcription of the words below. Idea, ton, thermometer, diagnosis, birth, physics, chemistry, biology, flavour, abroad. 3. Find the antonyms of the words below. Input, regress, outdoors, death, employer, alcohol, to export. 4. Match the words as in the text. technological new ideas thermometers assisted the frontiers

the birth of to influence to advance to discover to come up with increased to complement

progress the place of technological progress new products doctors and nurses a popular flavour investments knowledge and skills

5. Complete the sentences. 1. In 1783 an average home had . 2. In 1783 women were expected . 3. is technological progress. 4. Technological progress means that . 5. The invention of the light bulb made it possible . 6. The invention of the thermometers assisted . 7. are engaged in technological progress. 8. When a firm comes up with new products, it wants to . 9. Increased knowledge and skills can be . 10. Education enables the workforce to use its skills . 6. a) b) c) d) e) f) Answer the following questions. How did people live in old times? What does technological progress mean? What forms can technological progress take? Is technological progress always hi-tech? Why does a firm try to come up with new products? How can education contribute to economic growth?

7. Think over the advantages and disadvantages of the technological progress.

6.Central Banking.
Commercial banks are the profit motivated banks involved in banking activities. The most significant function which the commercial bank fulfils is that of credit creation. Its role is to accept money on deposit and then loaning the money out at interest. The transmission of money is also a vital function of banks. Customers with current accounts may write cheques to pay their creditors. Banks also offer advisory services to their customers, usually charging for these services. The sorts of advisory services which are offered are trusteeship, foreign exchange, broking, investment management and taxation. Commercial banks may also offer other financial products to customers such as mortgages and insurance. Every country in the world has a central bank. The oldest central bank is that of Sweden (1668). The Bank of England was founded in 1694, while in the USA the Federal Reserve did not come into existence until 1913. Central banks are important to the working of the monetary system. Among their most important functions are the following: a) Governments banker. Governments pay their revenues into the central bank and pay their bills with cheques drawn on it. The fees which the bank charges for this are an important source of revenue to the bank. b) Bankers bank. Commercial banks keep balance with the central bank. This is both a method of controlling banks and also the way by which interbank interdebtedness can be settled. c) Lender of last resort. The central bank stands ready to support commercial banks should they get into difficulties.

d) Banking supervision. Central banks usually have a major role to play in the policing of the banking system. e) Note issue. In most countries of the world the central bank is responsible for the issue of banknotes. This is not so everywhere. In the USA, for example, the currency is issued by the government. f) Operating monetary policy. It is usually the central bank which operates government monetary policy. Words to know. to fulfill a mplini, a ine / , to loan a mprumuta / account cont / advisory services servicii consultative / to charge a cere o tax / trustee curator, administrator / , trusteeship curatel / , broking curtaj / mortgage ipotec / insurance asigurare / fee onorariu, tax / , to keep balance a menine echilibru / , policy politic / , a lender of last resort mprumuttor de ultima instan / Terms. Exercises 1. Find in the text English equivalents of these word combinations. Implicat n activitatea bancar, a mplini cea mai semnificativ funcie, a mprumuta bani cu procente, o funcie vital, cont curent, a oferi servicii consultative, curatel, curtaj, management investiional, ipotec i asigurare, a fost fondat, a aprea, a plti conturile, a fixa o tax, surs de venit, mprumuttor de ultima instan, emisiune a bancnotelor, politica monetar a guvernului. , , , , , , , , , , , , , , , , , . 2. 1. a) b) c) d) 2. a) b) c) d) 3. Choose the right answer. Commercial banks are involved in . teaching activities scientific activities banking activities students activities The role of commercial banks is . to study the market to accept money on deposit and then loaning the money out at interest to help poor people to solve environmental problems The oldest central bank is that of .

a) b) c) d) 4. a) b) c) d) 5. a) b) c) d)

Sweden England France the USA Which of these is not the function of central banks? Governments banker Banking supervision Lender of last resort Medium of exchange In most countries the central bank is responsible for . the issue of newspapers the issue of banknotes the issue of books agriculture

3. Match the words with their definitions. mortgage - an amount of money that you pay for professional advice or services or to join an organization, or to do something loan - necessary or essential in order for something to succeed or exist - an arrangement with a company in which you pay them regular amounts of money monetary and they agree to pay the costs, for example, if you die or are ill/sick, or if you lose or damage something fee - lend smth to smb - a legal agreement by which a bank or similar organization lends you money to buy insurance a house, etc, and you pay the money back over a particular number of years; the sum of money that you borrow vital - connected with money, especially all the money in a country 4. Find synonyms of the words. To lend, money, to ask money, receipts, control, giving professional advice, not ones own exchange. 5. Fill in the necessary words. 1. Commercial banks are involved in banking activities. 2. The banks role is to . 3. Another vital function of banks is . 4. Banks also offer . 5. The offered advisory services are . 6. The Bank of England in 1694, while in the USA the Federal Reserve until 1913. 7. Government into the central bank and pay . 8. Commercial banks with the central bank. 9. The central bank to support commercial banks should they . 10. In most countries of the world the central bank is responsible for . 11. The central bank usually operates . 6. a) b) c) d) e) f) g) Answer the following questions. What activities are commercial banks involved in? What is the most significant function of the central bank? What sort of advisory services are offered to the customers by banks? What other financial products may be offered by banks? What is the oldest central bank? Explain the banks function of governments banker. List the other banks functions.

7. Differences in wages across occupations. Lets think about why some occupations pay more than others, why women earn less than men, and why college graduates earn more than high-school graduates. There is substantial variation in wages across occupations. Most professional athletes earn more than medical doctors, who earn more than college professors, who earn more than janitors. The wage for a particular occupation will be high if the supply of workers in that occupation is small relative to the demand for those workers. The supply of workers in a particular occupation could be small for four reasons: 1. Few people with the required skills. To play professional baseball people must be able to hit balls thrown at them at about 90 miles per hour. Few people who have these skills are paid a lot of money because baseball team owners compete with one another for skillful players. The same logic applies to other professional athletes, musicians and actors. 2. High training costs. The skills required for some occupations can only be acquired through education and training. For example, the skills that are required of a medical doctor can be acquired in a medical school and legal skills can be acquired in a law school. If it is costly to acquire these skills, a relatively small number of people will become skilled and they will get high wages. 3. Undesirable job features. Some occupations are dangerous and only a relatively small number of people are willing to work in dangerous occupations. The workers who choose them receive high wages so they are compensated for the danger associated with their jobs. 4. Artificial barriers to entry. Government and professional licensing boards restrict the number of people in certain occupations. Why do women earn less than men? On average women in many occupations have less education and less work experience, so they are less productive and are paid less. Why do college graduates earn higher wages? College education provides skills necessary to enter certain occupations, so a college graduate has more job options than a high-school graduate. A labour union is an organized group of workers, the objectives of which are to increase job security, improve working conditions and increase wages and benefits. Words to know. wage salariu / janitor portar / , supply ofert / demand cerere / skill competen, aptitudine / to acquire a dobndi / to require a solicita / to be willing to a fi gata s fac / - board consiliu / , to increase a mri / , to improve a mbunti / , Terms. 1. training ['tren] the action of teaching a person or animal a particular skill or type of behaviour. e.g. Few candidates had received any training in management. 2. education [edj'ken] a process of teaching, training and learning, especially in schools or colleges, to improve knowledge and develop skills.

3. board [b:d] - the group of people who are responsible for controlling and organizing a company or organization. e.g. board of directors 4. danger (of smth) - the possibility of harm or death to someone 5. graduate - a person who has finished their school, college or university education 6. skill (in/at smth) - an ability to do an activity or job well, especially because you have practiced it e.g. Ruth had/possessed great writing skills. 7. skilled - having the abilities needed to do an activity or job well 8. skillful (or skilful)- good at doing something, especially because you have practiced doing it syn. accomplished, professional 9. to earn - to receive money as payment for work that you do Exercises 1. Find in the text English equivalents of these word combinations. A primi salariu, absolvent al colegiului, absolvent a colii, salarii, portar, ofert de muncitori, cerere pentru muncitori, o anumit ocupaie, abiliti necesare, a lovi mingea, proprietarii echipei de baseball, jucri nzestrai, costuri nalte pentru pregtire profesional, competena poate fi dobndit, coal juridic, scump, aspecte dezavantajoase ale serviciului, ocupaie periculoas, comisie de liceniere, n mediu, opiuni de serviciu, sindicat, a mbunti condiiile de munc, a mri salariile. , , , , , , , , , , , , , , , , , , , , , , , . 2. Find the transcription of the words below. Earn, substantial, athlete, particular, require, complete, musician, acquire, undesirable, associate, board. 3. Find synonyms of the following words. Salary, gain, ability, occupation, professional, offer, proprietor, expensive, to ask, to want, make better. 4. Fill in the necessary words. 1. Most professional athletes earn than medical doctors. 2. The wage for a particular occupation will be high if is small relative to the demand for the workers. 3. The supply of workers could be small if there are few people with . 4. Baseball team owners for skillful players. 5. The skills required for some occupations can only . 6. Legal skills can be acquired in . 7. The workers who receive high wages so they are compensated for the danger. 8. Government and restrict . 9. A labour union is . 5. 6. a) b) c) Find 5 professions in Moldova with different wages and explain the difference in wages. Answer the questions. Who earns more: a college professor or a medical doctor? What does the wage for a particular occupation depend on? What is the reason for a small supply of workers?

d) e) f) g) h)

What happens if there few people with the required skills in a profession? How do high training costs influence the wage? Why do people working in dangerous occupations receive high wages? Why do women earn less than men? What is a labour union?

8. Looking for a job

When choosing a career, it is better to work to a plan. You should begin by attempting to define in clear terms what your requirements are. This involves taking a realistic view of your strengths and weaknesses you have to answer important questions as: What sort of life do you want to lead? Is the size of your salary important? What sort of work do you want to do? Do you like working alone or in a team? Do you want to develop new ideas? Your success in the job search process strongly depends on the way you present your current and previous activities and achievements. They are reflected in your Curriculum Vitae (CV). Making up your CV you must try hard to produce a positive impression on a potential employer. What is required is a precise, well-presented and error-free summary of your strengths and merits. A CV is a brief outline of ones professional activities and educational background. A CV should run to no more than two A4 pages. The structure of a traditional CV is the following: 1. Personal data Name, surname Address Telephone number Internet site name

2. Objective or a very short notice of the aim of job search.

3. Educational background Dates of study Names and locations of schools Higher education establishments you graduated from Scientific degrees 4. Supplementary training 5. Employment history
6. Information about other skills and occupations (computer literacy, language proficiency)

7. Personal interests and hobbies 8. Note on letters of recommendation

If your CV succeeds you are invited to a job interview. A job interview is a process in which a potential employee is evaluated by employers for prospective employment in their company. It is very important to be well prepared for an interview. You should collect some information about the company and decide whether your skills, abilities and qualifications correspond to the companys standards. During the interview the interviewers ask the candidate questions about his job history, personality, work style and other factors related to the job. The candidate is usually given a chance to ask any questions at the end of the interview. Candidates generally dress slightly better than they would for work. Avoid much make-up or jewelry. Be tidy and neat. When applying for a job you will need the following documents: Resum (CV) is a document that provides potential employers with a review of a candidates credentials and contact information. Cover letter serves as an introduction and accompanies the resum (CV). Through the cover letter a candidate expresses interest in employment with an organization. Interview portfolio is a collection of documents which provides employers with verification of credentials and examples of work potential. Follow-up correspondence. It must be appropriate to send a note of thanks after an interview. Words to know To define- a defini/ Requirement-nevoie, cerin/ , Achievement-reuit, performan/ Precise-precis/ , Outline- schi, schiare/ Search- cutare, a cuta/, Succeed- a reui/, To employ- a angaja/ Employer- angajator/ Employee- salariat/ Employment- serviciu/ Prospective- potenial, viitor/ Credentials- document de identitate, formare profesional/ , Terms to know Strength- the quality of being physically strong. Adj. strong, adv.- strongly, verb- strengthen Potential- that can develop into something or be developed in the future. Syn. possible, prospective Background- the details of a persons family, education, experience etc. Skill- the ability to do something well, a particular ability (management skills) Ability- the fact that somebody is able to do something; a level of skill or intelligence Qualification- an exam that you have passed or a course of study that you have successfully completed. E.g. academic/educational/ professional/ vocational/ teaching qualifications To provide- to give something to somebody or make it available for them to use. Syn.- supply Credentials- the qualities, training or experience that make you suitable to do something. documents such as letters that prove that you are who you claim to be, and can therefore be trusted Lexical exercises I Translate the following word combinations from the text A ncerca de a define, cerine, a privi realistic, puncte forte, slbiciuni, proces de cautare a serviciului, a depinde de, a prezenta, reuite curente i anterioare, posibil angajator, un sumar fr erori, o schi scurt, formare profesional, instituie de nvmnt superior, cunoaterea calculatorului, cunoaterea limbilor, ordonat.

 , , , , , , , , , , , , , , . II Find the synonyms Demand, aim, force, accomplishment, sketch, potential, work III Find the transcription of the words below Career Define Requirement Strength Current Precise Scientific Proficiency Succeed Whether Credentials IV Insert the necessary prepositions 1 When choosing a career it is better to work.....a plan. 2 Your succes strongly depends....the way you present your CV. 3 You must try hard to produce a positive impression......a potential employer. 4 A CV runs.....no more than two A4 pages. 5 You are invited.....a job interview. 6 During a job interview the candidate is evaluated......prospective employment. 7 it is very important to be prepared.....an interview. V Complete the following sentences 1.When writing a CV you should answer the questions........... 2.A CV is......... 3.Personal data consist of.......... 4.Educational background consists of........ 5.A job interbview is........... 6.The necessary documents for a candidate are.......... 7.A resum is......... 8.A cover letter serves....... 9.Interview portfolio is......... VI Answer the questions 1 What are the first steps in a job search? 2 How should a CV be? 3 What is a CV? 4 What is the structure of a CV? 5 What is a job interview? 6 What happens during a job interview? 7 What are the necessary documents of a candidate?

9. International trade A market is an arrangement that allows buyers and sellers to exchange things. A buyer exchanges money for a product, while a seller exchanges a product for money. Why do markets exist in the first place? If each person were self-sufficient, producing everything he/she consumed, there would be no need for markets. Markets exist because we arent self-sufficient but instead consume many products produced by other people. In todays global economy, many products are produced in one country and sold in another. International trade is one component of the global economy. An export is a good produced, for example, in Moldova

and sold in another country. An import is a good produced elsewhere and purchased in Moldova. Despite the advantages from flobal trade, most nations use trade barriers to restrict international trade. Trade barriers are often designed to protect domestic firms from competition from foreign firms and to protect the jobs of workers in industries. Policies that restrict trade are known as protectionist policies. There are three common forms of protection: -A quota is an absolute limit on the volume of a particular good that can be imported into a country. If a country imposed a quota on steel imports of 200.000 tons only 200.000 tons of steel could enter that country. -Under a voluntary export restraint, one country agrees to limit the volume of exports to another country. For example, the Japanese government agreed to limit the number of Japanese cars sold in Europe. -A tariff is a special tax on imported goods. For example, a 10% tariff on imported television sets means that the tax on a 300$ imported TV set is 30$. To conduct international transactions between countries with different currencies, it is necessary to exchange one currency for another. The exchange rate is defined as the rate at which we can exchange one currency for another. An increase in the value of a currency is called an appreciation. A depreciation is a reduction in the value of a currency. In recent years, many economies have undergone a process of financial liberalization, opening up their financial markets to participants from foreign countries. Financial liberalization creates many new opportunities for countries. They can tap the resources from the entire world, investors can scout the world for new and profitable investment opportunities. Words to know Self-sufficient-suficient/ Particular-anumit, deosebit/ , Steel-oel/ Restraint-moderaie, restricie/ Tax-tax, impozit/ To define-a defini/ Increase-mrire/ Appreciation-cretere/ Depreciation-depreciere/ Reduction-reducere/ To undergo-a trece prin,a fi supus/, To tap-a expluata/ Terms to know To invest- to buy property, shares in a company etc. in the hope of making a profit. To scout- to search an area or various areas in order to find or discover something e.g.-They scouted the area for somewhere to stay at night Advantage- a thing that helps you to be better or more successful than other people Policy- a plan of action agreed or chosen by a political party, a business etc. Lexical exercises I Translate the following word combinations from the text. n primul rnd, suficient, nevoie de pia, altundeva, a cumpra, avantaje, a restrnge comerul internaional, firme domestice, firme strine, a proteja, politica protecionist, cot, a intra n ar, restricie voluntar pentru export, tax pe bunurile importate, a efectua tranzacii internaionale, moned, rat de schimb, liberalizare financiar, a expluata resurse din ntreaga lume, a cerceta lumea, oportuniti de investiie. , , , - , , , , ,

, , , , , , , , , , , , , .

II Find the transcription of the words below Sufficient, import (n, v), export (n. v), advantage, foreign, protectionist, quota, particular, voluntary, reduction, liberalization, scout, opportunity. III Find the antonyms of the following words. Increase, buyer, dependent, consumer, domestic, restriction, import, in the last place, here, leave the country. IV Match the words as in the text. To exchange money We arent Global Trade To restrict To protect Protectionist Absolute A special tax To conduct Exchange Financial To tap V Complete the sentences. 1. A market is.. 2. A buyer exchanges.while the seller exchanges.. 3. Markets exist because.. 4. An export is.. 5. An import is. 6. In order to restrict international trade most nations use 7. .are known as protectionist policies. 8. A quota is 9. Under a voluntary export restraint one country agrees 10. A tariff is. 11. An exchange rate is.. 12. In recent years, many economies have undergone.. barriers international trade self-sufficient for a product domestic firms policies trade international transactions limit rate on imported goods the resources liberalization

VI Answer the questions. 1. Why do markets exist? 2. What is an export? 3. What is an import? 4. What are trade barriers designed for? 5. What forms of protectionist policies do you know? 6. Is exchange rate an absolute limit on the volume of a particular good? If no, why. 7. Is financial liberalization useful?

10. Business letter writing

Being a component part of human communication business correspondence is an important topic that should be mastered by any economist. The layout of a business letter usually consists of 12 elements, some of which are optional. 1. The letterhead 2. The reference line 3. The date 4. The inside address 5. The salutation 6. The body of the letter 7. The complimentary close 8. The signature 9. Attention line (optional) 10. Subject line (optional) 11. Notes on enclosures (optional) 12. Notes on copies (optional) Business letters are usually brief and seldom exceed one page. Its layout must be attractive and elegant. The letterhead should give potential correspondents all the information they might need if they wish to contact the company: its full name, postal address, telephone numbers, e-mail address. The reference line includes the initials of the person who dictated the letter and of the typist and indications needed for filing. The reference line links the letter with the previous correspondence. There are 4 accepted variants of showing the date: 23rd January, 2010

23 January, 2010 January 23rd, 2010 January 23, 2010 The inside address is the address of the person the letter is sent to. The salutation is the starting line of the letter, it begins with Dear followed by the title: Mr., Mrs., Ms., Dr., Prof. If you dont know the name of your correspondent, you should write Dear Sir/Madam. The body of the letter should follow the three rules of business communication and be brief, clear and direct. Here are some expressions that may be used in starting your letter: Thank you for taking the trouble to write and tell me about I was delighted to receive your letter of 15 September about.. and in closing it: I look forward to hearing from you I hope to hear from you soon Thank you for your help The complementary close may have several variants: Yours faithfully Yours sincerely Yours truly The signature consists of the addressers personal signature deciphered in the following line. The next line shows the signatorys position in the company. e,g. Yours sincerely, .. Dr, Jessica Brown Executive Secretary Bradford Ltd. Words to know To master-a stpni, a poseda/ , Enclosure-anex/ Brief- succinct, laconic/ To exceed- a depi/ Layout- aezare pe pagin/ Reference line- referin/ To decipher- a descifra/ Signature- semntur/ To sign- a semna/ Signatory- semnator/ , Lexical exercises I Translate the following word combinations from the text. Trebuie s fie stpnit de orice economist, aezare n pagin, opional, ncheiere, anex, a depi o pagin, informaie despre autorul scrisorii, iniiale, a stabili o legtur cu corespondena precedent, linia de start, a se deranja, ncntat, Atept cu nerbdare rspunsul D-tr, Cu respect, semntura personal, post n companie. , , , , , , , , , , , , , , , . II Find the transcription of the words below.

Layout, optional, letterhead, salutation, complimentary close, signature, enclosure, brief, exceed, initial, filing, previous, delighted, faithfully, decipher, signatory, sign. III State True or False 1. The layout of a business letter consists of 22 elements. 2. The body of the letter is an optional element of a letter. 3. Business letters seldom exceeds one page. 4. The letterhead should give the information about the potential correspondents. 5. The reference line links the letter with the previous correspondence. 6. There are 2 accepted variants of showing the date. 7. The body of the letter should be brief, clear and direct. 8. If you dont know the name of your correspondent, you should write : Dear Stranger. IV Complete the sentences. 1. Business correspondence should be........by any economist. 2. The elements of a business letter are......... 3. The letterhead contains.......... 4. The reference line includes........... 5. The inside address is.......... 6. The salutation is......... 7. You should close your letter by writing.......... 8. The signature consists of...........

V Translate the synonyms of the word sign and the sentences below. Indication, symptom, symbol, indicator, signal 1. Headaches may be a sign of stress.
2. They gave no indication as to how the work should be done. 3. Symptoms include a sore throat. 4. The dove is an universal symbol of peace. 5. The economic indicators have changed recently. 6. Chest pains can be a warning signal of heart problems.

VI Answer the questions. 1. How many elements are there in a business letter? 2. What information is contained in the letterhead? 3. What does the reference line include? 4. What are the 4 accepted variants of writing the date? 5. How can you characterize the body of the letter? 6. How can you start your letter? 7. How can you close the letter? 8. What are the parts of a the signature?

9. International trade
A market is an arrangement that allows buyers and sellers to exchange things. A buyer exchanges money for a product, while a seller exchanges a product for money. Why do markets exist in the first place? If each person were self-sufficient, producing everything he/she consumed, there would be no need for markets. Markets exist because we arent self-sufficient but instead consume many products produced by other people. In todays global economy, many products are produced in one country and sold in another. International trade is one component of the global economy. An export is a good produced, for example, in Moldova and sold in another country. An import is a good produced elsewhere and purchased in Moldova. Despite the advantages from global trade, most nations use trade barriers to restrict international trade. Trade barriers are often designed to protect domestic firms from competition from foreign firms and to protect the jobs of workers in industries. Policies that restrict trade are known as protectionist policies. There are three common forms of protection: -A quota is an absolute limit on the volume of a particular good that can be imported into a country. If a country imposed a quota on steel imports of 200.000 tons only 200.000 tons of steel could enter that country. -Under a voluntary export restraint, one country agrees to limit the volume of exports to another country. For example, the Japanese government agreed to limit the number of Japanese cars sold in Europe. -A tariff is a special tax on imported goods. For example, a 10% tariff on imported television sets means that the tax on a 300$ imported TV set is 30$. To conduct international transactions between countries with different currencies, it is necessary to exchange one currency for another. The exchange rate is defined as the rate at which we can exchange one currency for another. An increase in the value of a currency is called an appreciation. A depreciation is a reduction in the value of a currency. In recent years, many economies have undergone a process of financial liberalization, opening up their financial markets to participants from foreign countries. Financial liberalization creates many new opportunities for countries. They can tap the resources from the entire world, investors can scout the world for new and profitable investment opportunities. Words to know Self-sufficient-suficient/ Particular-anumit, deosebit/ , Steel-oel/

Restraint-moderaie, restricie/ Tax-tax, impozit/ To define-a defini/ Increase-mrire/ Appreciation-cretere/ Depreciation-depreciere/ Reduction-reducere/ To undergo-a trece prin,a fi supus/, To tap-a expluata/ Terms to know To invest- to buy property, shares in a company etc. in the hope of making a profit. To scout- to search an area or various areas in order to find or discover something e.g.-They scouted the area for somewhere to stay at night Advantage- a thing that helps you to be better or more successful than other people Policy- a plan of action agreed or chosen by a political party, a business etc. Lexical exercises I Translate the following word combinations from the text. n primul rnd, suficient, nevoie de pia, altundeva, a cumpra, avantaje, a restrnge comerul internaional, firme domestice, firme strine, a proteja, politica protecionist, cot, a intra n ar, restricie voluntar pentru export, tax pe bunurile importate, a efectua tranzacii internaionale, moned, rat de schimb, liberalizare financiar, a expluata resurse din ntreaga lume, a cerceta lumea, oportuniti de investiie. , , , - , , , , , , , , , , , , , , , , , , . II Find the transcription of the words below Sufficient, import (n, v), export (n. v), advantage, foreign, protectionist, quota, particular, voluntary, reduction, liberalization, scout, opportunity. III Find the antonyms of the following words. Increase, buyer, dependent, consumer, domestic, restriction, import, in the last place, here, leave the country. IV Match the words as in the text. To exchange money We arent Global Trade To restrict To protect Protectionist Absolute A special tax To conduct Exchange barriers international trade self-sufficient for a product domestic firms policies trade international transactions limit rate on imported goods

Financial To tap

the resources liberalization

V Complete the sentences. 13. A market is.. 14. A buyer exchanges.while the seller exchanges.. 15. Markets exist because.. 16. An export is.. 17. An import is. 18. In order to restrict international trade most nations use 19. .are known as protectionist policies. 20. A quota is 21. Under a voluntary export restraint one country agrees 22. A tariff is. 23. An exchange rate is.. 24. In recent years, many economies have undergone.. VI Answer the questions. 8. Why do markets exist? 9. What is an export? 10. What is an import? 11. What are trade barriers designed for? 12. What forms of protectionist policies do you know? 13. Is exchange rate an absolute limit on the volume of a particular good? If no, why. 14. Is financial liberalization useful?