Transfer funds. The Federal Reserve System's wire services and computers enable local banks to transfer funds from one to the other almost instantaneously.

Banker to the Federal Government. The Federal Reserve banks function as the federal government's banker. They maintain the Treasury Department's «checking account» and issue and redeem government bonds and other securities.

Supervises and regulates the nation's banking system. The Federal Reserve System, along with a number of other agencies, is charged with establishing the rules of behaviour for the banking system in general, and its individual institutions in particular. The purpose of these rules is to ensure the safety and soundness of the agencies that handle our funds.

Managers the supply of money and credit. One of the principal responsibilities of the Fed is to see what the nation needs. In addition to the Controller of the Currency and the FDIC (Federal Deposit Insurance Corporation), the Federal Reserve supervises nationally chartered and state-chartered banks and state banking agencies.

All national banks must be members of the Federal Reserve System. Incorporated state banks including commercial banks, mutual savings banks, trust companies, and industrial banks may also join the System.

Incorporated banks are those which have a charter from the state to act as an individual. Mutual savings banks are savings banks owned by their depositors. Industrial banks make loans for the purchase or manufacture of industrial products.

II. Exercises on the Text:

3. Give Russian equivalents to:

the nation's central bank; Board of Governors; the Open Market Committee; the Federal Advisory Council; for 14-year terms; supervise banking; is made up of the seven members; the nation's money supply; it offers advice; prominent commercial bankers; profoundly affect; to act as lenders; corresponding in nature; banks draw currency; the checks are credited to the deposits' accounts; are presented for collection; from time to time; wire services; almost instantaneously; government bond and other securities; establishing the rules of behavior; in general; in particular; the safety and soundness; the amount of money and credit in circulation; nationally charted; state-charted; incorporated state banks; mutual savings banks; trust companies.

4. Answer the following questions:

1. What is the Fed? 2. When was the Fed created? 3. What is the structure of the Fed? 4. What are the main functions of the Board of Governors? 5. How many Reserve Districts are there in the U.S.A? 6. What is the primary responsibility of the Open Market Committee? 7. Does the Federal Advisory Council offer advice on the nation's financial problems? 8. What are the main roles of the Fed? 9. How does the FR Banks work with the member banks? 10. What are presented to the district banks for collection? 11. What are the ways at transferring funds? 12. What does the FR Banks issue and redeem? 13. How does the Fed supervise and regulate the Nation's Banking System? 14. What financial institutions may be members of the Fed?

5. Sum up what the text says about:

the structure of the Fed;

what the Fed does;

incorporated state banks;

mutual savings banks;

industrial banks;

6. Translate into Russian paying attention to other bank services:

Other Bank Services

Trusts. A trust arrangement exists when a bank provides safekeeping and management of funds for individuals, estates or institutions such as pension funds. The bank's job is to administer the money entrusted to it wisely and for the benefit of the owner. The bank receives a fee for managing these funds.

Currency Exchange Banks can buy or sell foreign currencies for their own benefit or for their clients. Importers, exporters and travelers are major users of these services. Even domestic travelers may purchase travelers' checks issued by banks.

Safekeeping. Many banks rent safety deposit boxes in their vaults to persons seeking a safe and secure place for their valuables.

Credit Cards. Some banks derive significant revenues from operating bankcard programs. There is usually an annual fee to use the credit card, and the consumer pays interest on the unpaid balance. Merchants pay a fee to the bank as well.

Brokerage. In very recent times (and still on a highly limited basis) some banks have entered the brokerage business. As brokers they buy and sell stocks and bonds for their clients.

Insurance. In a number of states certain banks can sell their customers life insurance policies.

Letters of Credit. Banks may aid commerce by writing letters of credit. In these documents, the bank guarantees one party (such as a seller) that payment will be made if certain conditions are met (such as the delivery of merchandise). Letters of credit are common when goods are bought or sold abroad. There is a fee for providing this letter of credit.

Investments. Banks are permitted to buy U.S. government bonds for their own accounts. Banks may make money in trading such bonds and from the interest paid by the government to the holders of such securities.

Underwriting. When companies (or even units of government) raise money by issuing shares of stocks or by the sale of bonds, they use the services of certain financial specialists. Some very large banks provide such assistance, as do major brokerage companies.

Consulting. A growing business for banks is to give advice to other businesses. Especially significant in recent years is the assistance provided to firms involved in corporate mergers and takeovers.

III. Grammar Exercises

Forms of the Gerund.

Герундиальные обороты

Prep. + Noun (прит.п.) + Gerund

Pronoun (прит.)

(Prep.) + N (общ.п.) + Gerund

Example: He speaks of the workers' (their) doing it.

...что рабочие сделают это.

7. Form gerunds using the suffix -ing:

read; explain; govern; create; develop; increase; provide; delivery; establish; distribute; visit; enter.

8. Make the following sentences simple using the Gerund:

1. Do you mind if I take your warranty card for a moment? 2. We must consider the matter thoroughly before we come to any conclusion. 3. I remember that we have seen our department head only once. 4. When he received another letter from his firm he changed his mind. 5. Before he left the office he called on his sales manager.

9. Translate the following sentences into Russian:

1. Cleaning up the river will require a major effort, and considerable expense. 2. Scientists' working together and their sharing ideas with one another is of great advantage for science. 3. Economists have two ways of looking at economics and the economy. 4. Sellers compete by trying to produce the goods and services buyers want at the lowest possible price. 5. The next step in preparing a personal budget is to draw up a list of all your sources of income. 6. There are numerous reasons people think about owning a business of their own. 7. Instead of using that temporary opportunity to increase the market share for American autos by holding prices at current levels or lowering prices, the auto companies raised their prices. 8. Monetary policy refers to regulating the supply of money as a way of stabilizing the economy. 9. Ricardo is especially famous in international economies for demonstrating the advantages of free trade. 10. Hardly a day passes without hearing a commercial or reading an ad describing the advantages of one kind of program over another. 11. A firm of under 20 employees has a 37 percent chance of surviving four years. 12. Scientists' constantly exploring the unknown, their looking for new knowledge and the answers to unsolved questions cannot be overestimated.

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