1. BANKING MK, U 14 READER, pp.33-35, 64-66

2. INTRODUCTION “Neither a borrower, nor a lender be.” (from Hamlet, Shakespeare) “If you owe your bank a hundred pounds, you have a problem. If you owe it a million pounds, it has a problem.” (J. M. Keynes)

3. VOCABULARY WHICH OF THESE BANKING SERVICES DO YOU USE? CURRENT ACCOUNT SAVINGS ACCOUNT DEBIT CARD CREDIT CARD CHEQUEBOOK CASH DISPENSER (ATM) BANK TRANSFER →p. 85 1A STANDING ORDER CREDIT CARD LOANS OVERDRAFT MORTGAGE EXCHANGE OF FOREIGN CURRENCY INTERNET BANKING

4. WHICH WORD IS MISSING? I have a c________account in Zagrebačka banka. Since I don’t like carrying cash with me I mostly use my d_______ card (cash card) when I go shopping, and if I really need cash I find a c______ d_________ nearby. I sometimes use my Diners c_______card. I used c______ before but it’s a hassle to write them out. I’m always on the run and I never have time to go to my bank’s branch office to pay bills. That is why I contracted a s______ o________which settles all my regular utility bills. When I’m at home I sometimes use I_______b_________to check my balance.

5. Every December I go in the red. Luckily, my o_________is up to Kn 15,000 so it comes in handy but I pay high interest on it and I try to avoid this option. I also opened a s_______account for keeping my money safe long term. It pays a little interest though. I also took out a l______ to renovate my flat. The i______ is quite high, so I’m thinking whether I should sell this flat and get a m________to buy a house that I’ve always wanted. In today’s financial crisis I’m afraid my money will run out. If it does, I’ll probably be forced to e________ the last dollars I still keep under the mattress.

6. WHICH NOUN COLLOCATES WITH THESE VERBS/PHRASES? PAIR WORK: USE IN AN IMAGINED DIALOGUE WITH A BANK TELLER. charge sth. to ~ debit money from ~ overdraw ~ ~ pays interest open ~ close ~ withdraw money from ~ deposit money in ~

7. READING TYPES OF BANKING (MK, P. 86, 87) PARAGRAPHS 1.COMMERCIAL 2.INVESTMENT 3.UNIVERSAL 4.CENTRAL 5.EUROCURRENCY READ THE TEXT AND ANSWER THE QUESTIONS→

8. READ PARAGRAPHS 1-3 AND ANSWER THESE QUESTIONS. 1.What services do retail banks provide? (five) 2.What is their source of profit? 3.How do they create credit? 4.How do banks find balance in lending? 5. What services do investment banks provide? (six) 6.How do investment banks make a profit? 7.What services do universal banks provide? 8.How does the history of universal banking differ across countries? 9.What services do financial conglomerates offer?

9. READ PARAGRAPHS 4 &5 AND ANSWER THESE QUESTIONS 1.What is the discount rate? 2.What is the base rate? 3.Who are blue chip borrowers? 4.What is creditworthiness? 5.What is collateral? 6.What is Eurocurrency? (Eurodollars? Petrodollars?)

10. FILL IN THE GAPS Retail banks hold customers' ________ and make loans. Banks try to find a balance between _______ and different ________. Investment banks _______ funds for industry, finance trade, ______ and ______ securities. A country’s minimum __________ rate is fixed by the __________bank. _____ ______ borrowers are very safe large companies that receive loans at the base rate. Banks __________ progressively higher rates to less secure borrowers. Borrowers get a lower interest rate if the loan is ______by some kind of asset, known as _________. Credit _________is the lender’s estimation of borrowers’ present and future solvency.

11. VOCABULARY PARAGRAPH ONE trade in/ spend/ lend/ transfer............ receive/ hold............ make............ create............ pay……to lenders (OR: charge........to borrowers) exchange............

12. PARAGRAPH TWO..........funds.......... a profit......... international trade …….securities (2 words).......... services......... fees and commissions.......... takeovers and mergers......... government bonds

13. PARAGRAPHS THREE AND FOUR FIND VERBS WITH SIMILAR MEANING to accept a law by voting to end a law (2 words) the law stipulates… to reduce government controls in industry to promise a bank they can take certain assets if the loan is not paid back within the agreed time →p. 88 2C, 2D →READER, p. 33-34, 64-66

14. CENTRAL BANKING Central banks are responsible for: overseeing the monetary s_______ implementing monetary p________ supervising exchange r_________ regulating the credit s________ supervising commercial b_________ acting as a lender of last r________ maintaining currency s________ → LISTENING, MK, p. 133 1a, b, c

15. COLLOCATIONS (LISTENING) CENTRAL BANKS… IMPLEMENT … SET… LIMIT… SUPERVISE / OVERSEE… CONTROL… ESTABLISH… ENSURE… INTERVENE… LEND… SELL/BUY…

16. MAKE QUESTIONS BEGINNING WITH HOW/ WHY/ WHEN. USE THE PROMPTS BELOW. e.g. How do central banks implement monetary policy? MONETARY POLICY THE MONEY SUPPLY THE INTEREST RATE NATIONAL CURRENCY PAIR WORK: ANSWER EACH OTHER’S QUESTIONS. LAST RESORT COINS AND BANK NOTES EXCHANGE RATES THE BANKING SYSTEM