1. Progress text (15 April) Units covered by the 1st progress test: The Business Cycle (causes, Keynesianism and monetarism, graph description) Trade (retail, wholesale, e-commerce, international trade, free trade & protectionism, EU) Banking (types of banks, banking services, microfinance, central banking, monetary policy, crisis of credit) + language of meetings REPORT WRITING TASK

2. Home assignments Report (task 3) – few students submitted hw RB, p 34 – will check on Tue! HW for Tue (7 April): Report – task 4 (RB, p 26)

3. RB, p 58 BANK STATEMENTS Do you get bank statements from your bank? Do you know anyone (adult) who has no bank account? What are the benefits of having a bank account? What are the drawbacks of not having one? How many people in the world have no access to banking/financial services? (the unbanked or the underbanked) Access to finance varies greatly between countries: ca 5 % in Papua New Guinea and Tanzania 100 % in the Netherlands

4. MICROFINANCE -providing financial services to low-income clients Is that a good idea in your opinion? Have you heard of some specific examples? Muhammad Yunus (Grameen bank)? Learn more about the first microfinance initiative: http://www.grameen-info.org/index.php?option=com_content&task=view&id=210&Itemid=536 http://www.grameen-info.org/index.php?option=com_content&task=view&id=210&Itemid=536 → MK, p 76 Listening Get ready to answer the questions.

5. 1Social ____________ - a group of people who... 2Making _________ to.... 3Because the bank makes _______ loans to a ________ number of people, which ____________ the risk. 4Because it has been shown that.... Microfinance can be a part of normal.... 5A_________, L_______ A_______ and A

6. Listening cont. Listen for terms defined below: Assets promised by a borrower to a lender if the borrower cannot repay the loan. The managing of investments in ways that produce as much profit as possible while limiting the danger of losses. Reducing risk by investing in a variety of assets / lending money to large number of people. collateral risk management (tool) risk diversification

7. COLLATERAL Assets promised by a borrower to a lender if the borrower cannot repay the loan – collateral Eg. The firm went bankrupt, and because he had used his two homes as collateral when he borrowed money for the company, he lost almost everything he owned. Synonym: security Eg. Mortgage is a loan, usually to buy property, which serves as a security for the loan. secured credit vs. unsecured credit In the majority of bankruptcies, secured credit is repaid before unsecured credit.

8. Central banking

9. Central banking functions Listening: RB, p 61

10. 1a Listening The functions of a central bank: 1) Implementing monetary policy 1a) setting interest rate ceilings and floors 1b) printing money or destroying it 1c) open-market operations 2) Exchange rate supervision 3) Commercial banking supervision 4) Act as a lender of last resort A–1b B–1a C–3 D–2 E–4 F–1c

11. Next time: Get ready for the next class RB, p 62: -review the functions of the central bank -make sure you understand the words/concepts in the box -read the excerpt from Schiller’s Essentials of Economics HW: RB, p 62: tasks 1, 2 & 3 HW: Report – task 4 (RB, p 26)