Finance and financial system

Ex 1. Answer the following questions:

 

1.     What is finance?

2.     What parts does finance comprise?

3.     What functions does public finance perform?

4.     What is financial system?

5.     What role do financial intermediaries play?

6.     What is a country’s budget?

7.     What does the process of budget preparation include?

 

Ex 2. Match the words in Column A with the definitions in Column B.

 

         Column A                                                 Column B

 

1.     fiscal year                     a) the situation that exists when the government  

                                              spends more than it collects

2.      finance                       b) in economics, the allocation of resources among

3.     distribution                      agents in an economy.        

4.     budget                        c)  a specified sum paid regularly to a person who

5.     pension                            has reached a certain age or retired from employment

6.     fund                                  

7.     deficit spending           d) the practice of manipulating and managing money                                 

8.     surplus                         e)  it is sometimes called the tax year or the year of

                                       assessment. (In the USA it runs from July to the

                                                                        following 30^th June )

                                           f)      the situation that results when the government

                                               spends less than it brings in

                                           g)    a reserve of money or investments held for a

                                               specific purpose, e.g to provide a source of

                                               pensions or to sell as units (unit trust, etc.)

                                           h)  a financial plan setting targets for the revenue  

                                                  expenditures of a country or an                                                                                   organization for a  specified period