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Ilova 2 (25.1)
Mutual funds
Complete the following sentences with words or phrases from the box.
invested investment trusts mutual funds OEICS redeemed
trade traded transaction trust law unit trusts
1 ................................. are companies set up to invest capital for investors.
2 ................................. are a type of mutual fund common in the UK and English-
speaking countries. They are a safe, easy investment.
3 ................................. is the legal framework which governs the management of
private trusts.
4 Unit trust investments are easily ................................. or turned into cash.
5 When capital is ................................. in unit trusts, more shares are created.
6 ................................. have a share base which is constant - new investments buy
existing shares, they do not create new shares.
7 Both mutual trusts and investment trusts have low................................. costs,
which means buying into or selling out is not expensive.
8 ................................. are open-ended investment vehicles
9 OEICS are flexible and easy to ................................., having a single price for
both selling and buying.
10 OEICS are ................................. internationally.
Ilova 3
Every economy in the world is controlled by its supply of money, even one as small as the Monopoly game where players are provided with Monopoly money for buying and selling houses, hotels, and property around the board. The money supply of the Monopoly game, for example, primarily consists of the players' cash on hand and the money they get for passing Go.
A modern economy is based on the use of money. Each country's money supply, therefore, determines how quickly the economy can grow. If the central bank increases the money supply, consumers and businesses have more money to spend on goods and services.
Just as the game of Monopoly can be stimulated by increasing the amount money available to its players, a country can encourage economic growth by increasing its money supply, which includes currency in circulation and readily available funds such as bank deposits on which checks can be drawn. This "narrow" measure of the money supply is usually called "M1." This easy-to-access money, often called "high-powered" money, tends to fuel most consumer and business consumption and therefore stimulates most economic growth.
Other measures of a country's money supply include funds that are not so readily available, such as time deposits and other long-term investments. These "wider" measures are often referred to as "M3" and "M4" or "L."
Basically, when businesses and individuals have less money at their disposal, economic activity slows down. Central banks usually limit money supply growth in order to slow down the economy and control inflation. In a Monopoly game with less money floating around the board, for example, players will pay less money when buying properties from other players.
On the larger scale of a national economy, less money usually leads to an economic slowdown. When less money is available, interest rates tend to increase-the cost of money increases-and it becomes more expensive to borrow. If it costs businesses and consumers more to borrow money, they will be less inclined to increase spending. In this way, control of the money supply allows a central bank to reduce inflation.
The money supply can also be increased to stimulate economic activity. If the players in a Monopoly game are given more than two hundred dollars for passing Go-five hundred dollars, say-the results are predictable: the "economy" speeds up and players start buying and selling at higher and higher prices. Increasing the money supply usually results in rapid growth and inflated prices.
Key words:
Descriptive описательный, образный tasvirlovchi, bayon qiluvchi.
Executive исполнительный ijro etuvchi.
Route маршрут yo`nalish.
Insurance страхование sug`urta.
Real настоящий haqiqiy.
Estate поместье, имущество yer-mulk, mol-mulk.
Subsidiary вспомогательный, дополнительный yordamchi, ko`makchi.
Annual ежегодный, годовой yillik
Image образ qiyofa.
Local местный mahalliy.
EXERCISES: COMPREHENSION CHECK
Exercise 1. Agree or disagree to the following statements. Begin your sentences with the following phrases: I think so. Yes, it’s really so. I’m afraid, it’s wrong. I can’t agree.
1. Every economy in the world is controlled by its supply of money.
2. A modern economy is not based on the use of money.
3. Each country’s money supply determines how quickly the economy can grow.
4. If the central bank increases the money supply consumers and businesses have less money to spend on goods and services.
5. Control of the money supply doesn’t allow a central bank to reduce inflation.
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