Financial markets Text A Money Market Instruments

впр. 1-4
Ex. 1. Comment on the following quotations. What do the authors mean? Do you agree with
them?
1. "The rich invest in time, the poor invest in money." (Warren Buffett)
Buffett's quote emphasizes the value of time and how it's utilized in building wealth. Investing
time in learning, growing skills, making strategic decisions, and patiently allowing investments
to grow can be more crucial than simply investing money. It suggests that the wealthy prioritize
long-term strategies and knowledge accumulation over a sole focus on monetary gains. I agree
with this to an extent; strategic investments in education, personal growth, and long-term
planning can indeed be more valuable than money alone.
2. "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." (Warren Buffett)
Buffett's principle emphasizes the importance of capital preservation. Protecting your
investments from significant losses is crucial because recovering from substantial losses can be
challenging. While it's a prudent principle, it might also discourage taking calculated risks that
could yield higher returns. I agree that protecting capital is essential, but it's also important to
balance risk and reward.
3. "Markets are designed to allow individuals to look after their private needs and to pursue
profit. It's really a great invention and I wouldn't underestimate the value of that, but
they're not designed to take care of social needs." (George Soros)
Soros highlights the market's primary function: to facilitate private transactions and profit-
making opportunities for individuals. He acknowledges the market's efficiency in allocating
resources but underscores its limitations in addressing broader social concerns. I agree with this;
while markets efficiently allocate resources and drive economic growth, they may not address
social issues like inequality or access to basic needs.
4. "The financial markets generally are unpredictable. So that one has to have different
scenarios... The idea that you can actually predict what's going to happen contradicts my
way of looking at the market." (George Soros)
Soros emphasizes the inherent unpredictability of financial markets. He advocates for having
multiple scenarios and being adaptable since trying to predict market movements entirely is
futile. I agree with this viewpoint; markets are influenced by numerous variables, making
accurate predictions difficult. Being flexible and having contingency plans is essential in
investment strategies.
Ex.2. Read the text.
Ex.3. Give Ukrainian equivalents to the following words and word-combinations.
1. Misnomer - Неправильна назва
2. Trading room - Торгова зали
3. To replace maturing issues - Заміняти закінчені цінні папери
4. To market securities - Реалізувати цінні папери
5. Misleading - Маніпуляційний / Нехайовий
6. To have nothing to do with - Не мати відношення до
7. Dollar-denominated deposits - Депозити, виражені в доларах
8. Issued at a discount from par - Випущені зі знижкою від номіналу
9. A deep market - Глибокий ринок
10. Large money center banks - Великі банки центру фінансових операцій
11. A holdover - Залишок / Утримувач
12. To alert - Попереджати / Сповіщати
13. Nonbanks - Небанківські установи
14. A bearer instrument - Цінний папір на пред'явника
15. Creditworthy - Кредитоспроможний
16. A banker's acceptance - Банківська акцептована вексель
17. Spread - Різниця / Розподіл
18. A liquid market - Ліквідний ринок
19. In excess - У зайвій кількості
20. Commercial paper securities - Комерційні цінні папери
21. Responded to the opportunity - Відповів на можливість
22. Multinational banks - Мультинаціональні банки
23. Mutual funds - Інвестиційні фонди
24. Transaction costs - Витрати на операції
25. Unsecured promissory notes - Незабезпечені векселі
26. To expropriate - Експропріювати
27. Repos - Репо-операції.
Ex.4. Find in the text English equivalents to the following words and word-combinations. Make
up your own sentences using them.
1. Ризик несплати - Default risk
- Sentence: Investing in high-yield bonds carries a higher default risk compared to government
bonds.
2. Емісія - Issuance
- Sentence: The company announced the issuance of new shares to raise capital for expansion.
3. Брокерська контора - Brokerage firm
- Sentence: I opened an account with a reputable brokerage firm to start investing in stocks.
4. Доходи від податків - Tax revenues
- Sentence: The government's budget heavily relies on tax revenues to fund public services.
5. Грошова маса - Money supply
- Sentence: Central banks regulate the money supply to control inflation and stabilize the
economy.
6. Збувати цінні папери - Sell securities
- Sentence: The investor decided to sell his portfolio of stocks and bonds to lock in profits.
7. Відсотковий дохід - Interest income
- Sentence: Savings accounts provide a steady stream of interest income for depositors.
8. Закінчитися (про гроші) - Run out
- Sentence: The budget for the project ran out before all expenses were covered.
9. Виплачувати борг - Repay debt
- Sentence: The company allocated a portion of its profits to repay its outstanding debt.
10. Федеральні фонди - Federal funds
- Sentence: Banks borrow and lend federal funds among themselves to meet reserve
requirements.
11. Вимоги щодо обов’язкового резервування - Reserve requirements
- Sentence: The central bank increased reserve requirements for commercial banks to curb
excessive lending.
12. Основна сума боргу і відсотки - Principal and interest
- Sentence: Each loan repayment includes both the principal and interest portions.
13. Зростати - Increase
- Sentence: The demand for the company's stock increased significantly after a positive
earnings report.
14. Рівень ризику - Risk level
- Sentence: Before investing, it's crucial to assess the risk level associated with different asset
classes.
15. Грошове вливання - Cash inflow
- Sentence: The successful launch of the new product resulted in a significant cash inflow for
the company.
16. Утримувати певний відсоток від загальної кількості депозитів - Maintain a certain
percentage of total deposits
- Sentence: Banks are required to maintain a reserve ratio, holding a percentage of deposits as
reserves.
17. Часто залучатися у діяльність - Engage frequently in activity
 - Sentence: Hedge funds often engage frequently in high-risk trading strategies to generate
profits.
18. Забезпечена позика - Secured loan
- Sentence: A mortgage is an example of a secured loan, where the property serves as
collateral.
19. Строковий цінний папір - Time-based security
- Sentence: Treasury bills are short-term securities with maturities ranging from a few days to
a year.
20. Вимагати оплату в доларах - Demand payment in dollars
- Sentence: The international contract stipulates that the payment must be demanded in US
dollars.
21. Отримувати більш сприятливу ставку - Receive a more favorable rate
- Sentence: With a higher credit score, borrowers can negotiate and receive a more favorable
interest rate on loans.