Writing. 1. Write about long-term prospects of the banking business using the

1. Write about long-term prospects of the banking business using the

following:

traditional banks; increased competition in lending; to expand one’s

lines of business; a fusion of banking and other financial services; to

launch something; a telephone and Internet bank; disintermediation;

to raise money; proprietary trading; to cut costs; net banking; online

banks; to move online; to come up with one’s own Internet strategy;

offline services.

2. Write an essay on the basis of one of the following statements (150–

200 words):

a) The world might be faced with another full-scale banking crisis in

one or more countries.

b) From an economic point of view, it would be best if bank super-

vision were centralized, either under the ECB or a new, independent

European regulator.

c) Banks are likely to become more pan-European as the single cur-

rency encourages cross-border mergers and greater cross-border expo-

sures.

Key vocabulary

current deposit savings

revocable letter of credit budget

specimen signature Eurocheque

irrevocable letter of credit cash card

traveller’s cheque pay in

cash dispenser withdrawal

honour a cheque transfer slip

cancel a cheque overdraw

notice of withdrawal direct debt

negotiable securities drawer

overdraft facilities sight bill

call in an overdraft bullion

new issue inland bill

shipping insurance bill of exchange

exchange market confirmed credit

days after sight (d/s) dishonoured bill

cheque card

endorse a bill

stop a cheque

counterfoil

guarantor

base rate

bank charges

standing order

sight draft

Eurobond

clean bill

foreign bill

protest bill

confirming bank

confirming houses

discount a bill

cheque n

documents against payment (D/P)

documents against acceptance (D/A)

Unit 5

ACCOUNTING