Variant 3

1. Translate the text by written form.

Because interest rates influence the level of economic activity by effecting the ease with which money may be borrowed and the incentive for saving, governments frequently regulate interest rates. In the United States, the federal government regulates interest rates indirectly through a variety of agencies. The most important of these, the Federal Reserve System, influences interest rates by controlling the discount rate, which is the interest rate charged banks that borrow from the Federal Reserve banks; by setting reserve requirements, which fix the maximum ratio of loans to deposits for many commercial banks; and by controlling margin requirements, which stipulate the amounts that investors can borrow in order to buy or hold securities.

Other federal agencies, or federally sponsored organizations active in the mortgage market, affect interest rates by buying and selling mortgages, by guaranteeing or insuring loans, and by making funds available to savings and loan associations and other lenders. Among these institutions are the Federal National Mortgage Association and the Department of Veterans Affairs. Farm credit is affected by agencies under the supervision of the Farm Credit Administration. In 1990, Congress undertook new legislative initiatives in the area of home mortgages including the creation of a National Homeownership Trust.

The Board of Governors of the Federal Reserve System also administrates the Truth-in-Lending Act, designed to inform borrowers about the cost of credit. The act, as embodied in Federal Reserve Regulation Z, requires that the total finance charge (which may include interest, insurance premiums, credit report fees, and other fees) and the annual percentage rate must be disclosed to the borrower before credit is extended. The act covers all credit used for personal, family, or agricultural purposes not exceeding $25,000, and all real estate transactions (including home equity loans) by individuals or for agricultural uses. Most states have usury laws that specify the maximum interest rate that may be charged on loans or (sometimes) sales of merchandise in which payment is delayed. The usury rate varies from state to state.

2. Ответьте на следующие вопросы:

1. How does the federal government of the U.S. regulate rates?

2. What is the role of the Federal Reserve System in controlling the discount rate?

3. How do other agencies affect interest rate, for instance, in the mortgage market?

4. Name other institutions which influence credit extending?

5. How does the Board of Governors of the FED administer the Truth-in-Lending Act?

3 Прочтите и переведите предложения. Заполните пропуски следующими словами.

Raised, effectiveness, power, monetary, interest, strengthen, control, poor, device, succeeds, usefulness, in practice.

1. Decisions on monetary… can be reached and applied rapidly, since … is concentrated in the Board of Governors.

2. The effectiveness of monetary action is reasonably certain. Interest rates can always be … to a level at which the brakes take hold.

3. Monetary policy is an impersonal…, which produces its effect through the market mechanism. It is neutral as among individuals and groups in the economy. If the Federal Reserve… in restricting credit, some would-be borrows will be left unsatisfied.

4. The … of monetary policy depends on whether the problem is to tackle inflation or unemployment. … policy is more effective on the former front than on the latter.