Speaking. 1. Argue for or against the following debating themes:

1. Argue for or against the following debating themes:

a) Active mutual and state-owned banks can lower the profitability of

privately owned banks, since they tend to care less about profits.

b) For all central banks’ importance, they remain tiny participants in

huge financial markets.

c) In the longer term banks might have something else to worry about:

electronic money.

2. Explain a) why banks evolved; b) how they function; c) what they do;

d) the challenges they face.

3. Discuss the following problems:

a) Some people argue that credit cards make it too easy for people

to get into debt which they can’t afford. Should a bank limit whom they

issue credit cards to?

b) The cost of credit cards is added to the price of goods. This means

that customers who pay cash subsidise those who do use credit cards for

interest-free credit. Is this fair? If not, what can be done about it?

c) Getting money from a cash dispenser is risky. Someone might see

you and rob you. How can banks give protection to customers using their

cash machines at night?

d) EFTPOS are more of a help to banks than to customers. Customers

can easily pay by cheque or in cash. Why have EFTPOS?

e) It can be very risky to rely on plastic money. If you lose your cards

you lose everything. In the UK 5,000 cards are lost or stolen each day.

How can banks minimize the losses through stolen cards?

4. Working in pairs or small groups discuss the following questions:

1. Where do banks get their money?

2. How has the mix of bank deposits changed in recent years?

3. How can you account for it?

4. Expand on the difference between deposit-taking practices in the

UK and the US?

5. Do you believe that we witness the age of new services in banking?

6. Would you say that there has been a shift in the interrelation of

traditional and innovative types of banking services?

5. Comment on the willingness of modern banks to act as financial de-

partment stores.

a) Suppose you are planning to set up a new bank. What will be its

organizational form and functions depending on the objectives you aim

at? Draw up an organization chart of your future bank.

b) What are the modern tendencies in banking?

6. Make presentations illustrating your arguments with examples:

a) In Europe, banks are at risk from an economic slowdown.

b) Technology allows banks to market products more effectively –

and not just traditional banking services but all the other things.

с) Most central banks set monetary policy with the aim of keeping

inflation low.