Английский язык. Бочкарева Т.С - 9 стр.

     - interest on loans;
     - return on investments;
     - fees, commissions, service charges.
      The granting of credit provides the largest single source of bank income. Typically,
two thirds of an American commercial bank's yearly earnings result from interest on
loans. Nine out of every ten dollars they lend come from depositors' funds.
     The following items normally constitute the main expenses in a bank's profit and
loss account, again in typical order of size:
      - interest paid;
      - salaries and other benefits;
      - taxes.
     A bank's accounting systems, then, are designed to record and present the many
transactions that take place every day. Substantial reserves over and above statutory
requirements are an indication to customers of the bank's strength, that it has run its
business well and has retained profits in the business for future operations. Profitability
indicates the effectiveness of a bank's performance and how well it has managed the
resources under its control. Published figures thus provide some essential data on the
liquidity, safety and income of a bank.

     Comprehension Questions

     1 What systems do banks use to record the financial situation of the bank?
     2 What does the principle of double enetry mean?
     3 What is an asset of a bank?
     4 What is a liability of a bank?
     5 What information does the balance sheet of a bank give us?
     6What assets items do balance sheets include?
     7 What liabilities items do balance sheets include?
     8 The income of a bank is recorded in the profit and loss account, isn't it?
     9 What items constitute the expenses in the bank's profit and loss account?
     10 What are bank's accounting systems designed for?

     2.2 Vocabulary Practice

     Exercise 1 Choose the necessary word and put it in the sentence:

     1 Banks use sophisticated accounting systems … as         1 data
     clearly as possible the financial situation of the
     bank.                                                     2 the transactions
     2 If we deposit some sum money with a bank, for
     example, the bank … a debit for the receiver and the

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