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INTERNATIONAL MONETARY INSTITUTIONS
Read and translate the following text.
There is little exaggeration in saying that international monetary developments
affect all individuals as workers, consumers, travellers, businessmen producing goods
for domestic or foreign markets, and investors at home or abroad. The channels
which transmit the impact of monetary events to people in their various roles
in society are numerous.
Employment opportunities for some workers are improved when exports thrive
and are weakened for other workers when foreign products compete effectively
in price or quality with domestic output.
A movement in the exchange rate may benefit an individual in one of his roles
but leave him worse off in another. The individual as a consumer may have
a different view of and a different interest in what happens in the international
monetary sphere from that of the individual as a worker.
Business activity is heavily influenced by international monetary conditions
affecting prices, exchange rates, interest rates, imposition of controls on exports
or imports or on capital movements.
Interdependence among nations has intensified lately, thus there is great
interest in the functioning of the international monetary system.
The international monetary system is a set of arrangements, rules, practices,
and institutions under which payments are made and received for transactions carried
out across national boundaries. The international system is concerned not only
with the supply of international money but with the relationships among the hundred
or so currencies of individual countries and with the pattern of balance-of-payments
relationships and the manner in which they are adjusted and settled.
International monetary relations are governed by rules of the Articles
of Agreement of the International Monetary Fund and also by agreements and
consultations among nations through other international institutions: the General
Agreement on Tariffs and Trade (GATT), the Organization for Economic
Cooperation and Development (OECD), the Bank for International Settlements (BIS),
the United Nations Conference on Trade and Develop (UNCTAD), the World Bank
Group and other organizations.
The international monetary system is afflicted with problems. The main reason
is that the nations that participate in it are politically independent but economically
and financially interdependent.
This discrepancy determines the functions of the internal monetary system;
at its best, the system acts to reconcile the conflicting economic policies of its
politically independent members.
In order to perform this reconciling function, the system is concerned, first,
with how nations act to influence their balance-of-payments positions, with their
policies that affect exchange rates.
The system is concerned, second, with how nations settle their accounts
with one another. Third, the system is concerned with the amount and form
of international money.
In broad terms, the international monetary system involves the management,
in one way or another, of three processes:
1) the adjustment of balance-of-payments positions, including the establishment and
alteration of exchange rates;
2) the financing of payments imbalances among countries by the use of credit or
reserves;
3) the provision of international money.
1. Find English equivalents for the following Russian phrases.
не будет большим преувеличением сказать; сказываться в людях; пути,
по которым передается это воздействие, различны; число вакансий
увеличивается; экспорт процветает; конкурировать по ценам и по качеству;
изменение валютного курса; введение экспортного контроля; международная
валютная система - это совокупность договоренностей, правил, организаций и
т.д.; характер взаимоотношений платежных балансов; взаимоотношения
регулируются; быть зависимым экономически; определять функции; положение
с платежным балансом; корректировка положения с платежным балансом;
установление и изменение валютных курсов.
2. Mark the sentences with T if they are true and with F if they are false.
1. International monetary developments affect all individuals.
2. The channels which transmit the impact of monetary events to people in
their various roles in society are few.
3. Employment opportunities for some workers are improved when foreign
products compete effectively in price or quality with domestic output.
4. The international system is concerned only with the supply of international
money.
5. The main reason of the problems of the international monetary system is
that the nations are politically independent but economically and financially
interdependent.
3. Match heads and tails.
1. Employment opportunities are improved
A. agreements and consultations
among nations through international
institutions.
2. Employment opportunities are weakened B. the conflicting economic policies
of its politically independent
members.
3. Business activity is heavily influenced by C. when foreign products compete
effectively in price or quality with
domestic output.
4. International monetary relations are D. when exports thrive.
governed by
5. The International monetary system acts E.
international
to reconcile
conditions.
monetary
4. Match the definitions to the key words of the unit.
1. monetary system
2. exchange rate
3. interest rate
4. export
5. import
A. a percentage of the amount that is borrowed or gained
as profit
B. bring (goods or services) into a country from abroad
for sale
C. goods or services sold to foreign countries
D. the value of one currency for the purpose of
conversion to another
E. the system used by a country to provide the economy
with money for internal and international use
5. Fill each gap with a suitable word from the box.
board
bear
per
imbalances
established
encourage
set up
focused
policy
member
growth
carries out
purposes
financed
provides
operations
Countries
World Bank - International Bank
for Reconstruction and Development (IBRD)
The "World Bank" refers to the International Bank for Reconstruction and
Development (IBRD) and its affiliate, the international Development Association
(IDA). The Bank was __________ together with the International Monetary Fund
(IMF) by the Bretton Woods Conference of 1945 as an international bank for two
_____: to help finance the rebuilding of war-devastated areas and to aid
in the advancement of less-developed __________.
Operations started in 1946. The Bank is __________ partly by contributions
paid by __________ countries, partly by bond issues. The national contributions
constitute the bank's capital and relate to the individual countries' share of world
trade. The bond issues finance the lending __________ of the bank.
In financing the economic __________ of member countries the International
Bank complements the IMF, which finances temporary balance of payments
__________. Loans are made to governments or government-guaranteed entities.
Besides lending funds, the Bank __________ technical advice to governments or
other borrowers on a wide range of development problems. It __________ general
economic surveys for governments wishing to study resources and to plan long-range
__________ of development.
At first devoted to the reconstruction needs of industrial countries the World
Bank by the 1950s had __________ its attention on the developing world. In 1956
the IBRD formed the International Finance Corporation (IFC) the purpose of which
was to __________ growth in the private sector of developing countries, and
to mobilize domestic and foreign capital for this purpose. In I960 the IBRD
__________ the International Development Association in order to assist the poorer
developing countries (those with an annual __________ capita GNP of less than $731
in 1980 prices). Loans to these countries __________ no interest and are repayable
over 50 years with an initial grace period of 10 years.
The Bank's strategy has been to ensure that its aid reaches the broad masses
of the people; this is to be done by investments encouraging productivity and
integrating the broad masses of people as active partners into the development
process. The powers of the Bank are vested in a __________ of Governors.