Tasks and Functions of the National Bank

Look through the list of English words and their Russian equivalents before reading the text:

The National Bank of Belarus occupies the central position in the country’s banking system and is accountable to the Parliament. The Head of the National Bank is appointed by the President. His deputies and members of the board are appointed by the Presidium of the Parliament.

The National Bank is an independent institution acting within the limits of the legislation and its Charter. The Charter is the subject to approval by the Parliament. The Bank sends annual reports of its activities to the Parliament.

In cooperation with the government, the National Bank drafts and sends to the Parliament the guidelines for financial and credit policies for the coming year and reports the implementation of such policies in the previous year.

The National Bank regulates inflation chiefly by internationally accepted economic means, such as interest rates, minimum requirements for banking services and activity on the open financial market.

The National Bank acts as a creditor, economic advisor and representative of the government on the financial market.

The National Bank participates in the work of international organizations. It co-operates with the International Monetary Fund, World Bank and European Bank for Reconstruction and Development and foreign banking and financial control institutions.

The main functions of the National Bank are:

- develop and pursue monetary policy of the Republic of Belarus jointly with the government of the Republic of Belarus;

- to issue money;

- to regulate money circulation;

- to regulate credit relations;

- to carry out foreign exchange regulation;

- to act as a central depository.

The National Bank does not provide crediting to economic entities. Under the current legislation, crediting, cash collection and other financial services are provided to economic entities by commercial banks.

Ex.1. Match the English words with the appropriate Russian equivalents:

Ex.2.Give English equivalents from the text:

Занимать центральное положение, быть ответственным перед кем-либо, банковские услуги, заместители главы Национального банка, ежегодные доклады, совместно с правительством, регулировать инфляцию, минимальные требования, экономический консультант, представитель государства, экономическая единица, предоставлять, Международный Валютный Фонд, Всемирный Банк, денежное обращение.

Ex3. Say whether these statements are right or false:

1. The National Bank of Belarus is accountable to the President.

2. The Head of the National Bank is appointed by the Presidium of the Parliament.

3. The Charter is the subject to approval by the government.

4. The National Bank regulates inflation by internationally accepted economic means.

5. The National Bank acts as a creditor, economic advisor and representative of the government on the financial market.

6. The National Bank doesn’t participate in the work of international organizations.

7. The National Bank provides crediting to economic entities.

8. The National Bank regulates money circulation.

Ex.4. Answer the questions:

1. What position does The National Bank occupy?

2. By whom is the Head of the National Bank appointed?

3. Is the National Bank accountable to the Parliament or to the President?

4. What does the National Bank draft and send to the Parliament in cooperation with the government?

5. By what means does the National Bank regulate inflation?

6. With what international organizations does the National Bank cooperate?

7. What are the main functions of the National Bank?

8. What financial institutions provide crediting to economic entities?

Ex.5.Complete the sentences:

1. The National Bank of Belarus occupies the central position …

2. The Head of the National Bank is…

3. The National Bank is an independent institution…

4. In cooperation with the government, the National Bank drafts and sends to the Parliament…

5 The National Bank regulates inflation chiefly by internationally accepted economic means…

6. The National Bank acts as a creditor…

7. The National Bank participates in the work of international organizations…

8. The main functions of the National Bank are…

Ex.6.Make up a plan of the text and retell it.

TAXATION

Look through the list of English words and their Russian equivalents before reading the text:

The principal purpose of taxes is to pay for the cost of government. Sometimes taxes are levied to protect selected industries. The federal government can use its ability to tax to regulate the level of economic activity.

Taxes may be imposed on transactions, institutions, property and all kinds of other things. But the most important thing is that taxes are paid by people.

All taxes are paid out of income. Two principles of taxation deal with the equity in distributing tax burdens.

The benefit-received principle of taxation states that those who benefit from government programme are the ones who ought to pay for it.

The ability-to-pay principle states that taxes ought to be paid by those who can best afford them, regardless of the benefits they receive.

Most taxes can be classified as progressive, regressive and proportional.

A progressive tax takes a larger percentage of a higher income and a smaller percentage of a lower income.

A regressive tax is one that takes a higher percentage of a low income and a lower percentage of a high income.

A proportional tax takes the same percentage of all incomes, regardless of size.

A sales tax is a general tax levied on consumer purchases of nearly all products. Sales taxes have a regressive effect. A value-added tax is similar to a sales tax and is also regressive.

An income tax, a property tax and an inheritance tax are progressive taxes.

Much of the government’s revenue comes from the income and property taxes.

Ex.1. Match the English words with the appropriate Russian equivalents:

Ex.2.Give English equivalents from the text:

Главная цель, облагать налогами, налоги выплачиваются из прибыли, распределение налогового бремени, принцип извлечения выгоды, принцип платёжеспособности, налог с оборота, налог на добавленную стоимость, подоходный налог, прогрессивный налог, налог на наследство, налог на собственность.

Ex3. Say whether these statements are right or false:

1. The principal purpose of taxes is to pay for the cost of government.

2. Taxes are paid by the government.

3. There are three principles of taxation.

4. The benefit-received principle of taxation states that those who benefit from government programme are the ones who ought to pay for it.

5. A progressive tax takes a smaller percentage of a higher income and a larger percentage of a lower income.

6. A regressive tax is one that takes a higher percentage of a low income and a lower percentage of a high income.

7. A proportional tax takes the largest percentage of all incomes, regardless of size.

8. A sales tax is a general tax levied on consumer purchases of nearly all products.

9. Much of the government’s revenue comes from the income and property taxes.

Ex.4. Answer the questions:

1. What is the main purpose of taxes?

2. What may taxes be imposed on?

3. Who pays taxes?

4. What are the principles of taxation?

5. What does the benefit-received principle state?

6. What does the ability-to-pay principle mean?

7. How can most taxes be classified?

8. What is a progressive tax?

9. What is the peculiar feature of a regressive tax?

10. What is a proportional tax?

11. What are the examples of progressive and regressive taxes?

Ex.5.Complete the sentences:

1. The principal purpose of taxes is…

2. The federal government can use its ability to tax…

3. Taxes may be imposed on…

4. But the most important thing is…

5. Two principles of taxation deal with…

6. The benefit-received principle of taxation states…

7. The ability-to-pay principle states that taxes ought to be paid…

8. Most taxes can be classified…

9. A progressive tax takes a larger percentage of a higher income and…

10. A regressive tax is one that takes…

11. A proportional tax takes…

12. A sales tax is a general tax levied…

13. A value-added tax is similar…

14. Much of the government’s revenue comes…