Oral Practice. Work with a partner and discuss these comprehension questions on text 7.4

1. What feature distinguishes international and domestic payments?

2. What is the condition of an export-import transaction among the countries with different currencies?

3. In what way does the exchange (selling and buying) of currencies occur?

4. What is the function of foreign exchange markets? Which foreign exchange markets do you know?

5. What function does the foreign bill of exchange perform?

6. What organizations dominate in modern foreign exchange markets?

7. In what way do currency dealers gain their profit?

8. Do you know what the average daily turnover is in the foreign exchange dealing in London?

What is the size of the “spot” transaction?

9. What is the average daily turnover in world leading markets? Find the figure in the text

10. What is the difference between “spot” and “forward” operations in the foreign exchange market?

11. How is the rate of interest determined in “spot” and “forward” transactions? Is there any difference

between them?

12. What is meant by international currency liquidity?

13. What consequences may be expected due to insufficient foreign-exchange reserves of the country?

14. What preference is given to in the official foreign exchange reserves of the country?

7.5.2. Oral/Written Practice. Find the English equivalents in Text 7.4