F lo ws relatively slowly through the economy, resulting in a low velocity of circulation

Commentary and Notes to Text 7.7.1.1

A current account bank deposit — депозит текущего банковского счета

A liquid asset — ликвидный актив

To dispose of — распоряжаться имуществом путем продажи (ликвидировать)

Marketable securities — ценные бумаги, имеющие хождение на рынке

Stocks and bonds — акции и облигации

Liquidity preference — ликвидное предпочтение

7.7.1.2. Read and translate the text “Currency Crisis.” Try to explain the cause for currency crisis.

В з а в и с и м о с т и

О т

С р о ч н о с т и

О п е р

а ц и й?

• “ sw a p ”

O p e r a t i o n (j o i n t

S p o t

A n d f o r w a r d

O p e r a t i o n s)

US would no longer be able to stabilize the price of the dollar, and a currency crisis would ensue.

A currency crisis occurs when a country can no longer support the price of its currency in foreign

Exchange markets under a fixed exchange rate system. Many such crises occurred in the past several

Decades when countries attempted to maintain a fixed exchange rate that was in disequilibrium.

Vocabulary Notes to Text 7.7.1.2

To buy up — скупать

To run out — истощаться

To ensue — происходить (последовать)

7.7.1.3. Read and translate the text “An Example of Determining Foreign Exchange Rates

in a Market.” Answer the question: Is the given example of parity of currencies — $ and ￡ — typical

of other goods and services?