Economy of the United States

The United States has a capitalist mixed economy, which is fueled by abundant natural resources, a well-developed infrastructure, and high productivity. According to the International Monetary Fund, the United States GDP of more than $13 trillion constitutes over 25.5% of the gross world product at market exchange rates and over 19% of the gross world product at purchasing power parity (PPP). The largest national GDP in the world, it was slightly less than the combined GDP of the European Union at PPP in 2006. The country ranks eighth in the world in nominal GDP per capita and fourth in GDP per capita at PPP. The United States is the largest importer of goods and third largest exporter, though exports per capita are relatively low. Canada, China, Mexico, Japan, and Germany are its top trading partners. The leading export commodity is electrical machinery, while vehicles constitute the leading import.

The private sector constitutes the bulk of the economy, with government activity accounting for 12.4% of GDP. The economy is postindustrial, with the service sector contributing 67.8% of GDP. The leading business field by gross business receipts is wholesale and retail trade; by net income it is finance and insurance. The United States remains an industrial power, with chemical products the leading manufacturing field. The United States is the third largest producer of oil in the world, as well as its largest importer. It is the world's number one producer of electrical and nuclear energy, as well as liquid natural gas, sulfur, phosphates, and salt. While agriculture accounts for just under 1% of GDP, the United States is the world's top producer of corn and soybeans. The country's leading cash crop is marijuana, despite federal laws making its cultivation and sale illegal. The New York Stock Exchange is the world's largest by dollar volume. Coca-Cola and McDonald's are the two most recognized brands in the world.

Vocabulary

Questions:

1. What type of economy does the United States have?

2. What is the United States GDP?

3. What are top trading partners of the USA?

4. What is the leading export commodity? What is the leading import commodity?

5. What constitutes the bulk of the economy?

6. Does the United States produce oil or import it?

7. What does the USA produce?

8. The United States is the world's top producer of corn and soybeans, isn’t it?

9. Is the cultivation and sale of marijuana legal in this country?

10. What are the two most recognized US brands in the world?

Тopic 8

Bank

A banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money.

The first modern bank was founded in Italy in Genoa in 1406, its name was Banco di San Giorgio (Bank of St. George).

Many other financial activities were added over time. For example banks are important players in financial markets and offer financial services such as investment funds.

Banks have influenced economies and politics for centuries. Historically, the primary purpose of a bank was to provide loans to trading companies. Banks provided funds to allow businesses to purchase inventory, and collected those funds back with interest when the goods were sold. For centuries, the banking industry only dealt with businesses, not consumers. Banking services have expanded to include services directed at individuals, and risks in these much smaller transactions are pooled.

Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as telegraphic transfer, EFTROS, and ATM.

Banks borrow money by accepting funds deposited on current account, accepting term deposits and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current account, by making installment loans, and by investing in marketable debt securities and other forms of money lending.

Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account.

Vocabulary

Questions:

1. What is a bank?

2. When and where was the first modern bank founded? What was its name?

3. What was the primary purpose of a bank historically?

4. How do banks act?

5. How do banks borrow money?

6. How do banks lend money?

7. Why is a bank account considered indispensable by most businesses, individuals and governments?

8. Why are non-banks that provide payment services not normally considered an adequate substitute for having a bank account?

Тopic 9