Semester 2 English lesson 2

Banks and the stock exchange

The main function of banks is to keep their depositors’ money safe and
readily available. A depositor’s money may be paid into a bank on deposit account
or on drawing account also named “current account”.
A “deposit account” is made for a fixed period and is allowed a low rate of
interest. A “drawing account” does not bear any interest but the customer may
draw on his money at any time and he is given a cheque book for his transactions
and payments.
All business transacted through the Bank is recorded in the “Pass book” so
that the customer may have a statement of his account whenever he requires it.
In addition, banks collect their depositors’ accounts, discounting them if
required. They can transfer money abroad by delivering letters of credit or
travellers’cheques.
Letters of credit are documents requesting the banks’ agents abroad to
advance the bearer any sums up to a stipulated amount. Travellers’ cheques are
for fixed amounts which can be cashed anywhere against the customer’s
signature.
The Stock Exchange or Stock Market is a place where dealers in securities
meet to transact business1. Transactions are effected through stockbrokers, who
help their customers to make investments by buying securities or to sell their
shares, bonds or debentures when they want to transfer them. The prices of the
funds admitted to an official quotation are recorded in the official list issued every
afternoon.

1
(Lavigne, 1975,p.19)