PASSAGE 22# a% q) _3 o. `; k4 q: y/ [; ]' ]2 W! q
Federal Deposit Insurance Corporation
% ^( c4 q' u6 R. P7 ~ Before 1933, and particularly during the period 1929-33, bank failures were not uncommon. _1_ a bank overextended itself in creating credit or if several of its important loans could not be _2_, depositors in the bank would frequently become panicky and begin to make large withdrawals. __3__ the bank had only a small number of its deposits backed by currency, the band would soon be unable to meet withdrawals, and most depositors __4__ their money. Most frequently a bank merely needed time to improve its cash position by __5__ some of its loans and not making additional ones. In 1933, the number of bank failures __6__ a peak, forcing the federal government to intervene and __7__ the banks temporarily. To help restore the public's confidence __8__ banks and strengthen the banking community, Congress passed legislation setting up the Federal Deposit Insurance Corporation. __9__ corporation, an agency of the federal government, now insures over 90 percent of all mutual savings and commercial bank deposits for __10__ $100,000 per deposit. The FDIC has __11__ its insurance fund by charging member institutions one-twelfth of 1 percent of their total deposits.* E& g$ l& W" |/ }: K; q7 J" @) w- H
As a result of the protection provided by the FDIC and through other kinds of supervision, bank failures have been __12__ to a few isolated instances. When deposits are federally insured, people __13__ rush to withdraw their money if they __14__ the financial condition of their bank. The delay gives the banks the necessary time to adjust their cash credit balance, and this action helps to reduce the __15__ of bankruptcy. For an example of the value of the FDIC, note that the failure in 1974 of the huge Franklin National Bank did not touch off a panic, and that depositors lost no money as Franklin was taken over by another bank.- Z$ ]( X7 g7 H( a1 U
EXERCISE:3 i0 W9 U. [. V0 U+ { ?, [
1. A) Although B) Even if C) If D) Because, J- B7 L0 ` E2 s/ y# w9 ~
2. A) repaid B) deposited C) found D) saved
k+ U+ Z4 k8 N G+ | 3. A) Because B) Because of C) As a result D) considering+ n1 Y' q+ W0 x+ X% }
4. A) lost B) had lost C) will lose D) would lose
+ G7 I/ R& x% Z* R7 x" E5 Y& n 5. A) calling on B) calling for C) calling off D) calling in
3 D4 N7 ^2 E8 O5 V+ b2 n% p 6. A) fell from B) reached C) climbed up D) arrived# r! ]( y8 |& M& f" G
7. A) closed B) closing C) close D) has closed" e' c/ F/ b/ a1 |2 E! P
8. A) to B) in C) of D) into
2 y7 T1 Z3 W4 |! m8 c 9. A) For the B) This C) As a D) A& C3 w$ t) h4 @& O& N# B
10. A) up to B) as much C) as many as D) equal
: Y8 r! t4 x, }- a% { 11. A) built up B) build up C) been built D) build
8 r9 D& A6 O# w/ {2 a 12. A) growing B) increased C) reduced D) disappeared9 f' g! s) ^6 f6 M
13. A) no B) any more C) no longer D) not
+ E7 ~; {" n- j5 G 14. A) become concerned about B) become concerned with4 r/ V) J' s0 X7 c. f: i
C) become concerned in D) concern( J4 ?- J/ v& S5 V7 F
15. A) likely B) possibility C) possibly D) opportunity
: b3 a$ q W* i: o Key: CAADD BCBBA ACCAB; H) ^5 u2 T# L2 ^4 d
PASSAGE 23) A' T4 ?) w0 @
Brokers+ q0 I$ Z5 E0 T& J% V
Brokers neither physically handle products being distributed nor work on a continuing __1__ with their principals. __2__, a broker is an independent wholesaling middleman that brings buyers and sellers together and provides market information to either party. Most brokers work for sellers, __3__ a small percentage represent buyers.3 [# t$ U5 @4 j& |
Brokers have no authority to set prices. They simply negotiate a sale and leave it up to the seller to accept or __4__ the buyer's offer. They also furnish considerable market information __5__ prices, products, and general market conditions.% \, L1 G& v4 a3 f" o
Because of the limited services provided , brokers receive relatively small commissions-5 percent or less. __6__, brokers need to operate on a low -cost basis.
6 t1 w! [( N+ O7 E9 Y5 a# u Food brokers __7__ buyers and sellers of food and __8__ general-merchandise items to one another and bring them together to complete a sale. They are well __9__ about market conditions, terms of sale, sources of credit, price setting, potential __10__, and the art of negotiating. They do not actually provide credit but sometimes store and deliver goods. Brokers also do not __11__ goods and usually are not allowed to complete a transaction __12__formal approval. Like other brokers, food brokers generally represent the seller, who pays their commission.
2 L+ V/ ~2 H) m/ W5 g7 R; @ Food brokers, __13__manufactures' agents, operate in specific geographic locations and work for a limited __14__ of food producers within these areas. Their sales force calls on chain-store buyers, store managers, and institutional purchasing agents. Brokers work __15__with advertising agencies. The average commission for food brokers is 5 per cent of sales.5 z1 ^' v- T1 E8 k/ g# f
EXERCISE:
9 J$ K6 h3 j# [ P5 \9 W 1. A) basic B) basical C) basically D) basis
* w) r4 k, M7 l- u 2. A) Instead of B) Instead C) So D) Therefore. J; i7 U: |9 N# d2 v- ^
3. A) for example B) as a result C) since D) although
9 ` ^* q, T7 Q8 Z& h4 P 4. A) raise B) take C) reject D) lower+ m. D9 z) o! |) j
5. A) regards B) in relation C) with regard D) regarding; n7 k: B; a. s* x
6. A) However B) Therefore C) For instance D) Because
+ b2 O& X4 n* x6 L. b 7. A) introduce B) to introduce C) take D) bring
; P! o! h: [7 {9 L# _& S8 b" k5 B+ H 8. A) relating B) relate C) to relate to D) connected with
# ?) z: m' Q/ [$ G M; x2 j 9. A) informed of B) informing C) known D) informed
; H5 J- ] N% q' Y 10. A) sellers B) people C) buyers D) agents! T8 O" w# J8 N* {' Y8 b
11. A) take title to B) take title of C) have title of D) give the title to8 t/ `1 l: B6 M, K0 N W
12. A) with B) have C) in the possession of D) without" N* f; N% w, V6 J; _; V
13. A) alike B) like C) resemble D) look like2 {) Y/ s5 H4 u/ `8 U4 Z$ U
14. A) number B) sum C) amount D) quantities0 X! N$ x" e% M3 f: U8 [
15. A) close B) loose C) closely D)closer. z0 C/ M* Q6 t2 e* f% F
Key: DBDCD BABDC ADBAC |