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Federal Deposit Insurance Corporation
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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__ $100,000 per deposit. The FDIC has __11__ its insurance fund by charging member institutions one-twelfth of 1 percent of their total deposits.
: l" b5 T4 s& }/ T, c$ ` 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. 2 b8 R5 [; y5 b3 m' L. |% l
1 Z4 T0 R/ l- [& G) @2 z" wEXERCISE:
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1. A) Although B) Even if C) If D) Because ! x! Q7 p5 Q$ _8 ]9 w0 I+ z
2. A) repaid B) deposited C) found D) saved
& B) _# w- u6 A! X6 N. l3. A) Because B) Because of C) As a result D) considering & o/ @ M; N0 f. h( T
4. A) lost B) had lost C) will lose D) would lose
6 \/ F' ?9 E9 B4 R# L* B5. A) calling on B) calling for C) calling off D) calling in % i, |' o. S: @& b6 k# T+ c
6. A) fell from B) reached C) climbed up D) arrived
/ r! C b% L# w, J7. A) closed B) closing C) close D) has closed
4 X7 e+ z- ~; Q- Y, R8. A) to B) in C) of D) into
8 z# X+ g' v( M. p: z2 G9. A) For the B) This C) As a D) A
" i7 x1 Y# j1 V10. A) up to B) as much C) as many as D) equal
# h, P& H7 s' S/ q" X+ S11. A) built up B) build up C) been built D) build 9 `6 _7 Q8 V# V8 C2 r
12. A) growing B) increased C) reduced D) disappeared 9 r/ E5 b3 L% X: ? w
13. A) no B) any more C) no longer D) not
. i6 f8 a* r: E5 D$ Y/ v) i* ]! Z" M14. A) become concerned about B) become concerned with . l; g0 a6 M3 R! t& k/ _/ p
C) become concerned in D) concern
. W: m* K2 j! a1 b15. A) likely B) possibility C) possibly D) opportunity 4 n3 r) a& X3 B6 C( o# G$ L) J+ H
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Key: CAADD BCBBA ACCAB
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PASSAGE 23
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Brokers ! F* f0 c+ u3 l) l! Q2 \$ ]0 L
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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.
* E7 u' F, S2 W1 h& o 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. % f) p! W8 H0 \! y
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. * g( w: E' ?* S6 _& b
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.
# C7 U3 k: n& k, D 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. |