Universitatea Bucuresti Marketing Anul I

Ciocan Maria Luciana

Portofolio
Student : Ciocan Maria Luciana Marketing, Anul I Grupa : 102

Letters 1. Dear Sirs, Having verified your accounts for the China consignment by S.S. we inform you that we have today drawn on your .. at three months to the order of Mr. ..We trust that you honour the draft on presentation to the debit of our account. Yours faithfully, 2. Dear Sirs, From the account sales enclose you will observe that we have been able to dispose of the carpets by S.S for .and that, after allowing for our expenses and commission, there remains a balance of ..in your favour. We ask you to draw on us for this sum at sixty days, when we should be pleased to honour your draft. Yours faithfully, . 3. Dear Sirs, We are sorry that we are unable to meet in full our acceptance No. . which falls due on 5th December and we hope you will appreciate our
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difficulty. We should be very grateful if you would take in cash and a further three months bill for the balance, together with interest thereon at 71/2 per cent. Yours faithfully, ..

Word and Word Combinations

Foreign exchange devize Promissory note bilet la ordin Shares actiuni Bonds obligatiuni; titluri Stocks obligatiuni; hartii de valoare; actiuni Coupons cupoane Foreign currency valuta To deposit whit a depune la To balance a echilibra Issuing bank banca emitatoare On demand la cerere Rate of exchange paritate Fine gold aur fin Legal person persoana juridical Natural person persoana fizica SDR (Special Drawing Rights) drepturi special de tragere Account currency moneda de cont Currency in bank account valuta in cont Bank securities hartii de valoare Account foreign exchange devize de cont Clearing foreign exchange devize de cliring Availabilities in bank account disponibilitati in cont Currency rate of exchange curs valutar
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Sistem bancar banking system De regula as a rule Organe guvernamentale gorvenmental bodies Intermediar - broker

Exercises I. a) b) c) d) e) f) II. Enlarge on: The various foreign means of payment used in settling international debts; The actual practice of convertibility; The main categories of foreign exchange; What is currency the difference between national currency and foreign currency; Currency rates of exchange and how they are formed monetary parity; Special Drawing Rights, their function use. Study the letters following the text and say: a) Who is the writer; b) Who is the addressee; c) What is the object for the letters; Fill in the blanks with proposition: 1. The openingthe account must be first considered. 2. Bankers are reluctant to deal.strangers and usually insist.being given information as..their standing. 3. The prospective customer must provide the banker..references which will be taken ..promptly. 4. If the information given satisfies the banker, the account will be considered. 5. The customer will be asked to operateit, specimenstheir signatures, and any special restrictions he wishes to impose.

III.

6. The banker will then provide the customer.a Paying-in Book, which serves as a record and receipt..all payments; also..a cheque book, and a Pass Book, which willmost cases be completed..the banker leaf..leaf, each recording the receipts and payments since the preceding one was submitted. 7. The customer will open either a Deposit or a Current Account..the former case he may not normally withdraw his money.demand, bankersmost cases insistingseven days notice if the deposit is not.. a fixed period.

IV.

Give synonyms of: - Equivalent - Effective - Draft - Obligation - Transaction - Oftentimes - Extra - We inform you - To verify - To be able to - To meet the acceptance - To fall due Give antonyms of: - Convertibility - Comparable - Adequately - Expenses - To honour - To trust - Sales - To appreciate
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V.

VI.

Write the following letters: a) Ask your bankers to transfer 5,000 from your deposit to your current account. b) Ask a customer, whose security to cover an overdraft or provide additional security. c) Ask your bankers to explain why they have dishonoured a cheque you have just drawn in spite of the fact that the last cheque you posted to them for collection raised your balance sufficiently to cover the dishonoured cheque.

VII.

Translate into Romanian: In order to earn profit, it is essential for the banker to lend a portion fo the money deposited with him. The interest of charged on loans exceeds that allowed on deposits. It is a bankers duty the honour his customers cheque if there is a sufficient balance, property applicable for the purpose. Acting upon instructions from its clients the bank accepts for collection foreign currency, cheques and other commercial paper issued in foreign currency. All operations are effected in accordance with the laws governing foreign exchange.

VIII. Translate into English: a) Valuta in cont; hartii de valoare; titluri; obligatiuni; devize de cliring; disponibilitati in cont; curs valutar; paritate monetara; la cerere; moneda de cont. b) Pietele valutare unt formate din intregul sistem bancar al unor tari (in care restrictiile valutare sunt de regula reduse la maximum) sau numai dintr-un numar mai mult sau mai putin restrans de banci autorizate de catre autoritatile valutare (de obicei banca centrala, Ministerul Finantelor sau alte organe guvernamentale) de a efectua operatii in devize.
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Intre banci autorizate se interpun cateodata unii intermediari specializati in operatiunile valutare. Printre tarile in care exista astfel de piete valutare putem enumera S.U.A., R.F.G., Marea Britanie, Olanda, Franta, etc. Incheierea tranzactiilor de acest gen de piata valutara se face in general prin telex, telegrame, telefon. Tranzactiile pe pietele valutare sunt incheiate la cursuri controlate de catre autoritatile valutare si nu se pot abate de la paritate decat in anumite limite admisibile, de exemplu 2% din valuta de referinta.

4.4. BANK GUARANTEE LETTERS

A bank guarantee letter is a document annex used in making payments in international economic exchanges, whereby a first order bank undertakes to make payment, if a legal or natural person, call the principal debtor, fails to pay a certain amount of money at the stipulated time, in favour of another legal or natural person, called the payee (beneficiary). As a rule, guarantee letters are issued by banks. As an exception, guarantee letters can also be issued by reputable commercial firms. Bank guarantee letters issued to: Guarantee an export; Guarantee an import; Effect a transfer; open a letter of credit; refund advance money; pay a commission; participate in tenders, etc. The obligation assumed by the issuing bank of guarantee letter is a secondary one, while the main obligation to make the payment out
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tests with the principal debtor. Any obligation deriving from a bank guarantee letter over and above the amount of the principal obligation is null and void. In the event that the principal debtor has not settled his account when payment is due, the beneficiary approaches, the bank within a specific date for which the bank guarantee letter has been issued. If the bank fails to effect payment, the beneficiary resorts to the court of law to obtain execution of the guarantee letter and payment of the amount. It is only after he has cashed the amount that the beneficiary must return the guarantee letter.

ESSENTIAL ELEMENTS OF THE BANK GUARANTEE LETTER The bank guarantee is usually given in the form of a letter which contains the following essential elements: a) the types of guarantee (simple, solidary, irrevocable); b) the name and address of the guarantee bank; c) name and address of the legal or natural person to be guaranteed; d) name and address of the beneficiary; e) the object of guarantee; f) value of the guarantee expressed in a specific amount; g) date of payment; h) validity of the guarantee; i) special clauses related to the extension of the date of payment, reduction of the amount, etc.

CATEGORIES OF BANK GUARANTEES A bank guarantee may be: simple, when the guarantee bank can request the beneficiary to sue first the principal debtor and only after he has failed to effect payment, to demand execution of the bank; solidarity, when the beneficiary an demand execution of the bank without previously suing the guaranteed principal debtor and the bank being in no position to object to this procedure, respectively to oppose the benefit of discussion or division. Foreign trade enterprises can use the following type of letters: Received Guarantee Letters (a) Guarantee letters whereby a foreign bank guarantees the opening of a letter of credit. If the goods are shipped before the arrival of the letter of credit, the bank will pay the price of the goods upon receipt of the shipping documents from the Romanian Bank of Foreign Trade. (b) Guarantee letters whereby a foreign bank guarantees directly payment of the respective amount, if the sales are affected on credit. (c) Guarantee letters in the frame of a consignment contract, whereby a bank guarantees either the turn of the goods or the payment of the respective amount, as stipulated in the consignment contract. Issued Guarantee Letters (a) Guarantee letters whereby advance payments given by foreign customers are guaranteed in the case or failure by a foreign trade enterprise to deliver the goods in accordance with contract provisions; (b) Guarantee letters with a view to carrying out contract stipulations adequately; (c) Provisional gurantee letters for participation in various auctions.

LETTERS 1. Dear Sirs,

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We are unable to comply with your request of 16th November in its present form, but we appreciate the benefits likely to follow from the overdraft you require and should be prepared to consider this loan if it were backed by more tangible security. Can you provide a guarantor, or if is not possible, deposit with us some collateral security. These precautions are a general practice and are not intended to have any personal significance. Subject to these modifications, we are prepared to finance you, charging interest at per cent on daily balance. Yours faithfully, .

2. Dear Sirs, Referring to your letter of 21st September, we regret that it was necessary for us to refuse payment of your cheque No. AB 1993. You appear to have overlooked the fact that the cheque drawn by Messrs. . In your favour was post -dated, with the results that the proceeds cannot be credited to your account before 27th September. In order to honour your cheque, the allowance of an overdraft would have been necessary, and as the sum is question would have been rather large, we were unable to grant credit without previous arrangements. We trust that the position is now clear. Yours faithfully, Words and Word Combinations First order bank banca de prim ordin Advance money arvuna, avans To approach a bank a se adresa unei banci
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To resort to a recurge la To cash the amount a incasa suma To open a letter of credit a deschide un acreditiv documentar On credit pe credit Received guarantee letter scrisoare de garantie primita Issued guarantee letter scrisoare de garantie emisa Tangibile security asigurare concreta To be intended a viza To charge interest a percepe dobanda Proceds castig To grant credit a acorda credit To nominate a desemna

Firma comerciala renumita reputable commercial firm Debitor principal principal debtor Banca garanta guarantee bank

Exercises I. Enlarge on: a) The object of issuing Bank Guarantee Letters; b) The obligations assumed by the bank that issues a Bank Guarantee Letters; c) The essential elements of the Bank Guarantee Letter; d) Classification of the Bank Guarantee Letters. Study the letters following the text and say: a) Who is the writer; b) Who is the addressee; c) What is the object of the letters.
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II.

III. -

Give synonyms of:

Legal Principal Guarantee Amount To return Previously To receive Directly Provisional Intended Modification IV. Give antonyms of: Essential Legal Natural Irrevocable To object Credit Sale Provisional

V. Give the verbs corresponding to the following nouns: Guarantee Favour Advance Obligation Execution Extension Division Stipulation
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Provision Modification Deposit Arrangement.

VI. Say it in one word and choose from those listed below: Guarantee To sue Procedure To deposit 1. A pledge that something is a represented and will be replaced if it does not meet specifications; 2. Something lent, especially a sum of money, often for a specified period and repayable with interest; 3. To bring civil action against or prosecute in a court of law in seeking redress of wrong or injustice; 4. The established way of carrying on the business of a legislature, law court; 5. To put (money) in a bank, as for safe keeping, or to earn interest.

VII.

Fill in the blanks with prepositions: 1. As rule, guarantee letters are issued.banks. 2. The obligation assumed. the issuing bank of the guarantee letter is a secondary one, while the maine obligation to make the payment rests.the principal debtor. 3. Any obligation deriving.a bank guarantee letterandthe amountthe principal obligation is a null and void.

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4. .the event that the beneficiary approaches the bank.a specific date..which the bank guarantee letter has been issued.

VIII. Supply the missing verbs: 1. Theytheir accounts when payment is due. 2. He ..to pay the money at the stipulated time. 3. Guarantee letters are sometimes.by reputable commercial firms. 4. The bank.the price of the goods upon receipt of the shipping documents. 5. The bank.to make the payment. 6. He must.the guarantee letter only ater hethe amount. 7. The beneficiary.to the court of law to obtain payment of the amount. 8. We are unable.credit without previous arrangement. 9. So far no surveyor 10.Please.us with the full account of the accident.

IX.

Use the corresponding passive constructions: 1. The beneficiary approaches the bank within a specific date for which the bank guarantee letter has been issued. 2. The guaranting bank can request the beneficiary to sue the principal debtor. 3. The beneficiary demanded the execution of the contract. 4. They cannot object to this procedure. 5. They will pay the price of the goods upon receipt of the shipping documents. 6. We refused immediate liability for the damages. 7. He will ask them to submit a survey report.
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8. We asked them to provide a guarantor. 9. They financed the enterprise charging interest at 2 per cent.

X.

Translate into English: Scrisoarea de garantie bancara este un document anexa folosit in cadrul modalitatilor de plata in schimburile economice international. Emiterea scrisorilor de garantie bancara se face de catre banci. Aceste scrisori pot fi emise si de firme comerciale renumite numai in cazuri exceptionale. In cazulcand debitorul principal nu plateste la termen beneficiarul se adreseaza bancii garantate in cadrul termenului pentru care a fost emisa scrisoarea de grarantie bancara numai daca incasarea sumei. Din punct de vedere al tipurilor de scrisori folosite in cadrul unei intreprinderi de comert exterior, acestea pot fi : scrisori de garantie primate si scriosri de garantie emise.

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