The Bank of England

B) Compare the FED, the CBR and the Bank of England, using information from the unit.

A) Open the brackets, putting the verbs in the correct form.

The Bank of England is Britain’s central bank. Founded in 1694, it (to be) the world’s second oldest central bank, being six years younger than Sweden’s Riksbank. It was privately owned until it (to nationalize) in 1946.

The Governor, Deputy Governor, and 16 Directors who form the Court of Directors (to appoint) by the sovereign on the recommendation of the Prime Minister.

The Bank o England is both monetary authority and bank supervisor, it is charged with the control of the banking system in the interest of the nation. The chief functions of the Bank of England are to act as the Government’s bank in the widest possible sense. The main Government account is the central Exchequer Account in the Bank, to which all Government revenues eventually (to credit), and from which all Government payments originate. Other major ministerial accounts also (to keep) in the Bank and the major expenses of Government departments (to disburse) from these accounts.

The Bank does not lend money to the Government. If the Government needs funds it (to borrow) the sums requires by issuing Treasury bills or by selling stocks. Treasury bills are short-term securities, offered for sale by tender, repayable three month after issue. The Bank’s function is to balance every day the sums received against the sums needed, never allowing idle balances to accumulate. If moneys (to receive) in excess of requirements, the Bank buys back Treasury bills, adding them to its portfolio.

The Bank of England are bankers to the commercial banks, and also to the discount and accepting houses. The ordinary commercial banks (to keep) about half of their cash assets on current accounts with the Bank of England, which therefore acts as the “Bankers’ Bank”, using these deposits for the day-to-day settlement of indebtedness between the banks. A lot of overseas central banks and international bodies have account with the Bank of England to facilitate a wide variety of international transactions and to promote trade and prosperity.

The Bank is the central note-issuing authority. New notes (to issue) and worn notes (to withdraw) in very large numbers every day.

The Bank performs registration activities as registrar of government stocks and stocks of nationalized industries. It also (to pay) dividends when they fall due.

The Bank acts as the Government’s agent for the administration of exchange control and protect the gold and foreign exchange reserves.

Being monetary authority in the country, the Bank implements the Government policy in the money market and the loan market by raising or lowering Bank Rate.

Because of its influential position in the financial advice to the Treasury to assist it in forecast of the economic situation and the balance-of-payments position. The Bank also advises companies on capital structure and finance.

The style of work of the Bank much (to admire) by the world and (to give) the credit for the safe and successful growth of London as the world’s number one international banking centre.

Words you may need:

sovereign – монарх

charge (with) – поручати

exchequer – казначейство

credit – записувати в кредит

disburse – платити, оплачувати

sale by tender – продаж на торгах

idle – вільний

discount house – рахунковий дім

accepting house – акцептний дім

settlement of indebtedness – урегулювання заборгованості

registrar – регістратор

to fall due – наступати

exchange control – валютний конроль

Bank Rate – ставка Центрального банку

Дата добавления: 2014-11-29