1. Complete these sentences about Central Banks using the words in the box.

Central Banks, such as the Bank of England, the Federal Reserve Board in the US, and the Bundesbank in Germany:

act fix implement issue control function influence supervise

1. … as banks for the government and for other banks.

2. … monetary policy - either the government's, as in Britain, or their own, if they are independent, as in Germany and the USA. 3. …the money supply, measured by different aggregates.

4. … the minimum interest rate.

5. … as lender of last resort to commercial banks with liquidity problems.

6. … coins and bank notes.

7. … (floating) exchange rates by intervening in foreign exchange markets.

8. … the banking system.

2. All the words below can be combined with bank or banking in a two-word partnership, e.G. Bank loan or off-shore banking. Add the word bank or banking either before or after each of the words below.

1 account 10 …………merchant …………….

2 balance 11………….note……………………

3 central 12…………transfer .……………….

4 clerk 13…………retail……………………

5 commercial 14…………robbery………………...

6 deposit 15…………savings…………………

7 holiday 16…………statement……………….

8 investment 17………….system…………………

9 manager 18…………..wholesale……………

3.Complete the sentences with the appropriate form of the words

provided in capitals.

Pound

The pound sterling, (1).…..(common) called the pound, is the official currency of the United Kingdom. Sterling is the fourth most (2)…..(trade) currency in the foreign exchange market, after the American dollar, the euro, and the (3)…. (Japan) yen. The full, official name, pound sterling, (plural: pounds sterling) is used (4)….. (main) in formal contexts and also when it is necessary to distinguish the United Kingdom currency from other (5)……(currency) with the same name. Otherwise the term pound is normally used. The currency name is sometimes abbreviated to just sterling, (6)…..(particular) in the wholesale financial markets, but not when (7)….. (refer) to specific amounts; for example, "Payment is (8)…..(accept) in sterling" but never "These cost five sterling".The abbreviations "ster." or "stg." are sometimes used. The term British pound is commonly used in less formal contexts, although it is not an official name of the currency.

4. Choose the correct alternative to complete each sentence.

1. Money in notes and coins is called… .

a) cash

b) capital

c) reserves

2. The dollar, the mark and the yen are all… .

a) currencies

b) funds

c) monies

3. Money borrowed from a bank is a… .

a) deposit

b) income

c) loan

4. All the money received by a person or a company is known as…. .

a) aid

b) income

c) wages

5. The money earned for a week's manual work is called… .

a) income

b) salary

c) wages

6. The money paid for a month's (professional) work is a… .

a) loan

b) salary

c) wages

7. Money placed in banks and other savings institutions constitutes….

a) capital

b) deposits

c) finance

8. Money paid by the government or a company to a retired person is a … .

a) pension

b) rebate

c) subsidy

9. A person's money in a business is known as his or her

a) deposit

b) fund

c) stake

10. Money given to developing countries by richer ones is known as

a) aid

b) debt

c) subsidy

5. You are given certain words connected with banking. Make up your own story or a dialogue using them.

• credit

• credit card

• currency

• customer

• deposit

• interest

• coins

• lend

• loan

• manager

• money

• mortgage

• pay

• save

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Text B

The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907. Over time, the roles and responsibilities of the Federal Reserve System have expanded and its structure has evolved. Event such as the Great Depression was major factor leading to changes in the system.

The Congress established three key objectives for monetary policy—maximum employment, stable prices, and moderate long-term interest rates—in the Federal Reserve Act. The first two objectives are sometimes referred to as the Federal Reserve's dual mandate. Its duties have expanded over the years, and today, according to official Federal Reserve documentation, include conducting the nation's monetary policy, supervising and regulating banking institutions, maintaining the stability of the financial system and providing financial services to depository institutions, the U.S. government, and foreign official institutions. Also the Fed serves as a banker's bank and as the government's bank. As the banker's bank, it helps to assure the safety and efficiency of the payments system. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors (or Federal Reserve Board), the Federal Open Market Committee (FOMC), twelve regional Federal Reserve Banks located in major cities throughout the nation, numerous privately owned U.S. member banks and various advisory councils.

Among the responsibilities of the Board of Governors are to guide monetary policy action, to analyze domestic and international economic and financial conditions, and to lead committees that study current issues, such as consumer banking laws and electronic commerce.

The Federal Open Market Committee, or FOMC, is the Fed's monetary policymaking body. It is responsible for formulation of a policy designed to promote stable prices and economic growth. The FOMC typically meets eight times a year in Washington. At each meeting, the committee discusses the outlook for the U.S. economy and monetary policy options.

A network of 12 Federal Reserve Banks and 25 branches make up the Federal Reserve System under the general oversight of the Board of Governors. Reserve Banks are the operating arms of the central bank. Each of the 12 Reserve Banks serves its region of the country, and all but one have other offices within their Districts to help provide services to depository institutions and the public. The Banks are named after the locations of their headquarters - Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco. Statutory advisory councils advise the Board on matters of current interest. These councils meet two to four times a year. According to the Board of Governors, the Federal Reserve is independent within government. The members of the Board of Governors, including its chairman and vice-chairman, are chosen by the President and confirmed by the Senate. The government also exercises some control over the Federal Reserve by appointing and setting the salaries of the system's highest-level employees. Thus the Federal Reserve has both private and public aspects.