2.8 Choose the correct answer

What is the Fed’s monetary function?

1. To clear checks.

2. To require banks to give customers information about their asset quality, capital and earning.

3. To control the money supply.

4. To give financial advice and assistance.

2.9 Choose one phrase that expresses the main idea of the text

1. The monetary policy of the Fed.

2. Member banks and their rights.

3. Regulation and control of financial organizations.

4. The sets of credit controls used by the Fed.

2.10 Substitution Drill

Statement: The Federal Reserve System controls the nation’s money supply and serves as the government’s bank.

Example: currency

The Federal Reserve System controls the nation’s currency supply and serves as the government’s bank.

1. administration	3. distribution	5. works	7. supervises
2. country	4. investor	6. the Fed

2.11 Read the dialogue

А manager of the state bank is talking to his colleague

M: I’m afraid we are in for more troubles next year.

C: Do you mean the inflation? I think we have to find something new to cope with it.

M: Right. And I’m thinking of getting rid of the Fed membership.

С: Really? Do you think we could do well without its assistance?

M: I think so. We have to earn as much interest as possible in order to keep up with the inflation.

С: You are right. The district reserve bank doesn’t help. No matter how much we deposit in it we earn no interest whatsoever.

М: That’s why we’re going to withdraw from the system and put our money into interest bearing programs.

С: О.К. then. We have to call the Board of Directors to discuss the matter in detail.

Words and expressions

to соре with (v)	- справиться с (чем-либо)
to get rid of	- освободиться, отделаться от чего-либо
membership (n)	- членство
to do well	- быть в прядке, хорошо вести дела
as much as possible	- так много, как только возможно
to keep up (v)	- держаться на уровне
no matter how much	- неважно, сколько
to withdraw (v)	- выходить из чего-либо, выводить что-либо, снимать со счёта (деньги)
interest-bearing	- приносящий выгоду
Board (n)	- здесь: Совет Директоров

2.12 Role play. Work in pairs. Make up dialogues of your own.

1. Student A is a businessman. Student B is a bank officer.

You speak to а state bank assistant about how to transfer money from New York to Seattle.

2. Student A is a businessman. Student B is an FDIC official officer.

You talk то an FDIC official about а bank you want to deal with. You are not sure if the reputation of the bank is good enough.

3. Student A is a bank officer. Student B is a Fed officer.

А state bank wants to enter the Fed and applies for membership.