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III. Answer the questions using the information from the text.

  1. What is the central bank of the United Kingdom''

  2. When was the Bank founded?

  3. What is the other name of the Bank of England?

  4. When was the Bank of England nationalized?

  5. What is meant by the term 'the Government's banker'?

  6. What core purposes does the Bank have?

  7. What does monetary stability mean?

  8. What is the first objective of any central bank?

9. What does financial stability mean?

10. What are the main functions of the Bank of England?

Commercial banks

I. Read and translate the text.

A commercial bank is a type of financial intermediary and a type of bank. Commercial bank has two possible meanings:

  • Commercial bank is the term used for a normal bank to distinguish it from an investment bank.

This is what people normally call a “bank”. The term “commercial” was used to distinguish it from an investment bank. Since the two types of banks no longer have to separate companies, some have used the term “commercial bank” to refer to banks which focus mainly on companies. In some English-speaking countries outside North America, the term “trading bank” was and is used to denote a commercial bank. After the great depression and the stock market crash of 1929, the U.S. Congress passed the act requiring that commercial banks only engage in banking activities (accepting deposits and making loans, as well as other fee based services), whereas investment banks were limited to capital markets activities. This separation is no longer mandatory.

In Great Britain the term retail banks is used to include all of the banks which have branch networks through which they are able to offer a wide range of services to a large number of customers. Sometimes the term high street banks is used to mean the \same thing, and on occasions the term commercial banks is used, though less commonly these days.

II. Retell the text. English banks

I. Study the vocabulary:

banking

банківська справа

to complicate

complicated

ускладнювати, заплутувати

складний, заплутаний

tripartite

потрійний, трьохсторонній

layer

шар, пласт

cake

торт, кекс

to head

очолювати

to establish

відкривати, установлювати

royal

королівський

governor

керуючий

to appoint

призначати

queen

королева

minister

prime minister

міністр

прем’єр-міністр

deputy

заступник

court of directors

нарада

to consist (of)

складатися (з)

banknote

банкноти, паперові гроші

to mint

карбувати

to lend

позика

to borrow

позичати

to manage

управляти

debt

national debt

борг

державний борг

reserve

gold reserve

резерв, запас

золотий запас

joint

спільний, загальний

stock

joint stock

joint stock company/bank

акція

акційний капітал

акціонерна компанія/банк

clearing

clearing bank

кліринг, безготівкові розрахунки між банками

кліринговий банк

institution

заклад

discount

discount house

дисконт, знижка

обліковий дім

merchant

merchant bank

торговельний, комерційний

торговельний банк

public

general public

громадськість

населення

upwards

upwards of

верх, більше, вище

понад

to render

виявляти, надавати

to collect

збирати

to provide

постачати

overdraft

овердрафт

review

огляд

spot

spot transaction

spot price

спот, негайний

угода спот

ціна спот

forward

forward transaction

майбутній, терміновий

форвардна угода

swap

swap transaction

своп, обмін

угода своп

advisory

консультативний

issue

емісія, випуск

securities

цінні папери

to represent

representative office

представляти

представництво

subsidiary

дочірня компанія