Bank of England

The central bank in the UK is the Bank of England. Established in 1694 by Royal Charter, it had a capital of £1 200 000. This charter was renewed periodically and over the course of time, the Bank of England very gradually moved from being a commercial to being a central bank. Under the 1844 Bank Charter Act the Bank of England was divided into departments — the Banking Department and the Issue Department. Both these departments had to issue a balance sheet each week and still do. The Bank of England acquired the note issuing monopoly in England and Wales. Its present functions are (a) banker to the government; (b) bankers’ bank; (c) manages the Exchange Equalisation Account [Exchange equalisation account — an account held at the Bank of England for the Treasury that contains the country’s foreign currency and gold reserves. This account is used to stabilise the value of sterling against other international currencies, so that if the Bank of England considers that sterling is drifting too low, it will buy sterling with funds from the account, or if sterling is becoming expensive the Bank of England will sell sterling and receive foreign currency and replenish the account.]; (d) handles the issue of Treasury bills; (e) supervises the banking institutions in the UK; (f) maintains the sterling accounts of other central banks and international organisations; (g) lender of last resort; (h) the note issuing authority in England and Wales.

1) What bank the central bank in the UK is? 2) When it was established? 3) What it established by was? 4) What capital it did have? 5) How that charter was renewed? 6) How the Bank of England move did over the course of time? 7) How the Bank of England divided was? 8) What those departments have to did do? 9) What the Bank of England did acquire? 10) What its present functions are?

VI. Agree or disagree with the following statements.

1) The Bank of England is one of the commercial banks in the UK. 2) The Bank of England is a borrowing bank from the government. 3) The Bank of England manages the gold and currency reserves of the nation. 4) The Bank of England handles the issue of long-term bills. 5) The Bank of England supervises the educational institutions in the UK. 6) The Bank of England has nothing to do with the sterling accounts of other central banks. 7) The Bank of England can scarcely be a lender of last resort. 8) The Bank of England does not participate in banknote circulation in England. 9) The Treasury is a government department that controls the money that the country collects and spends.

VII. Translate the following words, phrases and statements from Russian into English.

Учреждать; приобретать; банкнот; королевская хартия; управлять; казначейство; полагать; обновлять; со временем; банковские услуги; эмиссия; балансовый отчет; дрейфовать; счет стабилизации валюты; уравнять; казначейский вексель; последний кредитор в критической ситуации; снова наполнять.

1) Английский банк является центральным банком в Великобритании. 2) Банк Англии является банкиром правительства. 3) Английский банк обслуживает счета в фунтах стерлингов других стран. 4) Банк Англии выступает как последнее средство при получении кредита. 5) Этот банк является учреждением, которое уполномочено выпускать банкноты английской национальной валюты. 6) Английский банк не имеет право выпускать банкноты необеспеченные драгоценными металлами. 7) Общественность доверяет банкнотам, выпущенным в обращение Английским банком.

VIII. Complete the following statements.

1) The Bank of England is … 2) The Bank was established in … by … 3) The Bank had … 4) The Bank moved from … to … 5) The Bank was divided into … 6) The Bank’s departments had to … 7) The Bank acquired … 8) The Bank’s present functions are … 9) The Exchange Equalisation Account is …