Comprehension

1. Answer the questions.

1. How can you characterize the banking system of the USA?

2. What are the main types of banks in the USA?

3. The Federal Reserve System is the central bank of the United States, isn’t it?

4. When was it founded?

5. What are the functions of the Federal Reserve System?

6. What structure does the Federal Reserve System have?

7. What are the duties of the Federal Reserve Banks?

8. Are all banks in the USA members of the Federal Reserve System?

9. How can a bank become a member of the Federal Reserve System?

Vocabulary

2. Match the words from column a with the words from column b to make a phrase.

A	B
1) to protect	a) the monetary policy
2) to focus	b) long-term interest rates
3) to conduct	c) the standards
4) to operate	d) the credit rights of consumers
5) to moderate	e) the nation’s currency
6) to maintain	f) payments system
7) to meet	g) the stability
8) to distribute	h) on local service

3. Choose the correct answer to fill in the gap.

1. Here is a small ______ . You'll get the rest of the money after the job is finished.

a) benefit

b) advance

c) preview

2. "What is the ______ in USA"? "It's the dollar".

a) money

b) currency

c) greenback

3. He doesn't have any money problems. He is fully _____ .

a) wealthy

b) solvent

c) thrifty

4. If you work longer than your usual working day you should be paid _____ .

a) outgoing

b) overdue

c) overtime

5. You never know when you'll have financial problems, so it's a good idea to save money for a ___________ day.

a) hot

b) snowy

c) rainy

6. I need to make or ______ more money for college and then put it in the bank so I don't spend it.

a) earn

b) do

c) deposit

7. You'd better check your bank _________ to make sure you have enough money to cover your car payment.

a) balance

b) pass

c) charge

4. Fill in the correct words from the list below.

Stability, issue, foreign, monetary, loans, services, supply, protects

Under the Federal Reserve Act of 1913 and amendments over the years, the Federal Reserve System:

- conducts America's … policy;

- supervises and regulates banks and … consumers' credit rights;

- maintains the … of America's financial system;

- provides financial … to the U.S. Government, the public, financial institutions, and … financial institutions;

- the Federal Reserve makes … to commercial banks and is authorized to … the Federal Reserve notes that make up America's entire … of paper money.

Grammar in Use Prepositions

5. Fill in the correct preposition.

1. I need to apply … a loan.

2. Do you prefer to go … the local branch of your bank or to use the internet?

3. Money in the current account does not usually earn a high rate … interest.

4. … the last decades of the 20th century computer technology transformed the banking industry.

5. On-line banking … the Internet and banking through automated phone systems now allow pay bills, to transfer money without entering a bank branch.

6. The Federal Reserve System is divided … 12 districts.

7. All banks … the world perform similar functions.

8. All modern banks create money … one form or another.