Language practice

I. Mind the use of the words: requirements, deposit, check clearing, reserves, assets.

1. Central bank imposes reserve requirements. 2. Commercial banks promise to pay depositors the full amount of their deposits. 3. The most important service of the Fed is check clearing (клиринг чеков). 4. The Fed’s power as an economic policymaker comes from its ability to control bank reserves. 5. The ordinary commercial banks keep about half of their cash assets on current accounts with the Bank of England.

II. Complete the blanks.

1. Most of central banks function for … not for private customers. 2. Central banks are into the … of money. 3. In the countries with the developed market economy there … bank systems. 4. Central banks carry out … … functions. 5. Central banks store official … … reserves, regulate … and … sphere and … relations. 6. In modern conditions commercial banks managed to expand … of urgent and savings … . 7. Commercial banks are created on the share or … … beginnings. 8. The bank system of Belarus is … . 9. The National Bank of Belarus maintains safe functioning of … . 10. The National Bank of Belarus establishes and exercises … … … . 11. There are three important groups of customers at the Bank of England: … … … . 12. The government keeps its … at the Bank of England. 13. Fed is indipendent agency of … founded in 1913. 14. Fed provides … to the banking system.

III. In these sentences certain nouns are printed in bold. Give derivatives of them and fill in the blanks.

1. Central banks act as bankers to government. Their … earns profit to the … system. 2. Central banks lend money to commercial banks. They act as … of last resort to commercial banks. 3. Commercial banks invest deposited money in profitable securities. These … bring them high profit. The low level of commercial banks include some financial institutions – like … companies, … funds, etc. 4. Some people borrow money at the banks and others deposit their savings. The primary function of a bank today is to act as an intermediary between … who wish to make interest on their savings and … who wish to obtain their capital. 5. Banks contribute some part of deposited money into different projects. In modern conditions commercial banks managed to expand essentially reception of urgent and savings … .

IV. Say whether these statements are true or false, and if they are false say why.

1. The central banking system is greatly important for fiscal policy of the national government. 2. Central banks function for private customers. 3. Central banks issue money. 4. Central banks do not act as lenders of last resort to commercial banks in the case of financial crisis. 5. In the countries with the developed market economy there are one-level bank systems. 6. The system top level is presented by commercial banks. 7. Commercial banks are subdivided into universal and specialized. 8. The central bank in majority of the countries belongs to the state. 9. Commercial banks store official gold-currency reserves. 10. Central banks give loans to commercial banks. 11. Commercial banks carry out a very limited range of operations. 12. Central banks are created on the share or joint-stock beginnings. 13. The National Bank of Belarus carries out foreign exchange regulations, establishts and exercises foreign exchange control.