- •Central banking
- •5.2 Look through the following vocabulary notes which will help you understand the text and discuss the topic.
- •5.3 Reading
- •Policy tools
- •5.4 Comprehension
- •5.4.1 Answer the questions using the active vocabulary.
- •5.4.2 Mark these statements t(true) or f(false) according to the information in the Text and Glossary. If they are false say why.
- •5.5 Language practice
- •5.5.1 Match the English terms in the left-hand column with the definition in the right-hand column.
- •5.5.2 Complete the following text using the suitable words or phrases from the box.
- •Differences between the European System of Central Banks and the Federal Reserve System
- •5.5.3 Complete the texts. Replace the Russian words and phrases by the English equivalents.
- •5.5.4 Text for discussion.
- •The Case against Independence
- •5.6 Render the passage in English using the English equivalents of the italicized phrases given in Russian. Express the main idea of the passage in one sentence or entitle it.
- •Professional English Unit 5 Reading Self – Control Test
- •1. Which of the following is the main idea of the text?
- •2. What is most likely the audience the text is addressed to?
- •3. It can be derived from the text that
- •4. It cannot be inferred from the text that
- •5. Judging by what you have derived from the text, which do you think of the following defines the term ‘open market operations’?
- •10. What is most likely the subject of the extract which is missing from this text?
- •Bank panic: the simultaneous failure of many banks, as during a financial crisis.
- •Board of governors of the federal reserve system: a board with seven governors (including the chairman) that plays an essential role in decision making within the Federal Reserve System.
5.5 Language practice
5.5.1 Match the English terms in the left-hand column with the definition in the right-hand column.
1 |
Bank panic |
A |
The government agency that oversees the banking system and is responsible for the amount of money and credit supplied in the economy. |
2 |
Open market operations |
B |
A committee that makes decisions regarding the conduct of open market operations. |
3 |
Prime rate |
C |
Short-term deposits bought or sold between banks. |
4 |
Money supply |
D |
The market used by banks to borrow and lend bank reserves. |
5 |
Margin requirement |
E |
The Federal Reserve facility at which discount loans are made to banks. |
6 |
Fiscal policy |
F |
One of 12 Federal Reserve Banks. |
7 |
Federal funds rate |
G |
Simultaneous failure of many banks, as during a financial crisis. |
8 |
Discount rate |
H |
The system in the United States in which banks supervised by the federal government and banks supervised by the states operate side by side. |
9 |
Central bank |
I |
A term applied in many countries to a reference interest rate used by banks. |
10 |
Discount loans |
J |
A group consisting of Presidents from 12 commercial banks, one from each of the 12 Federal Reserve Districts. |
11 |
Federal Advisory Council |
K |
The interest rate banks charge each other for loans. |
12 |
FOMC |
L |
A sum of money that must be kept in an account at a brokerage firm. |
13 |
Federal funds market |
M |
Buying and selling of government securities in the open market that affect both interest rates and the amount of reserves in the banking system. |
14 |
Dual banking system |
N |
The use of government expenditure and revenue collection to influence the economy. |
15 |
Discount window |
O |
The total amount of money available in an economy at a particular point in time. |
16 |
Federal funds |
P |
A bank’s borrowings from the Federal Reserve System. |
17 |
Federal Reserve District bank |
Q |
The interest rate that the Federal Reserve charges banks on discount loans. |
5.5.2 Complete the following text using the suitable words or phrases from the box.
A |
monetary operations |
E |
budgets |
B |
centralized |
F |
supervision |
C |
similar to |
G |
referred to |
D |
conducted |
H |
the Board of Governors |