Key terms

Credit-based trading	- торгівля на кредитній основі
Doth	- 3 ос. однини, від дієслова to do
On-lent	- позичені
Exchequer	- Казначейство
Last resort financial support	- єдина можлива фінансова допомога
Deficient	- недостатні

II. Answer the following questions in your own words:

1. Why did England and London in particular buzz with the idea of a national bank?

2. When did this idea first appear?

3. What could benefit a nation?

4. How do you understand the words by William Petty?

5. Who first proposed the idea of founding the Bank of England?

6. What was the Government’s motive for creating the Bank of England?

7. In what light did the Government see the Bank of England?

8. Was the Bank of England thought of as a national bank?

III. Fill in the blanks in this passage, using words from the list given below:

Privilege; establish; safeguarded; bullion; foundation; banking; sound note issue; satisfied; crucial, price stability; partners; crises; note issue; notes.

The Country Bankers Act, a milestone in the development of _____ in England, was passed by Parliament in 1826. It breached some of the Bank’s former _____ by permitting the establishment of joint-stock banks with more than six _____ but not within 65 miles of London. The Act allowed the Bank _____ branches in the major provincial cities from which it was able increase its sphere of influence by _____. In 1833, the Bank’s notes were made legal tender for all amounts above 25 ensuring that in the event of a _____, as long as the credit of the Bank remained good, the public would be _____ with its notes and its reserves would consequently be _____.

The 1844 Bank Charter Act was the key step towards the Bank achieving the monopoly of the _____. There were to be no new issuers of _____. But the _____ clause of the Act was a monetary one: it provided that beyond the Bank’s capital of £ 14 million, its notes were to be backed by gold coin or _____. This, together with a fixed price for standard gold, laid the _____ for the gold standard, which during the 19^th century spread worldwide and created a long period of _____ with monetary policy, in effect, on auto-pilot.

Дата добавления: 2015-07-20