Question

VOCABULARY Governor [‘gʌvənə] — руководитель to invest [ɪn’vest] in — вкладывать (инвестировать) деньги (капитал) (что-то) to subscribe [səb’skraɪb] — делать взносы Charter [‘tʃa:tə] — устав Treasury [‘tгеʒ(а)rɪ] — казначейство The Bank of England is Britain’s central bank. 1694 — THE BEGINNING. The first step towards central banking was taken with the creation of the Bank of England in 1694, when the Government needed money to pay for the war against France. William Paterson, a Scottish merchant, suggested founding a bank, which could then lend its capital to the Government. In the spring of 1694, Parliament gave its approval to an Act, which provided for the setting up of a company under the title of «The Governor and Company of the Bank of England». The public were invited to invest in the company and £1 200 000 was very quickly subscribed to what became known as Bank of England Stock. The Bank was granted a Royal Charter on 27 July 1694 and Sir John Houblon was appointed the first Governor. The Bank moved to its present site in Thread-needle Street in 1734. BANKER TO THE NATION Probably the best known function of the Bank of England is to design, print and issue banknotes in England and Wales, and to store gold in its vaults on behalf of its customers. It does, however, have many other responsibilities and functions. As the Bank gradually withdrew from commercial banking, it extended its role as banker to other banks and to the Government. MONETARY POLICY. Monetary policy is directed by the Bank and the Treasury within the policy framework agreed with the Government. Monetary policy operates in the UK mainly through short-term interest rates, which are influenced through the Bank of England’s daily operations in the money markets. MAINTAINING A SOUND FINANCIAL SYSTEM. One of the Bank of England’s most important tasks in maintaining a sound financial system is the supervision of banks operating in the UK, in order to protect depositors. This became a statutory responsibility in 1979 and the powers then were granted strengthened by the Banking Act 1987, which now governs banking supervision. QUESTIONS 1. When was the Bank of England created? 2. Why was it created? 3. Who suggested founding a bank? 4. What are the functions of the Bank of England? Vocabulary: cheque — чек to be in charge of — отвечать to borrow — брать взаймы,занимать vault [vo:lt] — хранилище security — безопасность cash dispenser machine — машина по обналичиванию денег to survive [sa'vaiv] — выживать.