Variant 8. Monetary control in the uk

Let us examine the Bank of England in action. We begin with a review of recent policy. We discuss the prac­tical problems that have lain behind the search for more effective methods of monetary control.

Prior to 1971, four instruments of control were used. First, every Thursday the Bank announced the discount rate at which it would act as lender of last resort to the banking system. Second, clearing banks were subject to reserve requirements: a cash ratio of at least 8 per cent of their deposits and a liquid assets ratio of at least 28 percent of their deposits. Liquid assets were cash reserves plus liquid lending such as purchases of Treasury bills Third, clearing banks were subject to ceilings both on in terest rates and on the quantity of bank lending. Finally, the Bank undertook open market operations to alter the monetary base, the money supply, and the equilibrium lev­el of interest rates.

In practice, this system discriminated against the clear­ing banks. Reserve requirements and special deposits re­stricted their ability to make advances and other long-term loans. Other banks, the merchant banks dealing with large companies and foreign banks were unregulated and expanded their lending business rapidly. Moreover, they offered their depositors interest bearing chequing accounts which formed part of the money supply. Confining monetary control to the clearing banks became increasingly ineffective.

In 1971 the change in Bank policy was set out in the document "Competition and Credit Control". Interest rate ceilings for clearing bank time deposits and advances were scrapped. Banks were able to compete for deposits and ad­vances. Reserve requirements were extended to all banks though in a modified form. Banks had to hold liquid assets equal to at least 12,5 per cent of their eligible liabilities. As part of these reserve requirement, clearing banks rare required to hold cash balances at the Bank equal to 1,5 per cent of their eligible liabilities. In practice, 1971-1973 saw a dramatic rise in the money supply. To stem the flood, the Bank introduced the Supplementary Special Deposit scheme, which became known as the "Corset" (a tax on deposit- financed bank lending). In 1981 the reserve requirements were scrapped. The Bank now relies on the desired ratiosof cash and liquid assets to total deposits that commercial banks adopt in their own self-interest. Nowadays, commer­cial banks have to guess how much of a penalty will be imposed if they have to borrow from the Bank.

1. Прочитайте текст. Виконайте його письмовий переклад.

2. Випишить з тексту речення з присудком у пасивному стані (Passive Voice). Вкажить час присудків.

3. Випишить з тексту речення з модальним дієсловом ,або його еквівалентом. Визначте його часову форму.

4. Випишить речення з дієприкметником минулого часу ( The Participle IІ). Вкажить їх функцію у реченні.

5. Випишить з тексту прикметники. Дайте їх усі ступені порівняння. Перекладіть прикметники.

6. Випишить з тексту неправильні дієслова у функції присудка. Вкажить їх 3 основні форми.

7. Випишить у тексті займенники, визначте їх розряд та перекладіть .

8. Виділіть присудки у даних реченнях , визначте час та стан :

1. Money takes up very little space and if we want we may put it in a bank.

2.The grocer can in turn use the money received from the carpenter and others to purchase a suit from the tailor.

3. The Bank of England, chartered in 1694, was nationali­zed in 1946, and it is the sole bank of issue in England and Wales.

4. In the modern world money has various uses.

5.You would want to define the exchange in terms of the relative value of the two items.

IX. Дайте відповіді на запитання:

l)What control were used the first?

2) When was the change in Bank policy set out in the document "Competition and Credit Control"?

3)What were scrapped in 1981 ?

X. Випишить з тексту по 1 реченню з прийменниками. Визначте, до якої групи вони відносяться. Перекладіть.

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