Activity Read the information given in A, B, c sections and translate words and word combinations

Activity 2. The Bank of England
A. Complete the text with the words (1-9) from the Vocabulary exercise.
The Bank of England has two (1)…………purposes. One is ensuringmonetary stability, i.e. having stable prices - low (2)…………… andconsequently confidence in the currency.
The government sets an inflation (3)……………. and the Bank’s MonetaryPolicy Committee tries to meet it by raising or lowering the official interest rate when necessary.
UK banks and building societies have to hold reserves at the Bank. These are (4)………….. at the Bank’s official interest rate. If British banks need to borrowshort-term funds they do this in the (5)………………. money markets.
The Bank can influence the amount of money and the interest rates in these markets – this is how it implements its monetary (6)…………………… .
The Bank also deals in the foreign exchange market. It can use the UK’s foreign currency and gold reserves to try to influence the exchange rate if needed.
The Bank’s other core purpose is to maintain the stability of the financial system.
The Bank has to detect and reduce any (7)………….. to financial stability, andmake sure the overall system is safe and secure. It monitors and analyses thebehaviour of the major participants in the financial system and the wider financialand economic environment, and tries to identify potential risks. A (8)…………..and stable financial system is important, and is also necessary for carrying out monetary policy efficiently.
The Bank’s role also includes (9)………………of payment systems fortransactions between individuals, businesses and financial institutions.
The Bank sometimes acts as ‘lender of last resort’ to financial institutions in difficulty, to prevent panic or a loss of confidence spreading through the whole financial system.
B. According to the text, are the following statements true or false?

1. 
   The Bank of England wants to prevent prices rising.
   
2. 
   The government sets a figure for what it thinks should be the maximum inflation rate.
   
3. 
   The government makes decisions about interest rates.
   
4. 
   Commercial banks have to keep some of their funds at the Bank of England.
   
5. 
   The Bank does not pay interest on commercial banks’ deposits.
   
6. 
   The Bank can try to change the sterling exchange rate.
   
7. 
   The Bank has to eliminate threats to financial stability.
   
8. 
   The Bank supervises the clearing system: the settlement of claims between banks.
   
9. 
   The Bank always lends money to financial institutions in danger of going bankrupt
   

C. Use a word or phrase from each box to make word combinations from the text. You can use some words more than once. Then use the correct form of some of the word combinations to complete the sentences below.
identify exchange rates
implement policies
influence risks
maintain stability
reduce threats
1.Just like the central bank, all companies have to try to……………. potential financial ………… .
2.The Bank can spend the country’s currency reserves in order to…………….. ………………… .
3.The Bank can try to ………… ………….. to the financial system, but it can’teliminate them completely.
4.The Bank has to……………. the ………...... of the financial system, but thatdoesn’t mean it rescues irresponsible banks.
5.The Bank………….. ………….. that should enable it to meet the inflation targetset by the government.
Activity 3.