What is a Central Bank?

I Study the active vocabulary and focus on Ukrainian equivalents of English words.

primary первинний

money supply грошова маса

require вимагати

lender of last resort кредитор останньої інстанції

bank insolvency неплатоспроможність банку

financial crisis фінансова криза

shortage дефіцит

failing крах

price stability стабільність цін

inflation інфляція

regulatory регулюючий

monetary policy кредитно-грошова політика

note банкнота

coin монета

in circulation в обігу

capacity компетенція

fiscal policy фіскальна політика

divest позбавлятись

 II Vocabulary focus. Study the words and  word combinations, check your understanding using flashcards, practise their translation, spelling. Check your knowledge in the test. Play matching vocabulary game (match words to their translations to make cards disappear)  and save the planet from asteroids by typing in correct translation of the words.

III Watch the video and fill in the gaps in the text.

     

     Welcome to the investors Trading Academy talking glossary of 1)_____ terms and events. Our word of the day is a ‘central bank’. Every 2)_____ has a central bank.  In the 3)_____ it is the Federal Reserve, in the 4)_____ it is the Bank of England, and for 5)_____ it is the European Central Bank. The primary 6)_____ of a central bank is to manage the nation’s money 7)_____ through activities, duties such as managing 8)__    ___, setting the reserve requires, and acting as a 9)_____ of last resort to the banking sector during times of bank insolvency or financial 10)_____. The central bank has been 11)_____ as the lender of last resort, which means that is responsible for providing its economy with funds when commercial banks cannot cover a 12)_____ shortage. In other words, the central bank prevents this country’s 13)__     ___ from failing. However, the primary 14)_____ of central banks is to provide their country’s 15)_____ with price stability by controlling 16)_____. A central bank also acts as the regulatory authority of the country’s monetary policy and is the sole provider and 17)_____ of notes and coins in 18)_____. Time has proved that a central bank can best function in these capacities by remaining 19)_____ from 20)_____ fiscal policy and therefore uninfluenced by the political concerns for any regime. The central bank should also be completely divested of any 21)_____ banking interests.

IV Watch all the parts of the video and answer the questions.

1.    What central banks are mentioned in the video? What countries are these central banks situated in?

2.    What is the main function of central banks?

3.    How can central bank help save the country’s banking system in times of crisis?

4.    What is the connection between central banks and commercial banks in times of crisis?

5.    What banks print banknotes and mint coins?

6.    What is the connection between government and central banks?

7.    Do central banks need to pay attention to political parties and political tendencies to work successfully?

8.    What is a lender of last resort?

9.    How is central bank connected to inflation?

V Write questions for the underlined part of the sentence.

1.    Our word of the day is a ‘central bank’.

2.    Every country has a central bank.

3.    In the US it is the Federal Reserve, in the UK it is the Bank of England.

4.    The primary function of a central bank is to manage the nation’s money supply.

5.    Central bank acts as a lender of last resort to the banking sector during times of bank insolvency or financial crisis.

6.    Every country has a central bank. 

7.    The central bank is responsible for providing its economy with funds when commercial banks cannot cover a supply shortage.

8.    The central bank prevents this country’s banking system from failing.

9.    In the US the central bank is the Federal Reserve.

10.The primary goal of central banks is to provide their country’s currency with price stability by controlling inflation.

11.A central bank acts as the regulatory authority of the country’s monetary policy.

12.A central bank is the sole provider and printer of notes and coins in circulation.

13.The central bank is responsible for providing its economy with funds when commercial banks cannot cover a supply shortage.

14.A central bank can best function in these capacities by remaining independent from government fiscal policy.

15.The primary goal of central banks is to provide their country’s currency with price stability by controlling inflation.

16.The central bank should also be completely divested of any commercial banking interests.

17.The primary goal of central banks is to provide their country’s currency with price stability by controlling inflation.

18.The central bank is responsible for providing its economy with funds when commercial banks cannot cover a supply shortage. 

VI OVER TO YOU. Find information about the Central Bank of our country. When was it established? Where is it situated? What are its main functions? Who is the head of the central bank?