Ex 5. Answer the questions and do the assignments. 1. How was the Bank of England established?

1. How was the Bank of England established? What accounted for its growth?

2. How does the Bank of England act as a “banker’s bank” and the “lender of last resort”?

3. Expand on the role of the private goldsmith bankers in the development of the British banking system/

4. What’s joint-stock banking? How was it developing?

5. What was the beginning of branch banking? What was the opening of more branches necessary? What accounted for the improvement of the branch system?

6. Characterize the present day banking system of Great Britain. If necessary, use external sources to supplement your answer.

Ex 6. Find in the text the words and phrases that refer to the following notions and comment on them:

1) a practical monopoly of the note issue

2) to conduct monetary policy

3) the need for monetary services

4) the pattern of amalgamation

5) diversification of banking services

Ex 7. Comment on the statements.

1. “The bank … had long governed its operations in the national interest.”

2. “The industrialist banker could assist his own industry since he did not only provide a local means of payment but accepted deposits. Here we have a parallel with the early goldsmith banking.”

3. A massive branch banking system had grown out of the piecemeal development of the past.