SECTION C

II. Foundation of the Bank of England. 1 - b; 2 - d; 3 - a; 4 - b; 5 - a; 6 - c; 7 - c; 8 - d; 9
-b;10-d;ll-a;12-c.

III. The Bank of England. 1 - founded; 2 - institutions; 3 - commercial; 4 - shareholders;
5 - borrowings; 6 - services; 7 - customers; 8 - central; 9 - clearing; 10 - operational

KEYS

balances; 11 - cover; 12 - bullion; 13 - payments; 14 - reserves; 15 - assists; 16 - national debt.

IV What do you know about the Bank of England? 1 - True; 2 - False; 3 - False; 4 - True; 5 - True; 6 - True; 7 - False. Kenneth Graham; author of "The Wind in the Willows" was the secretary of the Bank at that time. 8 - True; 9 - False; 10 - False; 11 - True; 12 - False.

V The Role of Government and the Central Banks. 1 - exchange; 2 - foreign; 3 -demand; 4 - policy; 5 - intervention; 6 - value; 7 - interest; 8 - ERM; 9 - stability.

VI. Operations in the Money Markets, a) 1 - monetary; 2 - interest; 3 - money; 4 -commercial; 5 - accounts; 6 - Treasury; 7 - shortages; 8 - short-term; 9 - funds; 10 -market; 11 - base; 12 - mortgage.

III. 1 - b; 2 - b; 3 - a; 4 - c; 5 - b.