Commentary and Notes to Text 6.7.1.4

Exchange equalization account — стабилизационный (компенсирующий) счет

The Treasury — Казначейство

Offsetting major fluctuations — компенсация основных колебаний

The spot market price — цена на рынке наличного товара

Treasury bills — казначейские вексели

6.7.1.5. Read, translate the text “The Issue of Banknotes in the UK,” and give an annotation

Of it in Russian.

Banknotes in England had their origin in the receipts issued by London goldsmiths in the seventeenth

Century for gold deposited with them for safe-keeping. The whole practice of banking

Exchange Equalization Account in the UK

The Issue o f Banknotes in the UK

Had its origin in the activities of these goldsmiths, who began lending money and whose deposit

Receipts came to be used as money. Later the goldsmiths issued banknotes, and so did the banks

That developed later still. Today only the Bank of England and the Scottish and Irish banks in the

UK are allowed to issue banknotes. Since 1931, when banknotes became inconvertible to gold, the

promise on a banknote to “pay the bearer on demand” has simply been an undertaking that the

Note is legal tender. Thus, the Currency and Bank Notes Act of 1954, which regulates the issue of