I. Match these word combinations with their Russian equivalents.

1) to act as banker to the government	a) сократить объем кредитования
2) to cut back lending	b) давать деньги для последующих займов
3) without any new currency being printed	c) взимать процентную ставку
4) to be unable to lend the funds	d) признаки слишком быстрого роста
5) to provide money for further loans	e) самый резкий способ
6) to charge the interest rate	f) действовать как банкир по отношению к правительству
7) signs of growing too quickly	g) оседать в хранилищах
8) the most dramatic way	h) без напечатания новых денег
9) to dip into vaults	i) не иметь возможности выдавать средства в кредит

II. Paraphrase the sentences using their equivalents or synonyms from the box instead of the underlined words.

current (bank)notes

to reduce to control

raise kept

1. The U.S. Federal Reserve has the Bureau of Printing and Engraving printing up bills to replace worn-out money.

2. Most “money” is actually nothing more than a savings or checking account at a local bank.

3. When the banks are forced to decrease lending, the economy slows.

4. If the economy shows signs of growing too quickly, a central bank can increase the interest rate on its loans to banks.

5. Money held at central banks is not considered part of the money supply.

6. A central bank serves as a watchdog to supervise the banking system.

III. Find the pairs of words with opposite meanings.

to increase deposit to raise to buy more

to lower loan less to sell to decrease

IV. Insert the proper prepositions.

by (3) of(3)

for (2) on(2)

in (2) through

with to

1. Central bank controls the economy … increasing or decreasing the country’s supply … money.

2. … most modern economies printed notes and coins are only a small percentage … the money supply.

3. Once a customer deposits money … a local bank, it becomes available … further lending.

4. A bank’s supply of money … lending is limited only … its deposits and its reserve requirements, which are determined … the central bank.

5. Every bank is required to keep a certain amount of its funds … reserve … the central bank, for example, 10 percent of deposits.

6. Central bank can reduce the interest rate it charges … the loans … the country’s banks.

7. The most dramatic way … increasing or decreasing the money supply is … open market operations.