1. CENTRAL BANKING
ECB
HNB
the FED

2. Listening: RB p. 61, Exc. I
Do exc. II, RB, p.61

3. Control Establish Ensure Intervene Lend sell
government bonds to commercial banks or buying them back in order to alter the amount of credit the banks can offer
on foreign exchange markets (buy and sell national currency) to prevent bigger fluctuations
amounts of banknotes in circulation
min and max lending rates→ control the credit system
to a commercial bank in danger of going bankrupt
that banks have a sufficient liquidity ratio to allow customers to withdraw their deposits when they want

4. CENTRAL BANKING Central banks are responsible for:
overseeing the monetary s_______
implementing monetary p________
supervising exchange r_________
regulating the credit s________
supervising commercial b_________
acting as a lender of last r________
maintaining currency s________

5. COLLOCATIONS (LISTENING) CENTRAL BANKS…
IMPLEMENT …
SET…
LIMIT…
SUPERVISE / OVERSEE…
CONTROL…
ESTABLISH…
ENSURE…
INTERVENE…
LEND…
SELL/BUY…

6. http://www.youtube.com/watch?v=0lI8-MvpT7w Handouts with questions
What is the main task of the ECB?
What was “the gold standard?
What was the task of the Central bank in the past?
How does the money derive its value today?
What’s the role of a modern Central bank?
What does the ECB do?
Defines
Conducts
Helps
Preserves
Ensures
7. Who does the ECB work in close cooperation with?
8. What is its supreme decision making body? Who sits in the board?

7. HOMEWORK
Watch and answer the questions which follow (the next slide)

8. Where are the headquarters of the ECB?
Who is the Euro system formed of?
What are the main tasks of the Euro system?
How is the price stability in the Euro zone maintained?
What might happen in case of the high inflation?
Who are the members the ECB Governing council?
Name the five tasks of the ECB.