1. Central Banking

2. What are the roles and tasks of the European Central Bank (ECB)? Watch and take notes: http://www.ecb.europa.eu/ecb/educational/movie s/html/index.en.html?id=1http://www.ecb.europa.eu/ecb/educational/movie s/html/index.en.html?id=1 (ECB tasks and roles)

4. Match up the phrases that mean the same maintain price stability purchasing power parity protect the value of money operations on the foreign exchange market preserve the stability of the financial system buying and selling currencies the value of the goods you can buy with money guard the value of money make sure that all credit institutions are sound and trustworthy make sure that the value of the money circulating in the economy is balanced against the value of goods to purchase

5. Match up the phrases that mean the same maintain price stability purchasing power parity protect the value of money operations on the foreign exchange market preserve the stability of the financial system guard the value of money the value of the goods you can buy with money make sure that the value of the money circulating in the economy is balanced against the value of goods to purchase buying and selling currencies make sure that all credit institutions are sound and trustworthy

6. RB, p.61 The funtions of a central bank 1Fill in the gaps with these phrases: printing money, or destroying it setting interest rate ceilings and floors open-market operations commercial banking supervision act as lender of last resort exchange rate supervision

7. RB, p.61 The funtions of a central bank 1Fill in the gaps with these phrases: 1a setting interest rate ceilings and floors 1b printing money, or destroying it 1c open-market operations 2 exchange rate supervision 3 commercial banking supervision 4 act as lender of last resort

8. Match up the expressions in Task II with those in Task I Task II 1b printing money, or destroying it 1a setting interest rate ceilings and floors 3 commercial banking supervision 2 exchange rate supervision 4 act as a lender of last resort 1c open-market operations Task I ABCDEFABCDEF

9. RB, p.61 Central banking COMPARE STYLES: Formal? Colloquial? 1a setting interest rate ceilings and floors 1b printing money, or destroying it 1c open-market operations 2 exchange rate supervision 3 commercial banking supervision 4 act as lender of last resort B establishing maximum and minimum lending rates, A controlling the amount of banknotes in circulation F selling govt. bonds to comm banks or buying back, to alter amount of credit D intervening on foreign exchange markets C ensuring sufficient liquidity ratio E Lending money to banks to avoid going bankrupt

10. Extra task Play the Monetary policy game at: http://www.ecb.europa.eu/ecb/educational/h tml/index.en.html http://www.ecb.europa.eu/ecb/educational/h tml/index.en.html