Personal Banking, Etc.

8/9/2019 Personal Banking, Etc.

1/10

Persona

I

Current

accounts

A

current

account

is

an account

which

allows customers

to

take out or

withdraw

money,

with no

restrictions.

Money in

the account does

not

usually

e:rn

a high rate

of

interest:

the

bank

does not

pay

much

for

'borrowing'

your

money. Howeveq

many people

also have a

savings

account

or deposit account which

pays

more interest

but

has restrictions

on

when

you

can withdraw

your

money. Banks

usually send

monthly

statemxrts listing recent

sums

of

money

going

out,

called debits, and sums of

money

coming

in,

called

credits.

Nearly

all customers

have a

debit

card

allowing

them

to

make

withdrawals

and

do

other

transactions

at csh dispensers.

Most

customers

have

a credit

card

which

can

be

used

for

buying goods

and

services

as

well

as

for

borrowing

money.

[n

some

countries,

people

pay

bills with

cheques.

In

other

countries) banks

dont

issue

chequebooks

and

people

pay

bills

by

bank

fransfer.

These include

standing orders,

which

are

used to

pay

regular fixed

sums

of moneg

and

direct

debits, which are used when the amount

and

payment

date varies.

BrE:

current

account;

AmE: checking account

BrE: cash

dispenser,

cash machine; AmE: ATM

(Automated

Teller

Machine)

BrE: cheque;

AmE:

check

banking

E-banking

In

the

1990s,

many commercial

banks

thought

the

future

would

be

in

telephone

banking and

internet

banking

or

e-banking. But

they discovered that

most

of their

customers

preferred

to

go

to branches

-

local

offices

of the bank

-

especially ones that had

longer

opening

hours,

and

which

were conveniently situated

in

shopping

centres.

BrE:

shopping

centre;AmE:

shopping

mall

Banking

products

and services

Commercial

banks

offer loans

-

fixed sums of money that

are

lent for

a

fixed period

(e.g.

two

years).

They

also

offer

overdrafts,

which allow

customers

to overdraw

an account

-

they

can have

a

debt,

up to

an

agreed

limit,

on

which

interest

is

calculated daily.

This is

cheaper

than

a

loan

if, for

example,

you

only

need to

overdraw for

a short

period.

Banks

also

offer

mortgages

to

people

who

want to

buy

a

place

to

live.

These

are

long-term

loans

on which

the

property

acts

as

collateral or a

guarantee

for

the

bank. If

the borrower

doesn't

repay

the mortgage, the

bank

can repossess the

house

or

flat

-

the bank takes

it

back

from

the

buyer, and

sells

it.

Banks

exchange foreign

currency

for

people going

abroad,

and sell ffaveller's

cheques

which

are

protected

against

loss

or theft. They also offer

advice about investments

and

private

pension plans

-

saving money

for

when

you retire

from work.

Increasingly, banks

also

try to

sell

insurance

products

to their

customers.

BrE:

traveller's

cheque; AmE: traveler's check


2/10

1

L 1

Complete

the advertisement with

words

from

the box.

Look

at

A

and B opposite

to

help you.

credit card

direct debit

savings

accounts

current accounts

statements

standing

order

debit

card

foreign

currency

traveller's

cheques

r-

a\

{

;+i

"

*.'

':l:

;ll

tting

att

stude

nts

i.2

Find

words in

B opposite

with

the

following

meanings.

1

what

you

can earn

when

you

leave

your

money in

the bank

2

an

amount of money borrowed

from

a bank

for

a certain length

of time,

usually

for

a specific

purpose

3

something

that

acts as a security

or

a guarantee

for

a debt

4

an

arrangement

to withdraw

more money

from

a

bank

account

than

you

have

placed

in it

5

a

long-term loan

to

buy

somewhere

to

live

6 an

arrangement

for

saving

money

to

give you

an income

when

you

stop

working

7

to

take

back

property

that

has

not

been

completely

paid

for

:

3

-\re

the

following

statements

true

or

false?

Find reasons

for your

answers in A,

B

and C opposite.

1

Current

accounts

pay

more interest

than savings

accounts.

2

There is

less

risk for

a

bank

with a

mortgage

than with unsecured

loans

without

collateral.

3 Traveller's

cheques are safer

for

tourists than

carrying foreign

currency.

4

The

majority

of

customers

prefer

to

do

their

personal

banking

at the bank.

5 Bank

branches

are now

all

in

shopping

centres.


3/10

Commercial

and

retail

banking

Commercial

and

retail

banks

'S7hen

people

have more

money than they

need

to spetr{

thev

mav

chooee to

save

it.

They

deposit

it in

a

bank

account,

at a commercial

or

retail

banlq and

dre bank

generally

pays

interest

to

the depositors.

The bank then uses

the

monev

that

has

been

deposited

to

grant

loans

-

lend

money

to

borrowers

who

need

more

money

dran drev

have

available.

Banks

make

a

profit

by charging

a

higher rate

of

interest

to

borrowers dran

ey

pay

to

depositors.

Commercial

banks can

also

move

or

transfer money

from

one customer's

bank

account

to

another one at the same

or

another

bank,

when

the

customer

asks

them

to.

E

I

ganks

also

create

credit

-

make

money

available

for

someone

to borrow

-

because

the

money

they

lend,

from

their deposits,

is usually

spent and so transferred

to another bank

account.

The

capital a bank

has

and the

loans

it

has made are

its

assets.

The

customers'

deposits

are liabilities

because

the

money

is

owed

to

someone else.

Banks have

to

keep a certain

percentage

of their

assets as

reseryes

for borrowers

who

want

to withdraw

their

money.

This is

known

as

the

reserve

requirement.

For

example,

i{

the

reserve requirement

is 10o/",

a bank that receives

a

100 deposit can

lend

90

of it. If

the

borrower spends

the

money

and

writes

a cheque

to

someone

who

deposits

the

90,

the

bank

receiving

that

deposit

can lend

81. As the

process continues,

the

banking system

can

expand the

first

deposit

of

100

into

nearly

1,000. In this

wa5

it creates

credit

of

almost

900.

I

-

Loans and risks

Before lending money,

a

bank

has

to

assess or

calculate

the

risk involved. Generally,

the

greater

the

risk for

the

bank of

not

being

repaid, the higher the

interest rate they

charge.

Most retail

banks

have standardized

products

for

personal

customers,

such

as

personal

loans.

This means

that

all

customers

who

have been

granted

a

loan have the same

terms

and

conditions

-

they

have

the

same

rules

for

paying

back the

money.

Banks have more complicated

risk

assessment

methods

for

corporate

customers

-

business

clients

-

but

large companies

these days

prefer

to

raise

their

own

finance

rather than

borrow

from

banks.

Banks

have

to

find a

balance betr,veen

liquidity

-

having

cash available

when depositors

want

it

-

and

different

maturities

-

dates

when

loans

will be

repaid. They also

have

to

balance

yield

-

how much

money a

loan

pays

-

and

risk.

-

1

rEAnnrvT

I

,

I

ysur^Jq>|,

FOR ]H

-

U,


4/10

2O."1

Complete

the sentences

from

banks' websites.

Look

at

A

and

C

opposite

to

help

you.

m.2

Match

the

two

parts

of

the

sentences.

Look

at

A,

B and

C

opposite

to

help

you.

1

Banks lend

savers'deposits

2 They

also create credit by

3 How

much credit banks can create

4

Before

lending

money,

5

The

interest rate

on

a

loan

6 Banks

always

need liquidiry

a

banks have to assess

the

risk

involved.

b depends

on the

reserve

requirements.

c depends

on

how

risky it

is

for

the

bank

to

lend

the

money.

d so

they

can't

lend

all their

money

in

loans

with long

maturities.

e lending

the same original

deposit

several

times.

f

to

people

who

need

to borrow

money.

t 3

Find

verbs

in A,

B and

C

opposite

that

can

be used

to

make word

combinations with the

nouns

below.

Then use some of

the verbs

to

complete

the sentences.

1 With

standardized

products,

all

customers

are

...........................

the

same

interest

rate.

2

Banks generally

know

from

experience

how much

cash to keep in their reserves for

customers

who

want

to

...........................

it.

3

Banks

carefully

study the

financial situation of

a

company

to

...........................

the

risk involved

in

lending

it money.

We offer

standardized

loans:

you

can be

sure

you

won't

get

less favourable terms

T f

and

.............................

than our other

I t

k"J


5/10

Financial

institutions

H

ill[l|

rt

,lrd

flr

r

iSrd

rle

;trd

Types

of

financial

institution

;tn:;;'"';l'"tf

"**

from

a

lecture

about

banliing'

For

most of the 20th

century'

most

banks

operated

in

one

curty

onry

(in

the

us,

in

one

*,::lifi..l*,"ni

kindt

of banks

dd

'fJ.i".a

kiid'

:f-lY:'.iliiiiii",",**

wi

indiv'uab

and

.

Retail

banks

or

commer(

small

comPanies:

.

received

dePosits

.

made

loans.

(See

Unit

20)

.

tnvestment

banks

worked

with

big

companls:

o

qave

financial

advice

:

;;ilitaf-

increased

the

amount

of

lllf

companies

had

bv

issffiittlt-:l"tes

and

bon&

.

organized

mergers

and

takeover

Dtos'

.

lnsurance

companles

.

-piuiAuO

life

insurance

and

pensions'

'

:"'liiff:.i:To'tsus"'

Manv

have

now

become

normal

boids:

2 a(-=':hat

Vag

Lwterest

'-""'

'''

'

-tt'c

at

a

f:'xed

f,"twre

;r.r::

(see

Unit

33)

ilrlrqcf-.

"'rt;'\'ttc

t(

M)re

'-.,.'i,.'--r=

.

"\

gelhe(

(see

Unit

39)

l,lrPtJ'vcr

bivdt'tthew

owe

.

'-:

;.'.'-)

/.

-)

1:l2rs

lo

atqwLYe

ar

'r.',

,,:--rr,

rute

(see Unit

39)

stooks

or

shar?s:

certL{t'cates

,-,

Urrr'-r'2

Owe

wwLt

Of

:.'.,':rslrt

if

a

"on*yawg

\see

Unit

29)

ffi

n."

commercial

banks'

ru

Deregulation

The

financial

industry

changed

radically

in

1

980s

and

90s

when

it

was

deregulated'

i'i:tffit;J"tiation:

rures

ano

reourltillfj: lL',":.t;::T'''

erurts

utrtvu'

xcial

banks

doing

investment

and

Japan

prevented

commt

--t^-

rrn|6)^\t

ffiil.i,i;;is.

some

other

countries

(Germanv'

Switzerland)

already

had

unfuti'ut

banks

doing

all

kinds

of

dcreqwl.ataj.:

theve

a(e

wow

{ewev

v est/tctlo

ws

awd

r eqv"Lati'ows

thaw

before

o o

vugLov*er

atts

"

c o

wLP

a

wL

es

fcrv,,red.

bV

vwevqers

awa

raleecve(see

Unit

40)

financial

business'

.

i:il

i

f

i

u=,

rn,.,n

u,i

o'.

I

:li

qr-",::i:;T"

:ilJ-.

;L;ii

ii.""r

::'::

J:llYl::::'i1

::iiffi

:'::i

;'

;;i'sl'

ii

nanciar

institution

ror

arl

their

financial

needs.

I

re

specialized

banks

Other types of banks

still

have

specialized

fun:t13lt:^.,.

.

central

banks

issue

*;;;i;;

carry

out

the

government's

financial

PolicY

o privat

banRs

manage

the

assets

of

rich

people

or

high

net

worth

individuals

.

clearing

banks

pass

cheques

and

other

payments

through

the

banking

sYstem

"i["itiiti.ncial

intermediaries

such

as

car

manuf

acturers,

food

retaiterfanJ"g:ryllti.:t:f:"::*

"ntt

;';ii:1i-;''i

ro*''

credit

cards

uno'**

.I

-

l

'rl',-lx,,o,1,;l,'.;iru::ffi

il'"iil":.xli"';;'""bank'commercia'bank

ffi

'

;iffi

'

*'.''-#';"';n'

;"0

t"'


6/10

21.^t

Find

words

in A

and B opposite

with

the

following

meanings.

1

a

company offering

financial

services

2

the

money

a

company

uses,

raised by

way

of shares and bonds

3 when

two

formerly separate

companies

agree

to

join

together

4

a company

formed by the

merger

or

takeover

of several

other

companies

5 the ending

of

some

rules

and restrictions

6

when a company

offers

to

buy

the

shares

of

another

company

to

gain

conrol of

it

21 .2

Before

financial

deregulation,

which

types of

financial institutions did these

types of

business?

Look

at

A

opposite

to

help

you.

1

arranging

mergers

2

offering

life insurance

3

issuing shares

and bonds

4 providing mortgages

5 receiving deposits

and

making

loans

to

individuals and small

companies

6

giving

financial

advice

to

companies

7

organizing

(or

defending

against) takeover

bids

I

providing pensions

21

.3

The

exrracts

below

are

from

websites.

Which

types

of

banks do the websites belong

to?

Look

at

A

and

C

opposite

to

help

you.

The Federal Reserve

was founded

by Congress

in

.1913

to

provide

the

nation

with

a

safer,

more

flexible, and

more

stable

monetary

and financial

system.

How

can

we

help

you?

We can:

Build

a

long-term,

one-to-one nelationship

with your

banker.

Manage

your

family's divense

business

and

personal

assets.

Build

a

portfolio

tailoned

to

youn

family's unique

needs.

Play an active

role in

managing

youf

assets.

,,:i.r,-*,,r,grdll*d,i1

Nearly

twelve

million

cheques and

credits

pass

through the

system

.u.h

*orking

aay.

Ctt.qre

-

I i,

volumes

reached a

peak

in

r99o but usage

has fallen

since

then,

mainly owing to

increased

use

of

[i

plastic

cards

and

direct

debits

by

personal customers.

I

Why bank

with

us? Because

we offer:

I

a

comprehensive

range of

accounts

and services

r

over 1,600

branches/

many

with

Saturday

opening

I

free withdrawals

from

over

31,000

cash machines

r

online and

telephone

banking

for round-the-clock access

to

your

accounts

r

We

provide

a

f'ull range of

p.odu.t,

und ,.rui""r, including

uAuiring

on .orporu,"

r,ru,.t;

lt ii

:

and structure, and

raising

capital

in equity and

debt markets.

l

li

: li:


7/10

I

Investment

banking

Raising

capital

Ruth

Henly

works

in an

investment

bank

in

New

Yo*'

'Unlike

commercial

banks,

investment

banks

like

ours

don't

lend

money.

Instead

we

act

as

intermediaries

between companies and investors'

.We

help companies

and

gouernmlnts

raise

capital

by

issuing

securities

sr

a,

,t.k,

and

bonds

-

that

is,

we

offer

them

for

sale'

'We

often

underwrite

securities

issues:

in

other

wordE

'\Me

guarantee

to

buy

the

securities

ourselves

if

we

cant

find

other

purchasers'

As

well

as

initial

public

offerings

(IPOs),

when

companies

offer

stock

for

sale

for

the

first

time,

ere

"re

th.r

occasions

when

they

raise

funds'

For

example,

they

might

want

to expand

their

operadong

or

to

acquire

"rroih"t

company'

or

to-reduce

their

amount

Lf

d.bt,

or

to

finance

a

specific

proiecl

They

don't

only

raise

capital

from

the

public

they can

sell

stocks

or

shares

to

institutional

investors

like

insurance

companies;

investment

funds

-

companies

that

invest

th.

on.y'of

lots

of

small

investors,

and

pension

funds

-.o*purri.,

that

invest

money

that

will

later

be

paid

to

retired

workers.

'we

also

have

a

stockbroking

znd

dsaling

department.

This

executes

orders

-

buys

and

sells

stocks

for

clients

-

*niZft

is

brokinf,

arid

trades

with

our

o\

/n

money'

which

is

."ii"g.

The stockbroking

department

also

offers

advice

to irrvestors.'

BrE:

flotation;

AmE:

initial

public

offering

(lPO)

]|

Mergers

and acquisitions

.lnvestment

banks

often

represent

firms

in

mergers

and

acquisitions

(see

Unit

21),

and

divestitures.

A

divestiture

o

*n.n

a

company

sells

a

subsidiary

-

another

company

that

it

owns.

Most

of

the

fee

-

the

money

the

c|mpany

pays us

for the

service

-

will

depend

on

o,

.o*fi.i-g

the

deal

,o..rony.

This

givls

ttte

ua"t

a

good

reason

to make

sure

that

the

transaction

succeeds"

re

Consulting

and

research

,Largecorporations

have

their

own

finance

and

corporate

development

departments'

But

they

often

use

an

investment

bank

like

ours

beca,rsg

like

a

consulting

firm,

we

can

offer

I

t"iia.",

advice,

and

we

have

a

lot

of

experience

in

financial

transactions'

\7e

also

I

h"ii"

f"rr.

.r.*ork

of

contacrs,

and

relationships

with

investors

and

companies

that

could

be

interested

in

a

merger

or

acquisition'

If

we've

worked

on

a

transaction

with

a

company'

we

know

a

lot

about

its

business'

This

means

*.

."r,

give dvice

"bo,r,

,rr"r.gic

planning

-

deciding

what

do

to

in

the

future

-

or

financial

restmcturing

-

changing

th"

*uy

the

business

is

financed'

Large

investment

banks

also

have

extensiv.

,"r."rlh

.p".,*"n

t

with

analysts

and

forecasters

who

specialize

in

the

valuatio.,

oidiff.r.nt'markets,

industries,

companies'

securities

and

currencies.

Analysts

try

to

work

out

how

much

things

are

worth

now'

and

forecasters

studY

the

Prospects

for

the

future"


8/10

22.1

Complete the

table

with

words

from

A,

B and

C opposite and

related

forms.

Put a

stress

mark

in front

of

the

stressed

syllable

in

each

word.

The

first

one

has been

done

for

you.

22,2

Complete

the

sentences

from

newspaper

articles

with

words

from

the

box.

analytical

acquiring

advised

divesting

fees IPOs

merged

underwritten

Deutsche

Telekom's

IPO was

l:l

by

Goldman

Sachs.

i

,iit"r..::....x::ait:l:.:1111111111111.,111,111;1,l3i1ll:i.,',.,.,..,*t,t,,,,,,11i

During their

acquisition

of

il:.'

Mannesman,

Vodafone

were

by

UBS.

:ll,lirrrr:r,....r,.,.ri

:...rriiai:llirjltl"rrr:rr::"lii'rrr:r't::':'rr'rr'tttttt'it"t"ttt'

Lorge

multinqtionols

qre

olwqys

1

less successful

ports of

1:

their

business

qs

well

os

...........................

successful

componies.

,:'

.r,ri....,.1,:ii ........,a,igiii.,.14r1t::11rr:,:r:.:.r.,.:,,.,,,r., ,,rulilli::tt'r':llllllilii' lif

iir'::tl

4

Big

Wall Street

banks

earned millions

of

r:l

dollars

in consulting

...........................

from

Enron

before the company

collapsed.

::ri:::.rl

lili.1ala,it:.rx:::,,:.r,1.liiliia.::.:.., --.--,..,i9.1lliia.il.::.::,:.r.ir,,,,,,,,:,alirrl{'

5

When Mitsubishi

Tokyo

Financial Croup

with

UFJ

Holdings,

they

became

the

world's

biggest

bank.

J'

t:.

{:l

11l

,:,,:::{{li{l

In

2000,

the

global

value of

,r:

was

over

$220

billion.

1:

22,3

Match

the

words

in

the box

with

the

definitions

below.

Look

at

A,

B and C opposite

to

help you.

financial restructuring

consulting

firm forecasters

institutional

investor

strategic

planning

pension

fund

subsidiary

valuation

1

a company

of experts

providing

professional

advice

to

businesses

for

a

2

a

frnancial

institution

that

invests

money

to

provide

retirement

income

3 deciding

what

a company

is

going

to do

in

the

future

4 people

who

try to

predict what will

happen

in

the

future

5

a

company

that

is

partly

or

wholly

owned

by another one

6

a financial

institution

that

purchases securities

7

making changes

to

how

a company

is financed

8

establishing

how

much

something

is

worth

fee

for employees


9/10

Cen

tral

ba n

king

rhe

functions

of central

banks

A

journalist

is interviewing

Professor

John

'Webb.

an

expert

in

central

banking.

\fell,

most

countries

have

a central

bank

that

provides

financial

services

to

the

government

and

to

the

banking

system.

If

a

group

of

countries have

a

common

currency,

for

example

the

euro, ther- also

share

a

central

bank,

such

as

the European

Cenrral

Bank

in

Frankfurt.

Some

central

banks

are responsible

for

monetan-

policr-

-

rning

ro

conrrol the rate

of

inflation

to

maintain

financial

stability. This

inr-olr

es

changing

interest

rates.

The

aim is to

protect

the

value

of

the currency

-

what it rvill

purchase

at home

and

in

orher

currencies.

In

many

countries,

the

central

bank supervises

and regulates

the

banking

s)-srem

and the

whole financial

sector.

It

also collects

financial

data and publishes

stadsrics,

and provides

financial

information

for

consumers.

In most

counrries. rhe

cenrral

bank

prints

"nd

irr.r",

currency

-

putting

banknotes into

circulation.

It

also

parricipates

in

clearing

cheques

(see

Unit

21)

and settling

debts

among commercial

banlis.

The

central

bank

and

the

commercial

banks

\7ell,

commercial

banks

have

to

keep

resen'es

-

a cenain

amounr

of their

deposits

-

for

customers

who

want

to withdraw

their moner''.

These

are held

br- the

centrafbank,

which

can

also

change

the reserve-asset

ratio

-

the

minimum percentage

of its

deposits

a bank

has

to

keep

in

its

reserves.

If

one

bank

goes

bankrupt,

it

can

quickly

affect the

stabilin'

of

the

whole financial

system.

And if

depositors

think

a

bank

is

unsafe

they might

all try to

rvithdraw

their

money.If

this

happens

it's

called

a bank

run

or

a

run

on the

bank,

and

the

bank will quickly

use up

its

reserves.

Central

banks can

act as lender

of

last resort,

which

means

lending

money

to

financial

institutions

in

difficulry

to allow

them

to

make paymenrs.

But

cenrral

banks

don't

always bail

out

or

rescue

banks

in

difficulry

because this

could lead

banks

to

take

risks

that

are

too

big.

ru

m

Mlh,

trM

I

ffiirut

f,

rtmh

n

rmh

;r

"ffi

llll

r

o dtt

rru

fltp

r &l

r0urmd

'hru,

mffiil

D,

o@

>

1{fr

i {li

>iln

D

m|tl

t0r

'F.

rlt&e

r

lMu

m

rWitl

ln

dh

LL@

ffim$f

\fhat

are the

main functions

of central

banhs?

How

exactly

does

the

central

bank supen ise

the commercial

banks?

Central

banks

and

exchange

rates

Central

banks

manage

a country's reserves

of gold

and foreign

currencies.

They

can

try

to

have

an influence

on the

exchange rate

-

the

price

at

which

their

currency

can

be

converted

into

other

currencies.

They

do this

by

intervening

on

the

currency markets,

and

moving

the rate

up

or

down

by buying

or

selling

rheir

currency.

(See

Unit

44) This

changes

the

balance of

supply

-

how

much

is

being sold

-

and

demand

-

how

much

is

being

bought.


10/10

2

3.

1

Match

the

two

parts

of the

senrences.

Look

at

A

and

B

opposite

to

help

you.

1

The

central

bank

will

sometimes

lend

money

2

Banks

would

probably

srart

taking

too

many

risks

3

Central

banks

are

usually,.rporrribl.

fo,

4

The

central

bank

can

alter

5

There

will

be

low

and

stable

inflation

a if

they

could

always

be

sure

of

rescue

by

the

central

bank.

b

if

there is

a

run

on

a

commercial

bank.

c

if

monetary

policy

is

successful.

d

printing

and

distributing

banknotes.

e

the

amount

of

money

commercial

banks

are

able

to

lend.

23

'2

complete

the

text

from

the

website

of

the Federal

Reserve,

the

central

bank

of

the

united

Stares.

Look

at

A

opposite

to

help

you.

Today

the

Federal

Reserve,s

duties

fall

into

four general

areas:

)

conducting

the

nation,s (a)

..............

..........

policy;

> (b)

""""'

and

regulating

banking

institutions

and

protecting

the

redit

rights

of

consumers;

)

maintaining

the

(c)

.....

of the

financial

system;

and

l

providing

certain

(d)

..............

services

to

the

US

government,

the

ubric,

financiar

institutions,

and

foreign

onicir

iniiltutions.

23'3

Make

word

combinations

using

a

word

from

each

box.

one

word

can

be

used

rwice.

Then

use

the word

combinations

to

complete

the

sentenc.,

i.to*.

Look

at

,

g

""

c

opposite

to

help

you.

--t

3

l,f

li

ii

If

there's

a

.................

on

the

whole

and

the

bank

goes

bankrupt,

this

can

have

a

rapid

effect

3

On

one

day

in

1992.

the

Bank

of

England

losr

over

{1

billion (more

than

half

of

the

country,s

foreign

reserves)

in

the

of

the pound.

Personal Banking, Etc.

Documents

Transcript of Personal Banking, Etc.