27. Banking and financial services

1. Money is whatever generally acceptable in order to perform functions of paying for goods and services.



2. With the development of banks, paper currency has come to succeed precious metals as the medium of exchange.



3. The Bank of England plays a crucial role in regulating the supply of money and influencing interest rates, overseeing the operations of commercial banks.



4. The Bank of England doesn’t man­age the National Debt.



5. Commercial banks operate by acting as financial intermediaries, borrowing money in order to re-lend it.



6. Bank liabilities (bank deposits) can’t be spent directly as money.