Read the passage below regarding eighteenth-century Scottish banking history and fill in the missing terms in the analytical statements that follow.
Cevap:Passage:
In eighteenth-century Scotland, the introduction of the 'option clause' by chartered banks allowed them to defer the immediate cash redemption of banknotes in exchange for interest accrual. Proponents maintained that this device protected institutions against sudden liquidity runs; critics, however, asserted that it rendered banknote conversion conditional. In his 1767 treatise, economist Sir James Steuart noted that such measures insulated banks from their own overextension, arguing that it ultimately shifted monetary risk to local merchants. Furthermore, Steuart warned that the clause functioned merely as a temporary stay against insolvency.
Analytical Statements:
1. In the context of the passage, the word 'stay' most nearly means 【suspension】.
2. In the sentence regarding Sir James Steuart's argument, the pronoun 'it' refers to 【the option clause】.
In eighteenth-century Scotland, the introduction of the 'option clause' by chartered banks allowed them to defer the immediate cash redemption of banknotes in exchange for interest accrual. Proponents maintained that this device protected institutions against sudden liquidity runs; critics, however, asserted that it rendered banknote conversion conditional. In his 1767 treatise, economist Sir James Steuart noted that such measures insulated banks from their own overextension, arguing that it ultimately shifted monetary risk to local merchants. Furthermore, Steuart warned that the clause functioned merely as a temporary stay against insolvency.
Analytical Statements:
1. In the context of the passage, the word 'stay' most nearly means 【suspension】.
2. In the sentence regarding Sir James Steuart's argument, the pronoun 'it' refers to 【the option clause】.
Cevap
In this context, the term 'stay' means a temporary suspension, postponement, or reprieve, and the pronoun 'it' refers to the option clause.
In the passage, 'stay' functions in a legal and financial sense to mean a temporary suspension or postponement of an outcome (insolvency). The pronoun 'it' in the third sentence refers to the option clause, which is the institutional policy that transferred monetary risk from the banks to the merchants.
Adım Adım Çözüm
Anahtar Kavram
Contextual Vocabulary and Pronoun Reference
Tahmini Süre:1m 30s