English for Business

UJIAN TENGAH SEMESTER GANJIL

TAHUN AKADEMIK 2020/2021
Mata Kuliah : English
Semester / Kelas : I (Satu) Reguler Sore Manajemen
Waktu : 120 Menit
Dosen : Aan Subhan Aziz, SE.,M.Pd
Sifat Ujian : Open Book

UNIT VII
CURRENCY

Throughout history, there has always been a need for currency and currency is constantly
evolving. A thousand years ago, people would barter with goods the value of which would be
determined by the buyers need for the good. Although this system worked, it didn't allow for a
standard value of a given product which meant that you could never tell how much something
was really worth.

As trade increased it was clear that a new system was needed. Early rulers throughout the
world started creating their own currencies by either minting coins made of precious or semi-
precious metals, or by endorsing a bond to a certain value. This system has remained the basis
of currency for many years but as international trade increased, people were faced with the
problem of acquiring goods in foreign currencies. The problem was resolved by the
implementation of the exchange rate system which in its current form allows countries to
manage their currency in a variety of manners, and for the individual provides a clear and easy
method to transfer money from one currency into another.

However in recent years, we have seen the introduction of a common currency - in the Euro.
The idea of the common currency allows for easier trade between countries and removes the
variable of exchange rate values and doesn't require the exchange of one currency into another.
With more and more countries taking the Euro as the official currency, it is gaining in strength
and stability. It can even be seen in countries such as Cuba and North Korea as a second
currency.

At around the same time as the modern exchange rate system was being created another major
change in currency was taking place. Between 1950 and 1980, credit cards and then debit cards
were introduced in many countries, these cards give users the possibility of paying for goods
directly from their bank accounts without the need for actual currency. The difference between
the two is that charges on debit cards are instantly transferred from a designated bank account,
while credit cards accrue over the month and leave the user in debt.

As time passed the debit cards came to be the primary method for in-shop purchases.
Nowadays, there are more debit card transactions than cash transactions. Initially, however,
there was some resistance to debit cards as the general public were unwilling to trust the new
system and the number of retailers accepting the cards was low.
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The 21st Century has seen the start of the next step in the evolution of currency, virtual
currencies, such as BitCoin. BitCoin was the first of these decentralized currencies, which
operate independently of governments and often have no physical presence. Proponents of
this currency argue that these cryptocurrencies offer many incentives over traditional
currency including; added security in the fact that no-one can steal from you, protection against
seizure - as there is nothing physical it cannot be seized by a third party wishing to freeze your
assets and last but not least freedom from taxes.

There are, of course, those who claim that virtual currencies are not safe particularly those
which are not regulated as there are no instruments in place to prevent valuation fluctuations
and from a more practical side the limited number of merchants accepting this type of
currency means shopping on the high-street is impossible.
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BitCoin is undoubtedly the leader in virtual currencies despite heavy criticism and
even major theft, but for the time being it is far from being real competition to
traditional currencies.

Money, and by extension currency, is a vital part of our daily life but we are unable to
predict what form of currency we will be using in 50 years time. Will we all be using
virtual currencies? Or, Will we have gone back to barter? Will there be one global
currency? Or, Will each country have their own? With such uncertainty, one thing is for
sure - We are all looking for that safe investment.

Task 7.1 Please answer the questions below!

1. What makes the system of barter changed into currency?

2. What are the advantages and disadvantages of a common currency?
3. What is the function of credit cards and debit cards in trade system?
4. Would you use a currency like BitCoin? Why? / Why not?
5. Why do you think debit cards are so popular?
6. What currency do you think we will use fifty years from now? Why?
7. What is the underlined word ‘seizure’ in paragraph six defined?

Task 7.2 Discussion: how do you choose shopping platform? Please answer the
following questions and make a summary of the way you see shopping platform in
modern time!

1. Do you shop online? Why/why not?

2. What items/services do you purchase online?
3. How do you pay the things you buy online?
4. What are the advantages of shopping online?
5. Have you got bad experience with something you bought online?
6. Did you ask for a refund?
7. What would you never buy online?
8. What things do you prefer buying from a shop?
9. Do you prefer to use cash/debit/credit cards?
10. How much cash do you normally have on you?
11. Do you set a limit on how much you can withdraw?
12. Do you think that buying online signify higher quality of life? Why?

Dikumpulkan via gmail : annsubhanaziz@gmail.com

Batas waktu pengumpulan malam ini sampai dengan pukul 23.59 WIB