Павленко Поліна, ЕТ-102

Ex.8. Look through the text again and replace the words/phrases in italics
with similar ones.

1. To begin with, money is the result of a long evolutionary process.

2. In addition these three functions of money, economists often point out one
more criterion - a means of liquidity.

3. As a matter or fact, money is what money does.

4. In fact, any commodity used as a medium of exchange is commodity

money.

5. To summarise, it must be said that money can be any commodity or token

used by society as a medium of exchange, a measure of value and a store
of value.

6. And finally, money units must be difficult to counterfeit.

7. However, it is not only the physical durability of money that matters. Of

no less importence Its social and institutional durability

8. There are some general characteristics that are extremely important and
necessary for whatever acts as money in a modern society.

9. An prime example of fiat money is euro.

10. The percentage of money moved electronically is growing dramatically

these days.

Ex.9. Choose and combine two parts logically to make complete

sentences.

1b

An economy that lacks a medium of exchange uses barter

2b

In a monetary economy, the owner of a commodity may sell it for money and
buy anything he wants for this money.

3a
In a barter economy, a person having something to trade must find somebody
who wants it and has something to offer in exchange.

4b

To be a good medium of exchange, money must be portable, divisible, easily

measured and willingly accepted by people.

5a

To be a good store of value, money must be durable so it can be kept for future
use and have a stable value so people do not lose its purchasing power if they
use the money at a later time.

6c

To be a good medium of exchange, money must be useful for quoting prices.

7c

Bank deposits and credit card loans are examples of credit money

8a

Currency backed by a government or bank’s promise to redeem it for a given

weight of gold or silver refers to representative money.

9b

The type of money that is found today in most countries (the euro, American
dollar, British pound, etc.) is fiat money

Ex.10. Translate into English.

1.До появи грошей був бартер, тобто, прямий безгрошовий обмін

товарами.

Before there was money, people living in primitive societies used barter as a
means of exchanging goods and services

2.Гроші - це будь-який товар або знак, що використовується суспільством

як засіб обміну, міра вартості і засіб накопичення.

Money is any commodity or token used by society as a medium of exchange, a

measure of value and a store of value.
3.Щоб бути хорошим засобом обміну, гроші повинні бути легко
впізнаваними, загальноприйнятими і зручними в користуванні, тобто бути
подільними і легко переноситися з одного місця до іншого.

To be a good medium of exchange, money must be portable, divisible, easily

measured and willingly accepted by people.

4. Як міра вартості, гроші служать в якості еталону для виміру вартості

товарів і послуг.

Money is a measure of value is the benchmark for measuring value of goods and
services.

5. Гроші виступають як засіб заощадження для використання в

майбутньому, або як засіб накопичення багатства.

Money acts as a store of value for future use or for storing wealth

6. Щоб бути хорошим засобом накопичення, гроші повинні бути тривалого

користування і мати більш-менш стабільну вартість.

To be a good store of value, money must be durable and have a stable value

7.У часи високої інфляції і політичної нестабільності гроші навряд чи

можуть бути гарним засобом накопичення.

In the time of high inflation or political instability, money may not be a good
store of value.

8.Гроші мають велику перевагу над іншими формами капіталу.

Money have a big advantage over other assets.

9.Це найбільш ліквідний капітал, оскільки вони повсюдно впізнавані і

приймаються як єдина валюта.

Money is the most liquid asset because it is universally recognised and accepted
as the common currency.

10.Їх можна використовувати в будь-який момент для купівлі товарів і

послуг, у той час як, для того щоб обміняти золото або діаманти на готівку,
потрібен час і якісь зусилля.

It can be used immediately to purchase goods and services while converting

gold, diamonds, or a house into cash takes time and effort.
 Ex.12. Answer the following questions.

1. What is barter?

An exchange without money of goods or serv­ices

2. What are the problems with barter?

Basic problems created by barter - ‘indivisibility’ and ‘coincidence of

wants’

3. What are the advantages of using money over bartering?

4. Who is generally acknowledged as the inventor of money? Alexander the

Great? King Solomon? Somebody else?

The emergence of money was spontaneous. No king, government or

person created money. It came into being through barter, and evolved
independently in different parts of the world

5. What is commodity money? Give examples.

Money with its own value as a good. At different times different commodities
were used as money: iron and bronze, cattle and fish, furs and skins, cowries
and precious metals, especially gold and silver.

6. What problems occur when using commodity money?

7. What is money? How can you define it?

Money is any commodity or token used by society as a medium of exchange,

a measure of value and a store of value.

8. What are the functions of money?

Major functions of money: a medium of exchange, a measure of value, and

a store of value.

9. What are the main characteristics of modern money?

 The characteristics of money are durability, portability,
divisibility,uniformity, limited supply, and acceptability.

10.What forms of money are there?

Modern money takes two primary forms: cash, which is paper currency and
metal coins, and cheques .

11.What’s the difference between representative money and fiat money?

Fiat money is physical money—both paper money and coins—while

representative money is a form of currency that represents the intent to pay,
such as a check.

12.Why do people willingly accept money?

People are willing to accept money in payment for one good because they
are confident that they can use it at a later time for some other good or
service.

13.Why can’t money be a good store of value in the time of political

instability and inflation?

14.How does the invention of money affect the trading process?

The invention of money allowed people to trade goods and services without
having to barter to find an appropriate price.

15.Do you agree that money is the keystone of the economic life? Why?

Money helps to bring simplicity and organisation to our economy.

Without the use of money, trade would be reduced to barter. Money makes it
easier to trade, borrow, save, invest, and compare the value of goods and
services. Thus, money may be regarded as a keystone of modern economic life.

Ex.13. Choose the best variant from a, b, с to complete the statements.

Explain your choice.

1. Money is ______________.
 a) the same as income.

b) the value of all coins and currency in circulation at any time.

c) anything generally accepted as a final payment for goods and

services.

2. As a store of value, money _____________.

a) is not affected by inflation.

b) is easily stored until some future time.

c) simplifies the process of trading

Define which is odd.

1. Money serves as _____________.

a) a medium of exchange.

b) a unit of account.

c) a shelter of value.

d) a store of value.

2. Modern money is _____________.

a) portable

b) divisible

c) durable

d) easy in duplication

e) recognisable and willingly acceptable.