Unit 1

Money: its origins and attributes

- vocabulary -
 Vocabulary from the text (1st paragraph)
• to derive The word money derives from the Latin
• to come from “moneta” – the first Roman coinage was
• to originate; origin minted at the temple of Juno Moneta in 344
• derivation; derivative BC. Before coinage, various objects such as
• coinage cattle, pigs’ teeth and cowrie shells had been
• metal money used as money. Such forms of money are
• to mint termed commodity money and they are not
• to make by stamping metal confined to ancient societies; for example,
• The National Mint
when the currency collapsed in Germany in
• BC – before Christ 1945, commodity money in the form of
• AD – Anno Domini cigarettes and coffee took its place.
• to term
• to name, to call, to refer to...
• commodity money
• ROBNI NOVAC
• to confine TO
• to limit, restrict, restrain...
• confinement (to be kept in confinement)
• ancient – very old
• to collapse (for a currency)
• to lose its value (against major currencies)
Vocabulary from the text (2nd paragraph)
For most of its history money has taken the
• precious metal form of coins made of precious metal. The
• gold, silver, platinum... money, thus, had intrinsic value. Many of the
• metals that are rare and have a high economic value units of modern money recall their origin in
• INTRINSIC amounts of precious metal; for example, the
pound sterling was originally the Roman
• something that is natural or inherent
pound of silver. Hence the symbol £ derives
• to recall one’s origin from the letter L standing for libra, the Latin
• to derive for a pound.
• voditi poreklo
• pound sterling
• the currency of the United Kingdom
• British pound
• quid
• a slang expression for the British pound sterling, or the British pound (GBP)
• pound – approx. half a kilo
• hence
• therefore, thus, consequently, accordingly...
Vocabulary from the text (3rd paragraph) Both paper money and modern
banking practice originated from
the activities of goldsmiths.
• goldsmith • in effect – in fact
Goldsmiths used to accept deposits
• a metal worker who specializes in working with gold of gold coins and precious objects
and other precious metals • promissory note for safe keeping, in return for
• a deposit • a written promise to pay which a receipt would be issued
1. a sum of money paid into a bank account (bank a specific sum of money which was, in effect, a promissory
deposit) to a second party note. As time went by, these notes
2. a sum of money used as security or collateral for the • MENICA began to be passed around in
delivery of a good settlement of debts, acting as bank
3. (v.) to put money in a bank • SETTLEMENT OF DEBTS notes do today. The completion of
• IN RETURN FOR • TO SETTLE A DEBT this process came in 1680s when
• as an exchange for something • PODMIRITI DUG Francis Childs became the first
• a RECEIPT /rɪˈsiːt/ banker to print banknotes.
• to act
• proof of purchase • to function
• to issue • completion
• to give (something) to someone in an official way
• to issue shares?
• to complete – to end, to
• to offer shares for sale finish
Vocabulary from the text (4th paragraph) In today’s society we are seeing ever
more sophisticated ways of paying for
• sophisticated goods and services. It is possible to
• modern, technologically advanced envisage a future in which there is no
need for cash. However, cash remains an
• to envisage enormous resilience; 90% of all
• to imagine, to picture in your mind transactions are in cash so that, although
they account for only a small percentage
• resilience of the total value of sales, it is unlikely
• to be resilient – strong and not easily damaged that cash will be replaced for minor day-
to-day transactions such as for slot
• to ACCOUNT for machines, bus fares, etc.
• to form part of a total
• Peugeot sales account for 30% of the total
European car sales.
• slot machine
• a machine which sells small items,
e.g. cigarettes, chocolate bars, soft
drinks...
Vocabulary from the text (5th/6th paragraphs)
• attribute to a lesser extent
• characteristic, feature, property... The main attributes or characteristics
- not as much
an asset should have to function as
• an asset chief money are:
• a valuable thing - main, most important Acceptability. The most important
• assets (in accounting)
depreciation attribute of money is that it is readily
• = things that a company owns
- lessening of / losing acceptable.
• readily value
• willingly - What happens when a Durability. Money should not wear
• without hesitation/reluctance currency depreciate? out quickly. This is a problem which
may affect paper money and to a
• durability whatsoever – at all
lesser extent coins. The chief form of
• the ability to last and to remain a digit - a number money in a modern society, which is
functional, without requiring excessive
bank deposits, suffers no physical
maintenance or repair
depreciation whatsoever as it only
• durable
exists as numbers on a page or digits
• consumer durables? in a computer.
• to wear out
• to make useless, especially by long or
hard usage
• pohabati se
Vocabulary from the text (7th/8th paragraphs) Homogeneity. It is desirable that
money should be uniform. If a
• uniform country’s money stock consisted of
• the same, identical or consistent $1 gold coins, but some coins
contained 1 gram of gold and others
• money stock
2 grams, what would happen?
• money supply People would hoard the 2 gram
• to hoard coins but trade with the 1 gram
• accumulate (money or valuable objects) and coins. Thus, part of the money
hide or store away supply would disappear. This is an
illustration of Gresham’s law, that
• to drive out “bad money drives out good”. Most
• to cause or force (someone or something) to forms of commodity money will
leave suffer from Gresham’s law.
• permutation of divisibility
Divisibility. Another of the
disadvantages of commodity money,
such as camels’ or pigs’ teeth, is that
they cannot be divided into smaller
units. Modern notes and coins allow
us to arrive at almost any
permutation of divisibility.
Vocabulary from the text (9th/10th para) Portability. Commodity money and
• portability even coins suffer from the
• the ability to be carried around disadvantage that they may be
• portable difficult to transport. A modern
• a portable computer / TV bank deposit however may be
• to transmit
transmitted electronically from one
DEFECT
• to transfer, to pass place to another.
- FAULT
• How is the coronavirus disease - FLAW Stability of value. It is highly
transmitted? - desirable that money should retain
IMPERFECTION
• transmission - WEAKNESS its value. In the past this was
• highly - SHORTCOMING achieved by tying monetary value
• hugely, deeply - INADEQUACY to something which was in
• to retain - FAILING relatively stable supply, such as
• to keep - LIMITATION gold. It is one of the most serious
• retention
- DEFICIENCY... defects of modern money that it
• to tie may be affected by inflation. The
• tying
• to connect, link hyperinflation in Germany in 1923,
• WORTHLESS
for example, made the mark
• VALUELESS worthless.
Vocabulary from the text (11th paragraph)
• TO COUNTERFEIT Difficult to counterfeit. Once a society
uses money which has only exchange
• to forge, to fake, to reproduce, to replicate...
value, it is essential that the
• counterfeit (adj.) – fake, false, forged... possibilities for fraud and counterfeit
• counterfeit money/signature/notes... be kept to a minimum.
• a FRAUD
• an intentional deception
• a fraudster – a person who commits fraud,
especially in business dealings

• tax fraud
• election fraud
• Internet/cyber fraud
• credit card fraud...
 Textbook, p. 5, ex. A
• 1) g) • 12) i)

• 2) h) • 13) u)

• 3) l) • 14) j)

• 4) f) • 15) p)

• 5) a) • 16) b)

• 6) q) • 17) e)

• 7) t) • 18) c)

• 8) o) • 19) m)

• 9) s) • 20) n)

• 10) k) • 21) d)

• 11) r)