Ex. 1.2. Answer the questions

1. Why do people accept money?

2. What are the functions of money?

3. What are different kinds of money?

4. What’s a barter economy? Why is trading expensive in a barter economy?

5. What does IOU stand for?

Ex. 1.3. Fill in the gaps with the words and expressions form the text.

1. The crucial feature of money is its acceptance as … or …

2. People buy and sell goods … for money.

3. In a barter economy goods are traded directly or … other goods.

4. People must spend a lot of … finding others with whom they can make mutually …

5. Society considers it convenient to use … to determine … of different goods and services.

6. The unit of account is the unit in which prices are … and … are kept.

7. Money is a store of value because it can be used …

8. A token money is a means of payment whose … as money greatly … its cost of production or value in uses other …

9. In modern economies, token money … by …

10. An IOU money is a medium of exchange based on …

11. … is IOU money because it is a dept of the bank.

Ex. 1.4. Translate into English.

Существует несколько функций денег. Во-первых, деньги являются средством платежа или обращения; деньги можно использовать при покупке и продаже товаров и услуг. Деньги выступают также мерой стоимости.

Деньги служат средством сбережения. Поскольку деньги являются наиболее ликвидным товаром, то есть таким, который можно без проблем продать (или обменять), то они являются очень удобной формой хранения богатства. Это, однако, не единственная форма хранения богатства. Во время упадка в экономике, при высокой инфляции и обесценении денег, население, скорее всего, будет хранить богатство в виде недвижимости или других дорогостоящих товаров – предметах искусства, драгоценностях.

Деньги, которые являются долговыми обязательствами государства, коммерческих банков и сберегательных учреждений, имеют стоимость благодаря товарам и услугам, которые приобретаются за них на рынке.

Read and translate some additional information on the topic.

Currency

Pounds and Pence, Dollars and Cents

The basic unit of British currency is the pound. One pound is 100 pence. There are eight different British coins: there are one-pence coins, two-pence coins, five-pence coins, ten-pence coins, twenty pence coins and fifty-pence coins. There are also one-pound coins and five-pound notes (of blue colour), ten-pound notes (of orange colour), twenty-pound notes (of violet colour) and fifty-pound notes (rose).

The basic unit of American currency is, of course, the dollar. One dollar is 100 cents. There are five different coins: one-cent coins, five-cent coins, ten-cent coins, twenty five-cent coins and fifty-cent coins (“half dollar”). There are one-dollar notes, five dollar notes, ten-dollar notes, twenty-dollar notes, fifty-dollar notes and one hundred-dollar notes. All the notes are of the same size and colour.

Note:Американцы называют « купюру» словом bill, поэтому в США принято говорить one-dollar bills, five-dollar bills, etc.

Обратите внимание, что говорится “I’ve gotfive pounds”, but “I’ve got a five-pound note”.

Read and translate the following dialogues.

Dialogue 1

A. Good morning, madam!

B. Good morning! My husband asked my bank in England to transfer $

1,000 to you in my name.

A. Have you got your passport, please? Thank you. What’s the name of

your bank?

B. The Highland Bank, 18, Pickwick Road, Brighton.

A. Just a moment, please. We have received a transfer, but it is in your husband’s name. So, I’m afraid he will have to come to the bank to collect it.

B. That’s very annoying. I need the money and he isn’t available this evening.

A. I’m very sorry, madam, but I really can’t do anything.

B. Oh, well. Too bad.

Dialogue 2

A. Good morning!

B. Good morning, sir!

A. I‘ve asked my bank, the First National Bank of New York, to transfer $2,000 to you in my name. I’d like to know if the money has arrived.

B. I’ll see. Could you give me your passport, please? Thank you. The money has arrived, sir, but I’m afraid the passport numbers don’t correspond.

A. What does that mean?

B. That means until we receive identification from your bank we can’t

pay you. If you like I can send a telex, but I’ll have to charge it to

you.