From the history of early mathematics
6.1.1 THE BEGINNINGS
Ø 1) Before reading the text answer the questions:
a)What do you think were the first numerical terms?
b)What could stimulate the development of numerical terms?
Ø 2) Read the text and answer the questions.
a)What led to the numeration with five and ten as a base?
b)Were any other bases used in numeration?
c)How were numerical records kept?
d)When did the symbols for 5, 10 and 20 appear?
e)What resulted from the appearance of the symbols 5, 10, 20?
Numerical terms, expressing some of the most abstract ideas, came slowly into use. Their first occurrence made a distinction only between one, two, and many. The development of the crafts and of commerce stimulated this crystallization of the number concept. Numbers were arranged and bundled into larger units, usually by the use of the fingers of the hand or of both hands, a natural procedure in trading. This led to the numeration first with five, later with ten as a base, completed by addition and sometimes by subtraction, so that twelve was conceived as 10+2, or 9 as 10-1. Sometimes 20, the number of fingers and toes was selected as a base. Numerical records were kept by means of bundling, strokes on a stick, knots on a string, pebbles or shells arranged in heaps of five. From this method to the introduction of special symbols for 5, 10, 20 etc., was only a step, and we find such symbols in use at the beginning of written history, at the so-called dawn of civilization. Once it was reached, numbers could be expressed with reference to a base, with the aid of which large numbers could be formed; thus a primitive type of arithmetic originated. Fourteen was expressed as 10 + 4, sometimes as 15 – 1. Multiplication began where 20 was expressed not as 10 + 10, but as 2x10. Division began where 10 was expressed as “half of a body,” although conscious formation of fractions remained extremely rare.
Ø 3) Now that you’ve read the text, can you answer the questions in task 1?
6.1.2 THE ANCIENT ORIENTAL MATHEMATICS
Ø 1) Answer the questions:
a)There are four parts of the world: the West, the East, the South, and the North. “The
Orient” also means a part of the world. What part of the world is synonymous with “the Orient”?
b)What countries of the ancient Orient do you know? Choose from the following: Babylonia, India, Egypt, Germany, Mesopotamia, Russia, Sumeria, Persia.
Ø 2) Read the text and find:
a)the date of writing the Papyrus of Rhind and the Moscow Papyrus,
b)the date of King Hammurabi’s reign in Babylon,
c)the reason for the origin of mathematics,
d)the characteristics of mathematics in the Papyrus of Rhind and Moscow Papyrus,
e)the difference between Egyptian and Mesopotamian mathematics,
f)the reasons for the use of 60 rather than 10 as a unit for time and circle division.
During the fifth, fourth and third millennium B.C. newer and more advanced forms of society evolved from well-established Neolithic communities along the banks of great rivers in Africa and Asia, in subtropics or nearly subtropics regions. These rivers were the Niles, the Tigris and the Euphrates, the Indus and later the Ganges, the Huang Ho and later the Yang-tse. These territories became centers of civilization.
Oriental mathematics originated as a practical science in order to facilitate computation of the calendar, administration of the harvest, organization of the public works, and collection of taxes. The initial emphasis was on practical arithmetic and measurement. Arithmetic evolved into algebra, and measurement developed into the beginnings of a theoretical geometry.
The knowledge of Oriental mathematics is very sketchy. The mathematics of Babylonia and Egypt may be considered the most representative of the ancient orient mathematics because there exists a certain consistency in the factual character of the Babylonian and Egyptian texts throughout the centuries. Most of our knowledge of Egyptian mathematics is derived from two mathematical papyri: the Papyrus of Rhind, containing 85 problems and written about 1650 B.C.; and the Moscow Papyrus, perhaps two centuries older, containing 25 problems.
The mathematics in these papyri is based on a decimal system of numeration with special signs for each higher decimal unit – a system with which we are familiar through the Roman system which follows the same principle: MDCCCLXXVIII = 1878.
The most remarkable aspect of Egyptian arithmetic was its calculus of fractions. All fractions were reduced to sums of so-called unit fractions. The Papyrus Rhind has a table giving the equivalents in unit fractions for all odd “n” from 5 to 101. This work with unit fractions had been practiced for thousands of years, not only during the Greek period, but even during the Middle Ages. It should be noted that all texts point to an Egyptian mathematics of rather primitive standards.
Mesopotamian mathematics reached a far higher level than Egyptian mathematics ever obtained. Already the oldest texts, dating from the latest Sumerian period (the third dynasty of Ur, 2100 B.C.) show keen computational ability. These texts contain multiplication tables in which a well-developed sexagesimal system of numeration was added to an original decimal system. However, this was not their most characteristic feature. Whereas the Egyptians indicated each higher unit by a new symbol, the Sumerians used the same symbol but indicated its value by its position. Such a system had enormous advantages for computation, as we can see when we try to perform a multiplication in our own system and in a system with Roman numerals. This whole system seems to have developed as a direct result of the technique of administration, as is indicated in thousands of texts dating from the same period dealing with the delivery of cattle, grain, etc., and with arithmetical work based on these transactions. Eventually a special symbol for zero appeared, but much later, in the Persian era.
Both the sexagesimal system and the place value system remained in the permanent possession of mankind. Our present division of the hour into 60 minutes and 3600 seconds dates back to the Sumerians, as does our division of the circle into 360 degrees, each degree into 60 minutes and each minute into 60 seconds. There is a reason to believe that this choice of 60 rather than 10 as a unit occurred in an attempt to unify systems of measure, although the fact that 60 have many divisors may also have played a role. As to the place value system, the permanent importance of which has been compared to that of the alphabet (both inventions replaced a complex symbolism by a method easily understood by a large number of people), its history is still considerably obscure. The next group of cuneiform texts dates back to the first Babylonian Dynasty, when King Hammurabi reigned in Babylon (1950 B.C.) and a Semitic population had subdued the original Sumerians. In these texts we find arithmetic evolved into a well established algebra. Although the Egyptians of this period were only able to solve simple linear equations, the Babylonians of Hammurabi’s days were in full possession of the technique of handling quadratic equations. They solved linear and quadratic equations in two variables, and even problems involving cubic and biquadratic equations.
The strong arithmetical-algebraic character of the Babylonian mathematics is also apparent from its geometry. The texts show that the Babylonian geometry of the Semitic period was in possession of formulas for the areas of simple rectilinear figures and for the volumes of simple solids, although the volume of a truncated pyramid had not yet been found. The so-called theorem of Pythagoras was known, not only for special cases, but in full generality. The main characteristic of this geometry was, however, its algebraic character. This is equally true of all later texts, especially those dating back to the third period, that of New Babylonian, Persian, and Seleucid eras (from 600 B.C. – A.D. 300).
6.1.3 MATHEMATICS IN GREECE AND ROME
Ø 1) Guess what these proper names (the name of a country, a city, a part of the world, culture, a sea) mean: Alexandria, Greece, the Orient, the Near East, Rome, Babylon, Hellenism, Athens, Syracuse?
Ø 2) Does Hellenism refer to Rome or Greece?
Ø 3) Which names of these great mathematicians would you connect with Greece and which with Rome: Euclid, Archimedes, Ptolemy and Diophantus?
(1)The early Greek study of mathematics had one main goal: the understanding of man’s place in the universe according to a rational scheme. Mathematics helped to find order in chaos, to arrange ideas in logical chains, to find fundamental principles. It was the most rational of all sciences, and although there is little doubt that the Greek merchants became acquainted with Oriental mathematics along their trade routes, they soon discovered that the Orientals had left most of the rationalization undone.
(2)When Alexander the Great died at Babylon in 323 B.C. the whole Near East had fallen to the Greeks. The period of Hellenism began. Greek mathematics, thus transplanted to new surroundings, kept many of its traditional aspects, but experienced also the influence of the problems in administration and astronomy which the Orient had to solve. It is also remarkable that the greatest flowering of this Hellenistic mathematics occurred in Egypt under the Ptolemies. Egypt was now in a central position in the Mediterranean world. Alexandria, the new capital, was built on the sea coast and became the intellectual and economic center of the Hellenistic world. Besides Alexandria there were other centers of mathematical learning, especially Athens and Syracuse. Athens became an educational center, while Syracuse produced Archimedes, the greatest of Greek mathematicians.
(3)Among the first scholars associated with Alexandria was Euclid, one of the most influential mathematicians of all times. Euclid, about whose life nothing is known with any certainty, flourished probably during the time of the first Ptolemy (306 – 283 B.C.). His most famous and most advanced texts are the thirteen books of “The Elements.” “The Elements” form, next to the Bible, probably the most reproduced and studied book in the history of the Western World. More than a thousand editions appeared since the invention of printing, and before that time manuscript copies dominated much of the teaching of geometry. Most of our school geometry is taken, often literally, from eight or nine of the thirteen books; and the Euclidean tradition still weighs heavily on our elementary instruction. For the professional mathematician these books have always had an inescapable fascination and their logical structure has influenced scientific thinking perhaps more than any other text in the world.
(4)The greatest mathematician of the Hellenistic period was Archimedes (287 – 212 B.C.) who lived in Syracuse as adviser to King Hiero. The most important contributions which Archimedes made to mathematics were his books, such as “Measurement of the Circle,” “On the sphere and Cylinder,” “Quadrature of the Parabola,” “On Spirals,” “On Conoids and Spheroids,” “On Floating Bodies”. In all these works Archimedes combined a surprising originality of thought with a mastery of computational technique and rigor of demonstration. In his computational proficiency Archimedes differed from most of the productive Greek mathematicians.
(5)The third and last period of antique society is that of the Roman domination. Syracuse fell to Rome in 212, Carthage in 146, Greece in 146, Mesopotamia in 64, and Egypt in 30 B.C. The entire Roman-dominated Orient, including Greece, was reduced to the status of a colony ruled by Roman administrators.
(6)As long as the Roman Empire showed some stability, Eastern science continued to flourish as a curious blend of Hellenistic and Oriental elements. Alexandria remained the center of antique mathematics. Computational arithmetic and algebra of an Egyptian-Babylonian type were cultivated side by side with abstract geometrical demonstrations. We have only to think of Ptolemy, Heron, and Diophantus to become convinced of this fact.
(7)One of the earliest Alexandrian mathematicians of the Roman period was Nicomachus of Gerasa (c. A.D. 100) whose “Arithmetic Introduction” is the most complete exposition of Pythagorean arithmetic, still existing.
(8)One of the greatest documents of this second Alexandrian period was Ptolemy’s “Great Collection,” better known under the Arabicized title of “Almagest” (A.D. 150). The “Amalgest” was an astronomical opus of supreme mastership and originality, even though many of the ideas may have come from Babylonian astronomers. Also it contained a trigonometry, with a table of chords belonging to different angles ascending by halves of an angle, equivalent to a sine table. The Oriental touch is even stronger in the “Arithmetica” of Diophantus (A.D. 250). We do not know who Diophantus was – he may have been a Hellenized Babylonian. His book is one of the most fascinating treaties preserved from Greco-Roman antiquity.
Ø 4) Which of the sentences may be included into this text?
a)Counting by fingers, that is, counting by fives and tens, came at a certain stage of social development.
b)Neolithic man also developed a keen feeling for geometrical patterns.
c)We possess reliable editions of Euclid and Archimedes.
d)The main result of the Greek victory was the expansion and hegemony of Athens.
e)The immediate consequence of Alexander’s campaign was the acceleration of the advance of Greek civilization over large sections of the Oriental world.
e)Euclid’s treatment is based on a logical deduction of theorems from a set of definitions, postulates, and axioms.
f)The most important contributions of Archimedes to mathematics were in the domain of what we now call the “integral calculus.”
Ø 5) Name the paragraphs which give answers to these questions:
a)What kind of work is the “Amalgest” by Ptolemy?
b)What was the main goal of the early Greek study of mathematics?
c)What books on mathematics did Archimedes write?
d)What centers of mathematical learning in ancient Greece could you mention?
e)What happened to the Orient when Rome conquered it?
6.2 THE ORIGIN OF THE WORD “MONEY”
Ø 1) Read the title and the words from the text (moneta, goddess Juno, Juno Moneta, Rome, temple, the mint) and guess what this text is about.
The English word “money” is believed to come from the Italian word “moneta” which has an interesting history. Today the word means “coin,” but in ancient Rome, and perhaps even earlier in Greece, the word meant “advisor,” one who warns, or one who makes people remember.
There are several accounts of how the meaning of the word changed based on a similar story about the goddess Juno. She presided over many aspects of life. One of these aspects was an advisor of the Roman people, so one of her names was Juno Moneta.
A flock of geese in Juno’s sanctuary on the Capitoline Hill squawked the alarm that saved Rome from an invasion of the Gauls in 390 B.C. A temple was built in honor of Juno Moneta at the site because her sacred geese had “warned” of the attack.
The first Roman mint was built near Juno Moneta’s temple in 289 B.C. Originally it produced bronze and later silver coins. Many of these coins were struck with the head of Juno Moneta on the face. We don’t know if this was done in tribute to Juno Moneta or just to identify the mint, but “moneta” became the word for both coin and mint, and eventually for the word “money.”
Ø 2) Say if the statements are true, false or there is no evidence in the text:
a)The word “moneta” comes from the Russian language.
b)The meaning of the word “moneta” changed in the course of time.
c)The goddess Juno was in charge of monetary matters.
d)The goddess Juno lived in the IVth century B.C.
e)The first Roman mint was built to commemorate the goddess Juno.
f)The first Roman mint produced gold coins.
g)Many coins had the head of Juno Moneta on its face.
THE HISTORY OF MONEY
Ø 1) Read the text and answer the questions:
a)What is barter?
b)What forms of early proto-money have been used by different societies at different times?
c)What types of items were used as the first type of money?
d)Who made the earliest coins? What type of metal did they use?
e)Where for the first time did stamped coins appear to mark their authenticity? When?
f)What were the coins made out of?
g)Who started the use of paper money? When?
h)Why did it take a long time for Europe to use paper money?
i)What European country was the first one to use paper money? When?
The use of money is as old as the human civilization. Money is basically a method of exchange, and coins and notes are just items of exchange. But money was not always the same form as the money today, and it is still developing.
The basis of all early commerce was barter, in other words the direct exchange of one product for another, with the relative values as a matter for negotiation. Subsequently both livestock, particularly cattle, and plant products such as grain, come to be used as money in many different societies at different periods. Cattle are probably the oldest of all forms of money, as domestication of animals tended to precede the cultivation of crops. The earliest evidence of banking is found in Mesopotamia between 3000 and 2000 B.C. when temples were used to store grain and other valuables used in trade.
People in early societies developed forms of proto-money – the use of commodities that everyone agreed to accept in trade. Various items have been used by different societies at different times. Aztecs used cacao beans. Norwegians once used butter. The early U.S. colonists used tobacco leaves and animal hides (settlers traded deer hides – the origin of our modern word for money: “bucks”). The people of Paraguay used snails. Roman soldiers were paid a “salarium” of salt. On the island of Nauru, the islanders used rats. Human slaves were also used as currency around the world. In the 16th century, the average exchange value of a slave was 8000 pounds of sugar.
Gradually, however, people began exchanging items that had no intrinsic value, but which had only agreed-upon or symbolic value. An example is the cowry shell. The first use of cowries, the shell of a mollusk that was widely available in the shallow waters of the Pacific and Indian Oceans, was in China in 1,200 BC. Historically, many societies used cowries as money, and even as recently as the middle of the 20th century, cowries were used in some parts of Africa. The cowry is the most widely and longest used currency in history.
Another symbolic currency – used widely in the Americas – was wampum. Wampum is oblong clamshells sawed into beads, polished, and then strung together. The earliest known use of wampum was by North American Indians in 1535. Most likely, this monetary medium existed well before this date. The Indian word “wampum” means “white,” which was the color of the beads. Wampum was used as legal tender in several early American colonies and states. A wampum factory in New Jersey remained in business until 1859. From the widespread use of wampum as symbolic currency we get the current phrase “shelling out.”
Metal tool money, such as knife and spade monies, was also first used in China. These early metal monies developed into primitive versions of round coins at the end of the Stone Age. Chinese coins were made out of copper, often containing holes so they could be put together like a chain.
Outside of China, the first coins developed out of lumps of silver. They soon took the familiar round form of today, and were stamped with various gods and emperors to mark their authenticity. These early coins first appeared in the Kingdom of Lydia (now Turkey) in the 7th Century B.C., but the techniques were quickly copied and further refined by the Greek, Persian, Macedonian, and later the Roman empires. Unlike Chinese coins, which depended on base metals, these new coins were made from precious metals such as silver, bronze, and gold, which had more inherent value.
As in so many other things, the Chinese were the innovators for the next step. The Chinese invented printing, and not too much later, they also invented paper money during the T’ang Dynasty. This technology came in handy when China had to solve a problem with their money because copper was scarce and not enough coins could be minted.
During Ming Dynasty the Chinese placed the emperor’s seal and signature of the treasures on a crude paper made from mulberry bark. China experienced over 500 years of early paper money, spanning from the 9th through the 15th century. Then beginning in 1455, the use of paper money in China disappeared for 700 years. People in Mongolia were the second who began to use paper money in 11th century.
Paper money was adopted in Europe much later than in Asia and the Arab world – primarily because Europe didn’t have paper. The first paper mill in Europe was established by the Moors in 1151 A.D. in what is now Spain, but paper was not widely accepted because of religious prejudice. Official Christian officials discouraged paper because it was introduced by the heathen Moors. In 1221, the Holy Roman Emperor Frederick II announced that official documents written on paper were invalid – only parchment or vellum was acceptable. Nevertheless, the use of paper spread because of its obvious convenience.
The Bank of Sweden issued the first paper money in Europe in 1661, though this was also a temporary measure. In 1694 the Bank of England was founded and began to issue promissory notes, originally handwritten but later printed. To make travelling with gold less dangerous, goldsmiths, or people who made jewelry and other items out of gold, came up with an idea. The goldsmiths started writing out notes on pieces of paper that said the person who had the note could trade the note in for gold. These promissory notes were the beginning of paper money in Europe. If you look at a British bank note today, you’ll see it still says: “I promise to pay the bearer on demand the sum of twenty pounds.”
Ø 2) Read the text the second time and put the sentences into the proper order:
a)Many societies used cowries as money.
b)Paper money was adopted in Europe much later.
c)Money is basically a method of exchange.
d)In the end of the 17th century the Bank of England was established.
e)Cattle are probably the oldest of all forms of money.
f)Metal and paper money was first used in China.
g)Human slaves were also used as currency.
h)Wampum was used as a monetary medium in some early American colonies and states.
ELECTRONIC MONEY
Ø 1) Can you name advantages and disadvantages of using electronic money?
Ø 2) In the text the writer uses the words: cash, currency, digital, debit card, bill. What do they mean?
(1)Electronic money (also known as electronic cash, electronic currency, digital money, digital cash, digital currency or scrip) refers to money which is exchanged only electronically. With the introduction of Internet/online banking, debit cards, online bill payments and Internet business, paper money is becoming a thing of the past.
(2)Let’s have a look at some of the advantages of electronic money. First, banks now offer many services whereby customers do not have to wait in lines; this provides a calm environment. Second, you can transfer the funds immediately from your personal account to a business’s account without any actual paper transfer of money (using debit cards and online bill payments). This offers a great convenience to many people and businesses alike.
(3)There are more pluses, of course. For example, Singapore has a very successful electronic money implementation for its public transportation system (commuter trains, bus, etc). The electronic money, known as EZ-Link by most Singaporeans, is a card the size of an ordinary credit card. It has a smart chip plus a wireless communication module. Passengers just need to tap the EZ-Link when they board the bus and tap the card again when they alight; the bus fare system automatically deducts the calculated bus fare from the EZ-Link value. Recently, McDonalds is setting up EZ-Link payment infrastructure at their fast-food branches all over Singapore’s main island. It is believed that in the near future EZ-Link will gain more acceptance as a convenient electronic money solution in Singapore.
(4)Although there are many benefits to digital cash, there are also many significant disadvantages. These include fraud, failure of technology, possible tracking of individuals and loss of human interaction. Still, most money in today’s world is electronic, and tangible cash is becoming less frequent.
Ø 3) The text contains the description of electronic money implementation EZ-Link, and how it is used. Find this information in the text.
BRITISH MONEY
Ø 1) Recollect what names of British money you know. Have you ever seen or held it in your hands? Could you describe the appearance of British money?
Ø 2) Read the text and name the paragraphs which give the answers to these questions:
a)Is there any difference in the monetary systems of the Channel Islands, the Isle of Man and the mainland of Britain?
b)What is the basic unit of British currency?
c)What is the British currency sign?
d)What is the official name of the British currency basic unit?
e)What coins are in circulation?
f)What do they put after the figures if an amount of money consists only of pence?
g)What notes are in circulation?
h)What does the abbreviation GBP mean?
(1)Since 1971, the monetary system of Great Britain is based on the decimal system. The basic unit of British currency (currency of the United Kingdom and the Crown Dependencies) is the pound, which is divided into one hundred pence (abbreviated as “p”).
(2)The official full name “pound sterling” (plural: “pounds sterling”) is used mainly in formal language and also to distinguish the currency used within the United Kingdom from others that have the same name (GBP = Great British Pound)
(3)As a unit of currency, the term “pound” originates from the value of one pound Tower weight of high purity silver known as “sterling silver.” Sterling silver is an alloy of silver containing 92.5% pure silver and 7.5% other metals, usually copper. The word “sterling” is believed to come from the Old Norman French “esterlin” (meaning “little star”) transformed in “stiere” in Old English (strong, firm, immovable).
(4)The currency sign is the pound sign, originally ₤ with two cross-bars, then later more commonly £ with a single cross-bar. The pound sign derives from the “£sd” pronounced, and sometimes written as “LSD.” The abbreviation comes from “librae, solidi, denarii” (libra was the basic Roman unit of weight; the solidus and denarius were Roman coins). “£sd” was the popular name for the pre-decimal currencies pounds, shillings, pence of the Britain and other countries.
(5)The coins in circulation are 1 penny, 2 pence, 5 pence, 10 pence, 20 pence, 50 pence, 1 pound, and 2 pounds.
(6)The notes (paper money) in circulation are £5, £10, £20, £50, and £100.
(7)The Channel Islands and the Isle of Man have some different coins and notes from the mainland but the monetary system is the same.
(8)When we write amounts of money in figures, the pound symbol “£” is always shown in front of the figures. For example: three hundred pounds → £300.
(9)If an amount of money consists only of pence, we put the letter “p” after the figures. For example: we write 50p or £0.50 and say it “fifty pee” rather than “fifty pence.” The singular of pence is “penny.”
(10)If an amount of money consists of both pounds and pence, we write the pound symbol and separate the pounds and the pence with a full stop. We do not write “p” after the pence. For example: six pounds fifty pence → £6.50. When saying aloud an amount of money that consists of pounds and pence, we do not usually say the word “pence.” For example: £6.50 → six pounds fifty.
(11)Note also that we say 2 pounds, 5 pounds, 10 pounds, etc. for amounts of money and 2 pound coin, 5 pound note, 10 pound note, etc. for a piece of money (coins and notes).
Ø 3) What do the following words and expressions refer to: an alloy of silver and copper, the sign £ in front of the figures, the letter “p” after the figures, shilling.
AMERICAN MONEY
Ø 1) Recollect everything you know about American paper money (the name, the color, the sign, the pictures, the rate of exchange).
Ø 2) Have you ever seen American coins? Where?
The United States dollar or the American dollar is the official currency of the United States of America. When in writing, the symbol for the American dollar is the dollar sign “$.” Dollars can also be known as USD (U.S. Dollar).
Dollar bill has a picture of George Washington. There are also paper bills that are worth 1, 2, 5, 10, 20, 50, and 100 dollars.
There are also the American one dollar coins. Some of them are silver and some of them are gold-colored. Vending machines often give dollar coins as change, since it is easier for the machines to give out coins than paper money. But most of the time people use paper dollars.
There are 100 cents in one American dollar. The cent or “penny” is the smallest or least worth coin used in the U.S. There are half-dollar coins, which are worth 50 cents. Quarters are worth 25 cents, dimes are worth ten cents, nickels are worth five cents, and pennies are worth one cent. All coins and paper bills have the faces of famous Americans on the front side.
The paper “dollar bill” is actually called a “Federal Reserve Note.” “Federal” refers to the U.S. government. The United States Constitution (the main laws in the country), first said that the government must hold enough gold to redeem (trade for) the paper money it printed. This means that, if needed, paper money could be traded to the government for gold. The government of the United States stopped using this “gold standard” in 1971, which means it no longer needs to have enough gold to trade for paper money.
Ø 3) Name the statements which are true:
a)The dollar bill has a picture of George Washington.
b)Vending machines always give dollar coins as change.
c)All American dollar coins are gold-colored.
d)Most of the time Americans use paper money.
e)The 50 dollar bill has a picture of Queen Elizabeth II.
f)The paper dollar bill is called a “Federal Reserve Note.”
g)The American government doesn’t use the “gold standard” any longer.
h)The coins are called a penny, a half-dollar coin, a quarter, a dime, a nickel.
i)All coins and paper bills have the faces of famous Americans on the front side.
THE EURO
Ø 1) Before reading the text answer the questions:
a)What is the European currency called?
b)Do you happen to know when it was introduced?
c)What color or colors are the banknotes? Have you ever seen any banknotes or coins of European currency?
(1)The name “euro” was officially adopted on 16 December 1995. The euro was introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit (ECU) at a ratio of 1:1. Euro coins and banknotes entered circulation on 1 January 2002. The plural forms are the same, “euro” and “cent,” because of different languages in the EU. The sign is ?, the code is EUR. It is also legal to simply write “euro.”
(2)There are 7 different euro banknotes: ?5 (grey), ?10 (red), ?20 (blue), ?50 (orange), ?100 (green), ?200 (yellow), ?500 (purple). Each banknote is dedicated to an artistic period of European architecture. The front of the note features windows or gateways while the back has bridges. Some of the highest denominations such as the ?500 are not issued in all countries, though they remain legal tender throughout the Eurozone.
(3)The euro is divided into 100 cents. The coins are issued in ?2, ?1, 50c, 20c, 10c, 5c, 2c, and 1c denominations. In order to avoid the use of the two smallest coins, some cash transactions are rounded to the nearest five cents in the Netherlands (by voluntary agreement) and in Finland (by law).
(4)All circulating coins have a common side showing the denomination or value, and a map in the background. For the denominations except the 1-, 2- and 5-cent coins that map only showed the 15 Member States which were members of the Eurozone when the euro was introduced. Beginning in 2007 the old map is being replaced by a map of Europe also showing countries outside the Union, like Norway. The 1-, 2- and 5-cent coins, however, keep their old design, showing a geographical map of Europe with the 15 Member States of 2002 raised somewhat above the rest of the map. The coins also have a national side showing an image specifically chosen by the country that issued the coin. Euro coins from any Member State may be freely used in any nation which has adopted the euro.
(5)Commemorative coins with ?2 face value have been issued with changes to the design of the national side of the coin. These include both commonly issued coins, such as the ?2 commemorative coin for the fiftieth anniversary of the signing of the Treaty of Rome, and nationally issued coins, such as the coin to commemorate the 2004 Summer Olympics issued by Greece. These coins are legal tender throughout the Eurozone. Collector’s coins with various other denominations have been issued as well, but these are not intended for general circulation, and they are legal tender only in the Member State that issued them.
(6)The euro is managed and administered by the Frankfurt-based European Central Bank (ECB) and the Eurosystem (composed of the central banks of the Eurozone countries). As an independent central bank, the ECB has sole authority to set monetary policy. The Eurosystem participates in the printing, minting and distribution of notes and coins in all Member States, and the operation of the Eurozone payment systems.
(7)The euro is the second largest reserve currency and the second most traded currency in the world after the U.S. dollar.
(8)The euro is the sole currency of 16 of the 27 EU Member States as of 2010: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. These countries comprise the “Eurozone” or “Euro Area.” Outside the EU, the euro is also the sole currency of Montenegro and Kosovo and several European micro states (Andorra, Monaco, San Marino and Vatican City) as well as in three overseas territories of EU states that are not themselves part of the EU (Mayotte, Saint Pierre and Miquelon and Akrotiri and Dhekelia).
(9)Outside the Eurozone, a total of 23 countries and territories which do not belong to the EU have currencies that are directly pegged to the euro. Pegging a country’s currency to a major currency is regarded as a safety measure, especially for currencies of areas with weak economies. The euro is seen as a stable currency; it prevents runaway inflation and encourages foreign investment due to its stability.
Ø 2) Find the information on these points in the text:
a)the countries that have the euro as the sole currency as of 2010,
b)the organizations that manage and administer the euro,
c)the number of countries that are pegged to the euro outside the Eurozone,
d)the date of introduction of the term euro,
e)the beginning of the euro circulation,
f)commemorative coins that have legal tender throughout Eurozone,
g)the denominations of the euro banknotes,
h)the denominations of the euro coins.
Ø 3) Point out the problems that are discussed in this text: the term “euro,” the structure of the euro, the look of the banknotes and coins, comparison with the American dollar, commemorative coins, the names of the famous euro coin collectors, organizations managing and administering the euro, the countries of the euro sole currency, Russia’s plans to peg its currency to the euro, the outside Eurozone countries directly pegged to the euro currency.
MONEY COLLECTING
Ø 1) Do you know any collectors of interesting or valuable objects such as works of art, stamps, clothes, or other things, books, banknotes or coins and so on? Are you a collector yourself? Why do you think people are going in for collecting things?
Ø 2) Read the heading, look through the text and say what the article is about.
Numismatics is the scientific study of currency and different payment media used to resolve debts and the exchange of goods. So, numismatists are students or collectors of coins.
Exonumia is the study of coin-like objects such as tokens, coins and medals, and other items used in place of legal currency or for commemoration. This includes elongated coins, encased coins, souvenir medallions, tags, badges, wooden nickels, credit cards, and other similar items. Many coin collectors are also exonumists.
Notaphily is the study of paper money or banknotes. It is believed that people have been collecting paper money for as long as it has been in use. However, people only started collecting paper money systematically in Germany in the 1920s, particularly the colourful “Serienscheine Notgeld” (Series Notes). The turning point occurred in the 1970s, when notaphily was established as a separate area by collectors. At the same time, some developed countries such as the USA, Germany and France began publishing their respective national catalogues of paper money.
Scripophily is the study and collection of stocks and bonds. It is an interesting area of collecting due to both the inherent beauty of some historical documents as well as an interesting historical context of each document. Some stock certificates are excellent examples of engraving. Occasionally, an old stock document can still have value as a stock in a successor company.
Ø 3) Say if these questions are covered in the text:
a)the study and collection of stocks and bonds,
b)a collection of baseball caps,
c)the collection of currency of different countries,
d)the collection of paper money of Russia,
e)the collection of coin-like objects,
f)the collection of adventure books.
COUNTERFEITING OF MONEY
Ø 1) Read the text and say what the most adequate summary of the text is:
a)The text is about counterfeiting, the skill of making illegal copies of banknotes, products and tickets to trick people, and the ways of punishing for it.
b)The text deals with counterfeiting, which is making illegal copies of money, both paper and metal, and how this crime was punished in Europe and the USA. It is mentioned that counterfeiting should not be mixed with money art.
c)The text is about illegal making of banknotes, called counterfeiting, and the way of punishing this crime, which is very strict. All counterfeits are burned alive.
Counterfeiting is probably as old as money itself. Before the introduction of paper money, the main way of doing it was to mix base metals in what was supposed to be pure gold or silver. Also, individuals would “shave” the edges of a coin so that it weighed less than it was supposed to, a process known as clipping. This is not counterfeiting but the exponents could use the precious metal clippings to make counterfeits. A fourrée is an ancient type of counterfeit coin, in which a base metal core has been plated with a precious metal to look like its solid metal counter part.
Kings often dealt very harshly with the perpetrators of such deeds. In 1162, Emperor Gaozong of Song had promulgated a decree to punish the counterfeiter of Huizi to death and to reward the informant. The English couple Thomas Rogers and Anne Rogers were convicted on 15 October 1690 for “clipping 40 pieces of silver” (in other words, clipping the edges off silver coins). Thomas Rogers was hanged, drawn and quartered and Anne Rogers was burnt alive. The gruesome forms of punishment were due to the two acts being construed as “treason,” rather than simple crime.
In America, counterfeiting also used to be punishable by death; for example, paper currency printed by Benjamin Franklin often bore the phrase “to counterfeit is death.” The theory behind such harsh punishments was that one who had the skills to counterfeit currency was considered a threat to the safety of the state, and had to be eliminated. Far more fortunate was an earlier practitioner of the same art, active in the time of the Emperor Justinian, who got the nickname Alexander the Barber. Rather than being executed, when he was caught the Emperor decided to employ his financial talents in the government’s own service.
A subject related to that of counterfeiting is that of money art, which is the art incorporating currency designs or themes. Some of these works of art are similar enough to actual bills that their legality is in question. While a counterfeit is made with deceptive intent, money art is not – however, the law may or may not differentiate between the two. JSG Boggs, the American artist, is best known for his hand-drawn, one-sided copies of US banknotes which he spends for the face value of the note.
Ø 2) Answer the questions:
a)Could you give examples of punishment for counterfeiting?
b)How old is counterfeiting?
c)What process is known as clipping?
d)What type of counterfeit is called “a fourree”?
e)Was Alexander the Barber punished for counterfeiting?
f)What is JSG Boggs?
6.10 QUIZ “ARE YOU A SPENDER OR A SAVER?”
This simple quiz activity will let you know whether you are a spender or a saver by nature, or somewhere in between. Go through the quiz and mark the choice that you feel best describes how you spend and handle money.
| 1) When you go grocery shopping, do you write a shopping list? | |||
| a) never, | b) sometimes, | c) mostly always, | d) always |
| 2) How often do you go socializing? | |||
| a) 3-4 times a week, | b) 1-2 times a week, | c) once a month, | d) hardly ever |
| 3) If you have any spare money do you like to spend it: | |||
| a) on yourself, | b) on your home, | c) on children, | d) save it for the future? |
| 4) If you have lots of change, how do you get rid of it? | |||
| a) You spend it, | b) You give it to someone as a tip, | c) You give it to your children, | d) You save it in a piggy bank to let it build up. |
| 5) Which of the following best describes your feelings about money? | |||
| a) If you’ve got it you spend it. | b) Your outgoings are always more expensive than your income. | c) You try to save a little money each week but usually end up having to spend this money on unexpected bills. | d) You save a little each week or month regularly. |
| 6) If your cooker breaks down, what will you do? | |||
| a) Go without – I don’t have money to buy a new one. | b) Buy one on credit. | c) Get help from social security. | d) Buy one – you always have money for emergencies. |
| 7) You inherit $1000. What do you do with this money? | |||
| a) Treat yourself. | b) Buy presents for your friends and family. | c) Save it. | d) Pay off your debts. |
| 8) How many of the following do you owe: a pension, investments, shares, credit cards, a savings account, a cheque account, household insurance? | |||
| a) You have 0-2, | b) You have 3-4, | c) You have 5-6, | d) You have 7. |
KEYS TO THE QUIZ “ARE YOU A SPENDER OR A SAVER?”
Mostly a’s. If you fall into this group you find money tends to disappear as quickly as it appears. You like to treat yourself and think that life is for living, so whilst you can afford it or have no commitments you will enjoy yourself. However, be careful that too much living for the moment doesn’t mean getting into debt.
Mostly b’s. People in this group like to spend some money on themselves and family but sometimes the money just won’t go round. It might be worth thinking about how you could reduce your outgoings and perhaps be a little less generous to others and save this money instead.
Mostly c’s. You are normally OK with money and have got quite a good balance between saving and spending, although at times you can be caught out. However, you do think about saving and have at times got some money you can fall back on when you need to.
Mostly d’s. You are very good with money. You may not have thousands of pounds stashed away in the bank but you do try to put some money aside for middle and long term plans. However, you sometimes may feel as if you are saving for the future and not enjoying the here and now. Sometimes a little enjoyment does us all good and perhaps balancing this out a little more may make saving feel much more worth it in the end.
TIPS ON SAVING MONEY
Ø 1) Look at the heading of the text and the words: saving money, a savings account, an interest rate, a credit card, a debit card, an investment fund. What is this text about?
Ø 2) Agree or disagree with the given statements and explain your attitude:
a)It’s good to save money.
b)It’ bad to save money.
c)It’s impossible to save money.
d)It takes a lot of time and efforts to save money.
Consider yourself first when it comes to saving money. Get yourself turned on to the idea that your financial future will be prosperous as a result of your efforts.
Set aside 10% of your income, just for you. Set them aside on a savings account with higher interest rate than your normal account. What is important is that the money is out of reach. If you save it on an account where you have easy access, you will more easily spend it. Get them out of your life! Not in your pocket!
You can also be well off saving in funds. Pick safe funds, do not go for high risk investment funds or you might end up resenting your saving plan.
Be also careful with credit cards, as a consumer you are better off with no credit on your account. This does not mean that you should not use plastic cards. You can easily use a debit card that does not allow you to withdraw more than you have on your account.
Let the planning of saving and budgeting be fun. Be creative with it. Do not look at it as something you have to do, then it becomes very heavy and you might end up feeling poor since you have to deprive yourself from all “the good things in life.”
Now, watch out for this one. The “I deserve it” mentality lets you spend money like crazy without thinking of the consequences.
You might think that you have done well for a while, so now its time to spend money again. If you follow that impulse you will have great difficulties in saving anything. You need to be consistent with your financial planning and not go in fits and starts about it.
Remember this: all the good things in life are not necessarily expensive. If you plan ahead and prepare yourself a nice lunch box instead of going to the restaurant you can actually save a lot of money.
Stopping yourself from buying things on impulse also gives you a lot of power and personal financial freedom, because you have money left over for the things that are really needed. Plan your shopping ahead and stick to the list. Next time you come home from shopping try and recall what you actually went out to get. Most probably you will see that you have ended up buying something that you did not plan. Plug these leaks and you will prosper! Beware of little expenses; a small leak will sink a great ship.
Ø 3) Correct the outline of the text:
a)Correct your spending mentality.
b)Plan your shopping.
c)Plan and budget your income.
d)Save by means of a savings account, a credit card, a debit card or in funds.
e)Be careful in your spendings.
f)Think of the future – save 10% of your income.
STEPS TO UNLIMITED WEALTH
Ø 1) To what category of people do you refer yourself – poor, you just make ends meet, well-off, well-to-do? Would you like to change your financial situation?
Ø 2) Read the heading and say what the article is about.
Ø 3) Skim the text. Here are the subheadings for the parts of the text. Distribute the subheadings in the proper order.
a)CHOOSE ONE MOST SUITABLE STRATEGY FOR YOURSELF AND ACT.
b)BE THANKFUL FOR EVERYTHING YOU HAVE.
c)START AND CONTINUE SAVING MONEY NO MATTER WHAT HAPPENS.
d)MAKE A DECISION TO BECOME WEALTHY.
e)LEARN DIFFERENT STRATEGIES OF MAKING MONEY.
f)PRIORITIZE EVERYTHING.
g)ALWAYS MOVE FORWARD.
h)VISUALIZE THAT YOU HAVE ALREADY BECOME RICH.
i)STAY AWAY FROM NEGATIVE PEOPLE.
Step 1: You must decide exactly what you want. Many people fail in life because they don’t really know what they want to do, have or be with their life. You can hear them saying “I want to make a lot of money.... I would love to travel the world.... I would love to have a beautiful house.... I want this or that.... etc, etc, etc.” The truth is that they don’t really know what they want!
So our first big step now will be to take a pen and paper and write everything you really desire out of life. Dream Big, what would you do, have and be if time, money and health were no object? What would you do right now if your annual income became your monthly income? I can hear you asking.... “Is that really needed . . . ?” “Why . . . ?” It is very simple ... If you don’t know where you are going, how do you know when you have arrived? How do you strive for something if you don’t know for what...?
That’s why you will take a 3x5 card and put it in your pocket or purse or any other place that will be easy to reach. For a whole week, every time you think of something that you would like to have or do, write it down on the card. Let me give you some ideas of things you might want: a new home.... a second home.... a new and better car.... amount of money you want to earn monthly or yearly.... where to go for your dream holiday.... how much you want to save.... what you want to do ... etc, etc. Once you do this, you will have taken a big step toward your Financial Wealth!
Prioritise everything in order you feel what is most important for you. Choose the one most important goal you want that scares you thinking about achieving it. Write out in present tense EXACTLY how it looks, sounds and feels having achieved it. Always start with “I am so grateful that I now ...”
Visualize (pretend) morning and night with emotion having already reached your goal. Take action on your new idea. If you understand how the mind works you will understand that this is the most powerful process you can undertake.
Have TOTAL Faith in God (or whatever you call the Great Creative Power)!!! Be thankful for everything you have!!! No matter what!!! And don’t forget to thank him for the wealth and abundance that is coming your way!!!
Step 2:Learn about the different strategies to make money. There are proven ways that you get your FINANCIAL GOAL.
1) The first one everybody thinks of is A JOB. 95% of all people use this strategy yet they accumulate only 3% of the wealth. The reality is that just a handful of individuals may claim that they got FINANCIAL INDEPENDENCE through a job. It really does not make sense to repeat the same mistakes other people have already encountered: facing retirement depending on their income from the social security system ONLY.
2) Invest your money ... putting your money to work for you. All wealthy people own shares and most own property. Do you? ... If not, why not? If you don’t want the results that the masses have then don’t do what they do. Do what the rich people do.
What if you don’t know what to do? Well, I didn’t know the stock market even existed 20 years ago; but once I knew I had to invest in it I found someone that was really successful in trading and investing in shares and I learned from them. I am now one of the most successful stock market investors in the world.
A word of warning: do not allow other people to invest your money for you! A recent survey shows that only 2 out of 124 financial planners surveyed were found to offer very good advice. Here’s what I learnt if you want to become rich: become self educated in investing and do it yourself!
3) Multiple sources of income; leverage your time and money through other people. Only 5% of the population uses this strategy effectively yet they make over 95% of the total income!!!
Once you learn to leverage your money effectively this is the most profitable strategy. You must understand legal structures and business. Yet contrary to what most people think, it is easy to do and takes the least amount of personal effort. Multiple sources of income should make you money with minimal or nil personal exertion.
Step 3: Stay away from negative people. Take this suggestion very seriously! Please...., Please ... stay away from those people who only talk, think or act in a negative way... Negative people will take you down with them... Don’t let anyone steal your dream!!! Find new friends if you must... Life is too short to let it be jeopardized by negative influences. Surround yourself with people who know what they are doing... learn from them ... Apply what they have done to get to where they are now.
Step 4: Take Action!!! If you decide to do something.... you know you want it with all your heart.... but don’t take action, nothing will happen!!! You MUST research, you MUST think, but by all means you MUST take action!! Not making a decision is a decision itself.
You have to ask yourself... How can you get where you want to be if you don’t start any movement, if you don’t take the first step? Act today, DO NOT leave for tomorrow what you can do today!!! By reading these steps to unlimited wealth you are already taking action, continue with it and persevere. Action Creates Action.
Step 5: All Excuses are Equal. No matter which excuse you can give, or which excuse you choose to give, there is not a good reason to be a failure! Look back five years, can you see yourself at that time? What happened during those five years? Did you get what you wanted? If not, what Is Your Excuse?
It’s hard to face reality... It can hurt to face reality... I can understand that... I’ve been there many times... But I can also tell you... “Don’t look back to recriminate yourself... Now is the time to move forward... now is the time to make a decision... now is the time to make the necessary change to have a fantastic future!!!”
Step 6: Start Saving..!!! Save... Save... As much as you can..!!! You can make all the money you want, but if you don’t have a plan to save it you will never get to your golden mountain. Unless you save you cannot use “Money Making Strategy Number 2.” Start with a little ... then increase that amount step by step ... You MUST save ..., save ..., save... and remember... all excuses are equal!!!
Following these steps to unlimited wealth, you will achieve what you really want out of life... I can promise for sure that you will be successful. These steps to unlimited wealth worked for me... they worked for others who, like me, were willing to pay the price... why not for you?
Ø 4) Skim the text again and say whether these questions are covered in it.
a)Most people fail in life because they don’t know what they really want to do.
b)Every day repeat this positive affirmation “I am very wealthy” many times.
c)Visualize that you have already become wealthy.
d)It isn’t useful to repeat the mistakes other people have done.
e)Follow the example of the successful investment given in the text.
f)Borrow your time and money from other people.
g)“Save money” should be your motto.
Ø 5) Support or decline the author’s points of view.
Ø 6) Where and how can you use this information?
Money and humour
Ø 1) Do you know any anecdotes about money? Share one or two with the group.
Ø 2) Read the anecdotes and talk about the peculiarities of foreign humor.
· A woman proudly told her friend, “I’m responsible for making my husband a millionaire.” “Well what was he before he married you?” the friend asked. “A billionaire.”
· The parents of a Northwestern student who just headed back from holiday received this letter: Dear Mom and Dad: Univer$ity life i$ $o wonderful! Cla$$e$ and $e$$ion$ are intere$ting, my cla$$mate$ are the be$t! But after $pending all my ca$h on Chri$tma$ pre$ent$, I am in a little need for $ome $pending money for book$ and $uch. But I don’t want to $end the wrong $ignal$ home. Love, Your $on
· You know you’re rich when during a cold winter night you can’t find any more firewood so you hack the leg off your Steinway grand piano and use it to keep the fire going until your butler shows back up with something more flammable, and your children play monopoly with real money.
· A successful man is the one who makes more money than his wife can spend. A successful woman is the one who can find such a man.
· At 18 years old, Rockefeller had no money. He found an apple in the street. The fruit was dirty, he cleaned it and resold it for 50 cents to a man walking in the street ... with his 50 cents he bought 2 apples 25 cents each, and resold them for 1$ to another man walking in the street ... with his 1 dollar he bought 4 apples, and resold them of course for 2$. ... at 19 years he inherited from his grandmother...
· A one dollar bill met a twenty dollar bill and said, “Hey, where’ve you been? I haven’t seen you around here much.” The twenty answered, “I’ve been hanging out at the casinos, went on a cruise and did the rounds of the ship, back to the United States for a while, went to a couple of baseball games, to the mall, that kind of stuff. How about you?” The one dollar bill said, “You know, same old stuff... church, church, church.”
· A lawyer’s dog, running around town unleashed, heads for a butcher shop and steals a roast. The butcher goes to the lawyer’s office and asks, “If a dog running unleashed steals a piece of meat from my store, do I have a right to demand payment for the meat from the dog’s owner?” The lawyer answers, “Absolutely.” “Then you owe me $8.50. Your dog was loose and stole a roast from me today.” The lawyer, without a word, writes the butcher a check for $8.50. The butcher, having a feeling of satisfaction, leaves. Three days later, the butcher finds a bill from the lawyer: “$100 due for a consultation.”
BANKS