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I. Find answers in the text:

1. Did people use cash always for thousands of years? 2. What system did people use before money was invented? 3. Was this system convenient? 4. Can all goods hold their value for a long time? 5. What are goods that can hold their value? 6. What are they? 7. How are these goods called? 8. What are the examples of commodity money? 9. Why is gold commodity money? 10. What were drawbacks of commodity

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money? 11. What is flat money? 12. What kind of money do we use? 13. By whom is value of money guaranteed?

II. Complete the sentences as in the text:

  1. For thousands of years people traded without…

  2. Before money was invented, people used…

  3. Examples of commodity money are…

  4. Using commodity money was much more…

  5. The coins and notes that we use today are an example of…

III. Choose the correct word or phrase.

  1. One reason why people buy gold is because it holds its value/is taken for granted.

  2. When we buy things, we swap/represent money for goods.

  3. Diamonds are valuable because they are so intrinsic/rare.

  4. The dollar is the cash/currency of the USA.

  5. When people barter/guarantee goods, they simply exchange one good for another.

  6. Banks will only lend to people who can guarantee/ barter back the loan.

  7. Some shops won’t accept credit cards. They will only take cash/ currency.

  8. When something holds the value/is taken for granted, people don’t think it has great value.

  9. Coins and notes are used to swap/represent value.

  1. Metals have intrinsic/rare value because they can be used to make things.

  2. If money can easily be moved around and used, we say it has liquidity/currency.

  3. Centuries ago people paid using commodity money/flat money such as gold and silver.

  4. Commodity money/flat money like banknotes and coins has no intrinsic value. It only represents value.

IV. Read through the statements below. Do you think they are true or false?

  1. The earliest kind of money was used about 3,000 years ago.

  2. Shells were used as a kind of flat money.

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  1. The first metal coins appeared in Greece.

  2. The first coins were round.

  3. Paper money first appeared in China.

  4. The idea of paper money travelled quickly to Europe.

V. Discuss these questions with your partner.

  • What is money?

  • Can anything be used as money?

  • Could stones and leaves be used instead of coins and notes?

VI. Say what you have learned about:

  • History of money

  • A system called bartering

  • Commodity money

  • Drawbacks of bartering

  • Flat money

Grammar exercises

VII. Translate the sentences (§ 15). Practise the use of Present Participle.

1. Imposing some restrictions of food prices, governments make it possible for all the people to buy enough food. 2. The 3.8 billion people of the world in the early 1970s had about 20 percent more to eat than the 2.7 billion living 20 years earlier. 3. The government can regulate monopolies controlling the prices or supplying the products itself. 4. Knowing that their resources are limited people make a decision how to allocate them in the best possible way. 5. Governments intervene in economics controlling the supply of money and helping private industries. 6. The high price for a good is the market mechanism telling suppliers it is time to increase production. 7. The developing countries hope that industrial countries will raise imports from the less developed countries. 8. Income is money of all kinds coming in regularly to a person, family or organization. 9. Active money is money going from man to man and used by people. 10. Reducing our imports, we decrease the exports of others.

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