7.Budget

A budget is a plan of future incomes and expenditures. The state has its budget, a company has its budget and we also have our family budget. We may say that it is a plan of money coming in and going out.

Our salaries(зарплати) (if you are an office employee or a teacher or a doctor in a hospital) or wages (if you are a worker) are always limited. It means that we cannot afford(надати) all things we want. We have to make financial choices. We economize in order to(для того щоб) get most from our limited incomes.

The above mentioned(вище згадані) expenditures(витрати) show that the family that planned them is relatively well off(відносно забезпечена). Not everybody however(все таки) can afford large expenditures month after month. There are many people who working hard, can hardly make ends meet(зводить кінці з кінцями). The unemployed are in a still worse situation.

8 Гроші

Money is very important factor in the economy and economics. Goods are produced to be sold. They are sold to be meet the needs(задовольняти потреби) of consumers or customers(клієнтів). Services are rendered(надаються) to make life easier. People earn money to be able to pay for both goods and services. Banks cannot operate without money. That is why people say that: “Money makes the world go round”.

Money makes the world go round and so profit(таким чином прибуток) is the driving force(рушійна сила) underlying(що лежить в основі) most business activities. Producers, wholesalers(оптовики), forwarders(експедитори), retailers(роздрібно торговці) and advertisers(рекламодавці) do not usually work to some idealistic(ідеалістичні) reason. They work to earn a profit. When we talk about money we do not only mean cash (notes and coins)(готівку, банкноти та монети), we also mean cheques(чеки), credit cards and debit cards, cash cards, certificates of deposit(депозитні сертифікати), treasury bond(казначейські облігації) and shares(акції).

There are things like health, true love or friendship that no price. They can neither be bought nor sold. Money has nothing to do(нічого спільного) with them and neither has business. We are interested in business and that cannot exist(існувати) without money.

9 Функції грошей

Money has three basic function. It serves as a medium of exchange(засіб обміну), as a measure of relative value(міра вартості), and as a store of value(засіб нагромадження).

As a medium of exchange, money enable two individuals to exchange without having to barter; that is the carpenter doesn’t have to build a step for the grocer every time he wants a carton of milk. The carpenter can built step or anything else for anybody, receive money for his services, and use the money too purchase milk from the grocer. The grocer can in turn use the money received from the carpenter(тесляр) and others to purchase a suit from the tailor(кравець).

As a measure of relative value, money allows two dissimilar items to be purchased on a similar bases.This function helps to knowhow much will be cost these or that product on market in the form price, helps define(визначити) how much is a product worth(вартує)For example how many cartons of milk should the grocer pay for a suit? We should know their worth.

As a store of value, money makes it possible for us to hold onto the value over time. If the grocer would have to hold the value of his milk in milk, he could not hold it for a long time because it would spoil. If he sell the milk and gets money for it, he can hold the money until he wishes to purchase something.