III. Answer the questions:

1. What is savings account?

2. What is required in order not to be charged for banking services?

3. How large is an initial deposit?

4. How much is the charge?

5. What is the minimum daily balance?

6. How could you get your money?

7. When is the checking account?

8. What is the checking account?

9. What is the average daily balance for checking account?

10. And what if you fall below this limit?

11. How much interest is paid if the daily average balance is over $2,500?

12. What is the payment for each check made out and for each cash withdrawal?

13. How can you avoid it?

Functions and characteristics of money

I. Study the vocabulary:

cash готівка

bill паперовий грошовий знак, готівка

coin монета

checking account чековий (поточний рахунок)

saving account ощадний рахунок

stock акція

bond облігація

value вартість, цінність, ціна

own володіти

personal wealth особисте майно

note банкнота

issue випускати

diverse різний, різноманітний

lettering напис, тиснення

design малюнок, візерунок

exact точний

face value номінальна вартість

irrespective (of) безвідносний (до), незалежний (від)

content вміст, склад

medium of exchange засіб обміну, засіб платежу

store of value засіб збереження

unit of account розрахункова грошова одиниця

portability портативність

currency валюта

divisibility подільність

unit одиниця

durability довговічність, тривкість,міцність

spoil псуватися

wear out стирати, зношувати

counterfeit підроблений, підробка

stability стабільність

fluctuate коливатися. хитатися

inflation інфляція

concern справа, турбота, інтерес

decrease зменшення

barter бартер

output продукція

invention винахід

purchase покупка

accumulated wealth накопичене багатство

measure вимірювати

relative value відносна вартість (ціна)

II. Read and translate the text.

When someone asks you how much money you have, what do you say? Do you count the cash, bills and coins in your pockets? Do you mention the funds in your checking and savings accounts? What about stocks, bonds, your car? Taken together, the value of everything you own is your personal wealth. Not all of it, however, is money.

Characteristics of Money

The hryvnia notes and coins your carry every day are money. So are US dollar bills, British pound notes, French francs, and Japanese yen. Modern money often takes the form of printed paper or stamped metal issued by a government. But over the centuries, items as diverse as stone wheels and salt have been used as money.

A coins is a piece of metal, usually disk-shaped, which bears lettering, designs or numbers showing its value. Unit the 18^th and 19^th centuries coins were given monetary worth based on the exact amount of metal contained in them, but most modern coins are based on face value, the value the governments choose to give them, irrespective of actual metal content. Most governments now issue paper money in the form of notes, which are “promises to pay”. Paper money is easier to handle and much more convenient in the modern world. Checks and credit cards are being used increasingly and it is possibly to imagine a world where “money” in the form of coins are paper currently will no longer be used.

Money is any object that is portable, divisible, durable, and stable and that serves as a medium of exchange, a store of value, and a unit of account.

Portability. Modern currency is lightweight and easy to handle.

Divisibility. Modern currency is easily divisible into smaller parts with a fixed value for each unit. In the United States, for example, a dollar can be exchanged for 4 quarters, 10 dimes, 20 nickels, 100 pennies, or many combinations of these coins. It is thus easy to match units of money with the value of all goods.

Durability. Modern currency does not spoil, and it does not die. If it wears out, it can be replaced with new coins and paper money. In addition, it is not easy to counterfeit.

Stability. A good money system should have a stable value. If the value of money fluctuated, people became unwilling to trade goods and services for it. Inflation is, therefore, a serious concern for governments. In the case of runaway inflation, where the value of money decrease 20 percent or more in a single year, people increasingly return to a barter system, exchanging their output for the output of others.

Functions of Money

Portability, divisibility, durability, and stability are all important characteristics because of the roles money plays in society. In broad terms, money serves three functions. It acts as a medium of exchange. It is a store of value. And it functions as a unit of account.

Medium of Exchange. We use money every day as a medium of exchange – that is, as the way of buying and selling things. Without money, we would have to exchange one good for another, a process known as barter. For centuries, before the invention of money, all exchanges were by barter.

Store of value. Money in the form of currency can be used for purchases in the future and thus serves as a store of value – a way of keeping accumulated wealth until it is needed to make new purchases.

Unit of Account. Finally, money lets us measure the relative value of goods and services. Economists say that money acts as a unit of account because all products in the economy are valued and accounted for in terms of money.