4. Using the information in the passage, say what is true and what is false. Correct the false sentences

1. The most transactions involve an exchange of money because it is necessary to have money available for transactions.

2. The need to have money available in such situations is referred to as the speculative motive for demanding money.

3. The absence of a speculative motive for demanding money is also affected by expectations of future interest rates and inflation.

4. Economists use M3 when looking to quantify the amount of money in circulation and trying to explain different economic monetary conditions.

5. Expectations of higher inflation presage a greater depreciation in the purchasing power of money.

6. The demand for an asset does not depend on both its rate of return and its opportunity cost.

5. Answer the following questions on the text

1. What does the demand for money depend on?

2. How can the interest rate be earned?

3. What is the broader in meaning M1 or M2?

4. Does the M1 contain cash and assets that can be converted to currency?

5. What do economists use to estimate the entire supply of money within an economy?

6. What do economists use when looking to quantify the amount of money in circulation?

7. What is affected by expectations of future interest rates and inflation?

6. Find proper definition

1. Speculative is …. 2. Deposit is … 3. Cost accounting is... 4. Deposit account is … 5. Payment is …

a) an amount of money that is paid to someone, or the act of paying this money. b) a sum of money which is part of the full price of something, and which you pay when you agree to buy it. c) a type of bank account where the money in it earns interest. d) used to describe activities which involve buying goods or shares, or buildings and properties, in the hope of being able to sell them again at a higher price and make a profit. e) the recording and analysis of all the various costs of running a business

7. Complete each sentence with a word or phrase from the box

unexpected expenses an asset the interest rate measure liquidity the amount of money

1. The opportunity cost of holding money is ________ that can be earned by lending or investing one's money holdings.

2. Money, like other stores of value, is _________.

3. The M1 is a very liquid ________ of the money supply.

4. _________often require immediate payment.

5. However, money is necessary to carry out transactions, or in other words, it provides _________.

6. __________ demanded for transactions however is also likely to depend on the nominal interest rate.

9. Render the following sentences in English

1. Процентной ставкой называется цена использования денег или использования денежного капитала.

2. Денежный рынок – рынок, на котором спрос на деньги и предложение денег определяют процентную ставку.

3. Показатели М1, М2, М3 являются составными частями денежного обращения.

4. Бумажные и банковские деньги (чековые вклады) не имеют действительной стоимости.

5. Почему при определении денег игнорируются кредитные карточки?