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We can also define money by what it does, which is to provide: A Medium of Exchange; A Measure of Value; A Store of Value.

A Medium of Exchange. The principal difference between a barter economy and a money economy is that in a barter economy you must find someone who has what you want and wants what you have. In a money economy people can sell what they have to anyone and use the money to buy what they want. Money, therefore, is the medium that enables exchanges to be made easily.

A Measure of Value. Money enables us to state the price of something in terms that everyone can understand. We can say the eggs we have for sale are worth 85 cents a dozen . That is far simpler than having to figure out how much milk or meat or clothing we would expect in payment for a dozen eggs.

A Store of Value. Money enables us to use the value of something that we sell today to make a purchase sometime in the future. For example, our egg seller could put the money from the day’s sale toward a college education sometime in the future. You can imagine the difficulties if that person tried to save one or two year’s worth of eggs toward a college education.

Currency. The money you are most familiar with, currency, consists of the paper money and coins that you almost use daily

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І. Лексико-граматичний тест:

1.______Land and_______climate affect______social and economic life,______population and______poli­tics.

a) - ,- ,- , - , c) - ,- , the,- ,

b) a, a, -, -, - d) -, -, -, -, the

2.______North is______cooler than______South.

a) -,the, - c)the, -, -

b) the, the, the d) the, -, the

3.______southeast Britain has always been______most populated part of______island.

a) the, the, a c) —, the, the

b) —, the, an d) —, —, the

4. Britain is______island and______Britain's history has been closely connected with______sea.

a) an, —, — c) the, —, the

b) an, —, the d) an, the, the

5.______ earliest method of tool making spread from______Africa to______European part.

a) an, —, the c) the, —, the

b) the, the, the d) the, -, -

6. Some were ______ grammar schools independent of______Church, while others were attached to______

cathedral.

a) the, the, the c) the, -, a

b) -, the, the d) -, the, a

7.______Latin was important because it was______edu­cated language of______almost all Europe.

a) -, the, - c) -, an, -

b)the,the, - d) -, the, -

8.______most English people could not speak______Latin,______language of ______ Church and of______

education.

a) -, -, the, the, - c) -, -, a, -, the

b) the, -, the, the, - d) —, the, -, the, —

9.______fourteenth century was disastrous for Britain as well as for______most of Europe because of______ef­fect of______wars.

a) the, —, the, — c) the, —, an, —

b) the, the, the, - d) the, -, the, the

10. England had______burden of______fighting______Scots.

a) a, -, the c) the, the, the

b) the, -, the d) the, -, -