UNIT 1: MONEY
V ocabulary:
(to) borrow – занимать; брать в долг
cash – наличные деньги
сheque – банковый чек
coin – монета
currency – деньги; валюта
сurrent (checking) account – текущий (чековый) счёт
deferred payment – отложенный (отсроченный) платеж
demand deposit – бессрочный вклад
discount – скидка, уменьшение цены
divisible – делимый; кратный
expensive – дорогой, дорогостоящий
fare – плата за проезд, тариф
fungible – взаимозаменяемый
income tax – подоходный налог
interest – процентный доход; банковский процент
legal tender – законное платёжное средство
(to) lend – давать в кредит; давать взаймы
loan – заём, ссуда
medium of exchange – средство платежа, обмена
monetary aggregate – совокупность элементов денежной массы
money supply – денежная масса (количество денег в обращении)
price – цена
refund – возвращение (денег); возмещение (расходов, убытков)
repayment – возмещение; возврат денег
revenue – доход, прибыль
savings account – сберегательный счёт
(to) settle a debt – выплатить долг, погасить задолженность
store of value – средство сбережения (накопления)
transaction – сделка; соглашение
unit of account – расчетная денежная единица
1. Read and translate the text:
M
oney
Money is what drives the world as people say. Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country. The money supply of a country consists of currency (banknotes and coins) and bank money (the balance held in checking accounts and savings accounts). Bank money usually forms the largest part of the money supply.
Many cultures around the world eventually developed the use of money. The first usage of the term came from Mesopotamia nearly 3000 BC. According to Herodotus, the Lydians were the first people to introduce the use of gold and silver coins. It is thought by modern scholars that these first stamped coins were minted around 650–600 BC. Paper money or banknotes were first used in China during the Song Dynasty. Banknotes were first issued in Europe by Stockholms Banco in 1661, and were used alongside coins.
From the past, money was generally considered to have the following four main functions, which are summed up in a rhyme: "Money is a matter of functions four, a medium, a measure, a standard, a store." That is, money functions as a medium of exchange, a unit of account, a standard of deferred payment, and a store of value.
When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the 'double coincidence of wants' problem.
A unit of account is a standard numerical unit of measurement of the market value of goods, services, and other transactions. To function as a 'unit of account' money must be: divisible into smaller units without loss of value; fungible: that is, one unit or piece must be perceived as equivalent to any other.
To act as a store of value, money must be reliably saved, stored, and retrieved. The value of the money must remain stable over time. Some economists argue that inflation, by reducing the value of money, diminishes the ability of the money to function as a store of value.
A standard of deferred payment is an accepted way to settle a debt – a unit in which debts are denominated, and the status of money as legal tender. When debts are denominated in money, the real value of debts may change due to inflation and deflation.
In economics, money is a broad term that refers to any financial instrument that can fulfill the functions of money. These financial instruments together are collectively referred to as the money supply of an economy. In other words, the money supply is the amount of financial instruments within a specific economy available for purchasing goods or services. Since the money supply consists of various financial instruments (usually currency, demand deposits and various other types of deposits), the amount of money in an economy is measured by adding together these financial instruments creating a monetary aggregate.
2. Answer the questions:
What is money?
When and where was the term “money” used for the first time?
Which functions of money can you name?
What is money supply?
What does the money supply of a country consist of?