Vocabulary notes

the means of payment – засіб платежу

medium of exchange – засіб обігу

a standard of value – міра вартості

a unit of account – одиниця обліку

a store of value – засіб заощадження (збереження вартості)

a standard of deferred payment – засіб погашення боргу

subsequently – згодом

a barter economy – бартерна економіка

o swap (a/so swop; syn. to exchange, to barter) – обмінювати, змінювати

to hand over in exchange – передати, вручити в обмін

a double coincidence of wants – подвійний збіг потреб

a monetary unit – грошова одиниця

to remind of – нагадувати

to be worthless – знецінюватися

an interest-bearing bank account – рахунок у банку з виплатою відсотків

to pay interest – приносити процентний дохід (платити відсотки)

to erode – зд. фактично зменшувати

hard currency – тверда (конвертована) валюта

soft currency – неконвертована валюта

invariably – незмінно, постійно

prisoner-of-war camp – табір військовополонених

commodity money — гроші – товар

token money – символічні гроші (грошові знаки)

inch – дюйм (дорівнює 2,5 см)

to melt down – розплавити

tiny costs - мізерні витрати

legal tender – законний платіжний засіб

to supplement – доповнювати

IOU money – I owe you – я вам повинен, гроші - боргове зобов'язання

a bank deposit – вклад у банку

Assignments

I. Suggest the Ukrainian equivalents:

exchange labour services for money; you must hand over in exchange a good or service; a double coincidence of wants; spend a lot of time and effort;

make mutually satisfactory swaps; a barter economy is wasteful; commodity generally accepted in payment for goods; prices arc quoted and accounts are kept; the rapid German inflation; its purchasing power is eroded by inflation;

it's usually but not invariably convenient; cut back on other uses; exceeds its cost of production; by collectively agreeing; the survival of token money; society enforces the use of token money; token money is supplemented by IOU money; interest-bearing bank accounts.

II. Replace the parts in italics by synonyms

sometimes payment can be put off till later, the vital feature of money; its purchasing power is worn away; the money is without value, it is not always convenient; time and effort are rare resources; private production of money is against the law

III. Find in the text opposites to the following words and expressions

take away; reject; planned event; in a minor way; increase; is less than;

separately; very large; be under no compulsion to; public

IV. Fill in the gaps with the words and expressions from the text

1. The crucial feature of money is its acceptance as __ or __.

2. People buy and sell goods __ for money.

3. In a barter economy goods are traded directly or __ other goods.

4. People must spend a lot of __ finding others with whom they can make

mutually __.

5. Society considers it convenient to use __ to determine __ of different

goods and services.

6. The unit of account is the unit in which prices are __ and __ are kept.

7. During the rapid German inflation German shopkeepers found it __ to use dollars as __.

8. Money is a store of value because it can be used __.

9. Nobody would accept money as payment for goods supplied today if the money was going __.

10. Since money __ and its real __ power __ by inflation, there are almost certainly better ways to store value.

11. UK citizens can get bank loans __ the amount that __ next year.

12. When you borrow, the amount to be repaid next year is measured in __.

13. __ are ordinary goods with __ (gold) and __ (cigarettes), which also serve as a medium of exchange.

14. To use a commodity money, society must either __ other uses of that commodity or devote __ to producing __ of the commodity.

15. A token money is a means of payment whose __ as money greatly __ its cost of production or value in uses other __.

16. By __, society economizes on the scarce resources required to produce money as __.

17. The essential condition for the survival of token money is __ to supply it.

18. Society enforces the use of token money by making it __.

19. In modem economies, token money __ by __.

20. An IOU money is a medium of exchange based on __ 1.

21. __ is IOU money because it is a debt of the bank.