Text 2 The Functions of Money

There are three functions of money: 1) medium of exchange, 2) measure of value, 3) store of value.

First and foremost, money is a medium of exchange; money is usable in buying and selling goods and services. On the other hand, money is readily acceptable as a means of payment. It is a convenient social invention that allows resource suppliers and producers to be paid with a “good” (money) which can be used to buy any one of the full range of goods and services available in the marketplace. As a medium of exchange, money allows society to escape the complications of barter. And by providing a convenient way of exchanging goods, money allows society to gain the advantage of geographic and human specialization.

Money is also a measure of value. Society finds it convenient to use the monetary unit as a yardstick for measuring the relative worth of heterogeneous goods and resources. This has distinct advantage. With a money system, we need not state the price of each product in terms of all other products for which it might possibly be exchanged.

This use of money as a common denominator means that price of each product need be stated only in terms of money unit. This use of money permits transactors to readily compare the relative worth of various commodities and resources. Such comparisons facilitate rational decision making.

Finally, money serves as a store of value. Because money is the most liquid – that is, the most spendable of all assets, it is a very convenient form in which to store wealth. Most methods of holding money do not yield monetary returns such as one gets by storing wealth in the form of real assets (property) or paper assets (stocks, bonds and so forth). However, money does have the advantage of being immediately usable by a firm or a household in meeting any and all financial obligations.

6. Найдите в тексте ответы на следующие вопросы:

1) When is money usable?

2) Money is readily acceptable as a means of payment, isn’t it?

3) What does money allow society as a means of exchange?

4) How does society use money as a measure of value?

5) What does it mean to use money as a common denominator?

6) Why is money a very convenient form in which to store wealth?

7. Перечислите на английском языке все функции денег.

8. Согласитесь или не согласитесь со следующими утверждениями:

1) Money is a convenient social invention.

2) Money allows society to gain the advantage of geographic and human specialization.

3) The use of money doesn’t permit transactors to compare the relative worth of various commodities and resources.

4) Most methods of holding money yield monetary returns.

5) Money doesn’t have the advantage of being immediately usable by a firm or a household in meeting any and all financial obligations.

9. a) Составьте план текста на английском языке. b) Будьте готовы передать его содержание на английском или русском языке.

Part 3

1. Прочтите и запомните значение следующих слов и словосочетаний:

supply of money	предложение денег
neither …nor	ни…ни
public official	государственное должностное лицо
in circulation	находящийся в обращении
checking account	текущий счет, чековый счет
checkable deposit	чековый вклад
thrift institution	сберкасса
savings institution	сберегательное учреждение
draw v	выписать чек
portion n	часть
total a	общий, суммарный
currently a	в настоящее время
convenience money	“удобные деньги”
purchase n, v	покупка; покупать, закупать
quantitatively a	количественно
(bank)note n	банкнота
safety n	безопасность
endorse v	индоссировать, подписать (документ) с обратной стороны
reverse a	обратный
drawer n	лицо, выписывающее счет
subsequently a	в последующем, затем
cancel v	погашать
canceled check	погашенный чек
endorsed receipt	заверенная квитанция
attest v	подтверждать
fulfillment n	выполнение
count out v	подсчитывать
checkbook money	деньги безналичного расчета
transaction n	сделка
inclusion n	включение
on demand	по требованию

2. Из следующих слов выделите: a) существительные, b) прилагательные, c) наречия. Переведите их на русский язык.

agreement, commercial, circulation, various, convenience, copper, obligation, official, essentially, dominant, ownership, authorization.

3. Подберите слова противоположные по значению:

1) neither…nor	a) sale n
2) copper pennies	b) unimportant a
3) permit v	c) either…or
4) coin money	d) forbid v
5) safety n	e) silver dollars
6) purchase n	f) paper money
7) agreement n	g) immediately adv
8) significant a	h) disagreement
9) afterwards adv	i) danger n

4. Соотнесите английские фразы из левой колонки с их русскими эквивалентами в правой:

1) narrowly defined	a) с разрешения
2) that is	b) кроме того, более того
3) ranging from …to	c) с помощью
4) essentially	d) в силу всех этих причин
5) quantitatively significant	e) по существу
6) in many cases	f) то есть
7) for all these reasons	g) в узком смысле
8) furthermore	h) при любом практическом использовании
9) by the use of	i) во многих случаях
10) it might seem strange	j) обычно используются
11) are generally acceptable	k) колеблясь от …до
12) a large sum of money	l) может показаться странным
13) for all practical purposes	m) значимые в количественном отношении
14) with the authorization of	n) крупная сумма денег

5. Прочтите текст и постарайтесь понять его содержание: