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

to swap (also 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 доход

to erode – тут 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 винний; гроші - боргове зобов'язання

a bank deposit - внесок у банку

Assignments

1. 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 are 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

2. 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

3. 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

4. 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 commodity money, society must either __ other uses of that commodity or devotes __ 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 modern economies, token money __ by __.

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

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