Vocabulary notes

currency in circulation - готівка в обігу

the opportunity costs - альтернативні витрати володіння грошима

the transactions motive for holding money – трансакційний мотив накопичення грошей (категорія кейнсіанського аналізу)

to undertake transactions - проводити, робити угоди

receipts [risі:ts] pl. - грошові надходження

the precautionary motive for holding money - мотив накопичення грошей на непередбачені цілі (категорія кейнсіанського аналізу)

the precise timing - точний час

to get by - прожити, зводити кінці з кінцями

to spot – розм. побачити, помітити

a great bargain - гарна річ, що пропонується за спеціальною (зниженою) ціною; вдала покупка

to take advantage of - скористатися

to snap up - підхопити, перехопити

contingencies - випадки, непередбачені обставини

to foresee - передбачати

the asset motive for holding money - мотив накопичення грошей у вигляді активів (категорія кейнсіанського аналізу)

on average - у середньому

to swamp - поглинати, зводити нанівець

risky assets - неліквідні активи (довгострокові інвестиції і позички; цінні папери з коливним курсом)

portfolio - портфель (напр., цінних паперів)

disaster - нещастя, крах

to sacrifice - жертвувати, приносити в жертву

predictable rate of return - передбачувана норма прибутку

Assignments

1. Suggest the Ukrainian equivalents

the distinguishing feature of money; in a monetary economy; the time and effort involved in undertaking transactions; snapped up the video recorder on sale at half-price; the motives most relevant to...; a capital loss, which swamps any dividend payment to which they are entitled; will not put all their eggs in one basket; avoid absolute disaster at hard times; to sacrifice a high average rate of return; in the short run

2. Replace the parts in italics by synonyms

gives rise to; to take advantage of the opportunity, to meet contingencies, to foresee, a more predictable rate of return

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

1. The narrowest measure Ml of the money supply is __ outside the banking system plus __ of commercial banks.

2. The money supply is partly __ of the Bank and partly a liability of ___.

3. The demand for money is __ people are willing to have in hand at any given moment.

4. Holding money is not the same as __ money, as we hold money in order to __.

5. It is in two main functions of money, that is, its use as a medium of __ and a store of __, that we must seek the reasons why __.

6. Without money, making transactions by __ would be __ in time and effort.

7. We need to hold money between __ and __.

8. How much money we need to hold depends on __ we wish to make and the degree __.

9. We need a given amount of __ to undertake a given quantity of __.

10. The uncertainty about __ of receipts and payments gives rise to __.

11. The precautionary motive for holding money is a decision to hold money to meet __ the exact nature of which we cannot __.

12. Together, __ and __ provide the main reasons for holding the medium of exchange as they are the motives __ to the benefits from __.

13. Some assets, such as __, on average pay a high rate of return but are also ___.

14. When share prices fall, __ can make __, which __ any dividend payment to which __.

15. Since people dislike risk, they will not __.

16. Although on average __ will earn a lower rate of return, it will help avoid __ at hard times.

17. People are prepared to sacrifice __ to obtain a portfolio with a lower but __ rate of return.