Text 2 money

Exercise 2.1 Study the vocabulary:

1) to be any substance	1) бути будь-якою річчю
2) to be accepted as	2) бути прийнятим як ...
3) payment	3) плата, платіж
4) to be converted into	4) бути конвертованим у ...
5) to be very portable	5)тут: легко переносити
6) to be very durable	6)тут: довго використовуватися
7) ... last a long time under normal use	7) за нормального використання довго перебувають в обігу
8) to go out of circulation	8) виходити з обігу
9) to rate high in divisibility	9) високо цінити за можливість поділятися
10) denomination of coin	10) вартість монети
11) money supply	11) грошова маса

Exercise 2.2 Read and translate the text:

Basically, money is what money does. This means that money can be any substance that functions as a Medium of Exchange, a Measure of Value, and a Store of Value.

As a medium of exchange, money is something generally accepted as payment for goods and services

As a measure of value, money expresses worth in terms that most individuals understand.

Money also serves as a store of value. This means goods or services can be converted into money that is easily stored until some future time.

The different forms of money are in use in the United States today. The most familiar are coin and currency. The term coin refers to metallic forms of money. The term currency refers to paper money issued by government. While money has changed in shape, kind or size over the years, modern money still shares many of the same characteristics of primitive money. Modern money is very portable when people carry checkbooks. For example, they really are carrying very large sums of money since checks can be written in almost any amount.

Modern money is very durable. Metallic coins last a long time under normal use and generally do not go out of circulation unless they are lost. Paper currency also is reasonably durable. Modern money also rates high in divisibility. The penny which is the smallest denomination of coin, is more than small enough, for almost any purchase. In addition, checks almost always can be written for the exact amount. Modern money, however, is not as stable in value. The fact, that the money supply often grew at a rate 10 to 12 per cent a year was considered as major cause of inflation.

Exercise 2.3 Define which of the following items best completes the statement:

1. Most of the money in circulation consists of

a. paper money.

b. coins.

c. checking accounts.

d. savings accounts.

2. In a money economy, money serves as a

a. medium of exchange.

b. measure of value.

c. store of value.

d. all of the above.

3. The value of money

a. can increase or decrease.

b. remains the same at all times.

c. increases with the passage of time.

d. rises when prices rise.

4. The purchasing power of money

a. increases during periods of inflation.

b. decreases during an inflation.

c. decreases during a deflation.

d. is unaffected by inflation or deflation.

Exercise 2.4 Find the equivalents:

1. Medium of exchange	a. Сучасні гроші
2. Measure of value	b. Грошова маса
3. Store of value.	c. Виходити з обігу
4. To be any substance	d. Бути будь-якою річчю
5. To issue money	e. Міра вартості
6. Modern money	f. Засіб обміну
7. To go out of circulation	g. Запас вартості
8. Paper/soft money	h. Випускати гроші в обіг
9. Money supply	i. Паперові гроші
To express worth	j. Виражати вартість
To be converted	k. Плата, платіж
12. Payment	l. Бути конвертованим

Exercise 2.5 Match the words with their definitions:

1.A salary	a) an amount of money which you lend to someone
2. A loan	b)extra percentage paid on a loan
3. A debt	c) money which is in the form of coins and notes, not cheques
4. Cash	d) paid as a punishment for breaking the law
5. Wages	e) money paid by a divorced father to his former wife for the upkeep of his children
6.Alimony	f) a fixed amount which is paid, usually monthly, to workers of higher rank
7. Interest	g) an amount of money you receive, usually weekly, in return for labor or service
8. A fine	h) paid at the restaurant after eating
9. A bill	i) a sum of money which is owed to someone
10.A grant	j) money paid by the state, usually to students

Exercise 2.6 Complete the sentences choosing one of the options:

1. When you retire at the age of 65, you receive a _____ from the government.

a) pension b) grant c) fine

2. If production in that factory exceeds the target, the workers get a _____.

a) premium b) bonus c) donation

3. Income tax is _____ to one’s annual income .

a) dependent b) related c) based

4. The _____ of living has risen by 25 % in the last six months.

a) expense b) price c) cost

5. The kidnappers demanded a _____ of $ 1,000,000.

a)reward b) penalty c) ransom

6. The President admitted taking ______ and had to resign.

a) bribes b) premiums c) fees