Vocabulary focus

Ex. 1. Using a dictionary add as many words as possible into the table.

Verbs	Adjective	Nouns
1.		credit
2.		inflation
3. note
4.		power
5.		service
6.		standard
7. to judge

Ex. 2. Give Russian equivalents to the following words and word combinations. Make up your own sentences with them.

Money, coins, paper notes, purchasing power, goods and services, to be sold, to be considered, inflation, gold, valuable metal, gold standard, national currencies, to be judged.

Ex. 3. Choose the best endings to the following statements.

1. Our goods and services are sold for money, and that money is exchanged for…

1. cheques;

2. money orders;

3. other goods and services.

2. Originally, a valuable metal served as…

1. “an instrument of credit”;

2. a constant store of value;

3. a national currency.

3. The US government maintains…

1. the American dollar;

2. the British pound;

3. the French franc.

4. Nowadays national currencies are considered to be as strong as….

1. the national economies;

2. the government;

3. the banking system.

5. Cheques and money orders perform the function of…

1. money;

2. substitute money;

3. a constant store of value.

6. A man will obtain large sums of credit if his assents…

1. are considerable;

2. are in doubt;

3. equal zero.

7. The purchasing power is dependent on…

1. credit;

2. supply and demand;

3. business transactions.

COMPREHENSION

Ex. 1. Answer the following questions.

1. How are all values in the economic system measured?

2. What are coins and paper notes used for?

3. What originally served as a constant store of value?

4. What has happened to valuable metal?

5. What is “legal tender”?

6. What was said about “instruments of credit”?

7. When is credit offered?

8. What is purchasing power of money dependent on?

9. What is known as “inflation”?

Ex. 2. Read the text again and decide which of these statements are correct.

1. People buy only some commodities with money.

2. Some values in the economic system are measured in terms of money.

3. Coins are adequate for general business, while paper notes are used for small transactions.

4. Today the American dollar isn’t “backed” by the store of gold which the US government maintains.

5. Gold has been universally regarded as a valuable metal.

6. Paper notes, cheques and money orders are issued by government and authorized banks, and are known as “legal tender”.

7. The demand for money is rapidity of the business.

Ex. 3. Complete the unfinished questions in column A that are answered in column B.

A	B
What …?	Money.
What …?	Coins.
What …?	Paper notes.
What …?	Cheques and money orders.
What …?	Legal tender.
What …?	Inflation.

Ex. 4. Find key words, phrases and the topic sentences which express the general meaning of each paragraph.

Ex. 5. Using the information obtained from the paragraphs make an outline of the text.

Ex. 6. Speak about money, substitute money, purchasing power and inflation using key words, phrases, the topic sentences and the outline.

T e x t 3