POSIBNIK_1_KURS
.pdf4.A credit or debit card is not money. They are both payment mechanisms by which we access money in a more convenient way.
5.Money can be any good or token that functions as a medium of exchange, a measure of value and a store of value.
6.The earliest forms of money were commodities, such as cattle and grain, furs and skins, iron and bronze, silver and gold and more.
7.The first banknotes were used in China in the 7th century. In Europe, the first banknotes were issued by Stockholm Bank in 1661.
8.The general characteristics of money in a modern economy include acceptability, portability, divisibility, durability and others.
9.The only civilization that functioned successfully without money was that of the Incas.
Ex.12. Answer the following questions.
1.What is barter?
2.What are the problems with barter?
3.What are the advantages of using money over bartering?
4.Who is generally acknowledged as the inventor of money? Alexander the Great? King Solomon? Somebody else?
5.What is commodity money? Give examples.
6.What problems occur when using commodity money?
7.What is money? How can you define it?
8.What are the functions of money?
9.What are the main characteristics of modern money?
10.What forms of money are there?
11.What’s the difference between representative money and fiat money?
12.Why do people willingly accept money?
13.Why can’t money be a good store of value in the time of political instability and inflation?
14.How does the invention of money affect the trading process?
261
15.Do you agree that money is the keystone of the economic life? Why?
Ex.13. Choose the best variant from a, b, с to complete the statements. Explain
your choice.
1.Money is ______________.
a)the same as income.
b)the value of all coins and currency in circulation at any time.
c)anything generally accepted as a final payment for goods and services.
2.As a store of value, money _____________.
a)is not affected by inflation.
b)is easily stored until some future time.
c)simplifies the process of trading
Define which is odd.
1.Money serves as _____________.
a)a medium of exchange.
b)a unit of account.
c)a shelter of value.
d)a store of value.
2.Modern money is _____________.
a)portable
b)divisible
c)durable
d)easy in duplication
e)recognisable and willingly acceptable.
Ex.14. Read one of the versions regarding the origin of the word “money” and
reproduce it in English.
Moneta, a name related to the goddess Juno
262
За однією з версій, слово ‘money’ пов’язано з іменем богині Юнони Провісниці (Juno Moneta). Згідно з міфами Стародавнього Риму, богиня Юнона попереджала про небезпеку, давала гарні поради. Римляни (the Romans) були так вдячні богині, що побудували їй храм. Вони називали богиню Юнона Монета, оскільки латинське слово ‘moneo’ означало
«попереджати». За легендою, у часи особливого безгрошів’я Юнона порадила римлянам вести війну справедливо, і тоді з'являться гроші. Саме з цим епізодом пов'язують той факт, що перший в історії Риму державний монетний двір (mint) був розташований у храмі богині Юнони Монети, а
гроші, які там відливали, стали називатися монетами. Сама ж богиня Юнона стала для римлян берегинею фінансів.
З часом, латинське слово ‘moneo’ трансформувалося в англійське
‘money’, а ‘moneta’ - в англійське слово ‘mint’.
Ex. 15. Make a presentation of the topic “Money”.
Writing
Ex.16. Write a plan for a summary of Text A.
Ex.17. Write a brief summary of the text.
Ex.18. Write an essay (100 – 150 words) about
a)the history of money;
b)principal functions of money;
c)essential characteristics of modern money.
Discussion points
Ex.19. Discuss the following:
263
1.If you have to send money to someone, a family member or your friend in another city or country, what do you normally do? What way of sending money do you choose: by air mail or transfer with companies like Western Union or MoneyGram? Why?
2.You’re going to buy a car, a flat or just an expensive present for somebody but you don’t have enough money at present. Which source of finance would you use:
-borrow it from a member of your family, your friend or a colleague,
-try to get a loan from a bank or
-use another source?
3.As you know, barter is sometimes practiced nowadays. Do you think there is some difference between direct barter in pre-market economies and modern barter?
4.Why is inflation a matter of concern to us?
Ex.20. Read the following proverbs, sayings and quotations about money.
Which do you like best? Express your viewpoint.
1. Time is money.
Benjamin Franklin, Am. statesman and philosopher, 1706-1790
2.“Money never made a man happy yet, nor will it. There is nothing in its nature to produce happiness. The more a man has, the more he wants. Instead of its filling a vacuum, it makes one.” Benjamin Franklin
3.“Beware of little expenses; a small leak will sink a great ship.” Benjamin
Franklin
4.“When it is a question of money, everybody is of the same religion.” Voltaire,
French writer, 1694-1778
5.Money is the root of all evil. (proverb)
264
6.“Money isn’t the root of all evil. Poverty is.” Silva Hartmann, UK author and lecturer on psychology, born 1959
7.Money spent on the brain is never spent in vain.
8.Money doesn’t grow on trees.
9.Don’t put all your eggs in one basket.
10.Out of debt, out of danger.
11.“Money is like an arm or leg – use it or lose it.” Henry Ford, Am. industrialist and founder of the Ford Motor Company
12.“Money is a universal passport to everywhere except heavens, and a universal provider of everything except happiness; however, it helps.” Evan Esar, (1899– 1995), an American humorist who wrote Esar's Comic Dictionary, 1943
Ex. 21. Choose the answer and test yourself. Then write two or more questions to add to the quiz below and ask your partner to answer them.
1.Do you know how much cash you have with you at the moment?
a.I know exactly.
b.I know approximately.
c.I don’t know at all.
2.How do you spend your money?
a.I often spend more than I earn.
b.I spend less than I earn and even manage to save a little.
c.I always try to spend as much as I earn, in other words, I stick to my budget.
3.Do you normally check
a.your receipts when shopping?
b.your change?
c.prices in several shops before you buy something?
4.What would you do if your friend or colleague borrowed some money from you for a short period of time and forgot to pay it back?
a.I would say nothing.
265
b.I would remind them politely that they owe me money.
c.I would do a kind of trick on them and ask to lend me a small amount of money.
5.If you got a big sum of money as a present, would you
a.spend it all immediately?
b.spend some and invest the rest?
c.invest it all in a high-interest account?
TEXT B: A GLIMPSE OF THE AMERICAN, BRITISH AND EURO
CURRENCIES
Before reading the text, answer the following questions:
1.What country has the motto "In God We Trust" inscribed on their banknotes?
2.Do you know any other country, besides the USA, where the dollar is used as legal tender?
3.The United Kingdom is a member state of the European Union. Does this
country use the euro as the official currency?
Ex.22. Scan through the text and give headlines to its main parts and
paragraphs.
As we know, most countries in the world have their own monetary system and their own national currency. Though the United States, Canada or Australia use dollars, these dollars are different and they circulate only in the countries for which they are created.
If people need to sell or buy foreign currency for their local currency, they normally do it at banks or at special exchange offices, often called simply exchange. (1) ______________________.
266
The U.S. monetary system is based on the dollar ($1.00). There are 100 cents in a dollar. The most commonly used U.S. coins are the quarter (25 cents), dime (10 cents), nickel (5 cents), and
penny (1cent). (2) __________________. Many Americans don't like to carry much cash and use traveller's checks
(printed pieces of paper that you sign and use as money when you are travelling) are a good idea for visitors. You won't have to carry large amounts of cash with you. Moreover, traveller’s checks can be replaced if they get lost or stolen.
In the United States, only small transactions are made with currency and coins, and the total spending done in this form is less than 1% of all transactions. For larger transactions, (3) _______________.
Writing checks is becoming less and less important as people increasingly use electronic transfers to make purchases.
Note: There are also other countries where the U.S. dollar is used as their official currency. The process is known as official dollarization. For instance, in 2000 Ecuador and in 2001 El Salvador adopted this currency independently. In some countries, the USD is accepted, though it is not officially regarded as legal tender. (4) _______________. Many stores in Canada also accept the U.S. dollar. In Cambodia, the USD circulates freely and is even preferred to the local currency. A
chain of examples can be long.
The official currency of the United Kingdom is the pound sterling, which is equal to 100 pence. There are banknotes of the
267
following denominations: ₤5, ₤10, ₤20, ₤50 and ₤100. English banknotes are issued by the Bank of England. (5) _______________ . The coins in circulation are halfpenny, one penny, two pence, five pence, ten pence, fifty pence.
The pound sterling has traditionally been among the highest-valued base currency units in the world. Today it is the fourth-most-traded currency in the foreign exchange market after the US dollar, the euro, and the Japanese yen.
Note: As a member of the European Union, the United Kingdom has the option of adopting the euro as its currency. However, the idea of replacing the pound with the euro has been controversial with the British public because of its identity as a symbol of British nationalism.
The euro (currency sign: €; banking code: EUR) is the single currency shared by the
European Union’s Member States, which together make up the euro area.
About 330 million EU citizens who live in 17 euro area countries now use it as their currency and enjoy its benefits. It is also used,
either formally as legal tender or for practical purposes, by other countries such as close neighbours and former colonies.
The euro was launched in 1999. First it was introduced as an accounting currency for cashless payments and accounting purposes, while the old currencies continued to be used for cash payments. Since 2002 the euro has been circulating in physical form, as banknotes and coins.
There are €5, €10, €20, €50, €100, € 200 and €500 banknotes. Euro banknotes increase in size with increasing denominations. The paper used for euro banknotes is 100% pure cotton fibre, which improves their durability as well as imparting a distinctive feel. The design of euro banknotes includes several
268
characteristics suggested in co-operation with organizations representing blind people. These characteristics aid people who are visually impaired and those who are entirely blind.
The euro today has become the second most important international currency after the dollar. Apart from making travelling easier within the EU, a single currency makes economic and political sense. The framework under which the euro is managed underpins its stability, contributes to low inflation and encourages sound public finances. A single currency is also (6) ______________________. Using a common currency increases price transparency, eliminates currency exchange costs, facilitates international trade and gives the EU a more powerful voice in the world. (7) ________________. Last but not least, the euro gives the
EU’s citizens a tangible symbol of their European identity.
Ex. 23. Read the text. Choose the best sentence or part of the sentence A-G to fill each of the gaps 1-7. Do not use any letter more than once.
A.Exchange rates for various currencies are determined by numerous factors and, they change every day.
B.a logical complement to the single market and contributes to making it more efficient
C.people use their checking account balances, either writing checks or spending these deposits with debit cards or automatic payments.
D.The first sterling notes were issued by the Bank soon after its foundation in
1694.
E. They can be used in almost any coin-operated machine: clothes washers and dryers, pay phones, and vending machines dispensing food, drinks, stamps, tickets, newspapers, etc.
F. The size and strength of the euro area also better protect it from external economic shocks, such as unexpected oil price rises or turbulence in the currency markets.
269
G. In Mexico, particularly, on the territory of major tourist zones, it is accepted as
if it were a second legal currency.
Ex.24. Read the text again. Decide whether these statements are true or false.
Correct the false statements.
1.The United States, Canada and Australia have the single currency, which is the dollar.
2.There are other countries where the US dollar is used as their official currency and legal tender. This process is known as official dollarisation.
3.The motto “In God We Trust” is inscribed on the Australian, Canadian and US dollars.
4.Traveller's cheques are particularly good as money for those who are travelling.
5.The pound sterling is the second-most -traded currency in the foreign exchange market after the US dollar.
6.The euro is not the currency for all EU Member States.
7.The design of euro banknotes helps people who are visually impaired.
8.A member of the European Union, the United Kingdom has adopted the euro as its currency.
9.The introduction of the euro in 1999 was a major step in the European
integration.
10.The euro today has become the first most important international currency.
Ex. 25. Answer the following questions. Refer to the text if needed.
1.Why does a single currency make economic and political sense?
2.What does the euro as a common currency give to the European Union?
3.Have all the European Union’s member states adopted the euro?
4.When were euro banknotes and coins introduced?
5.Where do people normally buy or sell foreign currency if they need it?
Ex. 26. Say what you know about the monetary system in GB and the USA.
270