2. Give English equivalents of the following:

бути небезпечним для економіки, бартерна економіка, головна перевага грошей, встановлювати ціну, накопичення цінноcтей, робити покупку, високоякісний папір, засіб обміну, вартість грошей, валюта, мірило цінності.

3. Fill in the blanks with appropriate words:

Words: denomination, payment, paper money, medium, advantages, barter economy, money economy.

1. Money can be anything, that is generally accepted in ... for goods and services.

2. Equal ... of money should have the same value.

3. One of the principal ... of money over barter is its ability to be divided into parts.

4. The principal difference between a ... and a ... is that in a barter economy you must find someone who has what you want and wants what you have.

5. Money, therefore, is the ... that enables exchanges to be made easily.

6. The money you are most familiar with, currency, consists of the ... and coins that you use almost daily.

4. Read and translate the text:

What is money? Money can be anything that is generally accepted in payment for goods and services.

Although anything can serve as money, as a practical matter the material should possess the following qualities:

Stability. The value of money should be more or less the same today as tomorrow. In societies where value of money fluctuates (goes up and down) people will hoard if in the hope that its value will increase, or spend it immediately thinking it will be worth less tomorrow. Either action could be harmful to the economy.

Portability. Modern money has to be small enough and light enough for people to carry. Bowling balls would not be a practical form of money.

Durability. The material chosen has to have a reasonable life expectancy. For that reason most countries use a very high quality paper for their money.

Uniformity. Equal denomination of money should have the same value. It's easy to see that if some quarters or dollar bills were worth more than others, things could be pretty confusing.

Divisibility. One of the principal advantages of money over barter is its ability to be divided into parts. In other words, while making change for a dollar is easy, making change for a chicken is more difficult.

Recognizability. Money should be easily recognized for what it is and hard to copy. The quality of the paper and the engravings make paper money extremely difficult to counterfeit.

We can also define money by what it does, which is to provide: A Medium of Exchange; A Measure of Value; A Store of Value.

A Medium of Exchange. The principal difference between a barter economy and a money economy is that in a barter economy you must find someone who has what you want and wants what you have. In a money economy people can sell what they have to anyone and use the money to buy what they want. Money, therefore, is the medium that enables exchanges to be made easily.

A Measure of Value. Money enables us to state the price of something in terms that everyone can understand. We can say the eggs we have for sale are worth 85 cents a dozen. That is far simpler than having to figure out how much milk or meat or clothing we would expect in payment for a dozen eggs.

A Store of Value. Money enables us to use the value of something that we sell today to make a purchase sometime in the future. For example, our egg seller could put the money from the day's sale toward a college education sometime in the future. You can imagine the difficulties if that person tried to save one or two year's worth of eggs toward a college education.

Currency. The money you are most familiar with, currency, consists of the paper money and coins that you almost use daily.