Vocabulary Notes

in economic sense з економічної точки зору

convertibility конвертованість

foreign exchange market ринок обміну валюти

to predetermine зумовлювати

commercial deal комерційна угода

to be artificially pegged штучно підтримувати

to comprise вміщати, охоплювати

to stem опиратися

invoicing фактурування

Vocabulary Exercises

1. Complete the sentences using the text:

1) The term "currency" is applied to ....

2) According to their convertibility, currencies can be grouped into....

3) Convertible currencies are those ....

4) Semi-convertible currencies can be ....

5) Non-convertible currencies are those....

6) In practice, there are three main convertible currency areas....

7) The world's major currency is ....

8) The United States has the largest...

2. Answer these questions, basing your answers on the text:

1) What is the term "currency", in its economic sense, applied to?

2) What three general categories can currencies be grouped into?

3) What are convertible currencies?

4) How can semi-convertible currencies be bought and sold?

5) What currency falls into this category?

6) What can you say about the importance of the U.S. dollar and its future?

7) In practice what three main convertible currency areas

are there?

8) What currency is the most preferable for you? Why?

3. Say whether these statements are true or false and if they are false, say why:

1) The term "currency" in its general economic sense is applied to the money of a particular country.

2) According to their convertibility, currencies can be grouped into three general categories: convertible, semi-convertible and non-convertible currencies.

3) Convertible currencies can be freely bought and sold in the foreign exchange markets.

4) Most European countries have non-convertible currencies.

5) In practice, there are three main convertible currency areas.

6) The world's major currency is the U.S. dollar.

7) The United States has the world's largest capital market.

8) The term "currency" sometimes refers to paper money only.

9) It is interesting to note that the dollar is by the largest component of the foreign currency reserves held by the world's major central banks.

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