Text-based Exercises

Ex. 1. Find in the text all combinations of words, containing the words “money” and “value”. Translate them into Russian.

e. g. money systems; having value; etc.

Ex. 2. The text contains a number of common verb-noun partnerships (e.g. to lend money, to rule the world). Match up the verbs and nouns below to make such collocations which have been used in the text. Translate them into Russian.

to affect the state of the economy

to determine goods and services

to have the level of prices

to make the price of goods

to measure money

to pay price

to receive distance

to specify purchases

to state serious disadvantages

to store value

to trade change

to use equivalent value

Ex. 3. Which of the following adjectives from the text are used with the nouns given below? Consult the text if necessary.

Basic, better, cashless, characteristic, direct, economic, equivalent, essential, important, minor, modern, most common, permanent, precise, primitive, principal, recent, serious, several, silver, temporary, unsatisfactory, various.

Payment, years, value, coins, materials, types of money, features, qualities, ways, disadvantages, growth, unit of money, forms of money, money systems, interests, system, exchange of goods, societies, commodities.

Ex. 4. Re-read the first paragraph of the text and find the sentences which confirm the idea of the text’s title.

Ex. 5. According to the second paragraph of the text, are the following sentences true or false? If they are false, say why.

1. Money has always ruled the world.

2. In primitive societies a system of direct exchange of goods was used.

3. People were satisfied with the system of barter.

4. Members of societies couldn’t find valuable goods and money appeared after a system of barter.

Ex. 6. Summarize the 3rd paragraph by listing the early forms of money. Can you add any other forms?

Ex. 7. Give the definition of the notions “money” and “currency” and explain why the money determines the state of the economy.

Ex. 8. Answer the following questions.

1. What can you say about the use of money in the economy?

2. What is the most important of them?

3. What is a transaction medium or a medium of exchange?

4. Could a modern industrialized country function without a medium of exchange? Why?

5. What is the second use of money?

6. What is a unit of account?

7. How do people state the price of goods and services?

8. In what way do people use money to specify price?

Ex. 9. Join the following pairs of sentences (A. 1 and B. 1; A. 2. and B. 2.), using the words and phrases below:

Moreover, furthermore, besides, that’s why, because, but, however, hence, therefore, and.

e.g. The third use of money is as a store of value, therefore people can save money and then use it to make purchases in the future.

1. 1. The third use of money is as a store of value.

2. Money is both a temporary and permanent store of purchasing power.

3. In the old times money was in the form of gold and silver coins.

4. The paper in modern paper money and the metal in most modern coins are worth very much less than the amount stamped on them.

5. Money’s real purchasing power is eroded by inflation.

6. There are better ways to store value.

7. People can save money and then use it to make purchases in the future.

8. Modern money has some very serious disadvantages as means of storing up purchasing power permanently.

9. The purchasing power of modern money can change very greatly in a short time.

10. Other stores of value include gold, jewels, paintings, real estate, stocks and bonds.

2. 1. People can save money and then use it to make purchases in the future.

2. Modern money has some very serious disadvantages as means of storing up purchasing power permanently.

3. The metal in each was really worth the amount stamped on the coin.

4. The purchasing power of modern money can change very greatly in a short time.

5. There are certainly better ways to store value.

6. Other stores of value include gold, jewels, paintings, real estate, stocks and bonds.

7. Money is both a temporary and permanent store of purchasing power.

8. The paper in modern paper money and the metal in most modern coins are worth very much less than the amount stamped on them.

9. Money’s real purchasing power is eroded by inflation.

10. The purchasing power of modern money can change very greatly in a short time.

Ex. 10. Use the information from the text to complete the sentences. Use your own words as much as possible.

1. To be convenient money should … .

2. It should come in pieces of standard value so that … .

3. Money should be easy to carry so that … .

4. Finally, it should divide into units so that … .

5. So, modern money has … .

6. Portability means that … .

7. Divisibility means that … .

8. Durability means … .

9. Stability means … .

Ex. 11. Ask questions about the information contained in the last two paragraphs of the text.

Ex. 12. Read the first three paragraphs. Concentrate on the author’s main idea and do not worry about details. Select 4 or 5 statements which best express the author’s main idea.

Ex. 13. Join the beginnings and the ends to make meaningful statements reflecting the information from the text.

1. 1. Money, in general, has …

2. The first use of money is …

3. A medium of exchange is …

4. The second use of money is …

5. People state the price of …

6. The third use of money is …

7. People can save money and …

8. But modern money has …

9. Since money’s real purchasing power is …

10. Other stores of value include …

B. a) … goods and services in terms of money.

b) … gold, jewels, paintings, real estate, stocks and bonds.

c) … that it serves as a unit of account.

d) … eroded by inflation, there are certainly better ways to store value.

e) … something people will accept as a means of payment in the exchange of goods or services, in repaying debts, etc.

f) … some very serious disadvantages as a means of storing up purchasing power permanently.

g) … a medium of exchange, or a transaction medium.

h) … then use it to make purchases in the future.

i) … three main uses.

j) … as a store of value.

Ex. 14. Which of the following ideas agrees with what the text says?

1. Money shouldn’t have any certain qualities.

2. Four main characteristic features of modern money are: portability, divisibility, durability and stability.

3. Modern currency is lightweight and easy to carry.

4. We can’t divide modern money into smaller parts.

5. Modern money doesn’t wear out, because it can’t be replaced with new coins and paper money.

6. The paper money we use today is very stable.

7. The most important types of money are commodity money and fiat money.

8. We don’t have any cashless means of payment nowadays.

Ex. 15. Check yourself. If you are ready to answer all these questions, you know the basic notions and ideas of the exam topic “Money”.

1. Why does money rule the world?

2. Does money exist in primitive societies?

3. Do you know any examples of early forms of money?

4. What were the most common forms of money in the past?

5. What is money?

6. How is the basic unit of money in a country called?

7. How many uses does money have in general?

8. What is the most important use of money?

9. What can you say about the second use of money?

10. What do people state in terms of money?

11. What is the third use of money?

12. How can people use money?

13. What kind of disadvantages does money have in this case?

14. Why are there better ways to store value?

15. What are other stores of value?

16. Why should money have several qualities?

17. What main characteristic features does modern money have?

18. What are the most important types of money?

19. What can you say about commodity money?

20. How can you define fiat money?

21. What do you know about credit money?

22. What do cashless means of payment include?

23. How can cashless means of payment be called?

Ex.16. Be ready to speak about the following issues.

1. The history of money.

2. The definitions of money and currency.

3. The uses of money.

4. The main characteristic features of money.

5. Types of money.

6. Cashless means of payment.