Types of money

In theory, anything can be used as money provided people trust it. In practice, it was early discovered that precious metals were an ideal form of money. They were of high value in their own right, they were durable and, because their value was high in relation to their quantity, they were portable. Very early in the history of Western civilisation it was realised that if the met­al was cast into units of standard weight and value (coins) many problems in trading would be solved. The guarantee that a coin was of the correct weight was invested in imprint of the head of the monarch or emperor.

Metals are heavy. Over the centuries the amount of goods and services a given quantity of metal would buy became less. It began to make sense to leave the gold with a business which had the facilities for safeguarding it and accept a piece of paper from it promising to pay that amount of coin-age when the note was presented to it. These promissory notes were a legal Contract and the forerunners of our modern bank notes.

Answer the questions:

1. What are the money functions?

2. What is the main problem with barter?

3. What function of money makes the purchase of goods and services on credit possible?

4. What are the types of money?

5. Why were precious metals used as money?

6. What advantages and disadvantages do metals have when they are used as money?

Задание 2. Перепишите следующие слова и словосочетания и дайте их английские эквиваленты.

1. прибыль

2. бартер

3. товары

4. количество товаров и услуг

5. при условии

6. монета

7. гарантия

8. отпечаток

9. оставлять

10. обещать

11. простой вексель (долговое обязательство)

12. избыток

13. современные банкноты

Задание 3. Перепишите следующие предложения. Определите, являются ли они истинными или ложными.

1. Anything can’t be used as money provided people trust it.

2. Metals are light, that’s why they are used as money.

3. Over the centuries the amount of goods and services a given quantity of metal would buy became less.

4. . The system works well if the range of goods and services to be exchanged is limited and the number of transactions undertaken is relatively small.

Задание 4. Перепишите следующие предложения, определите в каждом из них видо-временную форму и залог глагола(-ов)-сказуемого(-ых). Переведите предложения на русский язык.

1. This program has provided tens of millions of retired people with substantial income.

2. Interest is added either at a fixed rate for the duration of the loan – which gives an annual percentage rate (APR) of well over 20 per cent for such loans at the time of writing – or monthly on the outstanding balance.

3. A business, like the people who run it, and the society in which it exists, is constantly changing.

4. Usually plans are coordinated through numerous committees.

5. Many officials were required to estimate wants and to direct factors of production.

Задание 5. Перепишите следующие предложения, подчеркните в каждом из них модальный глагол или его эквивалент. Переведите предложения на русский язык.

1. Building trust with new customers can be a difficult task for a new or establishing business.

2. They had to show them the results of the work.

2. These services may require a few hours of work, but a certification may reassure potential customers.

3. A high level of unemployment in an economy can mean a reduction in labour costs.

4. You might take it as granted.

5. To be a borrower you must be a customer of the bank because the money will be lent to you through a bank account.

Задание 6. Перепишите следующие предложения, подчеркните причастия, определите их форму и функцию (определение или обстоятельство). Переведите предложения на русский язык.

1. Small businesses are common in many countries, depending on the economic system in operation.

2. By providing information to managers the accountant enables them to access their own performance, to make economic decisions and to devise ways to improve their efficiency.

3. Rational capitalists, starting with Henry Ford, also realized that a better paid work force would be more loyal and would be able to try more goods and services.

4. Having been discussed a week ago, this question wasn’t the main one during the discussion.

5. Usually businesses have their own financial managers working with the banks.

Задание 7. Обобщите информацию из текста «Money and Currencies» в 6 – 8 предложениях.