MONEY

Lesson 1

READING DRILLS

1 Practise the pronunciation of the following words:

a) stress the first syllable:

money, currency, basically, reasonably, substance, medium, worth, store, value, serve, issue, government, shape, kind, modern, primitive, portable, share, payment, carry, measure, coin, checkbook, durable, normal, purchase, stable;

b) stress the second syllable:

exchange, convert, familiar, metallic, addition, inflation, consider.

Terms to remember:

Money and its Functions

Basically, money is what money does. This means that money can be any substance that functions as a Medium of Exchange, a Measure of Value, and a Store of Value.

As a medium of exchange, money is something generally accepted as payment for goods and services

As a measure of value, money expresses worth in terms that most individuals understand.

Money also serves as a store of value. This means goods or services can be converted into money that is easily stored until some future time.

The different forms of money are in use in the United States today. The most familiar are coin and currency. The term coin refers to metallic forms of money. The term currency refers to paper money issued by government. While money has changed in shape, kind or size over the years, modern money still shares many of the same characteristics of primitive money. Modern money is very portable when people carry checkbooks. For example, they really are carrying very large sums of money since checks can be written in almost any amount.

Modern money is very durable. Metallic coins last a long time under normal use and generally do not go out of circulation unless they are lost. Paper currency also is reasonably durable. Modern money also rates high in divisibility. The penny which is the smallest denomination of coin, is more than small enough, for almost any purchase. In addition, checks almost always can be written for the exact amount. Modern money, however, is not as stable in value. The fact, that the money supply often grew at a rate 10 to 12 per cent a year was considered as major cause of inflation.

Exercises in Word Study

Ex.1. Find equivalents:

Ex.2. Fill in the blanks below with the most appropriate terms from the list:

a store of value ; coin; a Medium of Exchange; currency; a measure of value; currency; inflation; the money supply

1. Money can be any substance that functions as _________, a Measure of Value, and a Store of Value. 2. As ___________ , money expresses worth in terms that most individuals understand. 3. Money also serves as ___________ . 4. The term ________ refers to metallic forms of money. 5. The term _______ refers to paper money issued by government. 6.Metallic coins generally do not go out of circulation unless they are lost. 7. Paper _________ also is reasonably durable. 8. The fact, that __________ often grows at a rate 10 to 12 per cent a year is considered as major cause of ___________ .

Ex.3. Memorize the following words and word-combinations. Use them in the sentences of your own:

 Ex.4. Translate the sentences paying attention to the italicized words:

1. It’s quite interesting work and the money’s all right. 2. The monetary unit of Japan is yen. 3. Monetary policy is aimed at controlling the amount of money in circulation, usually through controlling the level of lending or credit. 4. Money supply can include notes, coins, and clearing-bank and other deposits used for everyday payments. 5. I am not made of money, you know! 6. I paid good money for that car and it broke down on the first day. 7. The pound had a steady day on the money markets.

 Ex.5. Match each term in Column A with its definition in Column B:

Column A                                   Column B

Ex.6. Define which of the following items best completes the statement:

1 Most of the money in circulation consists of

paper money.

coins.

checking accounts.

savings accounts.

2 In a money economy, money serves as a

medium of exchange.

measure of value.

store of value.

all of the above.

3 The value of money

can increase or decrease.

remains the same at all times.

increases with the passage of time.

rises when prices rise.

4 The purchasing power of money

increases during periods of inflation.

decreases during an inflation.

decreases during a deflation.

is unaffected by inflation or deflation.

Ex.7. Complete the following sentences:

1. Money can be any substance that functions as … . 2. As a medium of exchange, money is … . 3. As a measure of value, money expresses … . 4. It also serves as … . 5. This means … . 6. The most familiar forms of money are … . 7. The term coin refers … . 8. The term currency refers … . 9. Modern money is very portable when … . 10. Metallic coins last a long time under normal use … . 11. The penny which is the smallest denomination of coin, is … . 12. The fact, that the money supply often grew at a rate 10-12 per cent a year was considered as … .

Ex.8. Answer the following questions:

1. In what function is money accepted as payment for goods and services? 2. What is money as a medium of exchange? 3. What does money express as a measure of value? 4. How does money function as a store of value? 5. What are the most familiar forms of money in the United States? 6. What is the difference between coin and currency? 7. What does the term currency refer to? 8. What are the most important characteristics of modern money? 9. What is the life-time of metallic coins? 10. How is the smallest denomination of coin called in the United States? 11. What is the major cause of inflation?

Ex.9. Translate into English:

1. Гроші функціонують як засіб обігу, міра вартості та запас вартості. 2.Різні види грошей перебувають в обігу в Сполучених Шта­тах Америки. 3.Запас вартості означає, що товари та послуги можна легко конвертувати в гроші. 4. Термін «валюта» відноситься до паперо­вих грошей, а «монета» ¾ до грошей, виготовлених з металу. 5. Су­часні гроші мають ті самі характеристики, що й примітивні гроші. 6. Мета­леві гроші не виходять з обігу аж доти, доки їх не загублять. 7. Пенні — монета найменшої вартості в обігу. 8. Те, що грошова маса щороку зростає на 10-12 відсотків, є основною причиною інфляції.

Online Quiz “Money”

Online Quiz “Reading: Money”

Online Quiz ” Listening: Money”