Ex.9. Choose and combine two parts logically to make complete sentences.
Ex.7. Fill in the gaps with the correct preposition or adverb.
1. In order to get an answer ____ these questions, let us turn ____ the origins of money and examine its principal functions.
2. Money came into being ____ barter.
3. The oldest recorded use of money dates ____ ____ ancient Mesopotamia about 4,500 years ago.
4. ____ , money took the form of commodity money.
5. Representative money refers ____ currency issued by governments or banks and backed by their promises to redeem it ____ a given weight of gold or silver.
6. The value of fiat currency is based ____ trust that people will accept it ____ payment ____ goods and services and that its value will remain ____ stable.
7. Whatever the type of money, it should be judged ____ how well it performs its major functions.
8. In addition ____ these three functions of money, economists often point ____ the fourth criterion – to serve ____ a means of liquidity.
9. Money has a big advantage ____ other assets.
10. Debit cards used for purchases and transaction records could greatly reduce the need ____ cash, but paper currency still has the advantage ____ privacy.
11. The percentage of electronic payments is growing ____ these days.
12. We must admit that despite predictions of a “cashless society” relying ____ electronic payments, the demand ____ currency continues to grow.
Ex.8. Look through the text again and replace the words/phrases in italics with similar ones.
1. First of all, money is the result of a long evolutionary process.
2. Apart from these three functions of money, economists often point out one more criterion - a means of liquidity.
3. In effect, money is what money does.
4. Actually, any commodity used as a medium of exchange is commodity money.
5. All things considered, it must be said that money can be any commodity or token used by society as a medium of exchange, a measure of value and a store of value.
6. And lastly, money units must be difficult to duplicate.
7. However, it is not only the physical durability of money that matters. Its social and institutional durability is also very important.
8. There are some general characteristics that are extremely important and necessary for whatever acts as money in a modern society.
9. An excellent example of fiat money is euro.
10. The percentage of money moved electronically is growing surprisingly these days.
| 1.An economy that lacks a medium of exchange uses … | a)commodity money. b) barter. c) flexible exchange rates. |
| 2. In a monetary economy, …. 3. In a barter economy, … | a) a person having something to trade must find somebody who wants it and has something to offer in exchange. b) the owner of a commodity may sell it for money and buy anything he wants for this money. |
| 4. To be a good medium of exchange, money must be … 5. To be a good store of value, money must be … 6. To be a good measure of value or a unit of account, money needs to be … | a) durable so it can be kept for future use and have a stable value so people do not lose its purchasing power if they use the money at a later time. b) portable, divisible, easily measured and willingly accepted by people. c) useful for quoting prices. |
| 7. Bank deposits and credit card loans are examples of … 8. Currency backed by a government or bank’s promise to redeem it for a given weight of gold or silver refers to 9. The type of money that is found today in most countries (the euro, American dollar, British pound, etc.) is | a) representative money. b) fiat money. c) credit money. |