1 Most money exists on paper, in bank accounts, rather than in notes and coins.
2 Banking customers can withdraw time deposits whenever they like.
3 The amount of money spent is the money supply multiplied by its velocity of circulation.
4 Central banks can try to control the money supply.
5 Commercial banks can choose which percentage of their deposits they keep in their reserves.
Ex. 3 Find three nouns in B and C that make word combinations with 'monetary'. Then use these combinations to complete the sentences.
1 The …………… are the official agencies that can try to control the quantity of money.
2 The attempt to control the amount of money in circulation and the rate of inflation is called …………… .
3 Monetarism is the theory that the level of prices is determined by
……………. .
Ex. 4 Comment on the following.
a) What is wrong with having inflation? b) What is the current inflation rate in your country? c) Has this changed a lot over the past 20 years?
Ex. 5 Summarize the content of the text.