Exercise 1.Choose the correct alternative to complete each sentence.
1. Money in notes and coins is called
| a. cash | b. capital | c. reserves |
2. The dollar, the mark and the yen are all
| a. currencies | b. funds | c. monies |
3. Money borrowed from a bank is a
| a. deposit | b. income | c. loan |
4. Borrowed money that has to be paid back constitutes a
| a. debt | b. fund | c. subsidy |
5. All the money received by a person or a company is known as
| a. aid | b. income | c. wages |
6. The money earned foe a week’s manual work is called
| a. income | b. salary | c. wages |
7. The money paid for a month’s work is a
| a. loan | b. salary | c. wages |
8. Money placed in banks and other savings institutions constitutes
| a. capital | b. deposits | c. finance |
9. Money paid by the government or a company to a retired person is a
| a. pension | b. rebate | c. subsidy |
10. The money that will ultimately be used to pay pensions is kept in a
| a. budget | b. deposit | c. fund |
11. The money needed to start a company is called
| a. aid | b. capital | c. debt |
12. The money paid to lawyers, architects, private schools, etc. is called
| a. fees | b. installments | c. wages |
13. Regular part payments of debts are called
| a. deposits | b. loans | c. installments |
14. Estimated expenditure and income is written in a
| a. budget | b. reserve | c. statement |
15. A person’s money in a business is known as his or her
| a. deposit | b. fund | c. stake |
16. Money given to producers to allow them to sell cheaply is called a
| a. loan | b. rebate | c. subsidy |
Exercise 2.Insert the words in the box in the following paragraphs:
| bonds prices | commercial tight | monetarist velocity |
Following the (1) … argument that the average level of (2) … and wages is determined by the amount of money in circulation, and its (3) … of circulation, many central banks now set money supply targets. By increasing or decreasing the money supply, the central bank indirectly influences interest rates, demand, output, growth, unemployment and prices. The central bank can reduce the reserves available (4) … banks by changing the reserve requirements. This reduces the amount of money that banks can create and makes money (5) … or scarce. Alternatively, the central bank can engage in what are called open market operations, which involve selling short-term government (6) … (such as three month Treasury bills) to the commercial banks, or buying them back.
Exercise 3.Choose the correct explanation of each expression from the list below.
| Expressions | Explanations |
| 1. to have a finger in the pie 2. to save up for a rainy day 3. in the red 4. in the black 5. to line one’s pocket 6. to settle up 7. to break even 8. to be broken 9. to cost an arm and a leg 10. to make ends meet 11. daylight robbery 12. to come into money | a) paying off one’s debts; b) the account is in credit; c) the account is overdrawn; d) it was extremely expensive; e) only just managing to cope financially; f) putting money aside to cover unforeseen circumstances or emergency; g) making a lot of money from something; h) being absolutely without funds; i) having a financial interest in something; j) inheriting money; k) making neither a profit nor a loss; l) extortionate costs. |
Exercise 4.Use the words below to complete the text.
| banknotes promissory notes watermark fiduciary issue | forgery mint sound money monetary policy | barter issue gold reserves coinage |
In the days before money was created, traders exchanged one type of goods for another. This was called (1) … trade. Later, countries produced units made of gold. This was called (2) … and was produced in a (3) … . Originally, the total value of metal coins produced by a country was backed by its (4) … and was called (5) … . However, in some countries the amount of gold held by a country does not correspond to the value of coins in circulation, but may instead represent securities. This system is called the (6) … .
The main disadvantage of using money made of metal was that it was difficult to transport. So, traders began using documents which promised to pay a sum of money in return for goods. These documents were called (7) … .
Banks also began to (8) … papers to clients to confirm that they had deposited money in the bank. These papers were issued in standardized amounts and were called (9) … . To prevent (10) …, or the copying of banknotes, banks adopted a number of security devices such as a design on the sheets of paper used to make money. This design is called a (11) … .
Nowadays, each country has its own system of safeguarding the currency. This system is called (12) … .
Exercise 5.Sentences 1 to 10 make up a short text about Eurocurrencies. Complete each sentences, by taking a middle part from the second box and an end from the third box:
| 1. A Eurocurrency is any currency held 2. Thus Eurocurrency do not necessarily 3. The Euromarket developed during the Cold War in the early 1950s, 4. This pool of dollars was later augmented by 5. The Euromarkets are still concentrated in London because 6. Since banks are not obliged to deposit any of their Eurocurrency assets 7. Therefore, international companies 8. Because the United States was, by definition, 9. Consequently in the early 1980s, 10. This succeeded in bringing |
| a. American trade deficit, and, after the 1974 and 1979 oil price rises, b. at zero interest with the central bank, c. have anything to do with Europe, d. outside its country of origin, e. some Eurodollar business f. the American government allowed US banks special international banking facilities, g. the one country that could not do Eurodollar business, h. there are fewer governmental regulations there than in most other financial centers, i. using US dollar for trade, j. when the Russians, who were afraid that the Americans might freeze their dollar accounts in New York, |
| k. American banks were losing business. l. and because the European time-zone is half-way between those of Japan and the USA. m. back to New York City. n. millions of “petrodollars” deposited by the newly-rich oil-producing countries. o. often prefer to borrow Eurodollars. p. so the name is not a very good one. q. such as US$ in France, Yen in the US, or Euro in Japan. r. they can give better interest rates (to both borrowers and depositors) than US-based banks. s. transferred them to Europe, particularly to banks in London. t. without reserve requirements and interest rate limits. |
Exercise 6.Translate into English.
1. Á³ëüø³ñòü êðà¿í âèêîðèñòîâóº âèñîêîÿê³ñíèé ïàï³ð äëÿ âèãîòîâëåííÿ ãðîøåé. 2. Îäíà ç ãîëîâíèõ ïåðåâàã ãðîøåé íàä áàðòåðîì – öå òå, ùî ãðîø³ ìîæíà ä³ëèòè íà ÷àñòèíè. 3. Ãîëîâíà ð³çíèöÿ ì³æ áàðòåðíîþ òà ãðîøîâîþ åêîíîì³êîþ ïîëÿãຠâ òîìó, ùî ïðè áàðòåðí³é åêîíîì³ö³ âàì ñë³ä øóêàòè êîãîñü, õòî ìàâ áè òå, ùî âè õî÷åòå, ³ õîò³â áè òå, ùî âè ìàºòå. 4. Ãðîø³ äàþòü íàì çìîãó âñòàíîâëþâàòè ö³íó òîâàðó. 5. Ãðîø³ – öå çàñ³á, ùî äຠíàì ìîæëèâ³ñòü ðîáèòè îáì³í. 6. Ãðîø³ äàþòü çìîãó íàì ðîáèòè ïîêóïêè êîëè-íåáóäü ó ìàéáóòíüîìó, âèêîðèñòîâóþ÷è âàðò³ñòü ÷îãîñü, ùî ìè ïðîäàºìî ñüîãîäí³. 7. Âàëþòà – öå ïàïåðîâ³ ãðîø³ òà ìîíåòè, ÿêèìè êîðèñòóºìîñÿ ìàéæå ùîäíÿ.
Exercise 7.Communicative situations:
1. Money is the root of all evil.
2. Money is the guarantee of security.
3. “Time is money” (B. Franklin)
4. Money put in a bank is as safe as anything in this world can be.