• 2) Read the text the second time and put the sentences into the proper order:

a) Many societies used cowries as money.

b) Paper money was adopted in Europe much later.

c) Money is basically a method of exchange.

d) In the end of the 17th century the Bank of England was established.

e) Cattle are probably the oldest of all forms of money.

f) Metal and paper money was first used in China.

g) Human slaves were also used as currency.

h) Wampum was used as a monetary medium in some early American colonies and states.

6.4 Electronic money

• 1) Can you name advantages and disadvantages of using electronic money?

• 2) In the text the writer uses the words: cash, currency, digital, debit card, bill. What do they mean?

(1) Electronic money (also known as electronic cash, electronic currency, digital money, digital cash, digital currency or scrip) refers to money which is exchanged only electronically. With the introduction of Internet/online banking, debit cards, online bill payments and Internet business, paper money is becoming a thing of the past.

(2) Let’s have a look at some of the advantages of electronic money. First, banks now offer many services whereby customers do not have to wait in lines; this provides a calm environment. Second, you can transfer the funds immediately from your personal account to a business’s account without any actual paper transfer of money (using debit cards and online bill payments). This offers a great convenience to many people and businesses alike.

(3) There are more pluses, of course. For example, Singapore has a very successful electronic money implementation for its public transportation system (commuter trains, bus, etc). The electronic money, known as EZ-Link by most Singaporeans, is a card the size of an ordinary credit card. It has a smart chip plus a wireless communication module. Passengers just need to tap the EZ-Link when they board the bus and tap the card again when they alight; the bus fare system automatically deducts the calculated bus fare from the EZ-Link value. Recently, McDonalds is setting up EZ-Link payment infrastructure at their fast-food branches all over Singapore’s main island. It is believed that in the near future EZ-Link will gain more acceptance as a convenient electronic money solution in Singapore.

(4) Although there are many benefits to digital cash, there are also many significant disadvantages. These include fraud, failure of technology, possible tracking of individuals and loss of human interaction. Still, most money in today’s world is electronic, and tangible cash is becoming less frequent.

• 3) The text contains the description of electronic money implementation ez-Link, and how it is used. Find this information in the text.

6.5 British money

• 1) Recollect what names of British money you know. Have you ever seen or held it in your hands? Could you describe the appearance of British money?

• 2) Read the text and name the paragraphs which give the answers to these questions:

a) Is there any difference in the monetary systems of the Channel Islands, the Isle of Man and the mainland of Britain?

b) What is the basic unit of British currency?

c) What is the British currency sign?

d) What is the official name of the British currency basic unit?

e) What coins are in circulation?

f) What do they put after the figures if an amount of money consists only of pence?

g) What notes are in circulation?

h) What does the abbreviation GBP mean?

(1) Since 1971, the monetary system of Great Britain is based on the decimal system. The basic unit of British currency (currency of the United Kingdom and the Crown Dependencies) is the pound, which is divided into one hundred pence (abbreviated as “p”).

(2) The official full name “pound sterling” (plural: “pounds sterling”) is used mainly in formal language and also to distinguish the currency used within the United Kingdom from others that have the same name (GBP = Great British Pound)

(3) As a unit of currency, the term “pound” originates from the value of one pound Tower weight of high purity silver known as “sterling silver.” Sterling silver is an alloy of silver containing 92.5% pure silver and 7.5% other metals, usually copper. The word “sterling” is believed to come from the Old Norman French “esterlin” (meaning “little star”) transformed in “stiere” in Old English (strong, firm, immovable).

(4) The currency sign is the pound sign, originally ₤ with two cross-bars, then later more commonly £ with a single cross-bar. The pound sign derives from the “£sd” pronounced, and sometimes written as “LSD.” The abbreviation comes from “librae, solidi, denarii” (libra was the basic Roman unit of weight; the solidus and denarius were Roman coins). “£sd” was the popular name for the pre-decimal currencies pounds, shillings, pence of the Britain and other countries.

(5) The coins in circulation are 1 penny, 2 pence, 5 pence, 10 pence, 20 pence, 50 pence, 1 pound, and 2 pounds.

(6) The notes (paper money) in circulation are £5, £10, £20, £50, and £100.

(7) The Channel Islands and the Isle of Man have some different coins and notes from the mainland but the monetary system is the same.

(8) When we write amounts of money in figures, the pound symbol “£” is always shown in front of the figures. For example: three hundred pounds → £300.

(9) If an amount of money consists only of pence, we put the letter “p” after the figures. For example: we write 50p or £0.50 and say it “fifty pee” rather than “fifty pence.” The singular of pence is “penny.”

(10) If an amount of money consists of both pounds and pence, we write the pound symbol and separate the pounds and the pence with a full stop. We do not write “p” after the pence. For example: six pounds fifty pence → £6.50. When saying aloud an amount of money that consists of pounds and pence, we do not usually say the word “pence.” For example: £6.50 → six pounds fifty.

(11) Note also that we say 2 pounds, 5 pounds, 10 pounds, etc. for amounts of money and 2 pound coin, 5 pound note, 10 pound note, etc. for a piece of money (coins and notes).

• 3) What do the following words and expressions refer to: an alloy of silver and copper, the sign £ in front of the figures, the letter “p” after the figures, shilling.