Модуль 5 “Money and banking”

1. English-Russian Vocabulary

amount (n)	количество
barter (n)	бартер
cattle (n)	крупный рогатый скот
coin (n)	монета
coincide (v)	совпадать, соответствовать, равняться
consider (v)	рассматривать
convenient (a)	удобный
determine (v)	определять, устанавливать
direct (a)	прямой, непосредственный
durable (a)	прочный, долговременный
equal (a)	равный
exchange (v)	менять
fail (v)	проваливать
grain (n)	зерно
handle (v)	обращаться, управлять, регулировать
issue (v)	выпускать
level (n)	уровень
means (n)	средство
portable (a)	портативный, переносный, передвижной
precious (a)	ценный
profit (n)	выгода, польза
seldom (adv)	редко
share (n)	акция
shareholder (n)	акционер
stock exchange (n)	фондовая биржа
store (v)	хранить
surplus (n)	избыток
unsatisfactory (a)	неудовлетворительный

2. Text “Money and banking”

Money is important to the operation of the economy at two levels. First, it is the means of financing the purchases of goods and services and of storing values. Second, the quantity of money in the economy helps to determinate total spending and the general level of price.

Almost every society now has a money economy based on coins and paper bills. However, this has not always been true. In primitive societies a system of barter was used. Barter was a system of direct exchange of goods. Somebody could exchange a sheep, for example, for anything in the market-place that they considered to be of equal value. Barter, however, was a very unsatisfactory system because people'’ needs seldom coincided. People needed a more practical system of exchange, and various money systems developed, based on goods such as cattle, grain, shells, salt. Precious metals gradually took over, because, when made into coins, they were portable, durable and divisible into larger and smaller units of value.

A coin is a piece of metal, usually disc-shaped, which bears lettering, designs or numbers showing its value.

Most governments now issue paper money in the form of bills, which are really “Promises to pay” . Paper money or “bank-notes” are easier to handle and much more convenient in the modern world. Checks and credit cards are being used increasingly.

At the end of the U. K. banking system is the Bank of England, which is also known as the Central Bank. The Bank of England is the Banker’s bank. It is also the Government’s Bank and holds all surpluses of the various government departments.

3. Exercises.

Exercise 1. Match English and Russian equivalents.

1. means of storing values	a. непосредственный обмен товаром
2. general level of price	b. товары равнозначной ценности
3. direct exchange of goods	c. общий уровень цен
4. goods of equal value	d. драгоценные металлы
5. precious metals	e. средство хранения ценностей
6. units of value	f. единицы ценности

Exercise 2. Choose the right word or word-combination.

1. Money is the … of financing the purchases of goods and services and of storing values.

   a) mean

   b) means

   c) unit

2. Almost every society now has a money economy based on … .

a) coins and paper bills

b) barter

c) direct exchange of goods

3. Most governments now … paper money in the form of bills.

a) do

b) produce

c) issue

4. Somebody could exchange a sheep for anything that they considered to be of … .

a) direct value

b) unsatisfactory value

c) equal value

Exercise 3. Insert the necessary prepositions: at, of, on, for, in.

1. Money is important to the operation … the economy … two levels.

2. Every society now has a money economy based … coins and paper bills.

3. People could exchange a sheep, for example, … anything … the market that they considered to be … equal value.

4. … the end … the U. K. banking system is the Bank … England.

Exercise 4. Complete the sentences.

1. Money is the means of … .

2. The quantity of money in the economy helps to determine … .

3. Every society now has … .

4. Barter was a very unsatisfactory system because … .

5. A coin is a … .

Exercise 5. Insert the right word:

(precious, to handle, value, direct, durable, exchange, surpluses).

1. The Bank of England holds all … of the various government departments.

2. Paper money is easier …and much more convenient in the modern world.

3. A coin bears lettering, designs or numbers showing its….

4. … metals took over, when made into coins, they were portable, … and divisible into larger or smaller units of value.

5. People needed a more practical system of… , and various money systems developed.

6. Barter was a system of … exchange of goods.

Exercise 6. Answer the questions to the text.

1. What is money system of the society based on?

2. What is barter?

3. Why did precious metal take over in the system of exchange?

4. How does a coin look like?

5. What is the Central Bank?

4. Supplementary reading.

2. Text “The stock exchange”.

Read the text and say what the stock exchange is.

If you are a shareholder and you want to get back the money you have put into a company, you must sell your shares at the Stock Exchange. The Stock Exchange is a place where shares are bought and sold.

The price of shares is controlled by the amount of people willing to pay for them.

If the company is making a profit, other people may want to buy shares in it, so you may be able to sell the shares at a higher price than you paid for them. If you bought 100 shares at 1$ each and you sold them later at 1.50$ each, you would make 50$ profit on the 100 shares, as well as keeping any dividend paid during the period when you owned the shares.

But if business is not going well, other people may not be willing to pay as much as 1$ a share. If they think the company may do well in the end, they might pay 80 p. a share. If the business is really failing no one will buy the shares at all and you risk losing all your money.

The first Stock Exchange was established in 1773 in London. It was the biggest in the world until 1914. Now it is the third to Tokyo and New York. The building as it stands today dates from 1969.