Section : Cours 7 | لغة أجنبية | منصة التعليم عن بعد

Résumé de section

The Functions And Characteristics Of Money (2) Leçon

Anything that people are willing to accept in exchange for goods can serve as money.

At various times in history, cattle, salt, animal hides, gems, and tobacco have been used as mediums of exchange. Each of these items has certain characteristics that it better or worse than others for use as money. Cattle, for example, are difficult, to transport, but they are durable. Gems are easy to carry, but they are not easy to split into small pieces to use.

The table below lists the major characteristics that to some degree all items used as money must have. Almost any item that meets most of these criteria can be and probably has been used as money. Precious metals, however, particularly gold and silver, are especially well suited as mediums of exchange, and have often been used as such throughout history. It is only in more recent times that paper money has been widely used as a medium of exchange.

Mediums of exchange such as cattle and gems are considered commodity money. They have a value as a commodity, or good, aside from their value as money. Cattle are used for food and transportation. Gems are used for jewelry.

Representative money is money backed by - exchangeable for - some commodity, such as gold or silver. It is not in itself valuable for non-money uses, but it can be exchanged for some valuable item. Like commodity money, the amount of representative money circulation, or in use by people, is limited because it is linked to some scarce good, such as gold. At one time the United States government issued representative money in the form silver and gold certificates. In addition, private banks accepted deposits of gold or silver and issued paper money, called bank notes.

These were a promise to convert the paper money into coin or bullion on demand. The banks were supposed to keep enough gold or silver in reserve - on hand to redeem their bank notes. Often, they did not.

Today all United States money is fiat money. Its face value occurs through government fiat, or order. It is in this way declared legal tender.

*Characteristic*	*Description*
Durable	Money must be able to withstand the wear and tear of being passed from person to person. Paper money lasts on the average of only one year, but old bills can be easily replaced.Coins, in contrast, last for years.
Portable	Money can be carried around easily. Though paper money is not very durable, people can easily carry large sums of paper money.
Divisible	Money must be easily divided into small parts so that purchases of any price can be made. Carrying coins and small bills makes it possible to make purchases of any amount.
Stable in value	Money must be stable in value. Its value cannot change rapidly or its usefulness as a store of value will decrease.
Scarce	Whatever is used as money must be scarce. That is what gives it value.
Accepted	Whatever is used as money must be accepted as a medium of exchange in payment for debts. In the United States, acceptance is based on the knowledge that others will continue to accept paper money, coins, and checks in exchange for desired goods and services.

1. A fixed amount which is paid, usually monthly, to workers of higher rank	a s _ _ _ _ _
2. An amount of money which you lend to someone	a l _ _ _
3. A sum of money which is owed to someone	a d _ _ _
4. Money which is in the form of coins and notes, not cheques	c _ _ _
5. An amount of money you receive, usually weekly, in return for labour or service	a w _ _ _
6. Money paid by divorced father to his former wife for the upkeep of his children	a_ _ _ _ _ y
7. Tax on imported articles paid to the customs	_ _ _ y
8. Paid at a restaurant after eating	a _ _ _ l
9. Extra percentage paid on a loan	i _ _ _ _ _ _ _
10. Money paid for professional services, e.g. to a doctor	a f _ _
11. Money paid by the state, usually to students	a g _ _ _ _
12. Money paid by a company or the state on your retirement	a p _ _ _ _ _ _
13. Paid as a punishment for breaking the law	a f _ _ _
14. Paid to the government for services that the state provides	_ _ _ _ s
15. Paid while traveling, especially on public transport, buses, train, etc.	a f _ _ _

Quiz 1: Ways of showing pleasure

• Q1 Now that's what I call absolutely ........

(a) perfect (b) finished (c) completed (d) ended

• Q2 You couldn't have made that drink better if you'd ........

(a) tested (b) trailed (c) required (d) tried

• Q3 What a delightful ....... those flowers give off when you touch them.

(a) bloom (b) colour (c) scent (d) smell

• Q4 Words just ....... me when I try to say how happy I am.

(a) fail (b) miss (c) pass (d) fool

• Q5 I can ....... say that I don't think I've ever enjoyed myself so much before.

(a) surely (b) safely (c) clearly (d) notably

• Q6 There's really nothing like it, is there when you find you've ....... all the answers to the test right?

(a) found (b) seen (c) acquired (d) got

• Q7 The only problem with your cooking is that the more I eat, the more I want ....... more.

(a) any (b) all (c) some (d) no

• Q8 I must be ....... because it's all too good to be true.

(a) thinking (b) dreaming (c) sleeping (d) dozing

• Q9 Just let me try one more of your delicious chocolates and then I'll ....... not to take any more.

(a) promise (b) assure (c) confirm (d) affirm

• Q10 It's absolute ....... here. I think I'll stay at this hotel one more week.

(a) clarity (b) certainty (c) bliss (d) fortune

Quiz 2: Money Matters (2)

• Q1 Good ....... procedures are very important if you want to run a business profitably and successfully.

(a) accounted (b) accounting (c) accounts (d) accountants

• Q2 The company fell heavily into ....... when it took on too many customers and offered them all cheap warranties.

(a) debt (b) debts (c) owing (d) owes

• Q3 Once you have built up your company, you must remember to keep in touch with your original ........

(a) people (b) contributors (c) clients (d) members

• Q4 Each department within the organisation is given a ....... within which it has to remain for the whole year.

(a) sum (b) money (c) dividend (d) budget

• Q5 When the time came to close the business down, its entire ....... had to be calculated so that the creditors could be paid off.

(a) earnings (b) assets (c) accumulation (d) asset

• Q6 The manager called in her chief clerk because she could not ....... the figures on the monthly spreadsheet.

(a) acquaint (b) resolve (c) reconcile (d) recognize

• Q7 Every year the college finance officer did not look forward to the visit from the government official who came to ....... the accounts.

(a) order (b) regulate (c) control (d) audit

• Q8 It was a great relief to Charlie when he realized that he had come to the end of his agreement with the bank and there was only one ....... payment left.

(a) extraordinary (b) upstanding (c) outstanding (d) standing

• Q9 The building society sent a letter to all its savers and ....... that there would be a reduction in the interest rate.

(a) lenders (b) borrowers (c) loans (d) takers

• Q10 Shortly after the couple had bought their first house, they saw the number of bills ....... rapidly.

(a) accentuate (b) aggravate (c) accumulate (d) access

Exercise 1 :

1.a salary

2.a loan

3.a debt

4.cash

5.a wage

●

6.alimony

7.duty

8.a bill

9.interest

10.a fee

11.a grant

12.a pension

13.a fine

14.taxes

15.a fare

Quiz 1 :

1.a

2.d

3.c

4.a

5.b

6.d

7.c

8.b

9.a

10.c

Quiz 2 :

1.b

2.a

3.c

4.d

5.b

6.c

7.d

8.c

9.b

10.c