Answer the questions. 1. How did people pay for products in the early days of American colonies?

1. How did people pay for products in the early days of American colonies?

2. What are the shortcomings of a barter?

3. What is today’s system based on?

4. What is the metal value of American coins?

5. What gives money real value?

6. What determines a standard of living?

7. What results in inflation?

8. What was the Reserve Bank created for?

9. What is the proper role of banks?

Summarize the information of the text and render it.

Look through the text and fill in the gaps with the words given below.

In economics, the term currency can..(1).. either to a particular currency, for example the US dollar, or to the coins and..(2).. of a particular currency, which comprise the physical aspects of a nation's money supply. The other..(3).. of a nation's money supply consists of money deposited in..(4).. (sometimes called deposit money), ownership of which can be transferred by means..(5)..cheques or other forms of money transfer such as credit and debit cards. Deposit..(6).. and currency are money in the sense that both are acceptable as a means of exchange, but money..(7).. not necessarily be currency.

In most cases, each private central bank has monopoly..(8).. over the supply and production of its own currency. To facilitate..(9).. between these currency zones, there are exchange rates, which are the..(10).. at which currencies (and the goods and services of individual currency zones) can be..(11).. against each other. Currencies can be classified..(12).. either floating currencies or fixed currencies based on their exchange rate regime.

In..(13).. where a country does have control of its own..(14).., that control is exercised either by a central bank or by a Ministry of Finance. In either case, the institution that has control of monetary policy is referred..(15).. as the monetary authority.

refer, need, banks, banknotes, money, as, exchanged, part, of, control, to, trade, cases, prices, currency.

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