Unit 4. Money

Прочитайте и напишите парами слова и выражения, имеющие одинаковые значения.

Письменно ответьте на вопросы к тексту.

a) What is a balance sheet?

b) What are two parts of the balance sheet?

c) What does the item “cash” consists of?

d) What does the item “current assets” consists of?

e) What are marketable securities?

f) What are liabilities?

g) Within what period of time must current liabilities be paid out?

h) Within what period of time must long-term liabilities be paid out?

prepayments	a) current capital
capital assets	b) receivables
circulating capital	c) payment in advance
accounts receivable	d) land, building

Text 1. Read and translate.

The work which people undertake provides them with money. People buy essential commodities with money. All values in the economic system are measured in terms of money. Our goods and services are sold for money, and that money is in its turn exchanged for other goods and services. Coins are adequate for small transactions, while paper notes are used for general business. Originally, a valuable metal (gold, silver or copper) served as a constant store of value.

Valuable metal has generally been replaced by pa­per notes. These notes are issued by government and authorized banks, and are known as legal tender Other arrangements such as cheques and money orders are not legal tender. They perform the function of substitute money and are known as 'instruments of credit’. Credit is offered only when creditors believe that they have a good chance of obtaining legal tender when they present such instruments at a bank or other authorized institu­tions. If a man's assets are known to be considerable, then his credit will be good. If his assets are in doubt, then it may be difficult for him to obtain large sums of credit or even to pay for goods with a cheque.

The value of money is basically as economists put it, its 'purchasing power'. This purchasing power is dependent on sup­ply and demand. The demand of money is reckonable as the quantity needed to effect business transactions. The demand for money is related to the rapidity with which the business is done. The supply of money is the actual amount in notes and coins available for business purposes. If too much money is available, its value decreases. This condition is known as 'inflation'.

Vocabulary:

Store	запасы	Money orders	денежный перевод
Measure	мера, измерить	Substitute money
In its turn	в свою очередь	Considerable	значительный
Exchange	обмен	Doubt	сомнение
Transaction	операция	Obtain	иметь силу
Coin	монета	Purchasing power	покупательная способность денег
Paper notes	банкнота	Supply	предложение
Serve as	служить в качестве	Demand	спрос
Replace	заменять	To be related to	иметь отношение
Issue	выпускать	To be available	доступность
Authorized banks	уполномоченные банки	Decrease	сокращение
Legal tender	платёжное средство	Condition	условие
Cheque	чек	Credit	ссуда

Определите какое из утверждений является верным.

All values in the economic system are measured in terms of money.

Paper notes are issued by all banks.

Cheques and money orders perform the function of substitute money.

Credit is offered if a man’s assets are known to be considerable.

The value of money is dependent only on demand.

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