A measure of value.

The first step in the use of money was probably the adoption of some commodity as a unit of account or mea­sure of value. Money, most likely, came into use within the barter system as a means whereby the values of different goods could be compared. The direct exchange of goods for goods would raise all sorts of problems regarding valuation. For example 'How many bushels of corn are equal in value to one sheep, if twenty sheep exchange for three cows and one cow exchanges for ten bushels of corn?' The problem of exchange rates is easily solved when all other commodities are valued in terms of a single commodity which then acts as

a standard of value. Money now serves as such a standard and when all economic goods are given money values (i.e. prices), we know, immediately, the value of one commodity in terms of any other commodity.

3. A store of value.

Once a commodity becomes universally acceptable in exchange for goods and services, it is possible to store wealth by holding a stock of this commodity. It is a great conve­nience to hold wealth in the form of money. Consider the problems of holding wealth in the form of some other com­modity, say wheat. It may deteriorate, it is costly to store, may be insured, and there will be significant handling costs in accumulating and distributing it. In addition, its mоnеу value may fall when it is being stored. The great disadvan­tage of holding wealth in the form of money has become very apparent in recent years — during periods of inflation its exchange value falls.

4. A means of making deferred payments.

An important function of money in the modern world, where so much business is conducted on the basis of credit, is to serve as a means of deferred payment. When goods are supplied on credit, the buyer has immediate use of them but does not have to make an immediate payment. The goods can be paid for three, or perhaps six, months after delivery. In the case of hire purchase contracts, the buyer takes immediate delivery but pays by means of instalments spread over one, two, or three years.

A complex trading organisation based upon a system of credit can only operate in a monetary economy. Sellers would be most unlikely to accept promises to pay in the future which were expressed in terms of commodities other than money. They would have no idea how much of the commodities they would need in the future, and if they do not want them, they face the trouble and risks inverted in selling them. Sellers will accept promises to pay expressed in

terms of money because, whatever the pattern of their future wants, they can be satisfied by using money.

1. Прочтите и переведите текст А.

2. Заполните пропуски, используя следующие слова:

granted, convenience, monetary, commodity, money, direct, inventions, barter, valuation

1. Money is one of man's greatest....

2. In the absence of some form of money, exchange may
take the form of....

3. If a... is generally acceptable in exchanging for goods
and services, it is....

4. Such exchanges are taken for....

5. The... of goods for goods would raise all sorts of
problems regarding....

6. It is a great... to hold wealth in the form of money.

7. A complex trading organisation based upon a system
of credit can only operate in a... economy.

3. Найдите синонимы среди следующих слов:

means, form, tool, frustrating, obtain, useless, need, instrument, shape, get, medium, commodity, general, require, labour, store, common, article, work, stock, deteriorate, significant, spoil, essential, apparent, con­duct, purchase, evident, carry out, buy

4. Найдите антонимы среди следующих слов:
absence, increase, major, spread, presence, same,
reduce, minor, accumulate, different

5. Образуйте антонимы от следующих слов, исполь­
зуя нужные префиксы:

direct, adequately, advantage, efficient, convenience, acceptable, likely

6. Переведите следующие сочетания слов с русского
языка на английский:

прямой обмен товарами и услугами, с ростом спе­циализации, ряд подобных обменов, гораздо более удобное средство, основная сложность бартерной системы, в развитом обществе, предмет мебели, без использования денег, первый шаг, проблема обменных курсов, запас товаров, большое удобст­во, огромный недостаток, в период инфляции.

7. Образуйте 3 формы от следующих глаголов:

take, prove, become, seek, need, find, set, spend, make, come, raise, give, store, fall, pay, spread, do

8. Составьте предложения, используя следующие
слова:

1. one, money, is, man's, inventions, greatest, of.

2. is, it, tool, essential, of, an, civilisation.

3. take, the, exchange, of, may, barter, form.

4. will, barter, requirements, quite, man's, adequately,
serve.

5. barter, the, system, very, and, inefficient, proves,
frustrating.

6. system, very, becomes, exchange, of, cumbersome,
this.

7. upon, a, depends, it, coincidence, wants, of, double.

8. discovered, a, arrangement, man, more, much, con­
venient.

9. removes, the, it, of,the, barter, major, system, diffi­
culty.

 

10. exchanges, are, such, for, granted, taken.

11. would, be, they, without, inconvenient, use, of, the,
money.

12. is, problem, exchange, the, rates, solved, of, easily.

13. is, to, deferred, it, serve, payment, means, a, as, of.

9. Заполните пропуски предлогами:

1. Monetary policy is concerned with the cost... money.

2. Bank-notes and coins are not the most important
form... money... developed economies.

3. Cheques didn't come... general use... the second
half of the seventeenth century.

4. A payment from one person... another merely
requires that the banker reduces the amount... one
deposit and increases it... another.

5. The transmission... payments... means... cheques
creates problems when the person making the pay­
ment has an account... a different bank... the person
receiving the payment.

6. Most countries have a central bank, which is respon­
sible... the operation... the banking system.

7. Several merchant banks date back... the nineteenth
century.

8.... recent years there has been a considerable exten­
sion... the range... financial services offered... build­
ing societies.

10. Поставьте вопросы к выделенным словам:

1. In the absence of some form of money, exchange may
take the form of barter.

2. As the extent of specialisation increases, the barter sys­
tem proves very inefficient.

3. A specialist metal worker must seek out a large num­
ber of other specialists in order to obtain, by barter, the
variety of goods he needs.

4. The alternative is to change his skins for some other
article.

5. The use of money makes possible a great extension of
the principle of specialisation.

6. The use of money allows us to exchange hours of
labour for an amazing variety of goods and services.

7. The direct exchange of goods for goods would raise
all sorts of problems regarding valuation.

8. The problem of exchange rates is easily solved when
all other commodities are valued in terms of a single
commodity.

9. It is a great convenience to hold wealth in the form of
money.

10. The money value of wealth may fall when it is being
stored.

11. Заполните пропуски, используя глаголы,данные в
скобках:

1. Exchange may... (to take) the form of barter, which
... (to be) to direct exchange of goods and services for
goods and services.

2. Baiter... (to serve) man's requirements quite ade­
quately when he... (to provide) most of the needs
directly and... (to rely upon) market exchanges for
very few of the things he... (to want).

3. As the extent of specialisation... (to increase) the
barter system... (to prove) inefficient.

4. In the simplest societies each family... (to provide)
by its own efforts most of its needs.

5. This system of exchange... (to become) very cum­
bersome as economic activities... (to become) more
specialised.

6. A specialist metal worker must... (to seek out) a large
number of other specialists in order... (to obtain), by
barter, the variety of goods he needs... (to satisfy) his
daily wants.

7. The great disadvantage of barter... (to be) the fact
that it... (to depend upon) a 'double coincidence of
wants'.

8. A hunter who... (to want)... (to exchange) his skins
for com must... (to find), not merely a person who...

(to want) skins, but someone who... (to want) skins and... (to have) a surplus of corn for disposal.

12. Ответьте на следующие вопросы:

1. What is barter?

2. When may exchange take the form of barter?

3. When is barter inefficient and frustrating?

4. What are the main functions of money?

5. Why has it become unprofitable to hold wealth in the
form of money in recent years?

6. Why is money a perfect means of deferred payments?

7. How does a complex trading organisation operate in
a monetary economy?