Lesson 2

MONEY

1.Words to master:

token - знак, символ

marketable - товарний; ринковий

to compel - змушувати

to emerge - виникати

utility – вигода, користь

commodity – предмет споживання

transaction – погодження, договір

perishable – скоро плинний, нестійкий

fiat money – паперові гроші

coercion – насилля, фізична сила

invention - винахід

exchange - обмін

denominate - визначати

debt – борг

2.Read and translate the text:

Money

Money is any marketable good or token used by a society as a store of value, a medium of exchange, and a unit of account. Since the needs arise naturally, societies organically create one or several money objects when none exists. In other cases, a central authority creates a single money object and compel s its use; this is more frequently the case in modern societies with paper money.

Commodity money was the first form of money to emerge. Under a commodity money system, the object used as money has inherent value. It is usually adopted to simplify in a barter economy; thus it functions first as a medium of exchange. It quickly begins functioning as a store of value, since holders of perishable goods can easily convert them into durable money.

In modern economies, commodity money has also been used as a unit of

account. Gold-backed currency notes are a common form of commodity money.

Fiat money is a relatively modern invention. A central authority (government) creates a new money object that has minimal inherent value.