Right or wrong. Do not try to spend much time reading in detail for this activity

Use the headings to form a few questions of your own about each section of the text. This will

Give you a personal purpose for reading, and will help you read with more attention and understanding.

In turns, explain the problem which is of most interest to you. Discuss it with a partner.

4.Having read the text would you like to recommend it as a source which is really informative?

Basic Text. World Monetary System

The world monetary system is a complex of political and economic tools, interstate authorities

by means of which the settlement of international payments is realized, including:

• World money commodity which is the equivalent of the exported capital — the wealth of the

Nation.

• International liquidity, i. e. the possibility of the nation to ensure its credit and financial obligations.

• Rate of exchange — money value of units of one nation expressed in the units of any other

Nation.

• Currency (exchange) markets.

• International financial institutions and interstate agreements (charters, acts).

International Monetary System. Over the 1879-1934 period — with the exception of the

World War I years — an international monetary system known as the gold standard prevailed.

From the end of World War II in the mid-1940s until 1971 the so-called Bretton Woods system