Banknotes in Britain, refers to the fiduciary issue. Only four denominations of notes are now issued

to the general public, the largest being the ￡50 note. Most other developed countries issue notes of

Much larger denominations than this, probably because the use of cheques is less developed elsewhere

than in Britain. (The 10s. note was replaced by the 50p coin in 1969 and a ￡1 coin was

introduced in 1983, entirely replacing the ￡1 note in 1986.)

Commentary and Notes to Text 6.7.1.5

London goldsmiths — лондонские мастера золотых дел

To deposit — класть на хранение

To lend — ссуживать, одалживать, кредитовать

Deposit receipts came to be used as money — сохранная расписка стала использоваться в

Качестве денег

Legal tender — законное платежное средство

Fiduciary issue — фидуциарная (основанная на доверии) эмиссия

Match the following terms with the correct definition

Work with a partner.

Par value

Purchasing power parity

(PPP)

Gold standard

Reserve currency

Currency

A) A primarily theoretical international monetary system in

Which nations fix their exchange rates in terms of gold. Thus

All currencies are fixed in terms of each other. Any balanceof-

Payments problems could be made up by shipments of gold.

b) Notes and coins that are the “current” medium of exchange

In a country.

C) The legally established value of the monetary unit of one country

In terms of that of another.