D) A currency which governments and international institutions

Are willing to hold in their gold and foreign exchange reserves,

And which finances a significant proportion of international

Trade.

E) The relationship of two currencies when changes in the exchange

Rate reflect only relative changes in the price levels in

The two countries.

Read the text, complete it using the words from the box, and translate it into Russian

Stable, hold, Euro, market, reserves, conditions

By reserve currency economists mean a currency which governments and international institutions

Are willing to... (1) in their gold and foreign exchange... (2), and which finances a significant

Proportion of international trade. These two... (3) normally require that (a) the value of the currency

Must be... (4) in relation to other currencies, (b) the currency is that of a country which

Holds an important share of world trade, (c) there exists an efficient foreign exchange... (5) in

Which the currency may be exchanged for other currencies, and (d) the currency is convertible.

The major reserve currency is the US dollar which accounts for over 50 per cent of the total, followed

By the European Currency Unit with the... (6), the Japanese yen and the UK sterling.

6.7.4. Written/Oral Practice

Make up sentences and microdialogues with the following word combinations on the subject of