The purchasing power of money

a. increases during periods of inflation.

b. decreases during an inflation.

c. decreases during a deflation.

d. is unaffected by inflation or deflation.

Exercise 2.4 Find the equivalents:

1. Medium of exchange	a. Сучасні гроші
2. Measure of value	b. Грошова маса
3. Store of value.	c. Виходити з обігу
4. To be any substance	d. Бути будь-якою річчю
5. To issue money	e. Міра вартості
6. Modern money	f. Засіб обміну
7. To go out of circulation	g. Запас вартості
8. Paper/soft money	h. Випускати гроші в обіг
9. Money supply	i. Паперові гроші
10. To express worth	j. Виражати вартість
11. To be converted	k.Плата, платіж
12. Payment	l. Бути конвертованим

Exercise 2.5 Match the words with their definitions:

1.A salary	a) an amount of money which you lend to someone
2. A loan	b)extra percentage paid on a loan
3. A debt	c) money which is in the form of coins and notes, not cheques
4. Cash	d) paid as a punishment for breaking the law
5. Wages	e) money paid by a divorced father to his former wife for the upkeep of his children
6.Alimony	f) a fixed amount which is paid, usually monthly, to workers of higher rank
7. Interest	g) an amount of money you receive, usually weekly, in return for labor or service
8. A fine	h) paid at the restaurant after eating
9. A bill	i) a sum of money which is owed to someone
10.A grant	j) money paid by the state, usually to students

Exercise 2.6 Complete the sentences choosing one of the options:

1. When you retire at the age of 65, you receive a _____ from the government.

a) pension b) grant c) fine

2. If production in that factory exceeds the target, the workers get a _____.

a) premium b) bonus c) donation

3. Income tax is _____ to one’s annual income.

a) dependent b) related c) based

4. The _____ of living has risen by 25 % in the last six months.

a) expense b) price c) cost

5. The kidnappers demanded a _____ of $ 1,000,000.

a)reward b) penalty c) ransom

6. The President admitted taking ______ and had to resign.

a) bribes b) premiums c) fees