Файл: Lilia Raitskaya Stuart Cochrane.docx

Unit

Before you read

Discuss these questions with your partner.

-* What is money?

-» Can anything be used as money?

Could stones and leaves be used instead ol coins and notes?

0 A Vocabulary

Choose the correct word or phrase.

One reason why people buy gold is because it

holds its value / is taken (or granted.

When we buy things, we money

for goods.

Diamonds are valuable because they are so

intrinsic / rare.

The dollar is the of the USA.

When people goods, they

simply exchange one good for another.

Banks will only lend to people who can to pay back the loan.

Some shops won't accept credit cards. They will only take

When something

people don't think it has great value.

Coins and notes are used to value.

Metals have value because they

can be used to make things.

If money can easily bo moved around and used we say it has

Centuries ago people paid using

. such as gold and silver.

.like

banknotes and coins, has no intrinsic value. It only represents value.

IF Reading 1

Money

The cash vve use every day is something we take for granted, hut for thousands of years people trailed without it. Ilefore money w;is invented, people used a system called hurt к rina Bartering is simply swapping one good for another. Imagine that you have milk, for example, and you want eggs. You simply l'ind someone who has eii£s and wants milk - ami you swap! However, you can set that this isn't a very convenient way to trade.

first of all. you can't be sure that anyone will want what you've got to offer. Yon have to hope that you'll be lucky and find someone who has what you want and that he or she wants what you've got The second problem with bartering is that many goods don't hold their value For example, you can't keep your milk for a few months and then barter it. Nobody will want it!

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After some time, people realised that some goods held their value and were easy to carry around and to trade with. Fxamples were metals like copper, bron/e and gold and other useful goods like salt. These are examples of comminlity money.

With commodity money, the thing used Юг buying goods has inherent value. For example, gold has inherent value because it is rare, beautiful and useful. Salt has inherent value Ivcause it makes food tasty. If you could buy things with a bag of salt, it meant you could keep a store of salt ami buy things anytime you needed them. In other words, commodity money can store value

I'sing commodity пюпеу was much more convenient than ordinary bartering, but it still had drawbacks < >nc of these drawbacks is that commodity пюпеу often lacks litfuulity Liquidity refers t.i how easily money can circulate There is obviously a limit to how much salt you can carry around¹ t here's another problem with commodity money not everyone may agree on the value of

^ В Comprehension

Complete the table with information from the text.

1 lie commodity which is used as money. It you live by the sea. salt may not b@ SO valuable to you. Money needs to be а ц<мк1 unit о/шччшш. In other words, everyone should know and agree on the value of a unit. This way. money can be used to measure the value of other things.

The solution is to create a kind of money that does not have any real intrinsic value, but that represents value. This is calledJuit money. The coins and notes that wi use today are an example of fiat money. Notes don't have any inherent value

they are just paper. However, everyone agrees that they arc worth something. More importantly, their value is guaranteed by the government This is the reason why pounds and dollars and the world's other currencies have value.

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	Examples	Advantages	Disadvantages
Bartering	swapping eggs for milk	simple to understand	goods don't
Commodity Money	) and )	allows you to store	not agrees on its value lack of liquidity means money can't
Fiat Money	) and )	value is (10) by the government

Before you listen

Discuss the following with your partner.

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You're going to listen to someone talking about the history of mor.oy. Before you listen, read through the statements below. Do you think they are true or false?

1 The earliest kind of money was

used about 3.000 years ago.	tD/fD
2 Shells were used ляa kind of
fiat money.	tD/fD
3The first metal coins appeared
in Greece.	tD/fD
4The first coins were round.	tD/fD
5Paper money first appeared
in China.	tD/fD
6The idea of paper money travelled
quickly to Europe.	tD/fD

68 M » r m * * Gui4| t f- f ' лллп1м и a» t 13

В с Listening Ц)))

Now listen and check your answers.

Before you read

Discuss the following with your partner.

-* What do banks do? Work with a partner to make a list of all the services that banks provide. Then compare your list with others in the class.

0 D Vocabulary

Complete each sentence with a word or phrase from the box.

accessible ATM 'compensate deposit make a living reliable I security sensible • transfer withdrawal

As against possible burglaries, they

installed alarms.

Some people aren't very with their

money and they waste it on useless things.

If you are injured at work, you may get money to for losing your salary.

If something is you can trust it to

work properly.

things are easy to reach or to get.

When you things you move them

from one place to another.

7 An is a machine that gives

customers money when the bank is closed.

Most people have to work m order to

• When you make a you put money

into your account.

When you make a you take money

out of your account.

Banks

If you work, you've probably got a bank account. You eoukl keep tlu- money you earn each month in a Ikix under your bed. but it wouldn't be very sensible. < >ne reason is that it's not very salt It your house yets burgled, you'll lose everything you've saved Another reason is that your money will lose value.

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As prices rise, the money in a l*>\ under your bed will be able to buy fewer and fewer things. Monev in a bank savings account, however, will earn interest. The interest will help compensate lot the effect of inflation. Hut banks are more than just safe places for your money What other services do they offerV

The other main service is lending money Individuals and businesses often need to I юг row money, and they need a lender that they can trust This is exactly what banks are - reliable lenders, hi fact, most of the monev that people deposit in their bank accounts is immediately lent out to someone else.

M , t • ' ft t i 69

Apart from storing and lending money, banks offer other financial services. Most of these arc w ays of making money more accessible to customers. For example, banks help people transfer money securely. They give customers cheque books and credit cards to use instead of cash They provide ATM machines so that people can get cash any time of the day or night

Bui how Jo banks make a livingV Basically. they make a living by charging interest on loans. < )t course, when you make a deposit into a bank savings account, the bank pays yon interest on that money However, the rate they pay savers is less than the rate they charge borrowers The extra money they make by charging interest on loans is where banks earn most of their money

l or banks, interest is also a kind of security. Sometimes people do not pay back money they borrow This is called liefaultim• on ц When

someone defaults on a loan, the bank uses money earned from interest to cover the loss.

All of this means that most of the money people have saved in the bank is not there at all! Л small amount of the total savings is kept by tin bank so that customers ean make withdrawals. The rest, however, is made available for loans. The amount that is kept is called the rc.svrcc. The reserve must lie a certain percentage of all the savings received from customers - for example JO per cent. This figure is set by the central bank, and this is one of the ways that governments can control the amount of money circulating in the economy.

В E Comprehension

Now read the text again and answer these questions in your own words in the space provided below.

W1i.it two reasons are given for saving your money in a bank account?

Why do people prefer to borrow money from banks?

Do banks do anything else for their customers other than store and lend money?

How do banks earn money?

Who decides how much money the bank keeps in reserve?

Before you listen

Discuss these questions with your partner.

If a bank note is not real, we call it a takeorcounterfeitnote.

-» How do you know if a banknote is real or not?

What can banks do to make people trust their notes and coins?

F Listening Ц)))

Look at these notes about whether a ten-pound note is genuine or not and see if you can guess what goes in the gaps.

Paper is very (1)

The words (2) are raised from the

paper.

There should be a strip of f3)m the

middle of the note

There is a watermark of the (4)

There is a hologram which shows a picture of

Britannia, who was a (5) and the

(6)

With a magnifying glass you can see the word f7) written in tiny microlettering.

If you put the note under fluorescent light, a bright (8).. number ten will appear.

70 M. _an i« Eroifi* т i if- t о

Now listen and check your answers.

G Speaking

Discuss these questions with your partner.

Can you imagine life without money?

What are the dangers ol using a credit card to pay with instead of money?

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What do you know about digital money?

Task

Give a two-minute presentation on the history of money. First, read through text 1 again and make notes below on the following.

bartering commodity money fiat money

You can also include recent developments not mentioned in the text, such as credit cards and digital money.

Pronunciation guide

Liquidity ilwubti Copper knjvxri Accessible дк sesobl Deposit¹ii i iliptvit Withdrawal wiA'drr>s>l Borrower lint.>>oir) Default <li i.i:i! Bartering f-xrurtq Fiat 11..W

Write a promotional leaflet for a bank.The aim of the leaflet is to attract new customers and to inform existing customers about the services the bank offers.

Use an informal, friendly style like you see in advertisements. Organise the leaflet using the plan ah.o4mh.ero.

Promotional leaflet

PARAGRAPH 1

Give a brief history of the bank and say how big it is today (to give confidence to customers).

PARAGRAPH 2

Explain what your main services are. and what advantages you ofte.rcompared to other bankR (for example, interest rates).

PARAGRAPH 3

Say what other services you offer and how they can be useful to your customers: for example, special savings schemes for certain people (students / pension schemes for workers) and Internet banking.

PARAGRAPH 4

/

Say how customers (or potential customers) can contact the bank (e-mail, web page, phone number, local branches, etc).

Write 200-250 words

A

4

FT

A

Unit

Before you read

Discuss these questions with your partner.

72 Hk ^ illm Gi'df to Fro46f"<<t Unit 14

What taxes do people pay in your country? -> Are the taxes fair? Why / Why not?

ff A Vocabulary

Choose the correct answer А, В or С from the list opposite.

The department of the government

looks after roads, railways and airports.

l'hc government hopes its will help

reduce unemployment.

The parts that something is made of are sometimes called

4 employment is when everyone who

can work has a job.

The money that you have after you've paid taxes is called your income.

The part of a person's salary that is not taxed is called their personal

The government plans many new

projects, such as building new hospitals and schools.

Another word for extra goods that are not needed is

When the economy is working at full

it is using all its resources

for production.

A is a large, fast road which

connects cities.

A is a plan for achieving something.

In a tax syslem, people who earn

more pay more tax than people who earn less.

\ transport	education	defence
' components	allowance	policy
' income	H components	capacity
■ absolute	complete	С full
■ full	disposable	spending
allowance	surplus	: capacity
V personal	public	disposable
i. surplus	shortage	allowance
\ employment	income	capacity
path	motorway	railway
'> component	1project	1scheme
'• surplus	progressive	public

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