1. One reason why people buy gold is because it holds its value / is taken for granted.

2. When we buy things, we swap / represent money for goods.

3. Diamonds are valuable because they are so intrinsic / rare.

4. The dollar is the cash/currency of the USA.

5. When people barter/guarantee goods, they simply exchange one good for another.

6. Banks will only lend to people who can guarantee/barter to pay back the loan.

7. Some shops won't accept credit cards. They will only take cash / currency.

8. When something holds its value / is taken for granted people don't think it has great value.

9. Coins and notes are used to swap / represent value.

10. Metals have intrinsic/rare value because they can be used to make things.

11. If money can easily be moved around and used we say it has liquidity / currency.

12. Centuries ago people paid using commodity money / fiat money, as gold and silver.

13. Commodity money / Fiat money, like

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

Complete the table with information from the text.

Banks

If you work, you've probably got a bank account. You could keep the money you earn each month in a box under your bed, but it wouldn't be very sensible. One reason is that it's not very safe. If your house gets burgled, you'll lose everything you've saved. Another reason is that your money will lose value.

As prices rise, the money in a box under your bed will be able to buy fewer and fewer things. Money in a bank savings account, however, will earn interest. The interest will help compensate for the effect of inflation. But banks are more than just safe places for your money. What other services do they offer?

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

Apart from storing and lending money, banks offer other financial services. Most of these are ways 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.

But how do banks make a living? Basically, they make a living by charging interest on loans. Of course, when you make a deposit into a bank savings account, the bank pays you 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.

For banks, interest is also a kind of security. Sometimes people do not pay back money they borrow. This is called defaulting on a loan. 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! A small amount of the total savings is kept by the bank so that customers can make withdrawals. The rest, however, is made available for loans. The amount that is kept is called the reserve. The reserve must be a certain percentage of all the savings received from customers - for example 20 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.

Переведите на английский язык:

1.    До того как появились наличные деньги, которые сегодня люди принимают как должное, основной системой расчётов была система обмена, или бартера.

2.    Первыми товарными деньгами были металлы, соль и другие ценные товары. Такие деньги не обладали ликвидностью, т.е. способностью свободно циркулировать, но сохраняли стоимость.

3.    Бумажные деньги не обладают внутренней стоимостью, а только представляют стоимость.

4.    Если вы сберегаете деньги, то можно хранить их под кроватью в коробке, что небезопасно и неразумно, или положить их на счёт в банке. Деньги на счету приносят проценты.

5.    Главная услуга, которую любой банк оказывает своим клиентам, — предоставление кредита. Банки — самые надёжные кредиторы.

6.    Если клиент не возвращает кредит, банк использует проценты для покрытия убытков. Хотя большинство клиентов возвращает кредиты, процент служит формой защиты.

7.    Клиенты банков могут в любое время снять деньги со счетов, поскольку любой банк держит часть сбережений, полученных от клиентов, в качестве резерва.

Banks

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

accessible   ATM compensate deposit

make a living         reliable security

sensible      transfer      withdrawal

1. As … against possible burglaries, they installed alarms.

2. Some people aren't very … with their

money and they waste it on useless things.

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

4. If something is … you can trust it to work properly.

5. … things are easy to reach or to get.

6. 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.

8. Most people have to work m order to … .

9. When you make a … you put money into your account.

10. When you make a … you take money out of your account.