Монета. Бумажные деньги

В те времена, когда за товары платили ценными металлами для торговли было большим неудобством то, что при каждой продаже и покупке приходилось определять содержание и вес каждого куска денежного металла. Это неудобство исчезло, так только общепризнанный авторитет стал гарантировать верность веса и содержание каждого куска металла. Таким образом, слитки металла превратились в изготовляемые государством металлические монеты.

Но как только деньги приобретают форму монеты, эта последняя получает независимое от её содержания значение. Ёщё резче проявляется разница между наименованием и действительным содержанием в монете. Не­благородные металлы, как, например, медь, очень часто служили первоначально деньгами, а затем уже были вы­теснены благородными металлами. Медь, а после введения золотой валюты и серебро перестали быть мерами стоимо­сти, хотя медные и серебряные монеты продолжали функ­ционировать в качестве средства обращения в торговле. Они стали соответствовать теперь определённым весовым частям золота. Стоимость, которую они пред­ставляют, изменялась в зависимости от реальной стоимо­сти золота и нисколько не зависела от колебаний стоимо­сти серебра и меди.

Очевидно, что при этих условиях их металлическое со­держание не имеет влияния на их монетную функцию.. Отсюда — только один шаг к тому, чтобы заменить металлический знак бумажным, прирав­нять законодательным путём не имеющий никакой стои­мости кусок бумаги к некоторому количеству золота.

Бумажные деньги могут заменять золотые деньги только в качество средства обращения, но не в качестве меры стоимости. Они могут заменять их лишь постольку, поскольку они представляют определенные количества золота.

Text 5

Money and its Functions.

Read the text and aswer the questions:

1. Why do people accept money?

2. Dwell on the functions of money.

3. Dwell on different kinds of money.

4. What's a barter economy? Why is trading expensive in a barter economy?

5. What currency can be used as the unit of account? Speak on the current situation in Russia.

6. What does IOU stand for?

Although the crucial feature of money is its acceptance as the means of payment or medium of exchange, money has other functions. It serves as a standard of value, a unit of account, a store of value and as a standard of deferred payment.

The Medium of Exchange.

Money, the medium of exchange, is used in one-half of almost all exchange. Workers exchange labour services for money. People buy and sell goods in exchange for money. We accept money not to consume it directly but because it can subsequently be used to buy things we do wish to consume. Money is the medium through which people exchange goods and services.

To see what society benefits from a medium of exchange, imagine a barter economy. A barter economy has no medium of exchange. Goods are traded directly or swapped for other goods. In a barter economy, the seller and the buyer each must want something the other has to offer. Each person is simultaneously a seller and a buyer. In order to see a film, you must hand over in exchange a good or service that the cinema manager wants. There has to be a double coincidence of wants. You have to find a cinema where the manager wants what you have to offer in exchange.

Trading is very expensive in a barter economy. People must spend a lot of time and effort finding others with whom they can make mutually satisfactory swaps. Since time and effort are scarce resources, a barter economy is wasteful. The use of money - any commodity generally accepted in payment for goods, services, and debts - makes the trading process simpler and more efficient.

Other Functions of Money.

Money can also serve as a standard of value. Society considers it convenient to use a monetary unit to determine relative costs of different goods and services. In this function money appears as the unit of account, is the unit in which prices are quoted and accounts are kept.

It is usually convenient to use the units in which the medium of exchange is measured as the unit of account as well. However there are exceptions. During the rapid German inflation of 1922 - 1923 when prices in marks were changing very quickly, German shopkeepers found it more convenient to use dollars as the unit of account. Prices were quoted in dollars even though payment was made in marks, the German medium of exchange. The situation in Russia nowadays reminds of that of in Germany.

Money is a store of value because it can be used to make purchases in the future.To be accepted in exchange, money has to be a store of value. Nobody would accept money as payment for goods supplied today if the money was going to be worthless when they tried to buy goods with it tomorrow. But money is neither the only nor necessarily the best store of value. Houses, stamp collections, and interest-bearing bank accounts all serve as stores of value. Since money pays no interest and its real purchasing power is eroded by inflation. there are almost certainly better ways to store value.

Finally, money serves as a standard of deferred payment or a unit of account over time. When you borrow, the amount to be repaid next year is measured in euro or in some other hard currency. Although convenient, this is not an essential function of money. UK citizens can get bank loans specifying in dollars the amount that must be repaid next year. Thus the key feature of money is its use as a medium of exchange. For this, it must act as a store of value as well. And it is usually, though not invariably, convenient to make money the unit of account and standard of deferred payment as well.

Different Kinds of Money.

In prisoner-of-war camps, cigarettes served as money. In the 19th century money was mainly gold and silver coins. These are examples of commodity money, ordinary goods with industrial uses (gold) and consumption uses (cigarettes), which also serve as a medium of exchange. To use a commodity money society must either cut back on other uses of that commodity or devote scarce resources to producing additional quantities of the commodity. But there ­are less expensive ways for society to produce money.

A token money is a means of payment whose value or purchasing power as money greatly exceeds its cost of production or value in uses other than as money.

A $10 note is worth far more as money than as a 3 x 6 inch piece of high quality paper. Similarly, the monetary value of most coins exceeds the amount you would get by melting them down and selling off the metals they contain. By collectively agreeing to use token money, society economizes on the scarce resources required to produce money as a medium of exchange. Since the manufacturing costs are tiny, why doesn't everyone make $10 notes? The essential condition for the survival of token money is the restriction of the right to supply it. Private production is illegal.

Society enforces the use of token money by making it legal tender. The law says it must be accepted as a means of payment.

In modem economies, token money is supplemented by IOU money. A IOU money is a medium of exchange based on the debt of a private firm or individual.

A bank deposit is IOU money because it is a debt of the bank. When you have a bank deposit the bank owes you money. You can write a cheque to yourself or a third party and the bank is obliged to pay whenever the cheque is presented. Bank deposits are a medium of exchange because they are generally accepted as payment.

Notes to the text

a standard of value - мера стоимости

a unit of account - единица учета

a store of value - средство сбережения (сохранения стоимости)

a standard of deferred payment - средство погашения долга

a barter economy - бартерная экономика

to swap (also swop; syn. to exchange, to barter) - обменивать, менять

to hand over in exchange - передать, вручить в обмен

a double coincidence of wants - двойное совпадение потребностей

a monetary unit - денежная единица

to be worthless - обесцениваться

an interest-bearing bank account - счет в банке с выплатой процентов

to pay interest - приносить процентный доход

to erode - зд. фактически уменьшать

hard currency - твердая (конвертируемая) валюта

soft currency - неконвертируемая валюта

invariably - неизменно, постоянно

commodity money — деньги - товар

token money - символические деньги (дензнаки)

tiny costs - мизерные затраты

legal tender - законное платежное средство

to supplement - дополнять

IOU money -I owe you - я вам должен; деньги - долговое обязательство

a bank deposit - вклад в банке

Exercise 1. Suggest the Russian equivalents and give your own sentences

exchange labor services for money; you must hand over in exchange a good or service; a double coincidence of wants; spend a lot of time and effort; make mutually satisfactory swaps; a barter economy is wasteful; commodity generally accepted in payment for goods; prices are quoted and accounts are kept; the rapid German inflation; its purchasing power is eroded by inflation; it's usually but not invariably convenient; cut back on other uses; exceeds its cost of production; by collectively agreeing; the survival of token money; society enforces the use of token money; interest-bearing bank accounts

Exercise 2. Replace the words in italics by synonyms from the text

sometimes payment can be put off till later, the vital feature of money; Us purchasing power is worn away, the money is without value; it is not always convenient; time and effort are rare resources; private production of money is against the law

Exercise 3. Find in the text opposites to the following words and expressions

take away; reject; planned event; in a minor way; increase; is less than separately; very large; be under no compulsion to; public

Exercise 4. Fill in the gaps with the words and expressions from the text

1. The crucial feature of money is its acceptance as __ or __.

2. People buy and sell goods __ for money.

3. In a barter economy goods are traded directly or __ other goods.

4. People must spend a lot of__ finding others with whom they can make mutually __.

5. Society considers it convenient to use __ to determine __ of different goods and services.

6. The unit of account is the unit in which prices are __ and __ are kept.

7. During the rapid German inflation German shopkeepers found it __ to use dollars as __.

8. Money is a store of value because it can be used __.

9. Nobody would accept money as payment for goods supplied today if the money was going __.

10. Since money __ and its real __ power __ by inflation, there an almost certainly better ways to store value.

11. UK citizens can get bank loans __ the amount that __ next year.

12. When you borrow, the amount to be repaid next year is measured in __.

13. __ are ordinary goods with __ (gold) and __ (cigarettes), which also serve as a medium of exchange.

14. To use a commodity money, society must either __ other uses of that commodity or devote __ to producing __ of the commodity.

15. A token money is a means of payment whose __ as money greatly _ its cost of production or value in uses other __.

16. By __, society economizes on the scarce resources required to produce money as __.

17. The essential condition for the survival of token money is __ to supply it.

18. Society enforces the use of token money by making it __.

19. In modem economies, token money __ by __.

20. An IOU money is a medium of exchange based on __ .

Exercise 5. Find in the text English equivalents

основная (ключевая) черта; средство платежа; средство обращения; мера стоимости; средство сбережения (средство сохранении стоимости); единица учета; средство погашения долга; в обмен на; может быть впоследствии использовано; обмениваться товарами и услугами; бартерная экономика; измеряться); обесцененный; платить проценты; покупательная способность; промышленное использование; потребитель­ское использование; деньги - товар; денежные знаки (символические деньги); денежная стоимость; ограничение права; вклад в банке; банков­ская ссуда; законное платежное средство; долговое обязательство.

Exercise 6. Explain in English

double coincidence of wants; deferred payment; medium of exchange; purchasing power; monetary value; legal tender; IOU

Exercise 7. Translate into English

1. Существует несколько функций денег. Во-первых и прежде всего, деньги являются средством платежа, или обращения; деньги можно ис­пользовать при покупке и продаже товаров и услуг. Деньги выступают также мерой стоимости. Общество считает удобным использовать денеж­ную единицу в качестве масштаба для соизмерения относительных стои­мостей различных благ и ресурсов.

Деньги служат средством сбережения. Поскольку деньги являются наиболее ликвидным товаром, то есть таким, который можно без про­блем продать (обменять), то они являются очень удобной формой хране­ния богатства. Это, однако, не единственная форма хранения богатства. Во время упадка в экономике, при высокой инфляции и обесценении денег, население, скорее всего, будет хранить богатство в виде недвижи­мости или других дорогостоящих товаров — предметах искусства, драго­ценностях.

2. Деньги, которые, в сущности, являются долговыми обязательствами государства, коммерческих банков и сберегательных учреждений, имеют стоимость благодаря товарам и услугам, которые приобретаются за них на рынке.