III. Vocabulary Reinforcement

A. Vocabulary

Match the words with their definitions.

medium, n	to move around or through something, or to make something move
purchase, n	to give support to someone or something with money or words
surplus, n	a method or way of expressing something
commodity, n	to change or vary
circulate, v	(an amount which is) more than is needed
back, v	to be or become greater in amount, degree or success
outstrip, v	something that you buy
measure, n	to gather or accumulate
store, n	a supply or stock of something
tangible, adj	quantity, amount, or degree of something
money, n	a product that can be traded, bought or sold
hoard, v	having a physical existence
fluctuate, v	a medium of exchange that functions as legal tender

B. Word Families

Complete the chart.

verb	adjective	noun
accept
	representative
value
		fluctuation
		purchase
	measurable
	scarce
		store
		tangibility

C. Word Groups

1. Match the words having similar meanings.

goods	exchange
standard	worth
value	commodity
fiat	medium
means	order
barter	measure

2. Match the words having opposite meanings.

to spend	to lose
to hoard	to demand
to outstrip	to circulate
to supply	to put aside

3. Match the following word partnerships as they appear in the text.

to accept as	demand
to outstrip	money
purchasing	payment
fiat	backing
economic	power
tangible	transactions

D. Word Fields

Which of the words and phrases below are associated with the following: 1) commodity money, 2) representative money, 3) fiat money?

To issue a fiat; gold; salt; olive oil; spices; to share; to circulate; paper money; to store; silver; precious stones; to be backed by smth tangible; to fluctuate; inflation; deflation; government.

E. Word Usage

1. Complete: use an appropriate preposition where necessary.

on, in(3), of(2), for(2), through, as

1. A market economy is based … voluntary exchange.

2. Money is a medium … exchange because the seller will accept it … exchange … good or service.

3. … the past governments used paper money … the form of gold or silver certificates to issue representative money.

4. The value of money is set …a government fiat or order. Money has value because the government has ordered that it should be acceptable … payment … dept.

5. When there is rapid and unpredictable inflation, money’s ability to act … a store of value decreases.

2. Linking: match the first half of each sentence with the most appropriate second half.

Money should perform the role as general purchasing power and	it must be universally acceptable.
Paper currency has been increasingly	using as a means or medium in buying and selling activities.
Over the history, for example, gold silver, precious stones, olive oil, salt, rice	commodity money.
A crucial role of the government in maintaining the value of fiat money is controlling its supply, in other words,	have been valued enough for their scarcity.
Money is not normally demanded for itself but for	i.e. activities which include the transfer of goods or services from one person or organization to another
Metallic money or coins is called	to act as a common measure of values of all goods and services.
Money is today popularly used in performing almost all economic transactions	issued and circulated in the present century
The second important function that money performs is	maintaining its scarcity