Ex. 11. Complete the sentences with the words from the box.

1. Our goods and services are sold for ______________________________.

2. A valuable ______________(gold, silver or copper) served as a constant store of value.

3. National ___________________ are considered to be as strong as the national economies.

4. ________________ are issued by government and authorized banks.

5. The value of money is basically its value as a __________________ of exchange.

6. Purchasing power is dependent on supply and _______________.

7. The supply of money is its actual ___________________in notes and coins.

8. The condition when too much money is available is known as ___________________.

9. The value that government chooses to give the most modern coins, irrespective of actual

metal content is their ____________________.

Ex.12. Match the word in column A with a word in column B.

A B

Ex. 13. Generate other forms from these words.

Ex. 14. Make up sentences with the jumbled words.

1. is about equal / the value / contained in it / commodity money / of / to the material

2. are willing / has / to accept it / people / it / because / value

3. a symbol / since/ power / has been regarded / civilization / as / began / gold / of / and wealth

4. the value / money / is fixed / fiat / of which / by government / paper money/ is

5. an economy / the state / is central / the quantity / in / to determine / of that economy /of

money

COMPREHENSION

Ex. 15. True or false. Correct the false statements.

1. The quantity of money in an economy does notdetermine the state of that economy.

2. Gold is not used anywhere else except being used for money.

3. Use of fiat money is ultimately based on faith because fiat money does not have intrinsic

value.

4. Most modern coins are based on face value, irrespective of the actual metal content.

5. Mankind always seems to have enough gold and the search for it has never driven men mad.

6. If money wears out it can’t be replaced with new coins or paper money.

7. “Cashless” means of payment include cheques, banker’s cards, and credit cards.

8. Most minor coins in circulation are a form of commodity money.

9. Gold is the most popular metal of which coins are made.