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V. Answer the following questions:

  1. What is money?

  2. What qualities should the material for money possess?

  3. What is the principal difference between a barter economy and a money economy?

  4. What functions does money play in the society?

  5. What is currency?

VI. Define the terms:

stability durability

divisibility portability uniformity recognizabilify

VII. Translate into English:

1. BinbiuicTb Kpa'iH BHKopncTosye bmcokohklchmm nanip rda BuroTOBneHHB rpoiueM. 2. OAHa 3 ronoBHMX nepeBar rpoiuevi Hafl 6aprepoM — u,e Te, mo rpouii MoxtHa pjmniM Ha sacTMHM. 3. TonoBHa pi3HKU.fi mw; 6apTepHoto Ta rpouiOBOio eKOHOMi-kok> nonarae b TOMy, lu,o npM 6aprepHiii eKOHOMiuj saM cniA LuyKaTH Korocb, xto Mas 6m re, mo bm xoneTe, i xotIb 6m Te, mo bh Made. 4. rpouii flatc-Tb na/v. 3Mory BCTaHosniOBaTM UJHy Toeapy. 5. Tpouji — u,e 3aci6, iu,° flae naiw MOKrwsicTb Po6mtm o6m1h. 6. Tpouii A^tOTb 3Mory HaM po6mtm noKynKM Konn-He6yAb y Ma*i6yTHbOMy, BitKopMCTOByKiHM BapTicTb ho-rocb, mo mm npoftaeMO cboroAHi. 7. BanioTa — u,e nanepoBi rpoiui ra MOHeTM, hkmmh mm KOpMcryeMocFi Mafiwe moAHn.

VIII. Read and dramatize the following dialogue:

A.: In what currency will payments be made?

6.; We'll provide for payments in local currency in our

contract. A.: Is currency conversion allowed under your local legislation?

B.: Yes, it is.

A.: How will currency fluctuations be taken into account?

8.: To avoid currency losses we shall provide for a currency

clause in our contract. A.: How will the currency be exchanged? 8.; At the rate of the day. A.: To avoid currency losses we suggest including into the

contract a currency clause pegging the currency of payments

to SDRs in US dollars. B.; No objections. And in what cases will payments be adjusted? A.; Payments will be adjusted if the cost of one SDR changes.

63

fi.: We believe that you will use the adjustments of the Inter­national Monetary Fund.

A.: Yes, certainly. Please note that if the amount of the letter of credit is not sufficient the Customer will have to increase the letter of credit accordingly.

IX. Make up your own dialogue using the following expressions:

local currency currency fluctuations

to exchange currency to make payments

to provide for payments to take into account

to adjust payments to avoid currency losses

X. Put the infinitives in brackets in the Past Continuous Tense:

Model: The company (to raise) prices for the merchandise

the whole year.

The company was raising prices for the merchandise

the whole year. 1. The management (to consider) the outflow and inflow of capital, while they produced the new types of devices. 2. The company (to buy) currency from the foreign exchange department, when they dealt with the foreign firm. 3. Our partner (to provide) for payments in local currency, when currency conversion was allowed under the local legislation. 4. Our bank (to make) loans to corporations when they were in need. 5. The bank (to accept) money from depositors at that time.

XI. Paraphrase the following sentences as in the model:

Model: He intended to convert American dollars to Swiss

francs in foreign exchange departments.

He was going to convert American dollars to Swiss

francs in foreign exchange departments.

1. We intended to buy merchandise from another country

using the currency of that country. 2. Our bank intended to accept

money from depositors. 3. This bank intended to make loans to

corporations. A. We intended to provide for a currency clause in

our contract. 5. I intended to invest money into this corporation.

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