MONEY YESTERDAY AND TODAY.

When people make more production they need, they want to exchange it for something else. But what to do if the product is big and heavy? So people invented money. We use it to buy and sell goods and to make savings.

In old time in different countries there were various types of money: animal skins and cattle, cocoa beans and salt, shells and stones…

In our land our greatgrandfathers used grain, fur skins and later – gold. In Kyiv Rus money was called hryvnia and now we have hryvnias too.

Paper banknote and metal coins are easy to hold, to save, to transfer and to use. That is why they replaced old kinds of money. Every country has its type of money that is called “a money unit”.

When people travel from one state to another they need to exchange money. There is an exchange rate for this. It is approximately equal all over the world for main money units at a certain moment of time, but changes from day to day.

For example, eight Ukrainian hryvnias is approximately equal to 1 USA dollar, one pound of sterling is approximately equal to 1,6 USA dollars.

The exchange rate depends on situation in currency market. In Ukraine, like in other countries of the world, we may change hryvnias into other currency in banks or special booths called “Bureau de change”. They give a receipt in which it is written how much money you give, what the current exchange rate is and how much foreign currency you receive. But in Ukraine you can not use foreign currency to buy something or to pay for any service. You must use hryvnias only. The same situation is in every country of the world: people use only national currency in the country.

You may pay in cash (banknotes and coins), by cheques or by credit cards.

If you have a bank account you are given a cheque-book and when you need to pay, it is necessary to write the sum, to sign the cheque, pull it out of the book and give the seller.

If you have a special account for a credit card you simply call the sum and give your card number to the seller who fixes it and then take the sum off your account. He gives you a bill.

If you need to take cash from your credit bank account you may get it from a bank or a bankomat (GB cashpoint, cash machine; US automatic teller machine).

A bankomat is a computer terminal provided by a bank to receive, dispense, and transfer funds electronically for its customers. You put your card into a slot, press some buttons to let the machine know what sum of money you need, take your card back and receive your cash from the bankomat.

Usually banks take some money for service, the money is called commission and is not large.

Exercise 1. Give Ukrainian equivalents for the following.

To exchange; to invent; to buy and sell; to make savings; paper banknote; metal coins; to hold, to save, to transfer and to use; a money unit; an exchange rate; currency market; Bureau de change; foreign currency; to pay (in) cash, by cheques or by credit cards; a cheque-book; commission.

Exercise 2. Finish the statements.

1. When people make more production they need…

2. We use money to…

3. In old time in different countries there were…

4. Paper banknote and metal coins are easy…

5. When people travel from one state to another they need…

6. The exchange rate depends on…

Exercise 3. Read the text again to find the definitions for the following.

1. A money unit is…

2. An exchange rate is…

3. Bureau de change is…

4. A bank receipt is…

5. A cheque-book is…

6. A credit card is…

7. A bankomat is…

8. A bank commission is…

9. Money is…