Translate the text Money and Its Functions

Money and Its Functions

Money has four functions: a medium of exchange or means of payment a store of value, a unit of account and a standard of deferred payment. When used as a medium of exchange, money is considered to be distinguished from other assets.

Money as the medium of exchange is believed to be used in one half of almost all exchange. Workers exchange labour for money, people buy or sell goods in exchange for money as well.

People do not accept money to consume it directly but because it can subsequently be used to buy things, they wish to consume. To see the advantages of a medium of exchange, imagine a barter economy, that is an economy having no medium of exchange. Goods are traded directly or swapped for other goods. The seller and the buyer each must want something the other has to offer. Trading is very expensive. People spend a lot of time and effort finding others with whom they can make swaps. Nowadays, there exist actually no purely barter economies, but economies nearer to or farther from the barter type. The closer is the economy to be barter type, the more wasteful it is.

Serving as a medium of exchange is presumed to have for centuries been an essential function of money.

The unit of account is the unit in which prices are quoted and accounts are kept. In Britain, for instance, prices are quoted in pounds sterling; in France, in French francs. It is usually convenient to use the same unit to measure the medium of exchange as well as to quote prices and keep accounts in. However, there may be 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 US dollars as the unit of account Prices were quoted in dollars though payment was made in marks, the same goes for Russia and other post-communist economies who used the US dollar at a unit of account, keeping their national currencies at means of actual payment. The higher is the inflation rate, the greater is the probability of introducing a temporary unit of alongside the existing units for measuring medium of exchange.

Money is a store of value, for it can be used to make purchases in future. For money to be accepted in exchange, it has to be a store of value. Unless suitable for buying goods with tomorrow, money will not be accepted as payments for the goods supplied today. 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.

Finally, money serves as a standard of deferred payment or a unit of account over time. When money is borrowed, the amount to be repaid next year is measured in units of national currency, pounds of sterling for the United Kingdom, for example. Although convenient, this is not an essential function of money. UK citizens can get bank loan 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 money to be used successfully as a means of exchange. It must be a store of value as well. And it is usually, though not always, convenient to make money the unit of account and standard of deferred payment.

2. Translate the sentences into Russian or Ukrainian with the conjunctions the... the....

1. The greater a person’s income, the more he will usually buy.

2. The higher the labour productivity, the lower the production cost.

3. The higher is the demand, the higher can the price for the commodity be.

4. The greater is the number of sellers in a market, the better choice can a buyer make.

5. The more inelastic is the demand, the more will a tax fall on purchasers rather than sellers.

6. The more efficiently is the equipment used, the higher is the productivity and the more effective is the production.

7. In each industry, the more workers there are, the greater is the output of the good produced.

8. The higher the real wage, the more individuals the labour force comprises.

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