Why does money have value?
Ex. 1. Translate into English.
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Ex. 4 See exercise 1.4. from Unit 1. Why does money have value?
Ex. 1. 4 Translate the following text into Russian
Why does money have value?
Money doesn't have any inherent value. It is simply pieces of paper or numbers in a ledger.
In the past money was in the form of coins generally composed of precious metals such as gold and silver. The value of the coins was roughly based on the value of the metals they contained, because you could always melt the coins down and use the metal for other purposes. Until a few decades ago paper money in different countries was based on the gold standard or silver standard or some combination of the two. This meant that you could take some paper money to the government, who would exchange it for some gold or some silver based on an exchange rate set by the government. Now there is a system of fiat money that is used only as a medium of exchange and which is not tied to any other commodity.
Money is a good with a limited supply and there is a demand for it because people want it. They know that they can use their money to others to get goods and services from them in return. They can then use that money to purchase goods and services that they want. Goods and services are what ultimately matter in the economy, and money is a way that allows people to give up goods and services which are less desirable to them, and get ones that are more so. People sell their labor to acquire money now to purchase goods and services in the future.
Our system of money operates on a mutual set of beliefs. It is unlikely that money will be replaced in the near future, because the inefficiencies of a dual coincidence of wants system are well known. If one currency is to be replaced by another, there will be a period in which you can switch your old currency for new currency. This is what happened in Europe when countries switched over to the Euro. So our currencies are not going to disappear.
Контрольная по английскому языку включает несколько заданий и создана для экономистов.
