Question

На английском языке про деньги

Answer 1

Nowadays, money is universal means of payment. It is difficult to imagine our today’s life without it. We need money to buy living essentials, such as clothes and food products.
Well-off people buy various luxuries. They have more money, so they can afford more. With the money we can buy not only material things, but can also pay for services and knowledge.

Answer 2

Money

Money is a medium of exchange that is widely accepted in transactions for goods and services. It serves as a unit of account, a store of value, and a standard of deferred payment. Money can take various forms, including coins, banknotes, and digital currencies.

Key Points: - Money is a medium of exchange, unit of account, store of value, and standard of deferred payment. - It can take the form of coins, banknotes, or digital currencies.

Functions of Money

Money serves several important functions in an economy:

1. Medium of Exchange: Money facilitates the exchange of goods and services by acting as a commonly accepted medium of exchange. It eliminates the need for barter, where goods are directly exchanged for other goods.

2. Unit of Account: Money provides a standard unit of measurement for the value of goods and services. It allows for easy comparison of prices and helps in determining the relative worth of different goods.

3. Store of Value: Money can be saved and stored for future use. It retains its value over time and can be used to make purchases or investments in the future.

4. Standard of Deferred Payment: Money allows for the settlement of debts and obligations over time. It provides a means for deferring payment to a later date, such as through loans or credit.

Key Points: - Money functions as a medium of exchange, unit of account, store of value, and standard of deferred payment. - It facilitates transactions, measures value, retains value over time, and allows for deferred payments.

Types of Money

There are different types of money in circulation, including:

1. Commodity Money: Commodity money is a type of money that has intrinsic value because it is made of a valuable commodity, such as gold or silver. Historically, commodity money has been widely used, but it is less common today.

2. Fiat Money: Fiat money is a type of money that has value because a government declares it to be legal tender. It is not backed by a physical commodity but is accepted by law for payment of debts. Most modern currencies, such as the US dollar or the euro, are examples of fiat money.

3. Digital Currencies: Digital currencies, such as Bitcoin or Ethereum, are forms of money that exist only in electronic form. They are decentralized and operate on blockchain technology. Digital currencies offer the advantages of fast and secure transactions but can be subject to volatility.

Key Points: - Commodity money has intrinsic value, while fiat money derives its value from government declaration. - Digital currencies exist only in electronic form and operate on blockchain technology.

Conclusion

Money plays a crucial role in facilitating economic transactions and serves as a medium of exchange, unit of account, store of value, and standard of deferred payment. It can take various forms, including coins, banknotes, and digital currencies. Commodity money, fiat money, and digital currencies are different types of money in circulation. Understanding the functions and types of money is essential for comprehending the dynamics of the economy.

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