《金融英语 Financial English》课件Chapter 3 Money.pptVIP

Chapter 3 Money 1. Introduction to field work and lead-in the text. Electronic money Cash free society The monetary system in the world Pre-reading activities Activity 1 Brainstorming a. Students work with partners and list some words relevant to money, the functions, different forms, the history, the usage of money, etc b. Invite some students to give their list and provide the suggested list below if necessary: Activity 2 the structure and main ideas of the text The text is cited from a foreign textbook. In the text, the author tells us what is money, the four functions of money, different forms of money and their respective advantages and disadvantages. Part one the definition of money Definition: Money is any commodity or token that is generally acceptable as a means of payment for goods and services. Part two the functions of money Medium of exchange, unit of account, store of value, standard of deferred payment 1. Medium of exchange Definition: a medium of exchange is a commodity or token that is generally accepted in exchange for goods and services. Such a medium is money. Imagine a society without money, such as the barter economy. Barter economy: an economy that people exchange goods or services directly for other goods and services. Such an economy may take place only when there is a double coincidence of wants. Double coincidence of wants is a situation that occurs when person A wants to buy what person B is selling and person B wants to buy what person A is selling. Money guarantees that such a coincidence always happens. People with something to sell always accept money, and people who want to buy will always offer money. Money is a medium that lubricate and smooth the mechanism of transaction. 2. Unit of account Definition: an agreed measure for stating the prices of goods and services is a unit of account. If there was not money, people would have to figure out the value of goods or services in terms of other goods and services, such as Ham