Ex.22. Scan through the text and give headlines to its main parts and paragraphs

As we know, most countries in the world have their own monetary system and their own national currency. Though the United States, Canada or Australia use dollars, these dollars are different and they circulate only in the countries for which they are created.

If people need to sell or buy foreign currency for their local currency, they normally do it at banks or at special exchange offices, often called simply exchange. (1) ______________________.

The U.S. monetary system is based on the dollar ($1.00). There are 100 cents in a dollar. The most commonly used U.S. coins are the quarter (25 cents), dime (10 cents), nickel (5 cents), and penny (1cent). (2) __________________.

Many Americans don't like to carry much cash and use traveller's checks (printed pieces of paper that you sign and use as money when you are travelling) are a good idea for visitors. You won't have to carry large amounts of cash with you. Moreover, traveller’s checks can be replaced if they get lost or stolen.

In the United States, only small transactions are made with currency and coins, and the total spending done in this form is less than 1% of all transactions. For larger transactions, (3) _______________.

Writing checks is becoming less and less important as people increasingly use electronic transfers to make purchases.

 

Note: There are also other countries where the U.S. dollar is used as their official currency. The process is known as official dollarization. For instance, in 2000 Ecuador and in 2001 El Salvador adopted this currency independently. In some countries, the USD is accepted, though it is not officially regarded as legal tender. (4) _______________. Many stores in Canada also accept the U.S. dollar. In Cambodia, the USD circulates freely and is even preferred to the local currency. A chain of examples can be long.

 

The official currency of the United Kingdom is the pound sterling, which is equal to 100 pence. There are banknotes of the following denominations: ₤5, ₤10, ₤20, ₤50 and ₤100. English banknotes are issued by the Bank of England. (5) _______________ . The coins in circulation are halfpenny, one penny, two pence, five pence, ten pence, fifty pence.

The pound sterling has traditionally been among the highest-valued base currency units in the world. Today it is the fourth-most-traded currency in the foreign exchange market after the US dollar, the euro, and the Japanese yen.

Note: As a member of the European Union, the United Kingdom has the option of adopting the euro as its currency. However, the idea of replacing the pound with the euro has been controversial with the British public because of its identity as a symbol of British nationalism.

 

 

The euro (currency sign: ; banking code: EUR) is the single currency shared by the European Union’s Member States, which together make up the euro area.

About 330 million EU citizens who live in 17 euro area countries now use it as their currency and enjoy its benefits. It is also used, either formally as legal tender or for practical purposes, by other countries such as close neighbours and former colonies.

The euro was launched in 1999. First it was introduced as an accounting currency for cashless payments and accounting purposes, while the old currencies continued to be used for cash payments. Since 2002 the euro has been circulating in physical form, as banknotes and coins.

There are €5, €10, €20, €50, €100, € 200 and €500 banknotes. Euro banknotes increase in size with increasing denominations. The paper used for euro banknotes is 100% pure cotton fibre, which improves their durability as well as imparting a distinctive feel. The design of euro banknotes includes several characteristics suggested in co-operation with organizations representing blind people. These characteristics aid people who are visually impaired and those who are entirely blind.

The euro today has become the second most important international currency after the dollar. Apart from making travelling easier within the EU, a single currency makes economic and political sense. The framework under which the euro is managed underpins its stability, contributes to low inflation and encourages sound public finances. A single currency is also (6) ______________________. Using a common currency increases price transparency, eliminates currency exchange costs, facilitates international trade and gives the EU a more powerful voice in the world. (7) ________________. Last but not least, the euro gives the EU’s citizens a tangible symbol of their European identity.