16. Money, values, obsessions - P

16. Money, values, obsessions

Cashflow oběživo

Hard currency tvrdá měna

Cheques šeky

Exchange rate směnný kurs

Cheque book šeková knížka

Credit card kreditka

Barter směnný obchod

Cash hotovost

What is money?

Money is everything that serves as a universally accepted medium of exchange or means of payment.

It is the most active and powerful economic instrument which is used anywhere and anytime.

Function of money

Money helps people to exchange goods and services for other commodities, it means to make transactions.

It gives the value to nearly everything.

It can be kept for spending at a later date.

We can compare the value of various goods and services thank to money.

Evolution of money

Before money people used the barter system to exchange their products. Barter was the direct change of goods. In the market place one could barter his hen for example for something of the same value.

Later people developed a more practical system of exchange. They used commodity money – goods which were told to have value. For instance: cattle, salt, wine, tobacco, etc.

Now we use paper and metal or plastic money.

Banknotes are paper money. They are protected from counterfeiting by water marks, security threads, microprinting in the design and use of reflective materials.

Coins are metal money.

All types of plastic cards used in place of cash are called plastic money.

Advantages of credit cards or cash cards

You can obtain cash from a cash dispenser 24 hours a day.

You can make payments without using cash in shops, restaurants, hotels and so on.

You do not need to have money with you and it protects you against losses.

At the cash point

Insert your card. Key in your PIN number. Press the withdraw cash button. Choose the amount of money you want. Take your card. Take your cash.

Exchange rate

Exchange rate is the relation in value of one currency against another

You can find it in every bank, in newspapers and on the Internet.

Exchange rate is changed every day.

Convertible currencies

Convertible currencies are national currencies which can be freely bought for other national currencies. Pounds Euros Dollars Swiss Franks Czech Crowns

Questions:

What are advantages and disadvantages of using credit cards?

What does PIN stand for?

Where can we find exchange rate?

Which convertible currencies do you know?

Earning money

job – adults, more educated – more money, our parents summer job/part time job – if I want something, and my allowance is low, many kinds, since 15 years you can have a part time job and since 18 you can work with money (shop assitent) pocket money/allowance – from our parents, we can spend or budget

Importance of money in our lives

you need money because nothing is for free to buy thing for our basic needs – food, drinks, even water is not for free when our basic needs are accomplished - we want to have some things, which make us happy – nice clothes, cars, houses,…

Rich

sb can say, that be rich is not necessary, but is better cry in BMW than under the bridge you can buy what you want travel around the world – do what you want