Samarkand iktisodiyot va servis instituti

Exercise 1. Agree or disagree with the following statements. (True or False)?

1. If every country in the world used the same currency the world trade would be made much easier.
2. Currencies are like other commodities and have a certain value.
3. Exchange rates don’t change every day, they are constant.
4. The world’s foreign exchange markets keep track of all of the major currencies.
5. The exchange rate is the same if the customer is buying or selling particular currency.

Exercise 2. Choose the correct answer according to the information in the text.

1. How is the difference in each currency’s value stated?
a) in terms of other currencies
b) in dollars
c) in other commodities
2. Is foreign exchange a constantly changing twenty-four-hour-a day market?
a) Yes, it is.
b) No, it is not.
c) Only sometimes.
3. How are foreign exchange markets linked?
a) by air-mail
b) electronically
c) by mail

LANGUAGE ACTIVITY

Exercise 1. Insert articles where necessary, translate the sentences.

1. Currencies are used to buy … goods and services both at … home and … abroad.
2. The value of … major world currencies is no longer fixed.
3. … freely floating currency’s price goes up when there is … increased demand.
4. … currencies are commodities, subject to laws of … supply and … demand.
5. … free-float system still does not keep governments from trying to influence … value of their currency.

Exercise 2. Insert prepositions (to, on, for, of, in, by) where necessary.

1. The artificial system … fixed rates gave way … a free market of currency values.
2. Fixed exchange rates collapsed … 1973 and the world’s major currencies were allowed to “float” freely … the international markets.
3. Like trying to reverse the flow … water, it is very difficult to intervene … the international currency markets.
4. Interventions … the central banks usually succeed … only slowing down a rise or fall of a freely floating currency.
5. When everyone wants to buy Japanese stereo systems, … example, the price … the yen goes up.