Деньги - Money. Невежина С.Б - 57 стр.

      READING TWO                                                            материального содержания денег, monetary value – денежная
      Read the text and structure the information given:
                                                                             стоимость (золота или серебра), face value – номинальная
                                                                             стоимость, gold Eagle – ам. «Орел», старинная золотая монета в
                  CLASSIFICATION OF MONEY                                    10 долларов, credit money – кредитные деньги, representative
                                                                             money – представители полноценных денег, fiat money –
        Money may also be classified according to its inherent value. In     бумажные деньги, не обеспеченные золотом, not redeemable for
full-bodied money, the intrinsic value of the money's material content       gold ... – не обеспеченные золотом, note assets – денежные активы.
has a value equal to its monetary value (face value). For example, the
inherent value of a $10 gold piece was originally equal to its monetary            Block 9
value of $10. Not only could you use the $10 gold Eagle to buy $10                 MONEY LAUNDERING
worth of groceries, you could sell its gold content (melted down) for
$10 in cash on the gold market. Today, however, since the price of                 READING ONE
gold has increased, the gold in a $10 gold piece is worth much more
than $10. In credit money, the intrinsic value of the money's material             On the basis of the following text speak on crime in bank-
content is less than its monetary value.                                     ing and give your own examples.
        Representative money is money (usually paper) that serves in                 Washing money, once a Swiss speciality, was made a crime in
place of commodity money. It may represent either full-bodied or             that country in 1990. Switzerland's Federal Banking Commission has
credit money. The gold certificates that circulated in the United States     now published some belated tips for bank employees on how to
before 1933 are a good example of full-bodied money. But the                 recognize dirty money on the move when they see it. Grounds for
certificates are no longer used. An advantage of representative money        suspicion unastonishingly include sudden activity in a previously
is that it is more portable than commodity money.                            dormant account; cash being withdrawn soon after it is deposited;
        The government sometimes issues fiat money, which is backed          dealings outside the usual pattern; transactions with no recognizable
only by the promise of the government to redeem it or to exchange it         economic motive; a customer's refusal to provide information, or
for other types of money. To help finance the Civil War, Congress            provision of false information.
authorized the issue of paper money officially known as United States                Banks are told to check carefully when they are asked to open
notes and popularly called greenbacks. This was fiat money; the notes        accounts with more than $67,800 of cash or precious metals.
were legal tender but were not redeemable for gold or silver.                Subsequent big transactions should be scrutinized. Counter staff
        Today most of American currency is in the form of Federal            should question people without accounts who produce suitcases full of
Reserve notes, which are issued by the Federal Reserve Banks with the        bills that they want to change into other currencies.
approval of the U.S.Treasury. At one time the gold reserve required                  All this is fine, as long as bank do not then ignore what they
for these notes was 25 percent. The other 75 percent of the backing          find. In Switzerland's biggest money-laundering scandal to date, tried
was in the form of additional gold certificates, government securities,      under the old law, it emerged that Credit Suisse had been told by an
or note assets of the bank. Today there is no gold reserve behind these      internal audit committee that two Lebanese brothers were conducting
notes, so they are also fiat money.                                          questionable business through their account. The bank did nothing
                                    (Hailstones T.J. Op. cit., p. 151–153)   about it. In 1990 the brothers were jailed for laundering millions of
___________________                                                          drug-dollars.
        Full-bodied money – полноценные деньги, intrinsic value of                   Perhaps the banks should be alerted to more commonplace
the money's material content – реальная, действительная, стоимость           crime. In a perfectly executed sting last month, four Hungarians with

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