Money and how it works

Without trade and industry, people would have to create

everything they needed to live. If you wanted a loaf of bread
you would have to grow wheat, grind the wheat to make
flour, mix the dough, and bake it in an oven. You would also
need to build the mill and make the oven. Industry organizes
the production of bread so that just a few farmers, millers,
and bakers can make bread for everyone.

Industry supplies us with most other basic and luxury goods,

from freshwater to computers. Trade is the process of
buying and selling. The seller gets the products from the
people who make them to the people who need them. And
through trade, manufacturers can buy the raw materials they
need to supply their factories and keep production going.
Goods that are traded internationally are called imports and
exports. Goods that one country sells to another are called
exports. Imports are goods that a country buys from
another. In most nations, private businesses control imports
and exports. But in others, the government imposes strict
controls on what can be bought and sold

International trade goods move around the world by sea,

land, and air. This international trade takes materials, such
as oil, from the countries that have a surplus to those that
have no or insufficient oil deposits. International trade is also
important because goods do not always get a high price in
the country where they are made. For example, many
clothes
are made by hand in countries where salaries are low. But
the clothes are sold in another country where people are
richer and can pay a high price. Money earned this way
helps less rich countries pay for their imports.

Some industry takes place in people’s homes, but workers

in factories make most of the products that we buy. In a
factory, each person has a small task in the manufacturing
process. He or she may operate a large machine or
assemble something by hand. No one person makes an
entire product. This process of mass production makes
manufacturing cheaper and quicker. Most factories are
owned by large
companies; a few factories are owned by governments or by
the people who work in them. Trade and industry exist
because of money existence. So most popular currency in
our world is dollar.

American currency
The dollar is an American money, which is also the main
unit among the world's reserve currencies. Experts have
found that the most of the world's foreign trade turnover is
expressed in US dollars. One dollar is equal to one hundred
cents. It is also a national currency in many different states,
or it is used in parallel with other monetary units. Currently,
the largest banknote is represented as 100 dollars, the
smallest one is one dollar. Previously, there were banknotes
with a larger denomination, such as one thousand, five
hundred, five and ten thousand. Soon they withdrew from
circulation, and now if they meet, then at auctions or in
collections. Such banknotes are considered rare.

Each year the United States of America produces more than

30 million dollar bills of different face value. Most of them
are used to replace worn out banknotes. In 1928, it was
decided to depict banknotes of prominent American political
figures. These included presidents, great publicists, finance
ministers, representatives of the Supreme Court. The
reverse side of the banknotes depicts the history of the
American continent.
Initially, the color of the dollar was green. In the last decade
there were banknotes of pink and sand colors. All of them
are made of special paper based on flax and cotton, and
protected by watermarks, microprint and protective fiber. In
the fight against counterfeiters, images and the design of
the dollar change every 8-10 years. If we talking about
money we should remember the cluster of money, bank.

Bank system

A bank is a financial company that deals with money,

securities and precious metals. If you need a certain amount
of money, you can come to the bank and apply for a cash
loan. After the bank approves your application, a contract is
concluded between the client and the bank in which all
conditions are stipulated. Loans are short-term or long-term,
and are issued at a certain percentage. The client is given a
schedule, according to which he must pay a fixed amount of
money every month. This amount includes the loan itself,
and the interest for using money. The client can also repay
the loan in full with a one-time payment, thereby reducing
the interest rate. Banks give their customers plastic cards,
from which ATMs can always and everywhere withdraw the
required amount. Plastic cards can also pay for any
purchases or services. Banks can provide money not only to
individuals, but also to huge companies, industries.
Also people in banks can store their savings. The bank not
only protects other people's money, but also pays interest to
its depositors for the right to use this money. When the
depositor needs to withdraw the entire amount from his
account, he comes to the bank and receives the money
deposited.

For any bank it is very important to earn an excellent

reputation and try to keep it. The quality of the bank's work
will depend on the number of depositors and other
customers wishing to avail themselves of banking services.
Without banks, any economy can not develop. Investors will
remain without money, and will not be able to implement
their projects. Such industries as engineering, agriculture,
chemical industry, mining and forestry, will not be able to
successfully develop and progress.
The importance of pocket money for teenagers

Nowadays money matters are becoming more and more

crucial. Money is needed not only by adults but also
teenagers. The growing number of parents are worried
about this problem. Some people think that school students
should be given pocket money, whereas others are
convinced that they can do well without it.The supporters of
the first point of view are sure that their children should
definitely get some amount of money on a regular basis.

First of all, teenagers need money to cover travel expenses.

For example, they have to pay for a bus or metro ticket,
especially when the way home is too long to walk. In this
case children can undoubtedly get home faster and stay
safe.
Secondly, students should have some allowance to spend
on additional food when they stay at extra classes. This is
obviously more useful for their health and parents do not
have to be anxious about anything. What is more, pocket
money is necessary to have some entertainment with
classmates. For instance, they might want to go to a
cinema, café or bowling centre. Children should enjoy their
life with friends and not feel somehow handicapped.On the
other hand, a lot of parents strongly oppose the question of
giving pocket money to their children.

To begin with, they think that at this age kids are eager to
show off trying to compare who is better. Having some
allowance can just spoil them and develop arrogance. They
will not be able to learn how to respect each other if they
look only at expensive clothes or glittering bags.

Besides, teenagers are not able to spend money rationally.

They may get negative influence from adults and waste their
money on harmful things, like cigarettes or alcohol. Lack of
money will prevent them from losing their minds.In addition,
children who never get spare money have the ability to see
how difficult it is for their parents to earn it. These students
grow up more conscientious and willing to work, so that
afterwards they could allow themselves everything they wish
to buy.

As for me, I agree with parents who allow their children to

have some pocket money because this way they can be
safer and more confident in different situations.Taking all
these points into consideration, I strongly believe that having
allowance is very important for teenagers but the amount of
money given must be rational, so that you develop
responsibility in your children but not carelessness. The
leading role belongs only to parents, who ought to educate
their kids properly in dealing with every single issue.