6

The Victoria crowned

pigeon is known for its
large head crest of lacy
feathers.
Possible answer(s):
1. I usually pay for things by card. I don’t usually carry
cash around.

2. It depends on the amount, but I usually pay by card. I

think it’s more convenient, and there’s always a paper
trail in case you need to refer to the transaction. I don’t
carry a lot of cash because I don’t want to lose it. It’s
easier to replace a lost credit card.

U6-p.97
6A

U6A-p.98
BEFORE YOU READ
DEFINITIONS A. The following money-related words appear in the reading
passage. Use the words to complete the definitions (1–4).
bill credit card foreign exchange inflation

Inflation
1. _______________________ is an increase in the prices of
goods and services.
Foreign exchange
2. _______________________ is the conversion of one
country’s currency into another.
credit card
3. A(n) _______________________ is a small piece of material,
usually plastic, that can be used to pay for something.
bill
4. A(n) _______________________ is a piece of paper money.

PREDICTING B. What methods of payment do you think people used in

ancient times? Discuss with a partner. Check your
ideas as you read the passage.

U6A-p.98
Possible answer(s):

I think people used coins and objects like shells and

bird feathers in ancient times. They also bartered
and exchanged goods.

U6A-p.98
 About 9,500 years ago, ancient accountants in Sumer1 invented a way
to keep track of farmers’ crops and livestock. They began using small
pieces of baked clay, almost like the tokens used in board games today.
One piece might signify a measure of grain, while another with a
different shape might represent a farm animal or a jar of olive oil.

Those little ceramic shapes might not seem to have much in common
with today’s $100 bill—or with the credit cards and online transactions
that are rapidly taking the place of cash—but the roots of our modern
methods of payment lie in those Sumerian tokens. Such early
accounting tools evolved into a system of finance and into money itself:
a symbolic representation of value that can be transferred from one
person to another as payment for goods or services.

1 Sumer was a region of ancient Mesopotamia in what is now Iraq and Kuwait.

U6A-p.99
The Rise of Gold

Since ancient times, humans have used items to represent value—from

stones to animal skins, to whale teeth. In the ancient world, people often
relied upon symbols that had tangible2 value in their own right. The ancient
Chinese made payments with cowrie shells,3 which were prized for their
beauty as materials for jewelry. As Glyn Davies notes in his book A History
of Money from Ancient Times to the Present Day, cowrie shells are
durable, easily cleaned and counted, and defy imitation or counterfeiting. 4

But eventually there arose a new, universal currency: gold. The gleaming
metal could be combined with other metals at high temperatures to create
alloys,5 and was easy to melt and hammer into shapes. It became the raw
material for the first coins, created in Lydia (present-day Turkey) around
2,700 years ago. Lydian coins didn’t look much like today’s coinage. They
were irregular in shape and size and didn’t have values inscribed on them;
instead, they used a stamped image to indicate their weight and value.

2 If something is tangible, it is real or can be touched.

3 Cowrie shells are smooth, shiny, egg-shaped seashells.
4 Counterfeiting refers to creating fake money or documents.
5 An alloy is a metal made by mixing two metals together.

U6A-p.99
The result, explains financial author Kabir Sehgal, was an economic
system in which “you knew the value of what you had, and what you
could buy with it.” Unlike modern money, ancient coins were what
economists call full-bodied or commodity money: Their value was fixed
by the metal in them.

The Birth of Trade

Money’s convenience made it easier for ancient merchants to develop

large-scale trade networks, in which spices and grain could be bought
and sold across distances of thousands of kilometers. This led to the
first foreign exchanges: In the ancient Greek city-state of Corinth, banks
were set up where foreign traders could exchange their own coins for
Corinthian ones.

U6A-p.99
In the centuries that followed, trade routes forged more cultural
connections between nations and regions. Besides exchanging money
and goods, traders also spread religious beliefs, knowledge, and new
inventions, creating connections among far-flung cultures.

U6A-p.100
 The dangers of moving money and goods over distances—whether from
storms at sea or bandits and pirates—led humans to develop
increasingly complex economic organizations. In the 1600s, investors
gathering in London coffeehouses began to underwrite6 traders and
colonists heading to the New World, financing their voyages in exchange
for a share of the crops or goods they brought back. Investors tried to
reduce their risk by buying shares of multiple ventures. It was the start of
a global economy in which vast quantities of products and money began
to flow across borders in search of profit.

Notes and Bills

By the 1700s, the global economy had grown so much that it was
inconvenient to transport and store large quantities of coins. Several
societies therefore shifted toward paper currency. The earliest paper
bills were literally receipts that gave the bearer7 ownership of gold or
silver coins that could be collected upon demand.

6 If a company underwrites an activity, it agrees to provide money to cover any losses.

7 The bearer of a document is the person who owns it.

U6A-p.100
 But as Lloyd Thomas explains in his book Money, Banking and Financial
Markets, bankers eventually realized that many people simply used their
notes rather than redeeming them for gold. It meant that the bankers
didn’t actually need to have enough gold on hand to cover all the notes
they issued. That revelation, Thomas says, eventually led to the concept
of fiat money, which governments issue today. In contrast to commodity
money, today’s money has value essentially because a government
says that it does. Its purchasing power remains relatively stable
because the government controls the supply. That’s why a U.S. $100 bill
is worth $100, even though it only contains a few cents worth of raw
materials.

6 If a company underwrites an activity, it agrees to provide money to cover any losses.

7 The bearer of a document is the person who owns it.

U6A-p.101
It’s a system with an important advantage, in that human judgment—
rather than how much gold has been dug out of the ground—
determines the amount of money in circulation. On the other hand, this
can become a disadvantage. If a government decides to issue too much
money, it can trigger an inflationary spiral that raises the price of goods
and services.

Toward Virtual Money

By the 20th century, new methods of payment had begun to emerge as

alternatives to cash. In the 1920s, oil companies and hotel chains began
to issue credit cards: These enabled customers to make purchases and
pay what they owed later. In 1950, Diners Club International issued the
first universal credit card, which could be used to purchase things at a
variety of places. Using plastic to make purchases eventually proved
more convenient than bills, coins, or even checks.

U6A-p.101
In 2009, yet another high-tech successor to money emerged:
Bitcoin. Bitcoins are a sort of unofficial virtual Internet currency. They
aren’t issued or even controlled by governments, and they exist only in
the cloud or on a person’s computer. Parag Khanna, a financial policy
expert, explains: “The real future is technology as money. That’s what
Bitcoin is about.”

From the clay tokens of Sumer to today’s virtual currencies, the

evolution of money has helped drive the development of civilization.
Money makes it easier not only to buy and sell goods, but also to
connect with the world, enabling traders to roam across continents, and
investors to amass wealth. It is a type of language that we all speak.
From the humblest shop clerk to the wealthiest Wall Street financier,
money exerts a powerful influence upon us all.

U6A-p.101
In 2009, yet another high-tech successor to money emerged:
Bitcoin. Bitcoins are a sort of unofficial virtual Internet currency. They
aren’t issued or even controlled by governments, and they exist only in
the cloud or on a person’s computer. Parag Khanna, a financial policy
expert, explains: “The real future is technology as money. That’s what
Bitcoin is about.”

From the clay tokens of Sumer to today’s virtual currencies, the

evolution of money has helped drive the development of civilization.
Money makes it easier not only to buy and sell goods, but also to
connect with the world, enabling traders to roam across continents, and
investors to amass wealth. It is a type of language that we all speak.
From the humblest shop clerk to the wealthiest Wall Street financier,
money exerts a powerful influence upon us all.

U6A-p.101
 READING COMPREHENSION
A. Choose the best answer for each
GIST
question.
1. What is the best alternative title for the passage?
a. How Paper Money Changed the World
b. From Ceramic Tokens to Bitcoin: The Evolution
of Money
c. Ancient Sumer and the Origins of Trading
d. A Return to Commodity Money
DETAIL 2. The writer says that ancient Sumerian tokens
____________.
a. were all the same shape
b. were made of different materials
c. had to be heated in order to harden them
d. resembled modern board game pieces
MAIN IDEA 3. According to the writer, gatherings in London coffeehouses in
the 1600s ____________.
a. represented the first form of banking
b. led to the first foreign currency exchanges
c. helped bring about the global economy
d. resulted in a general move toward commodity money
U6A-p.102
 DETAIL 4. A $100 bill is an example of ______________ money.
a. commodity
b. virtual
c. fiat
d. Universal

INFERENCE 5. Who is most likely to agree that physical money will be

replaced in the near future?
a. Parag Khanna
b. Glyn Davies
c. Kabir Sehgal
d. Lloyd Thomas

U6A-p.102
CLASSIFYING B. Do the following characteristics describe commodity money
or fiat money? Complete the chart with the correct
information (a–g).
a. may involve objects that are regarded as beautiful
b. is the currency system now in use in most economies
c. was the currency system used in ancient Lydia
d. is valuable only because the government says it is valuable
e. is also known as “full-bodied” money
f. may contain precious metals such as gold
g. is made of materials that have little actual value

Commodity Money Fiat Money

a c e f b d g

U6A-p.102
READING SKILL

Understanding the Function of Sentences

As you read, try to identify the purpose, or function, of individual
sentences. This can help you understand the overall organization of a
text. Here are some common functions of sentences.

Defining: Sumerian tokens were an early form of money.

Classifying: There are two types of money: commodity and fiat.
Quoting: As economist Maynard Keynes said, “Ideas shape the course
of history.”
Reporting: According to archeologists, the first money was Sumerian
tokens.
Cause-Effect: Today’s money has value because a government says
that it does.
Condition: If you heat gold, it melts easily, making it ideal for creating
coins.
Naming: The first universal credit card was the Diners Club card.

U6A-p.103
UNDERSTANDING
FUNCTION
A. Write the function of each sentence. Use the functions in
the box above.

1. But eventually there arose a new, universal currency:

Naming
gold. ____________
2. The result, explains financial author Kabir Sehgal, was an
economic system in which “you knew the value of what you
Quoting
had, and what you could buy with it.” ____________
3. Cowrie shells are smooth, shiny, egg-shaped seashells.
Defining
____________
4. But as Lloyd Thomas explains in his book Money, Banking
and Financial Markets, bankers eventually realized that
many people simply used their notes rather than redeeming
Reporting
them for gold. ____________
5. Its purchasing power remains relatively stable because the
Cause-Effect
government controls the supply. ____________
6. If a government decides to issue too much money, it can
trigger an inflationary spiral that raises the price of goods
Condition
and services. ____________

U6A-p.103
UNDERSTANDING
FUNCTION
B. Look back at paragraph M in Reading A. Underline
sentences that match three of the functions in the box
above.
What is the function of each underlined sentence?

Naming: In 2009, yet another high-tech successor to

money emerged: Bitcoin.

Defining: Bitcoins are a sort of unofficial virtual Internet

currency.

Quoting: Parag Khanna, a financial policy expert, explains:

‘‘The real future is technology as money. That’s what
Bitcoin is about.’’

U6A-p.103
CRITICAL THINKING Evaluating Pros and Cons
Discuss these questions with a partner.

▶ What do you think are the pros and cons for a country to “go
cashless”? Note some ideas.
Pros: all transactions can be traceable; there is less risk of losing
money

Cons: people might run up debt more easily; there might be more
cases of identity theft.

▶ Which types of transactions or activities do you think are most likely

to go cashless first? Give reasons for your answers.

Possible answer(s):
I think the types of transactions to go cashless first will be in
places like busy sandwich shops with a high volume of customers.
Payments made with cards or phones could speed-up transactions
and reduce queues.

U6A-p.103
 VOCABULARY PRACTICE

COMPLETION A. Complete the paragraph with words from the box.

convenience judged payment

policy transactions trigger

Sweden will soon become a cashless society.

This means that cash will no longer be
payment for goods and
accepted as 1 ____________
services. Many Swedes already appreciate the
2 convenience of not having to carry cash.
_____________
transactions
Currently, 80 percent of all 3 _____________
are electronic, with most consumers using a
credit card or cell phone app. The government
policy
thinks the new 4 ______________ will also cut ˄ A customer in Sweden pays
down on tax cheats, and reduce crime. If for food using a phone app.
judged
Sweden’s move is 5 _____________ a success,
trigger
it could 6 ______________ a wave of other
countries abandoning cash entirely.

U6A-p.104
WORDS IN B. Complete the sentences. Circle the correct words.
CONTEXT

1. An economy with low inflation and fairly constant / unsteady growth

is considered to be relatively stable.
2. Examples of commodities include love and friendship /
oil and natural gas.
3. You might signify your agreement by nodding your head / thinking to
yourself.
4. If something is essentially true, it is basically / entirely true.

U6A-p.104
COLLOCATIONS C. The words in the box are often used with the noun policy.
Complete the sentences with the correct words from the box.

company insurance public strict

strict
1. Nearly all airlines have a very _____________ no-smoking
policy on flights.
2. If you purchase a car, you usually need to take out a(n)
insurance policy.
____________
company
3. Most businesses have their own ____________ policy regarding
working hours.
public
4. Health care and education are usually areas of ____________
policy.

U6A-p.104
6B

˄ A collection of coins representing Bitcoin, a type of virtual currency

U6B-p.105
BEFORE YOU READ
QUIZ A. Complete these sentences. Then check your answers on
page 114.
1. The average lifespan of a U.S. $1 bill is six months / years /
decades.
2. There is a total of about $1.5 million / billion / trillion in U.S.
physical currency in circulation.
3. Physical currency makes up 11 / 33 / 80 percent of the total
money supply in the U.S.

PREDICTING B. Read the introduction to the passage on page 107.

What do you know about virtual currency? What might be
some pros and cons of using it? Discuss with a partner,
and check your ideas as you read the passage.

U6B-p.105
Possible answer(s):

Virtual currency is a type of digital currency that is accepted

electronically; it can be very unstable, but it’s easy to make
international money transfers for lower fees

U6B-p.105
U6B-p.106
It doesn’t exist in any physical form, yet is increasingly used by people
worldwide. Is virtual currency the money of the future?

What Is a Virtual Currency?

According to the European Banking Authority, a virtual currency is “a

digital representation of value that is neither issued by a central bank or a
public authority, nor necessarily attached to a fiat currency, but is
accepted [as] a means of payment and can be transferred, stored, or
traded electronically.” There are many types of virtual currency, but the
best known is probably Bitcoin.

In online articles, or in newspapers or magazines, you may have seen

pictures of gold or silver coins marked with the Bitcoin symbol (₿).
However—since Bitcoins exist only as digital constructs— these are
merely representations. Bitcoin is a type of digital money known as a
“cryptocurrency”; that is, it uses cryptography—secure coding—to verify
ownership of the money. The money can be sent electronically from one
user to another anywhere in the world.

U6B-p.107
Unlike traditional currencies, Bitcoin is not controlled by a central bank or
by a government agency. And unlike credit cards, the Bitcoin network is
not run by a company. There is no middleman between the parties that
are transferring money. It is operated by a global network of computers
called a blockchain network, which records every Bitcoin transaction in
the world.

How Did Bitcoin Begin?

The first reference to Bitcoin appeared in 2008, in a paper by a writer

supposedly named Satoshi Nakamoto. However, the name turned out to
be a pseudonym1 for a person or group who preferred to remain
anonymous. A year later, Bitcoin was released as open-source software.

1 A pseudonym is a name that someone uses in place of their real name.

U6B-p.107
Bitcoin was not the first attempt at a cryptocurrency; others had existed in
one form or another for nearly 50 years, but without much success. In a
short space of time, though, Bitcoin became the first cryptocurrency to be
widely traded internationally. The first Bitcoins were mined in January
2009; within 200 days, one million coins had been mined. By 2019, this
had risen to over 17 million Bitcoins— worth a total of U.S. $65 billion—
and more than 300,000 new transactions were taking place every day.

In its early days, Bitcoin was known for its link with illegal drugs, such as
those bought and sold on Silk Road, an online black market set up in
2011. Silk Road connected customers and sellers on the Internet using a
network that concealed a user’s location and identity—and it used Bitcoin
for payments. Silk Road was shut down by the FBI2 in 2013. According to
some experts, the shutdown gave Bitcoin a chance to gain some much-
needed legitimacy. BitPay CEO Stephen Pair insisted that Silk Road’s
association would not prove fatal to Bitcoin. He said that the shutdown
“shows that just because you use Bitcoin doesn’t mean you can evade
law enforcement.”

2 The FBI (Federal Bureau of Investigation) is a government agency in the United States that
investigates crimes.

U6B-p.108
How Does Bitcoin Work?

Each Bitcoin can be divided out to eight decimal places. That means you
can send someone a minimum of 0.00000001 Bitcoins. This smallest
fraction of a Bitcoin—the penny of the Bitcoin world—is called a “Satoshi.”

Like gold or other precious metals used as money, Bitcoins are scarce.
But their scarcity is not natural or accidental. New Bitcoins are added only
by being “mined.” Computer users on the blockchain network race to
solve increasingly complicated mathematical problems. The first to have a
verified solution receives a payment. It’s like the high-tech equivalent of a
gold rush.3 The mined Bitcoin can then be traded using special computer
software.

3 A gold rush is a situation in which a lot of people move to a place where gold has been
discovered to try to find gold there (e.g., the California Gold Rush of 1849).

U6B-p.108
A useful analogy: Think of the blockchain network as an engine. Engines
can be used to power all types of vehicles: cars, boats, aircraft. Bitcoin is
a vehicle that uses that engine. Because it was the first major virtual
currency to use blockchain, you could think of Bitcoin as an early model
vehicle, like a Model T Ford.4 More sophisticated uses of this engine
may occur in the future.

What Are the Benefits of Using a Virtual Currency Like

Bitcoin?

In most cases, financial transactions involve exchange fees, taxes, and

payment delays to guard against fraud. Virtual transactions, however, are
speedy and cheap—and are settled immediately. And unlike a credit card
exchange, where credit card numbers and security information are
handed over completely for any transaction, a Bitcoin transfer is
authorized only to pay a specific amount.

4 A Model T Ford was an early model automobile, first sold in 1908.

U6B-p.108
Virtual currencies also make it possible to make a digital payment without
needing PayPal or a credit card. This is particularly useful in many parts
of Africa, Latin America, and South Asia. Immigrants to developed
countries may find it a convenient way to send funds back home to their
families.

Bitcoin supporter Jonathan Mohan says, “The vast majority of [people on]
the planet don’t even own a bank account … Just as in Africa, [people]
went directly to cell phones. In these developing nations, you’re not going
to see them start getting bank accounts. You’re going to see them just
going straight to Bitcoins.”

U6B-p.108
U6B-p.109
What Are the Drawbacks of Bitcoin?

The most obvious drawback is a lack of stability in the value of the

currency. Bitcoin’s independence makes it more stable in principle than
traditional currencies. In reality, though, its value has fluctuated wildly
over the time it has been in existence. In 2012, the price of a Bitcoin was
about U.S. $12; by December 2015, it had reached U.S. $400. Two years
later, it reached a peak of almost U.S. $20,000, but then lost almost 80
percent of that value within a year. Those are some wild swings.

So it is worth thinking twice before putting all or a substantial amount of

your assets into a virtual currency like Bitcoin. The rule of investing in
virtual currency is the same as investing in stocks: Never invest more
than you can afford to lose.

U6B-p.109
 READING COMPREHENSION

A. Choose the best answer for each question.

MAIN IDEA 1. Which of the following statements is NOT true?
a. Bitcoin transactions are made without middlemen.
b. New Bitcoins are made by users in a computer network.
c. The value of Bitcoins is controlled by a central bank.
d. Bitcoins are created through a process known as mining.

DETAIL 2. The pictures mentioned in the first sentence of paragraph B ______.

a. are images of old Bitcoins
b. do not represent real objects
c. show future versions of Bitcoins
d. are photos of ancient gold coins

PURPOSE 3. What is the main purpose of paragraph C?

a. to discuss different types of cryptocurrencies
b. to trace the early history of Bitcoin
c. to contrast Bitcoin with other methods of payment
d. to compare traditional currencies and credit cards

U6B-p.110
 DETAIL 4. According to the passage, which of the following is NOT true
about Silk Road?
a. It was in operation for about two years.
b. Its shutdown may actually have helped Bitcoin.
c. It continues to operate today under another name.
d. It made use of the Internet and Bitcoin.

INFERENCE 5. According to the analogy in paragraph I, a supersonic jet plane

would represent __________.
a. an advanced form of virtual currency
b. a new type of blockchain network
c. one of today’s cryptocurrencies
d. a different way to mine Bitcoins

U6B-p.110
EVALUATING B. Are the following statements true or false according to the
STATEMENTS
reading passage, or is the information not given? Circle T
(true), F (false), or NG (not given).

1. Satoshi Nakamoto may have been more T F NG

than one person.
2. Before Bitcoin, earlier attempts at creating T F NG
cryptocurrencies had failed due to lack of
public trust.
3. The value of a Satoshi is more than the T F NG
value of a Bitcoin.
4. Jonathan Mohan predicts that Bitcoin T F NG
will be popular in Africa.
5. From 2015 to 2017, the value of Bitcoin T F NG
increased significantly.
6. Switzerland is one of the most T F NG
Bitcoin-friendly countries in the world.

U6B-p.110
 READING SKILL

Summarizing (2)—Creating an Outline

As you learned in Unit 2A, a concept map is a common method of

summarizing a passage; another method is to create an outline. A traditional
outline uses roman numerals (I, II, III) for main ideas, capital letters (A, B, C)
for subtopics, numbers (1, 2, 3) for supporting facts, and lower-case letters
(a, b, c) for additional details. Alternatively, bullets can be used for the
supporting facts and details. Indenting the information can also help to show
the relative importance of ideas.

U6B-p.111
OUTLINING A. Look back at paragraphs A–F in Reading B. Then complete
the outline below with words, phrases, or numbers from the
reading passage.

OUTLINE: The Rise of Virtual Money

I. What is virtual money?
A. Definition
1. A digital representation of value
bank
2. Not issued by a central 1________________ or public authority
electronically
3. Can be transferred, stored, or traded 2__________________
years old
B. Bitcoin
coding
1. A type of virtual money that uses secure 3_________________
to verify ownership
blockchain network
2. Operated by a 4__________________
(global computer network)

U6B-p.111
OUTLINING A. Look back at paragraphs A–F in Reading B. Then complete
the outline below with words, phrases, or numbers from the
reading passage.

II. How did Bitcoin begin?

A. Early days
2009
1. First mined in January 5________________; fast growth
2. First cryptocurrency to be widely traded internationally
B. Early uses
drugs
1. Known for its link with illegal 6_________________
2. Associated with an online black market called
7 Silk Road
__________________

U6B-p.111
OUTLINING B. Now look back at paragraphs G–N in Reading B. Highlight the
most important information. Then create an outline.

Possible answer(s):

What is Bitcoin?: eight decimal places → smallest is ‘‘Satoshi’’;

users solve math problems to ‘‘mine’’ → get paid → trade mined
Bitcoins;

What are benefits of Bitcoin?: speedy transactions, no payment

delays; can make payment without PayPal or credit card; no need
for bank account;

What are the drawbacks?: lack of stability

U6B-p.111
 CRITICAL THINKING Reflecting

Some companies have started paying their employees in Bitcoin.

Would you like to be paid in Bitcoin? Why or why not? Note your
answer and reasons below. Then discuss with a partner.

Possible answer(s):

No, I wouldn’t. I would be too concerned about the fluctuation

and stability of the currency.

U6B-p.111
 VOCABULARY PRACTICE
COMPLETION A. Complete the information with words from the box.
drawback principles scarce sophisticated verify

sophisticated but they have some

Cryptocurrencies like Bitcoin seem very 1 _______________
simple and ancient origins, says archeologist Scott Fitzpatrick. In fact, Bitcoin
shares similarities with the famous limestone coins found on the Micronesian
island of Yap.

Several hundred years ago, the Yapese used some of the same 2 __________principles as
scarce on Yap, so the
Bitcoin in order to conduct business. Limestone was 3 __________
islanders traveled to nearby islands to mine it—similar to how new Bitcoins are
“mined” through mathematical processes. Bitcoin transactions are recorded on
the public blockchain; similarly, the Yapese stored their stone money in public
verify
places where villagers could inspect and 4 __________ its quality.

drawback of Yap’s money was its large size, so the islanders pioneered
One 5 __________
a public system for “exchanging” it. The stones changed ownership without being
physically moved. Bitcoin, too, changes ownership without an actual exchange of
physical currency.

U6B-p.112
 A Yapese boy stands

˄
next to stone money.

U6B-p.112
WORDS IN B. Complete the sentences. Circle the correct words.
CONTEXT

1. A drug is something someone might put on their head / in their body.

2. If something supposedly happened, it definitely / may have
happened.
3. If someone commits fraud, they may go to jail / get an award.
4. Your assets are things that you own / feel.
5. When you buy stocks, you purchase property / part of a company.

U6B-p.112
WORD USAGE C. The word principle is often confused with principal. A principle
is a rule or law. As an adjective, principal means “the most
important,” and as a noun, a principal is the person in charge
of a school. Circle the correct word to complete each
sentence.

1. The school principle / principal gave a short speech on the

first day of class.
2. He is a man of great principle / principal.
3. The principle / principal export of Saudi Arabia is oil.

U6B-p.112
Viewing-p.113
 BEFORE YOU WATCH

PREVIEWING A. Look at the photo and caption above. Then read the extracts from
the video below. Match the words and phrases in bold with their
definitions (1–4).

“Would people’s distrust keep them from taking advantage of a no-

strings-attached, guaranteed-win situation?”

“… the money was gone in a flash.”

“People just aren’t trusting. They just assume that there’s a catch.”

“… it reflects something deep and innate inside of them.”

catch
1. __________________: a hidden problem or difficulty
in a flash
innate
2. __________________: very quickly
no-strings-attached
3. __________________: existing from birth; natural

4. __________________: having no special conditions or limits

on an agreement or situation Viewing-p.113
 WHILE YOU WATCH

MAIN IDEA A. Watch the video. What was the main result of the experiment?
Choose the best option.

a. Most people only took small amounts of free money.

b. People took free money when they saw others doing so.
c. People didn’t take free money if they felt they were being watched.

Viewing-p.113
COMPLETION B. Watch the video again and complete the chart below.

What the host did How people reacted

• He stood in the booth and Some people

1 offered people free
____________________ 2 took the money
____________________
money
____________________ but most people did not.

• He then went away and left took the

Most people 4____________
booth / cash / money
the 3__________________ money very quickly
________________________
unattended.

• Finally, he placed a poster Most people did not

a giant pair of eyes
of 5__________________ 6
_______________________
take the money.
in the booth. ________________________

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Critical Thinking Reflecting

Discuss these questions with a partner.

▶ How do you think you would have reacted to each stage of the
experiment in the video?

▶ Would the results of the experiment change in different cultures?

If so, how?

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Possible answer(s):

-I think I would have reacted the same way the majority of

people in the video did.

-Yes, I think so, because different cultures have different ideas

about community. For example, some cultures expect to share
their wealth more evenly, so the idea of ‘‘free’’ money might not
be so strange.

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VOCABULARY REVIEW

Do you remember the meanings of these words? Check (✓) the ones you know.
Look back at the unit and review any words you’re not sure of.

Reading A
 commodity*  convenience  essentially  judgment  payment
 policy*  signify*  stable*  transaction  trigger*

Reading B
 asset  drawback  drug  fraud  principle*
 scarce  sophisticated  stocks  supposedly  verify

* Academic Word List

U6-p.113
6A Vocabulary Definitions

commodity (n.) a useful quality or a product that is bought and sold

something that is useful because it saves you time
convenience (n.)
or means that you have less work to do
essentially (adj.) in essence
the ability to make sensible decisions about what to do
judgment (n.)
and when to do it
payment (n.) the act of paying for something

policy (n.) a plan of action adopted by an individual or social group

signify (v.) express a meaning

stable (adj.) resistant to change of position or condition
transaction (n.) a business deal or action
trigger (v.) to cause to start functioning
6B Vocabulary Definitions

asset (n.) the things that a person or company owns

drawback (n.) A disadvantage
drug (n.) a substance that is used as a medicine or narcotic

fraud (n.) intentional deception resulting in injury to another person

principle (n.) a basic generalization that is accepted as true

deficient in quantity or number compared
scarce (adj.)
with the demand
sophisticated (adj.) ahead in development
the capital raised by a corporation through the issue of
stocks (n.)
shares
supposedly (adv.) believed to be the case
verify (v.) confirm the truth of