营教備章,乌三第張四第日七廿月二十年申庚播要

WAH KIU YAT PO

any financial crisis

1981

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Economic (17)

K. K. Wong & L. T. Chan

MILL & DALE PRESS LTD.

Money and banking

Čentral banks and Commercial banks

their functions and facities.

The functions of a central bank

A central bank is a bank of government. It is set up by the government and is not profit-making. The implementation of policies in. a central bank is directly controlled by the government. Usually, a central bank is the nationalized institution which work with the

AVOIR-

vernment to carry out the monetary policy and to promote the economic

development of the country

Es, functions can be

Summarized as follows:

to issue legal tender

Currencies, including banknotes and coins, are issue by the central bank under the supervision of government. Since the amount of circulating currencies can influence the purchasing power of the economy, government is responsible for adjusting the amount of legal tender issued by the central bank.

In a complex monetary economy,, mogßey serves as a dynamic role in addition. to being a medium of

reg

hauger Government may ulate the level or money and liquidity in the economy so as to achieve some desired policy objectives such as the control of inflation, the growth in the Gross National Product and the improvement of balance of payments.

2. to be the bank of

government

Government revenue are usually stored in the central bank and the public expenditure and payments are done through it. A central bank usually keeps the accounts of the government deparments. 3,to be he advisor of

gove cament on financial and monetary policies.

e central bank acts

as the advisor of government in all the

matters about monetary and banking policies. The central bank

may has a

effective management team. giving relevant information and suggestions to government so as to solve any economic problems and to help the economic development.

to keep the cash reserves of private banks"

It is a law that all the private banking institutions must deposit a part of their cash reserves in the

cential bank. Accordingly, the central bank centralizes the cash reserves to protect the security and control the liquidity of the whole Banking system.

Whenever there is necessary for the private banksto borrow some money, the central Bank will back then up lending them cash funds. If there

occurred in a private bank, the central bank is > ____

responsible for supporting it as far as possible in order that national

economic stability can be maintained.

5. to be a bank of central

clearance, settlement and transfer entst

The central bank is the banker's bank. It provides. the facilities of clearance of cheques and the transfer of funds between banks. It is the place for the banks to clear their cheques received from their customers and drawn upon other banks, In such a case, mutual indebtedness between the member banks, may be cancelled and the amount owned to any banks would be calculated.

6, to supervise the operations

of private banks

A central bank takes the responsibility to help the government to carry out the banking laws and to watch and direct the work done by private banks. 7, to

carry out monetary policy

The central bank

controls the note issue, accepts deposite from and makes loans to the commercial banks and money market in such a way that it handles the main tool of monetary policy in a country. For instances, inflation can be tackled by the monetary authority. through control of the quantity of money which is circulating. In addition, government can change the reserve ratio of the private banks or change the discount rate and the rate of interest by adjusting and banking ordinances so as to achieve the goals of monetary policy

8. to keep gold reserve's land

foreign exchange reserves of the country

In order to maintain the stability of the external of the external value of the national currency system, the central bank keeps the gold reserves and foreign. exchange reserves to " undertake the open market operation-by law of exchange control.

to offer facilities to customers as a commercial bank does

The central bank also provides the general banking services to the customers such as acceptance of deposits, loans and advances, remittance and other services.

II. The function and facilities

provided to commercial banks

A commercial bank is a profit-making firm operated by private individuals. It is established for the purpose of seeking profits by way of offering various banking services. Banking laws and ordinances are set up to regulate the working targets of all commercial banks.

The commercial banks operate branches and directly deal with individual customers. They are operated under the supervision of government or central bank and play an. active economic role. Their functions can be summarized as follows:

31019 #

1. to keep money for

customers.

Commercial banks provide the services that saving deposits, fixed deposits and demand. deposits are accepted. Different rates of interest are applied to various deposits together with the different ways of withdrawing money..

2, to lend money to customers.

Loans and advances are granted to commerce and industry in order to earn the reward of interest on one hand, and promote the industrial and commercial development on the other. The loans and advances include short-term and long-term loans, advances, overdrafts and discount bill of exchange. Government play the supervisory role to cover all deposit taking institutions.

3.to create bank credit

or

a

Either a central bank

commercial bank can bring about an increase of equal amount in bank

deposits. In order words, when a bank makes an advance to a customer, whether by overdraft or loan account the result is an increase in total punchasing power.

For example, if a borrower has only a small balance to the credit of his account and he obtains an overdraft of $500. He can draw a cheque for this account and pay it to the creditor. If the creditor. deposit it into his own account, the creditor's account will have increased by $500. In this case, the borrower's account can only show a debit for this account. In the combined. banks' balance sheet, advances and deposits will both have increased by $50. If there is any monetary, discrepancy happened; the central bank should have the power to control the expansion of bank credit.

to offer the service of remittance

Remittance means that the money is transferred from one place to another. Imagine that you want to sent HK$100 to your friend living in United States, you can ask for the help of the Remittance Department in any commercial bank.

First of all, the Outward Remittance. Department would calculate how many US dollars your 100 HK dollars will buy on the foreign exchange market by referring to the day's exchange rate. If the rate is HK$5 for US$1, your HK$ 100 will buy US$20. Therefore the bank will give you a bankdraft for US$20. Next, you can use a mail transfer. That is to say, the bank sends an airmail instruction to its branch in United States to authorize. the branch to pay your friend the sum of the money. If it is very urgent for you to send the amount of money, you can make use of the telegraph transfer although it would be more expensive. 5. to offer import and

export facilities

Commercial banks

offer a special service

called documentary credit

to help the promotion of

business. It is the

guarantee given by a bank

日期星

日一月二年一八九一层公年十七國民肇中

that its customer will pay for a shipment of goods if the correct documents are supplied as evidence that the shipment has been made. Furthermore, the

credit line is the service. provided to allow a company to receive goods before paying for them. 6.to provide other

miscellaneous services · to the customers such as (a) keeping valuables for

stomers;

(b)

business information and guidance; (c) offering monthly

instalment payment loans;

(d) helping clients in

taxation problems;

(e) acting as the under

underwriters for nes Stocks;

(f) acting as the executors

of will on behalf of their clients;

(g) issuing of credit cards;

(h) providing auto-pay

facilities;

(i) selling gift cheques.

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明德出版社岑彦俊提供資料

Add. Maths. (17)

Differentiation.

Worked examples;.

Find in the following:

(e) 2x2.

Solution: (a) Let

(b) Let y

taux-1-cOSX.

1-coax

tanx-(1-cos

(t-coax) se

tenx

21-cos

COS X

2(1-соя

Exercise 9

Differentiate the following with respect to x:

(e) (d)

1(3x+1).

ytanpz, (a) express dz in terms of p and y only

(b) Prove that

Epy(1+y") . 1_x“+y^-4a{xy2+x^y)

show that ** - _BV(y+2x)=x_

ax(x+2y)y 4.(1) Find the maximum and

míninum values of

4x-3

(ii) Find the equation of the

tangent to the curve

at the point at

which it crosses the

1

5. Find the equations of the tangent and normal to the ellipse x

2 at the

point (.).

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明德出版社胡應亮提供資料 HISTORY (17).

Philip Y. L. Wes

MILL & DALE PRESS LTD.

in the following, we discuss the international situation of diplomatic relations in East Asia before and during the First World War (1914-1918).

Stable international situation in 1910

1. The great powers' attention

diverted from East Asia to Europe There were a number of crises that brought about the First World War from 1908 to 1913, These crises occurred outside East Asia. The Western great powers had their attention elsewhere.

2. Open-door policy in China -

Britain and Japan

cooperated in advocating and practising the open-door policy in China, i. e. maintaining China's territorial status-quo for free trade. The US

supported such а policy too. Thus the days when the great powers struggled with one another for territorial

interests in China were over.

Factors upsetting the stable

international situation

1. The fall of the Ch'ing

Dynasty in 1911-12 -

Thereafter the Chinese government was unstable, This gave ambitious powers like Japan the chance to fish in troubled waters,

2. Japan taking advantage of the

First World War - When the war broke out in 1914, the Western great powers were occupied with fighting in

Europe or elsewhere, Japan thus had a chance to obtain exclusive interests from China.

3. The fall of the Tsarist

government in Russina in 1917-Soviet Russia rose in power in late 1917. Unlike the previous government, Soviet Russia did not. cooperate with other western great powers to maintain the traditional system of diplomacy.

Steps taken by Japan to strengthen her interests in China in 1914-1918

1. Entry into the First World

War in 1914 - Japan and the Central Powers (Germany and Austria) did not have bad relations but Japan entered war on the side of the Allies so as to obtain German rights in China.

2. Presentation of the 21

Demands to China in 1915 At that time, China was a republic under President Yuan Shih-kai. He wanted to obtain Japanese support so as to re-establish a monarchy. Japan made use of this to force China to accept 21 demands of interests, which were divided into 5 groups, (You will learn about them in detail later)

Participation in the Siberian Expedition in 1918 - Russia became a communist country. in late 1917, The Allies wished to check communism and bring Russia back into greater war-efforts (Soviet. Russia withdrew from the First World War). An expedition was sent to

Siberia against Soviet forces. Japan joined the expedition

so as to gain more interests. (You will learn about the expedition in greater detail later)

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