青敦備翻 真三第張六第日四初月二十年戌壬腦室
1983
中學會考試題預習專欄
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BAL AND DON
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Economice (17)
5.K. Wong & L.T. Chan
Mifl & Dale Press Ltd.
ey and banking
Money
Central banks and Commercial bank
their functions and facilities
The functions of central
Se bank is
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 government sto carry out the
monetary policy and to promote the economic development of the country. Its functions can be summarized as follows:
to issue legal tender
Currencies,
including banknotes and coins, are issued by the central bank under the supervision of
of
Poirculating – currencies cau
influence the purchasing power of the economy, government is responsible for adjusting the c amount of legal tender issued by the central bank.
In a complex monetary economy, money, serves as dynamic role in addition to being medium of exchange. Government may regulate the level or money
and liquidity in the
economy"; Boast achieve Bone desired policy objectives such the control of
growth in the Gross National Product and the improvement of balance of payments,
inflation, the N
to be the bank of government
Government”
revenue, are usually stored in the
central bank and
he public expenditure and payments are done through it. A central bank usually keeps the accounts of the government departments.
to be the advisor
"of government, on
financial and
monetary policies
The
The central bank
acts as the advisor of government in all the matters'
about monetary and bauking 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 te help the economic development.
to keep the cash reserves of private banks
It is a law that ell the private banking institut- ions must deposit a part of their cash reserves in the central bank According, for central bank centralizes the cash reserves to protect the security and control the liquidity of the whole banking
System k
Whenever there is necessary for the private banks to horrow some Doney, the central bank will back them up leading then cash funds. If there is any financial crisis occurred in a private 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:
The central bank is the banker fr bank. It provides the facilities of clearance of cheques and the transfer of funda between banks. It is the place for the banks to clear their cheques received from their customers and drawn upon other banka, In such a case”. mutual indebtedness between the member banks may be cancelled and the amount owned to any banks would be calculated.
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 banka,
to “carry out monetary policy
The central bank controls the note issue, accepts deposite from and makes loans to the commercial banka 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
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WAH KIU YAT PO
monetary authority
through control of.
the quantity of money which is circulating. In addition, governe ment can change the reserve ratio of the private banks or change the discount rate and the rate of interest by adjusting and banking so as to
monetary policy. to keen gold reserves, and
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 under- take the open, market operation by law of exchange control..
9. to offer facilities
to customers as â 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;
11. The function and
facilities provide commercial banks
A commercial bank is a profit-marking firm operated by private individuals. It is established for the purpose of seeking profite by way of offering various banking services. Banking lawa and ordinances are set up to regulate the working targets of all commercial banks The commerical 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:
to deep money for customers
Commercial banks provide the services that saving deposits "fixed deposits and
demand deposita are accepted. Different rates of interest are applied to various togeth
wi
ways of money
to lend money "customers
Loans and advances are grant ed to commerce and industry in order to earn the reward of intereat on one hand, and promote the industrial and
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commercial
development on the other. The loans and advances
include short-term
and long-term
loans, advances, overdrafts and discount bill of exchange
Govern-
ment play the supervisory role to cover all deposit taking institut- ions.
to create bank credit
Either a central bank or a
commercial bank can bring about an increase of equal amount in bank deposits. In other words, when a bank
makes an advance to a customer, whether by overdraft or loan account the result is an
increase in total purchasing power
For example, if 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 aud pay it to the creditor. If the creditør deposit it into his own account, the creditors account will have increased by $500. In this case, the borrower's account can only show s debit for this account. In the combined banks' balance sheet, advan and
deposits will have increase a $500. I
any monetary
screpancy happened, the
central bank should: have the power to control the expansion of bank credit.
to offer the service of -remittance.
your
Remittance means that the money transferred from one place to another. Imagine that you want sent BE$100 friend living in United States, you can ask for the help of the Remittance Depart- ment in any commercial bank. First of all, the Outward Remittance Depart- ment would calculate how many US dollara your 100гk dollars will buy on the foreign exchange market by referring to the day's exchange rate. If the rate is K$5 for US$1, your uk$1
bay US$20.
fore the bank will give you as bankdraft for US$20. Next, you can use o mail. transfer. That is. to say, the bank sends an airmail instruction to its. branch in United States to authorize
期星
日七十月一年三八九一层公年二十七幽民廠中
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.
to offer import and export facilities
Commercial banks offer u
special service onlkät Incumentary credit to help the promotion of business. It is the guarantee given by a bank that its customer will pay for a shipment of goods if the
correct documents are supplied as
evidence that the
shipment has been
made.
歷史(+七)
to the dynasty and let
it be overthrown, by ̈
revolutionaries like
Sun Yat-sen.
The provincial
authorities, seeing. the selfishness of the railway policy by the
lynasty heaped spread. anti-Manchu feeling, which therefore quickened the outbreak of the 1911 Revolution. The provincial:
lties did so
above)
because of
nationalist feeling 2. selfish desire for.
material benefits like railway owner- ship.
In an examination, it may be difficult for you. to work out all the above possibilities in a few minutes. And if you know nothing about the railway dispute, you will have no point to start. But
assuming what
that you know at the railway dispute is generally about, you should think in terms of
DATETIME** the possibilities like
HISTONY (17)
Philip Y., Yoo
MILLDALE PRESS LTD."
To what extent was the
dispute over railways between the Ching government and the provinces responsible.. for the outbreak of the 1911 Revolution in China?
This is a question that students answered some years ago, in a F5 exam, Scope
Evidently this is a question on the causes of the 1911 Revolution in China. But it calls for a special treatment. You must not list the different causes alone. Rather, you have to put emphasis on the cause
asked the
railway dispute, and then analyse other causes so as to compare them with that cause. The final aim
what has been described.
Then try to pattern these possiblities on the 1911 Revolution itself and see if they were true historically. Certainly, the provincial leaders (gentry, militarists and merchants) did not help the Ch'ing to suppress the revolutionaries after October 10, 1911. These provincial leaders did - not actively organizë the revolution, but their declarations of independ- ence from the dynasty in late 1911 and early 1912 had the same effect overthrowing the dynasty. Roth Grand D are alsoʻ true.
Presentation,
Normally, because the question expects you tō concentrate on the rail- way dispute, you can start start the essay by describing the railway
o show the importance dispute first, Then you
of that cause in a back- ground of other causes. The following are the logical questions that you should ask yourself before writing the essay 1. What was the railway.
dispute?
2. How did this railway
dispute contribute to the 1911 Revolution? 3. Was this railwaytig?
dispute itself suffi-
the cient to cause 1911 Revolution? If not, what other causes (of different types) were there?
How important was the railway dispute among the different causes of the 1911 Revolution?
Selection
Now try to focus your memory on the year: 1911, when the railway dispute occurred, if you know only the most general facts about it, you have no reason to worry, because other causes have to be included later.
- As for the link between this railway dispute and the 1911 Revolution, you should make use of your
common sense again. Think about the following possiblitics:
A. The provincial
authorities, angered by the railway. program, actively
· overthrew the dynasty.
B. The provincial
authorities, dis- appointed by the railwasserogram,
vithdrew their support.
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5 49 1 1 81
may say
1. that the railway
dispute was only one of the immediate causes surrounding the outbreak of the 1911 Revolution - so you can go on describing the other immediate causes briefly." 2. that
the immediate
could be traced
ca underlying
causes — so you can
go on analysing the underlying causes, Make sure that your discussion of the se immediate and underlying causes is concise and to-the-point. Make sure. that you have reserved enough time to draw a conclusion.
Conclusion.
In the conclusion, you have to go back to the railway dispute itself, for, after all, it is the railway dispute that the question is asking. You may say, "The railway dispute, in short, formed only part of the immedi- ate background surround- ing the 1911 Revolution, and these circumstances
were explanable only by the larger backgroung“ underlying causes of the revolution. The railway dispute itself did nut explain in full the events of the 1911
Revolution; other
factors, which we have.
dealt with, must indeed
be considered.
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