頁二第張六第 日九十月十年子甲夏 WAH KIU YAT PO

1985:

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經濟公共事務 (八)

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ECONOMIC AND PUBLIC

AFFAIRS (8)

K.K. VONG & LAT. CHAN

MILL & DALE PRESS LTD.

Money and Barking Central banks and commercial banks- their functions and facilities.

I The functions of a

central bank.

A central bank is the bank of a

government. It is set up by the government and is

non-

profitmaking. Usually a central bank is the nationalized

institution which works with the government to carry. out the monetary policy and to promote the economic develop ment 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 the government; Since the amount of circulating currencies can influence the purchasing power of · the economy, govern- ment is responsible. for adjusting the amount of legal tender issued by the central bank.

In a complex monetary economy) money serves as a dynamic role in addition to being a medium of exchange. Government may regulate the level of money and liquidity in the economy so as tö achieve some desired

policy objectives such

as the control of

inflation, the growth

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CHEMISTRY (8)

REGINALD. W. CHU

MILL & DALE PRESS LTD.

Solution to 0.10

8

It is nitrogen monoxide (NO). The equation is: 4NH+502 →→→ 4NO+6H2O (ii)

Brown fumes are seen which are nitrogen dioxide. 2NO+02 →→→→ 2N02

(iii) The platinum

spiral acts as catalyst.

(iv) is the oxidation of

(~)

ammonia is

exothermic and the heat evolved can maintain the platinum spiral at an elevated temperature, so, constant heating of the spiral is not necessary when. the reaction has started.

The Litmus would turn red. It is because there is no more ammonia left while the nitrogen dioxide

in the Gross National Product and the

improvement of balance

of payments.

to be the banks of government

Government revenue are usually stored in the central bank and the public expenditure and payments are done through them. A central bank usually keeps the accounts of the government

departments.

to be the advisor of government on financial and monetary policies

The central bank' acts as the advisor of government in all the matters about monetary. and banking policies. The central bank may have an 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 réserves of private hanks.

It is a law that all the private⠀⠀ banking institutions must deposit à part of their cash reserves in the central bank.. Accordingly, the central bank centralizes the cash reserves to protect the security and control the liquidity of the whole banking system.

the

Whenever there is necessary for the private banks to borrow some money, central bank will back them up by lending. them cash funds. If there is any financial crisis 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.

to be a bank of.

(ii)

formed is dissolved

in water. to give an acidic solution.

Y is water.

is nitrogen gas. The equation is:

+3Cuð →→ N2+JlIg0+3Cu.

Add a few drops of liquid to some anhydrous

copper(II) sulphate which would turn

from white to blue

(or to a piece of dry cobalt(11) chloride paper which would turn from ue to pink)

(iii) quicklime (CaO),

can be used to dry the ammonia gas. (iv) (1)No reaction,

because ammonia does reduce zine(II) oxide.

(2)Yes; the

6.

報日僑

to supervise the operations of

private banks

A central bank takes the responsi bility to help the ....... goverunient to carry

out. the banking laws and to see and direct the work done by private banks,

7. to carry out monetary

The central bank controls the note. issue, accepts central clearance, settlement and transfer

The central bank is the bankers' bank. It provides the facilities of clearance of cheques and the transfer of funds among banks. It is the place for the banks to clear their cheques received from

amcustomers and drawn upon other banks. In such a case, mutual indebtedness among the member banks way be cancelled and the amount owned to any banks would be

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

8. to keep gold reserves

and foreign exchange reserves of the country...

In order to maintain the stability of the external value of the national currency system, the central bank keens the

4HNO

A 280 + 4 NO2+02

(e) It is because liquid

Y collected in the

experiment contains dissolved nitrogen

pale-yellow colour.

The colour can be removed by blowing air through the ... Liquid Y. using a glass tube,

drug oxide, thus having.

(g) It is because much

more nitric acid. would be decomposed at high temperatures. (h) It is to condense the nitric acid vapour as nitric acid is rather volatile.

(i) It is because the

nitric acid vapour, being a strong. oxidizing agent, attacks readily rubber and cork, but not the glass.

products are

grey lead beads, water and

(j)

nitrogen gas.

3Pb0+2NE3

→ Ng+31y0+3Pb-

Solution to 0.11

(a) The apparat

jam called is

(b) Liquid

acid.

retort. nitric

(c) The equation is:

KNO+SO →FISO,HINO,

(d) The brown fumes are Nitrogen dioxide (NO2).

The equation is:

Copper dissolves liquid Y. Brown Tumes of nitrogen dioxide are seen and a bluish-green solution of copper(II) nitrate is formed.

Cu(NO-)2 +2NO2+2H2O

On evaporating the filtrate, bluish- green crystals of copper(II) nitrate are obtained which, on further strong heating, decompose

日期星

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 doe's

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

JT,the functions and

facilities provided in 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 laws and ordinances are set up to regulate the working 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.

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.

Lo 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 leans and advances include short-term and long-term loans, advances, overdrafts

to give a black powder of copper(II) oxide and more brown fumes of uitrogen dioxide.

2Cu(NO_ ), ( « )→→2000+4NCg

(2) Brown fumes of

nitrogen dioxide are seen as nitric acid oxidizes some of the sulphur to sulphuric acid. GUINO-

After filtering, the filtrate contains" sulphuric acid which would give white precipitate of barium sulphate on addition of the acidified, barium chloride solution.

BaCl+, 0, BaSO, (s) + +2πC1 (29)

Solution to 0.12

(a) X is dinitrogen

tetroxide (NO).

Yis oxygen gas. (b) Z is lead(IT) oxide (c) 2Pb(NO),→2PbQ÷

(d) Lead(II) nitrate is anhydrous while copper(II) nitrate is hydrated. On heating the hydrate would give off its watstallization first, in which any dinitrogen tetroxide evolved would be

一十月一十年四八九一曆公年三十七國民華中 育教僑華

and discounted bills of exchange. The

Government plays the supervisory role L0 regulate all deposit taking institutions. to create bank eredit

Either a central back or A commercial bank can bring about... | an increase of equal amount in bank deposits. In other words, when a bank makes an advaŋcél to a

customer, whether by overdraft or lean account, the result is an increase in total purchasing power.

For example, if a borrower has only a small balance to the credit of his account and he obtains an overdraft of $500. Te can draw a chèque for this account and pay it to the creditor. If the creditor deposits it into his own

account, the creditor's account will have increased. by $500. Tr. 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 $500, If there is any monetary. discrepancy; the central bank `should have the power to control the expansion of bank credit. 4. to offer the service

of remittance

Remittance means that:

Remittance means that the money is transferred from one place to another. Imagine that you want to send HKS100 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 Butward Remittance. Department would calculate how many US dollars your 100K dollars will buy on the foreign exchange market hy referring

dissolved.

(e) It is because în this way any dinitrogen tetroxide contained in oxygen gas would be dissolved in water.

(1) when lead(FT) oxide

is added into dilute sulphuric acid, ít becomes coated with the insoluble lead(II) sulphate which hence prevents any further reactiîn; The same thing " happens when lead(11) oxide is added into dilute hydrochloric acid, but the coat is the insoluble. lead(II) chloride. However, lend(IT) oxide renets with. dilute nitric acid to give lead (11) nitrate which is: soluble in water.

(6)

(i).

The pit of the solution will be. smaller than 7. (i.e. acidic), Nitric acid and nitrous acid are formed.

(iii) No1 (iv)

[+

The oxidation number of nitrogen is +5 in INC +3 in NO.

to the day'a exchange rute. If the rate is

HK$5 for US$1, your

K100 will buy US$20. Therefore the 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 branchi

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

6.

Commercial banks offer a special- service called documentary credit to’ help the promotion of business. It is the gurantee 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

Furthermore, the credit line is the service provided to allow a company to receive goods before paying for them,

to provide other miscellaneous services to the customers such as

a)keeping valuables for customers;- b)providing business

information and guidance;

c) offering monthly

instalment payment Loans;

d)helping clients in

taxation problems; e)acting as the under

writters for new

stocks; f)acting as the

executors of wil1 on behalf of their clients;

gissuing of credit

cards;

h)providing auto-pay

facilities; i)selling gift

cheques.

(a)

Grey, beads of lead

and carbon dioxide

are obtained

2Pb0+C →→ 2Pb+CO2

Formula mass of

Ph(NO3)2=331

According to the

equation below

2Pb(NO)→→2Pb0+44

2 mol i.e. (2x371)g

(k)

1mol

22.4dm3

at

s.t.p.

560 cm

at s.t.p.

•m(Pb(NO3), required

5ab

22400 x(2x531). -16.55 g

The products are potassium nitrite and oxygen gas 2KNO →→→2KNO2+02

(ii) The products are

zinc(II) oxide, nitrogen dioxide and oxygen.

2Zn(NO3)2 →→→22n0+4N02+02 (iii) The products are

eilver metal, nitrogen dioxide and oxygen

and

2AgNO3 (iv)

(h) Sodium nitrate and sodium nitrite are obtained.

N12+2NaOH→→→→NaNO+NaN@g

→→→ 24x+2N0q+Og

The

products are nitrogen(I) oxide and water.

NH,NG, TA NGO 21g0

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