1967-12-10 — Page 15

有多儺罐三第四

日九初月一十年未丁夏

DM68英文中學會考試題預習專欄

經濟及公共事務科 (六) 劉奇敏

Economic & Public Affairs

Lecture No, O

Money & panking

The meaning of "money"

By K.M. Lau,

The word "money". Lo gost people means the dollars and cents in their pockets, and which can buy goods and services to meet their daily moeds. Most people have come to realise that money has a value, and this value lies in its power to purchase,

Ancient people, however, did not regard money in the way people do today. Money to them waS SOME thing that most people had agreed to accept in pay- ment of a debt and which could be used to exchange Later for what they needed. At different Lines in the past, people had used sea-shells, gold dust and teeth of certain animals as money. If ancient people were given our dollar notes or coins most probably they would not accept them. Likewise, we would not receive 186-shella instead of our dollar-notes or coines fet, both as-shella and dollar-notes (and coins) have been used as money at different times in our historyA

WAH KIAMAT PO

CITY HALL

#

in the bar, ze can go to the bank and tele banker that he wishes to send, say HK$ 500 to his friend (supposing) Mr. Lee in Singapore, and let's asome that Mr. Lee has a current account in the Bangkok Bank Limited

Mr. Taul's banker will the`rind out what the rate of exchange is.If it 13 HK$1.85: 8$1,1 then HK$500 can buy approximately $8270. The banker wil ask Hró Tauf whether the transfer of the money is urgent. The bank will then debit HK$504.60 against Mr. Tsui's account. The addition HK $4.60,18,tba for Ithe service.

The bank will then instruct its correspondenti bank in Singapore to credit 56270 to the account of Mr. Los at the Bangkok Bank Ltd. The instruction l sant either by mail or cable depending on the urgency of the transfer. Mr. Tsui's bank now owes ita correspondent bank in Singapore $$270.

If not on the same day.iat another/Lame 14

customer or the correspondent bank in wingapore may ask the bank to remit money to some one in Hong Kong. Likewise the correspondent bank will instruct item counterpart in Hong Kong to pay out the sum. In this conveniently settle their "debts" my both banka "can and their accounts can be easily kept in order.

The correspondent bank in Singapore, on receiving the instructions from dr. Taui's bank, will write out alcrossed cheque and send it to the Bangkok. Bank Limited, and payable to Mr. Lee's account. Mr. Lee's banker will inform him or this credit

by mailing him a "credit transfor" slip, nich is a receipt in itself. Kr. Lee can now draw the

money but with his own ɑnequa. The concept of}@monic" to most people is therefore that which can buy. To students of soonomics this sonoept is vague and mreliable. In order to define sony in its true sense, it is necessary to find out money oume into existence in the first place.

In bygone times, people did not use money. Their way of life was completely different from ours, Their standard of living was low, and so was their cost öf living. They either got what they grew or produced, or exchanged goods for goods with their neighbours, The former is known as subsistence economy and the latter is known as barter" econCİET

If me, aqua uveo que ve a current account in a bank, the procedure is slightly different. He c to a bank and tells the bank of his intention. Tho bank will calculate the amount of money Mr. Toui'a friend will be receiving. The bank will 199us Mr Taui a bank draft (which is a Bill, of Exchange dr on an overseas bank), Mr. Tsui will then nail the bank draft to Mr. Lee,

The barter BOOKONY Was consideres as a BOTS. advanced form of civilisation but it mfortunately

resented a number of drawbacks principally

it was not only difficult, but inconvenient, sometimes impossible, to get someone who wan willing to exchange with the interested party the coomodity the latter offered to the former 3 (2) the two parties ware usually unsettled as to

quantity of one comedity should be xchanged for a given quantity of another.

conld not be paid ked for B, a farmer,

for what beTM dentist?

oodstuffs di

tasraovorily jafa

wages would be in

still present the problem of ups

A would haww ided”, What happene

and avan

they would

The barter economy had to be superseded by

economy. Honey must be able to eliminate the

a arising from the barter econo able to set as:

therefore

bo

madászm of exchange)

unit of accomt;

seans of deferred payment;

valus.

Except for the first three, the last function of money is uncertain, because the value of money fluctuates, less noticeably, from day to day, and more, from time to time. Money, too, has its drawbacks, which economists have coms to call, inflation and deflation.

The defect” OF MONEY

Inflation occurs when the value of money dropa saldet a gradual increase in the general level of prices. Causas zay be such as those given below:

an increase in the circulation of bank-notes in the country (thus encouraging consumers to spend more, resulting in an increase in prices); (b) ■ shortage of commodities and services in the

country so that cost of living rises

(0)

causing

that money is eventually losing its valus,

in a greater demand for goods thus

oss to rise;

tion of a war breaking out, so that ra begin to board commodities instead or

Deflation occurs then the value of money rides owed by an eventual drop in the general level of pricus. It may be caused by:-

sharp drop in the circulation of bank-noLUS in the country, causing consumers to treasure: the money more, thus cutting dow their spending bal

olus of goods in the country, so that supply exceeds demand, resulting in a drop in the prican of gooda,

an increase in bank rates, so that people tend te savs (by opening savings or deposit accounts with banks) instead of spending.

Answers to the questions in Exeraine IV

Question; (4) Explain how a bank romite money abroad. Illustrate your answer with an imaginar example,

There are two ways a bank can help a customST. resit morey abroad, depending on whether the customer has & current account in the bank or not. If Mr. Taul, a customer has a current account

when Hr, Lee racaivon the bank draftiae sends it to the Bangkok Bank imited and let his banker draw the money from the correspondent banko Hr. can now drảy the money,

th his own cheque,

(2) Explain why a country devalues al

currency in the light of current affairs;

When a country over the years importa more

dually incurs an advoran

reached when it

than it can expor balance of paym

becanes intere Great Brit her earnings ture average countr in the Great

Great Britain countries,

Thus on Novembe dramatically annou. would be devalued by

cent

ke the case of)

ta between

Jean expendi-)

of foreign

ler and wider

her importe;

Suropa", and

Koyšusing” an

20 at which

devaluation.;

tair

terling currency

Then a country devalues its currency vit essentially means that the currency of another country can buy more of the devalued currency, Thus one United States dollar can now buy more British sterling currency

devalued its currency are now cheaper to forsig v

Consequently, goods from the country that

LIBR

countries, foreign importera will seize the opportunity to buy more. Great britain hopas therefore to sell more of her manufactured products, to countries abroad, and when this happens her trade gap can be bridged.

On the other hand, rereign goods become more expensive, and this will deter consumers from using foreign goods and use locally-

manufactured goods instead. Imports will therefore drop and exporta, will rise. Gradually a favourable balance o payments can be maintained,

People from abroad, when visiting the country whose currency has been devalued, will get more money of the country to spend. Tourism is promoted in this way, On the contrary, inhabitants from the country that has devalued its currency will be at a disadvantage if they go abroad, since they have to pay more to get the currency of any foreign §

Country.

When « country devalues its currency, the standard of living in the country will drop since its inhabitants are not in a position to obtain foreign goods at old prices. Cost of living rises proportionally. Patrol for cars, foreign cigarette and foreign cars will become more expensive, and If these can be replaced by local products they will suffer an izuadiats drop in demand, Shops will display more of local products and if the country is unable to produce a great diversity of consumer goods to meet the needs of the population, the people will have to put up with hardships.

It may take some time before the country can raturn to the former standard of living. But, when country devaluas its currency, and this is fallared by other countrias, than the currency devalut i or

•ar vès purpose at all, since the rate of exchange between currencies of different countries is restored to the former:

00

The effects of currency devaluation varÝ ITOB country to country. For instance when Great Britain davalued her currency and. Hong Kong followed Likewise it did not mean that Hong Kong would achieve the same results as Great Britain.

Let's consider the case of Hong Kong. First, there is no primary necessity for Hong Kong to devalue her currency sides, she does not have an adverse

日期星

MERKRADIO.

·究宇宙現象,其有莫大但傅,因含祈请天的光要的光譜分析,可研究考官。

·星 ASTRONOMER)的茶相合作,共同來, TENELFIER),對一宙現的

【膠央空略」(OPTICAL ASTRONO一年,隨著你我的心情,在賀家改正的,她多次越明

18-K-[***] CMR. F

ESE-DRKENES

日十月二十年七六龙一公六十五Å民中

1 DKKKKOLAL-WEEKKE

K-BUERGSES CORBELLANER - BENYNZTUK

本報特約駐英類訊員,何炳輝

英國一週文教動態

英女王主持巨大

天文望遠鏡啓用 英女王日前主英因景新造的一字:天空望淤策的門熱能力,視乎『感光 用畫式中致詞,寫營養蹀望業籃,「光一對笹於業殿的四分之一,直徑大一倍,脚,以六九八張對二四六京,緊敗射手煞 的天文望滾籠,这次特出女王親自主持啓 【上一個直供四千时的望渐狭可比擬,亞日報章以大標照岩首頁為幅邪出。 「,但「寫光」效能,絕不丩與無統世望著 坐無 透天文慈濟艙,狖在家「目前世界上最大的大变望選鏡,是高生會選新職員,一位英文系三年級女 一出的——落在邀天文望遠鏡所以烧变 LEZEBEL THE SYKKER 「上,湛波號」,模樣,紅鳥全欧州好氣大,百时,有过节通望濾鏡的極牠們比例,雞,藉任當晚BBC墘台加強專員防閱當日, 亦以被多兵數當著。

遠的發近售,其光液不是普浯龚器能够抑 (ISSAC NEWTO UNT PALMAR AKNYGUENSKTRO-

一次望遠鏡不能察覺的宇宙發光,很流利,將定期公開其市民參觀 【镧理先生~羅小姐當選後-表現普廷張艾 英王御用天文系總胡爾尼爵士,而亮」微比材。英團的「臣,得九中大好度假感间:是「熱爵士」學院學生在葉夏嘉

破七百年傳統牛津

BAD-CRESTE (KREAT OP

二年- 由美匿「麥格陽耘魚會」,贈予英國 構思,其開始工作,可以洪姆到一九三一 天文,望號箕,擅巨大,& 出學生會女會長 有效力。

,製造計劃,時時續,近年由倫敦大學一第 修盤活轉動,爲科学试術上的另一成就医地代:參加米來全國大選。

·莫中了不少工程師、科運家、天文学家的表現自得的女于 悠一家基檗器公司前實裝置,始得完成,也日所擊,希鼦不其成爲人批評的目標 「青萍之」:GREENWICH )文台,正英利萬尼亞州「巴山」,MO 學生當選會長。消長公佈,需時,因大有來吧,病人被麻醉步,割去「壞心」、「正大產減方面開支,何來撥出更多·

的梅拿大空科學官微案協助製造,並由新一意的,但正因如此,她的工作義演,尤绍 這位創紀錄的女會長,名叫疆士,件

今後將邀請輳多婦女界慣抽到學生會演講: 一個巨大「榮羹」爲蒸礎,科於環境飆係,凄染加際論會,彼相信 - 由於漂女的本一般不嫁作劇烈運動外,工作如沉,與 ||64-MAKIRKE. [H] (MADAM PRESIDENT DESTAPENK-KEKEREIN **********-*-** RESIDENT) -SKENDRICK, BUKEIRA KOND, KAI 中津大學學生會僅於四年能容許女单,手術時間,共費五小時。 真是無獨脊偈,一年五月初,與長大,沉實的潮女裝重受傷,入院不久將世, 坐加入爲會致,曬小姐心過人,昨年會 主要病人电宋洪金心股構,四星級無 本星期日(十二月三日),中单大哥基學生會,亦由一位女一生當選。鵲女生上完徴琳被趙女來受到黑,「默心」作業時,提出要求,但非適當時倎,因爲政府。

教大學實施故,一位女會長是款容易吸引别人在一片無馬,這是林果上的一大酋步。 RESSURISED OIL PADS) K*--HRESHER2

WKKMES SIRIA- 利物浦是她的寒癤,父親是一位中學「換心一伊險,把一位對死的人的心對下

當黑會港後,她發表至單談話,表示一年成功,精神奇著,割去四分之心線, 臺加會專就題,若曹後,出鸟學生會財政八醫院,已絕症,接種後接, 安南」改研究,希望明年四月南可以公佈 高級親士、醫碌中發師協助完成,所

【代以人造塑膠質的「僭心」,病人恢復歡 ZJ的歌德斯律醫院,成功了一頂些人的 REST(CAPE TOWERSPAIRS TPL BCREEKERINAE 生會的要求,特別設立一個熱中本贴照偶 HG24-Each 0- XEON 向政府提出要求增加算貼費用,花費高的

角左右),加上無鍵值,各使用; 自

住宿等,其數目多少,則依单中依宾进境 ____ ***•KESTERVNI - DE

盡貼 舘惱,包括感號費,旅行,哦, ENGER NEJJZEKE

英鎊貶值生活高强 學生要求增加津貼

1席民主黨( LIBERAL-PARTY S 利,病人情况良好。在风眠好運狄揚的ˇ茲,颳成用途少。在此情況之下,

SHAKE ER DRESNE- AG.

星數雄;閲大學校史的點乾,這不是為大困難。一斬心」與夏天 醫學進步神奇 就倒角放著,阿略由女生當產,後來直拿敎授表示,以就手術方面來

,邊民」散。彼記灣卓示,學生會關

移植心戰成功

進

成奇

心]乎拔牙可能是正式成功,現在健始

NETABIL-SEKZAMEK KAS KORRALIEKERK NEHAVED**

組織,事黹遥相似,可稱姐妹大學,今年 牛津和劍況两所英國著名大學共

愛養用

不然,在

44

引

44

演會昨數

B

您質

的。人換院線時誤,追病油心的 日 無留

間

項要求素合理的,不過,在累祢經濟困難 VICKAEHRK - COIRES

宮核心:

的

士三項人

生術

明,冰塔注意,就是常人年前忽貼耳中, EUKKEK - KUMEONIS

balance of payments, Second, Hong Song depends heavily

on other countries to supply her with foodstuffs, heavy machinery and raw materials, If these cons from Great Britain then a devaluation in Hong Kong'● currency does not affect our import prices. But these goods come from cunntries other than Great Britain. For instance our foodstuffs come principally from China, an

and Southeast Asia, countries which have not followed Great Britain. Thus our cost of living can go up (and, in fact it did on November 21st and 22nd after Hong Kong declared that she would follow Great Britain by introducing a 14.3 per cent devaluation in Hong Kong's currency) by 30 to 40 per cent! When the cost of living in Hong Kong goes up, workers (especially industrial workers) will press for higher wages, and if management refuse, strikes and labour disputes are fuminent, Chaos might result

That Great

inevitable rail strain today is facing the

which may paralyse Britain's future economy is a classic example.

Third, when raw materials (which are imported from countries that do not devalue their currencies) are more costly, production costs will rise, and eventually our exporta are just as expensive as befe any devaluation was introduced.

The only plausible explanation why Hong Kong followed Great Britain's move to devalue her currency by 1.3 per cent on 19th November, 1967 was that Hong Kong as a member of the sterling area had the greatest part of its surplus assets in

terling. Banks, business firms and individuals including the Hong Kong Government, were then holding their asseta in the sterling currency, that Britain's devaluation would mean a loss of 14.3 per cent of

in line with Britainia move this would 3 loss

de valeir holdings. By introducing a

offset

Hong Kong has no economic ills; hence, to introduce a devaluation in our currency, which is

trong and stable, is to court economic disasters, threatening our present economic stability and impeding our economic growth.

Explain the principles of insuranc

2) What do you understand by "insurance

How does it fulfil its meaning?

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日九初月一十年未丁磨复

** WAH KIU YAT PO