1971-05-05 — Page 27

1971 英文中學會考試題預習專欄

育教僑華 頁三第張七第日一十月四年亥辛展夏 WAH KIU YAT PO

報日僑莘

For Imaginary example.- (Table I)

Price-indices

articles

1947 1948 1949

-1950-

100

95

98

104

新光出版社主編 SUNLIGHT

PRESS

100 105 106

-110

1000 90 112

120

.34

average:-100

1053 1113

經濟及公共事務科 (廿七)

Economic and Public Affairs

Lesson 27

Answers to Exercise 26 --

2nd May 1971

1. Describe briefly the three kinds of money

and explain their main aconomic functions.

Answer. PAL~ Koney is something which is

generally accepted as a means of valuation or payment or debts. It usually appears in three different forms.

Coins--- Coins are made of metals with the values printed on them. Some of these values are the real values of the coins while some or them merely

These coins în long represent units. Kong are issued by the Government with sterling and Hong Kong dollar deposits as securities.

Bank-notes----- Banknotes are. in fact printed papers made to represent different units or amounts. Some of these are convertible and some inconvertible.

Convertible bankates are always convertible to gold on demand, because they are backed by gold, Thus, a country amount of gold reserves determines its. currency supply

inconvertible banknotes are not. convertible to gold anyhow on demand, because they are not backed by gold, but are only generally accepted.

Thus, a government can issue, according to the economic need, any amount or currency, with out having to stick to göld-standard.

Cheques----- Cheques are printed papers signed by a bank depositor to draw noner he had deposited into the bank The amount all the depositors are entitled to draw by cheques far exceeds that or the— actual cash in deposit. This is possible because most of the business transactions are made through the medium of cheques, not cash. This is how a bank crestes money. by the use of cheques.

Coins, banknotes, cheques are all money, appearing in different forms yet they fulfill the same economie funci 1ons.

The barter system of goods ex- change becomes more and more inconvenient as economy becomes more and more compli– cated. Frade could only be possible if a kind of thing is commonly accepted as a standard medium of exchange That is why money comes into use,

In a transaction, things or different categories cannot be compared in terms of value. This has long been a difficulty in the barter system. But with the use of money, the value of these things can be compared by measuring their money units.

Koney can also be served as a means of storing value. Unlike meat or vegetables, it can be kept for a long time without deterioration. Though in- Tlation and deflation may affect the value of money, yet this can only be cun- sidered a defect of money, but it is true that money itself can function as "a store of value.

ü

Furthermore, since the standard rewards for services, etc. nowadays on daily necessities but on money which an employer promises to pay. This promise of payment is recorded as a money unit to be fulfilled in the future. Thus, money can also be used as a standard or deferred payment

Explain how the value of money is measured and how it is caused to rluctuate.

answer: km

The value or an article is the amount or money given to it, but the value. of money is the quantity or articles it qan buy. 5o, like the value or articles. the value of money always fluctuates, in inverse proportion to the value or articles Thus, the value of money is indicated by: the levels of prices at different times.

To measure the general level at prices, index numbers are used, in this case called "price index". In liong Kong, a price index is prepared every month by the Department of Commerce and Industry with reference to the family budgets of different classes. The 106x or liarch 1947 has been used as a basis and indices Of the post-war period has been expressed as a percentage of it so that we can at once see the percentage change in price.

Total: 300 290 3316

By addition and division, we get the ave- rase price indices of different years. In comparision, 1948 shows a drop and 1949 a rise and 1950 a higher rise. Thus, in relation to the value of money, we may say that the value or money rises in 1948, falls in 1949 and falls even greater in 1950.

But this simple method of cal culition is not at all accurate since the degree or importance or every article has not been taken into account. rerhaps a weighted index number can be more reliable by multiplying these indices with their degree of ratio importance.

For imaginary example - (Table I)

Frice indices

1947 100X2 100 x 5 1008

1948

95 x 2 105 x 5

·908

1949

982 106 5 .112 x 8

1950 104 2 110 5 1208

Assuming the importance or articles X, Y and 2 to daily lire in terms of weight can be expressed in the ratio or 2 to b to 8, then we can arrive at a more accu- rate table or indices,

三期星日五月五年一七九一屡公年十六國民華中

1971英文中學會考試題預習專欄

新光出版社主編 SUNLIGHT

PRESS

英文科(HD)

(廿八)

until 1940 when tiong Kong decided to follow the example

by 415)

A. bending.

C. baning

branding

Tomorrow (16)

P. will have been:

f. has been

Twill be..

the

sixteenth (17)

P. anniversery

anniversary

To Anniversity

B. banning

D. banding-

is being

enniversary. aniversary

of the French defeat in Vietnam, in that year from March onward

French artillery and mortars in the jungle (18)

P. had progressively silenced

Q. was progressively silenced

Re, was being progressively silenced

S, would have progressively been silenced

T. had progressively been silenced

by local fire. However, apart from very brief (19)

P. spells,

R. sperms

Tspellings,

The war in the region (20).

p. continued...“

R.

Q. spelts,

"Si speeds..

Q was contingeă had continued

ever since;

has

continued I was continuing.

Hong Kong is in the ridiculous position for an Asian country of being desperately short of new workers.

(21) had 80. alarmed

C were so alarming were so alarmed"

at the situation that they (22)

urging

A. vera

C. Kad urged

By are urged

the

Three years ago, manufacturers

B could to so alarmed

D. had been so alarmed

B. urged

D. bave urged

government to permit an inflow of (23),

A. enmigrants.

Cimigrants.

Emigrants, Today they (24)

A have been

dould have been Bare

Gore worried than ever

'Be the

For

say example.

Table 111) rice Indices:

1947

1948

1949

1950

200

190

bour's (25).

196

208

Aare straining

500

525

530

5,50

C. have strained

800

720

·896

By wall strain.

960

Jabour resources still further.

1500

1435

622

1718

100

956

1081

1145

Total Average

From table III, we can also see that the value or money rises in 1948 as a result

or a drop in the price index and falls in 1949 and 1950, as a result or rises in the prica indices. These fluctuations in the value of maney are influenced by two problems : inflation and deflation.

Inflation is a time when the value of money drops as a result or a increase or commodity prices. This is so because of a sudden increase in the issu ing or banknotes with which the consumers tend to spend more. As the supply of co- modities is not ready to meet these enor mous demands, prices will go up and the value of money will go down as an opposite effect.

Poor productivities, strikes,

etc. are also causes indirectly responsi ble for inflation, since these are factors which could determine the constant supply goods, and supply shortage will at once lead to inflation.

Another reason for the high in- crease of demand is the possible outbreak of war when everybody hopes to store up as many food and clothes as they can. This will bring the price of commodities aud- denly to a high level,

3€, demand for higher.

wages and monopoly of raw materials can Increase the market price of an article as a result of an increase in the pro- duction cost. But an increase in the par- ket price of articles would mean a decrease. in the value of money----inflation.

Deflation is a time when the value of money rises as a result of a gen-. eral decrease of commodity prices.

This

is caused partly by the limitation of issuing banknotes which makes the consumers to spend less. Thus demand falls and prices drop.. What follows is the result of deflation.

Another reason may be that of the decrease in production cost which brings a natural decrease in retail prices, When the prices of articles run down, increase of money value will be the result.

Finally, since the great quantity of articles would bring down the generel level of price, excessive production of goods to a great extent leads to defla- tion too

Exercise

(a)

I State why and how a limited liability company is formed. What are the different kinds of shares in respect to their rights in the company?

(b) What is meant by monopoly? State its advatages

and disadvantages.

Choose the most suitable answer in each of the following

1. The financial year the Hong Kong Govern-

ment begins on

a. 1st January.

1st March.

c. 1st April

a. 1st June.

1st July.

B. tmmigrante

emigrants.

jère

D. had beeb

rogressive reduction ofworks

B. 172 have, atrained

strains

All emergency ordinances in Hong Kong are signed by

a/ the Police Commissioner.

b. the Commander of British Forces.

a. the Chief Justice.

d.the Governor,

e. the Atterney General.

The work or checking the smuggling of taxa-

ble goods is the responsibility of the

a. Immigration Department.

b. Police Force,...

5. Marine Department

a. Department of Commerce and Industry.

e. Inland Revenue Department.

Price index is a figuare showing

a. the standard of living.

b. the cost of living.

the defects of money.

a. the use of money.

e. the division of labour,

A written order drawn up by a creditor and accepted by a debtor for the agreement of payment return within a certain period 18 called

a. a reference note..

b. a loan statment...

a negotiable draft: 1. a bill of lading. e. a bill of exchange.

When a merchant loans from a bank for the

GERMAN of foreign goods, the goods, ir

will be kept immediately in the

store in the name of

a. the bank

b. the merchant.

c. the foreign manufacturer

d. the insurance company.

the shipping company.

The main purpose of a national insurance. scheme is

a. to protect one's reputation.

b. to insure against death.

to provide social security.

d. to increase national revenue.

. to safeguard personal property

8. Under British justice, a person is supposed

to be innocent unless

he compits a crine

b. he is prosecuted.

he is proved guilty. 1. he is tried.

2. he is summoned.

The purpose

of the Habeas Corpus Writ 18 to protect a person

1. from being illegally detained.

>. from being unfairly tried.

from losing his appeal opportunities. from being unlawfully arrested. from having without legal aid.

Laws concerning divorce, breach of contract, loan, trespass and nuisance, etc are known

a. common laws

as

civil laws.

criminal laws. comprehensive laws,

e. basic laws.