Chapter7answer Article


NSS Exploring Economics 6

Section 7Money and banking


p. two

Think it over

1 .

What is money? Exactly what its uses?

2 .

What services does a bank give?


What exactly is financial middle? Is Hong Kong a financial center?

p. a few

Test your self

7. 1

a. Exactly why is exchange the precondition to get specialisation?

w. How can expertise improve time productivity?

Go over

7. you

Are dating and matrimony examples of barter? Do they require double chance of wants? Is it difficult to have dating and relationship?

p. several


7. 2

a. Are the following items viewed as a medium of exchange, a store valuable and a method of repayment in Hong Kong? Fill in the table listed below with ‘' and ‘'.

A medium of exchange

A store valuable

A means of payment

i actually. A HK$100 banknote

ii. A US$100 note

iii. A credit card

n. With reference to the table in (a), exactly what the contact among medium of exchange, store valuable and ways of payment?

p. being unfaithful


six. 3

In a dicker economy, people can store their riches only as resources and goods. In a monetary overall economy, people also can store all their wealth as money. Exactly what the advantages of storing riches in the form of money?

7. four

In comparison with barter, what are the advantages of having money as a common measure of value?

several. 5

In dicker, without money as the standard of deferred payments, how were foreseeable future payments expressed? What had been the difficulties involved? What are the huge benefits of employing money as a standard of deferred obligations?

p. doze

Test yourself

7. 2

a. The actual following products have the desirable properties of money? Fill in the table listed below with ‘' and ‘'.

Generally satisfactory

Limited and stable in supply







Rare metal

Tokens in Jumpin GYM U. H. A.

b. Which will of the previously mentioned performs the very best as money in Hong Kong?

g. 14

Talk about

7. 6th

Credit money has very little intrinsic worth and is certainly not backed by important goods. Why is credit funds commonly approved in exchange?

7. 7

Cheques are not "legal tender". Why are cheques widely recognized in exchange? Precisely what are the advantages and drawbacks of employing cheques above legal tender in settling obligations?

p. 18


7. 8

a. What would happen if the intrinsic value of metallic cash (e. g. coins) had been much larger than its confront value? m. What happens if the innate value of metallic funds were much smaller than the face benefit? pp. 31-33



1 .

Which usually of the pursuing descriptions about barter is INCORRECT? A. Barter is definitely the exchange of products directly intended for other goods. B. A person's buying and selling happens at the same time.

C. Barter requires double coincidence of wants.

D. Barter does not exist in communities with a moderate of exchange.

2 .

Money is

A. a moderate commonly recognized for the exchange of products.

B. an asset to store unrealised purchasing electricity.

C. one to express prices, incomes and expenditures.

G. All of the over


To serve as a shop of value, funds has to be

A. divisible.

B. durable.

C. homogeneous.

Deb. All of the over


Cheques are sometimes favored to banknotes as a means of payment since the former will be more A. lightweight.

B. trustworthy.

C. hard to find.

D. generally acceptable.


A credit card is not funds because it CANNOT perform the functions of (1)a medium of exchange.

(2)a retail outlet of value.

(3)a unit of account.

(4)a standard of deferred payments.

A. (1) and (2) only

W. (3) and (4) just

C. (2), (3) and (4) only

D. All the above


Which usually of the pursuing financial institutions in Hong Kong can easily accept require deposits? A. Licensed financial institutions

B. Restricted licence banking companies

C. Deposit-taking companies

G. All of the above


Isabella desires to deposit one-hundred dollar, 000 pertaining to half a yr in Hk. Which with the following banks can agree to her pay in? (1)Licensed...