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- 1. Multiple Choice
A demand deposit is better than a time deposit in serving the function of money:
medium of exchange
unit of account
store of value
standard of deferred payment
- 2. Multiple Choice
Many shops in Hong Kong refused to accept $1,000 banknotes after the introduction of a new variation of the counterfeit (偽鈔) HK$1,000 banknote (2003 series).
In this case, which of the following functions of money performed by $1,000 banknotes was affected?
medium of exchange
unit of account
stored of value
standard of deferred payment
- 3. Multiple Choice
(You may pick more than one answer)
Compared to salt, jewels are a better form of money. This is because
jewels are more homogeneous.
the supply of jewels is more limited.
jewels are more durable.
jewels are more divisible.
- 4. Multiple Choice
As a form of money, pearls can better perform the function of a _____ than stamps because pearls are more ______.
unit of account ... divisible
unit of account ... portable
store of value ... durable
store of value ... homogeneous
- 5. Multiple Choice
Which of the following functions is/are performed by the Hong Kong Monetary Authority?
carrying out monetary policies in Hong Kong
issuing banknotes of all face values
determining the market interest rate in Hong Kong
collecting taxes for Hong Kong government
- 6. Multiple Choice
Mr. Wong and his wife plan to deposit HK$500,000 for one month and HK$1,000,000 for two months in a financial institution in Hong Kong.
They prefer to deposit the two sums in the same financial institution. Which of the following institutions can accept their deposits?
Licensed banks only
Licensed banks and restricted licence banks only
Licensed banks and deposit-taking companies only
All types of banking institutions
- 7. Multiple Choice
Ellen plans to put $600,000 as a time deposit in a financial institution in Hong Kong for two months. Which of the following statements is CORRECT?
She cannot put it in a deposit-taking company because the maturity is shorter than three months.
She cannot put it in a restricted licence bank because the maturity is shorter than three months.
She can put it in a deposit-taking company because the amount of deposit is more than $100,000.
She can put it in a restricted licence bank because the amount of deposit is more than $100,000.
- 8. Multiple Choice
Mrs. Lee withdraws HK$400,000 cash from her savings account with a licensed bank. She then remits HK$300,000 overseas and deposits the remainder in a deposit-taking company.
What will be the immediate effect of the above actions on the M1 of Hong Kong?
M1 will decrease by $400,000.
M1 will decrease by $300,000.
M1 will remain unchanged.
M1 will increase by $100,000.
- 9. Multiple Choice
Mrs. Lee withdraws HK$400,000 cash from her savings account with a licensed bank. She then remits HK$300,000 overseas and deposits the remainder in a deposit-taking company.
What will be the immediate effect of the above actions on the M2 of Hong Kong?
M2 will decrease by $400,000.
M2 will decrease by $300,000.
M2 will remain unchanged.
M2 will increase by $100,000.
- 10. Multiple Choice
Mrs. Lee withdraws HK$400,000 cash from her savings account with a licensed bank. She then remits HK$300,000 overseas and deposits the remainder in a deposit-taking company.
What will be the immediate effect of the above actions on the M3 of Hong Kong?
M3 will decrease by $400,000.
M3 will decrease by $300,000.
M3 will remain unchanged.
M3 will increase by $100,000.
- 11. Multiple Choice
Suppose the money supply data of Hong Kong is as follows:
The money supply M1 is __________.
$9 million
$12 million
$13 million
$17 million
- 12. Multiple Choice
Suppose the money supply data of Hong Kong is as follows:
The money supply M2 is __________.
$14 million
$17 million
$19 million
- 13. Multiple Choice
Someone withdraws HK$10,000 from his savings account with a licensed bank in Hong Kong and holds it in cash.
Which of the following is correct?
M1 will increase and M2 will decrease.
M1 will increase and M2 will remain unchanged.
M1 will remain unchanged and M2 will decrease.
M1 will remain unchanged and M2 will remain unchanged.
- 14. Multiple Choice
Someone deposits HK$1,000 cash in his current account with a licensed bank in Hong Kong.
Which of the following is correct?
M1 will increase and M2 will decrease.
M1 will increase and M2 will remain unchanged.
M1 will remain unchanged and M2 will decrease.
M1 will remain unchanged and M2 will remain unchanged.
- 15. Multiple Choice
Someone transfers HK$20,000 from his savings account to his current account with a licensed bank in Hong Kong.
Which of the following is correct?
M1 will increase and M2 will decrease.
M1 will increase and M2 will remain unchanged.
M1 will remain unchanged and M2 will decrease.
M1 will remain unchanged and M2 will remain unchanged.
- 16. Open Ended
Tell me how much you love Mr Kwok.
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