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> Macroeconomics II
There are 10 questions in this quiz!
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Q. 1
A report says that the distribution of income between the rich and the poor is becoming more and more uneven. It reflects that
A
most of the wealth falls into the hands of a small group of very rich people.
B
GDP decreases.
C
per capita GDP decreases.
D
per capita real GDP decreases.
Q. 2
Who will gain from an unexpected inflation?
(1) The mother who gives $10 pocket money to her son every day.
(2) The person who has a large amount of cash in hand.
(3) Credit card company
(4) Credit card users
A
(1) and (4) only
B
(1) and (3) only
C
(2) and (3) only
D
(2), (3) and (4) only
Q. 3
Suppose a Hong Kong citizen opens a meat shop. He borrows $500 000 from a bank to settle the payment of his supplier. His supplier immediately uses $400 000 to settle the bank loan, and deposits the rest in his current account for daily operation of his business.
What would be the immediate effect on the money supply in Hong Kong?
A
M1, M2 and M3 will remain constant.
B
M1, M2 and M3 will increase by $500 000.
C
M1 will increase by $100 000; M2 and M3 will increase by $500 000.
D
M1, M2 and M3 will increase by $100 000.
Q. 4
Which of the following is
NOT
the function of central bank in Hong Kong?
A
Supervising the banking system.
B
Acting as a lender of last resort.
C
Executing monetary policies so as to stimulate the economic growth.
D
The above functions are shared by different institutions in Hong Kong.
Q. 5
Which of the following is most appropriate for a government to do at times of depression?
A
Increasing interest rates
B
Redistributing income from the rich to the poor
C
Raising tax rates
D
Cutting subsidies to industries
Q. 6
Suppose a family immigrates to Hong Kong from a foreign country this year. In the same year, this family receives stock dividends from the shares they have bought in that foreign country. It will
A
affect Hong Kong's capital and financial account only.
B
affect Hong Kong's current account only.
C
improve Hong Kong's balance of payments.
D
generate a result which cannot be determined.
Q. 7
Profits tax in Hong Kong is
(1) progressive
(2) proportional
(3) a direct tax
(4) an indirect tax
A
(1) only
B
(1) and (3) only
C
(2) and (3) only
D
(2) and (4) only
Q. 8
Holding other factors constant, in which of the following situation will the deposit created at the maximum?
A
The minimum reserves ration of banks is 100%.
B
The minimum reserves ratio of banks is 50%.
C
The maximum banking multiplier is 5.
D
The maximum banking multiplier is 4.
Q. 9
In which phase of a business cycle that the unemployment rate would be the lowest?
A
Peak
B
Recession
C
Depression
D
Recovery
Q. 10
Which of the following is the use of national income statistics?
A
Estimate the performance of a company
B
Fight against deflation
C
Improve the standard of living
D
Basis for formulating government policies
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