Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Exam practice
According to The Economist, China's economy is expected to overtake the USA's by as
early as 2018. Multinational companies hoping to make the most of this opportunity
have been investing in China via the Shanghai Stock Exchange. Commercial banks
such as the Industrial and Commercial Bank of China (ICBC) and the Hong Kong and
Shanghai Banking Corporation (HSBC) also have an increasingly important role in the
development of the Chinese economy. Nevertheless, the trading of the renminbi,
China's official currency, is still closely monitored by the People's Bank of China- the
central bank.
1 Describe the functions of a commercial bank such as ICBC or HSBC.
2 Explain the key functions of central banks such as the People's Bank of China, [4]
3 Explain how the Shanghai Stock Exchange can play a key role in the economic
development of the Chinese economy.
[4]
[4]
auestions](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3297e2a-ca6b-4cc3-88fb-d8e870192ad5%2F7ac36fe7-206e-4b19-8cb3-2c4e6e5cae7f%2Feskz448_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exam practice
According to The Economist, China's economy is expected to overtake the USA's by as
early as 2018. Multinational companies hoping to make the most of this opportunity
have been investing in China via the Shanghai Stock Exchange. Commercial banks
such as the Industrial and Commercial Bank of China (ICBC) and the Hong Kong and
Shanghai Banking Corporation (HSBC) also have an increasingly important role in the
development of the Chinese economy. Nevertheless, the trading of the renminbi,
China's official currency, is still closely monitored by the People's Bank of China- the
central bank.
1 Describe the functions of a commercial bank such as ICBC or HSBC.
2 Explain the key functions of central banks such as the People's Bank of China, [4]
3 Explain how the Shanghai Stock Exchange can play a key role in the economic
development of the Chinese economy.
[4]
[4]
auestions
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