Exam practiceAccording to The Economist, China's economy is expected to overtake the USA's by asearly as 2018. Multinational companies hoping to make the most of this opportunityhave been investing in China via the Shanghai Stock Exchange. Commercial bankssuch as the Industrial and Commercial Bank of China (ICBC) and the Hong Kong andShanghai Banking Corporation (HSBC) also have an increasingly important role in thedevelopment 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- thecentral 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 economicdevelopment of the Chinese economy.[4][4]auestions

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Describe the functions of a commercial bank such as ICBC or HSBC.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter16: Creating An Environment For Growth And Prosperity

Section: Chapter Questions

Problem 14CQ

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Question

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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