DSE 經濟科：財政及貨幣政策

1. Which of the following is an example of expansionary fiscal policy?

2. The Hong Kong government runs a budget surplus when:

3. A proportional tax means that as income rises, the:

4. The HKMA's primary monetary policy objective under the Linked Exchange Rate System is:

5. In Hong Kong's 2024-25 Budget, the Financial Secretary announced a one-off tax rebate of 100% of salaries tax, capped at HK$3,000. This is classified as:

6. The 'crowding out effect' of expansionary fiscal policy refers to:

7. If Hong Kong enters a recession, automatic stabilizers will cause the budget balance to move toward:

8. The HKMA uses the Discount Window (Base Rate) as its key policy rate. When the Base Rate increases, the most direct effect on commercial banks is:

9. Hong Kong's fiscal reserves stood at HK$800 billion. The government runs a deficit of HK$100 billion in Year 1 and HK$150 billion in Year 2. Assuming no investment income, the fiscal reserves at end of Year 2 are:

10. Under the Linked Exchange Rate System, an expansionary US monetary policy (lower Fed rate) leads to capital inflows to Hong Kong. To maintain the peg, the HKMA must:

11. The government borrows to fund a larger deficit. Crowding out means:

12. Crowding out of private investment is more complete when:

13. Which item is an automatic stabiliser?

14. Unemployment benefits rise in a slump and fall in a boom under existing rules. This:

15. A recession is visible in the data only after several months, and a public-works vote then takes further months to pass. These delays are:

16. A rate increase has been announced, but mortgage payments, investment plans, and the CPI respond only over the following year. That further delay is:

17. The US Federal Reserve is raising rates while Hong Kong domestic demand is weak. Under the currency board, the HKMA:

18. The Hong Kong dollar is pressed to the weak-side Convertibility Undertaking. What does the HKMA do?