79 câu hỏi tiếng anh chuyên ngành

[ anlehvtc@gmail.com ] 79 câu hỏi Tiếng Anh chuyên ngành Unit -> unit 15 Lê An | CQ54/01.02 | Academy of Finance 6/2/2019 1.What is Economics ? Economics is the study of how people choose to use resources to improve their well-beings OR Economics is the study of production and consumption of goods or services , the transfer of wealth to produce and obtain goods or services 2.What is well-being ? Well-being is the satisfaction from using goods or services OR Well-being is the satisfaction people gain from the goods or services they choose to consume, from the time they spent in leisure and family and community as well as in jobs, and the security and services provided by effective governments What are important choices in Economics ? Important choices involve how much time to devote to work, to school, and to leisure; how many dollars to spend and how many to save , how to combine resources to produce goods and services; and how to vote and shape the level of taxes and the role of government What are resources ? They are anything that people use/combine to produce/make/create goods or services , with their knowledge and experience For example : labor, natural resources, capital, machines/equipments, technology What are two types of Economics ? [ anlehvtc@gmail.com ] They are Microeconomics and Macroeconomics Why people study Economics ? Or How can we benefit from studying Economics ? Studying economics can help us understand human thought and behavior And also people and countries could become wealthy through studying Economics What are factors of production ? Anything that people use for producing goods and services For example : tools, equipments, machines, What are some examples of economic relations ? Buyers – sellers Lenders – borrowers Employers – employees What are market forces ? They are demand and supply 10 What are one conflict of economics ? Resources are limited but people’s wants / needs are unlimited 11 What is difference from theory of Adam Smith and Marxism ? In theory of Adam Smith , market can regulate itself by the law of demand and supply so the government shouldn’t interfere While Marxism states believe that capitalism will eventually fail because of social unrest and class conflict and laborers should own and control means of production 12 What does theory of Keynesian school indicate ? The role of government in capitalistic economy is significant and government regulates economy through economic policies [ anlehvtc@gmail.com ] 13 What is a free market economy ? planned economy ? mixed economy ? What are differences between free market economy and planned economy? A free market economy is an economic system in which the market is regulated by the law of supply and demand Companies compete freely and government influences the economy through its fiscal and budgetary policies A planned economy is an economic system in which government controls the economy directly and make all decisions about economy : how much to produce , how to distribute, A mixed economy is an economic system in which some goods and services are produced by the government and some by private enterprise - In free market economy, the role of government is not remarkable In planned economy, the government controls the economy directly and make all decisions about economy 14 How company compete in free market economy ? Companies compete freely 15 What does trade-off mean ? Trade-off is an exchange that occurs as a compromise 16 What are some limits in Microeconomics ? Consumer have limited income Workers have limited time, skills, health, education and experience Firms have limited capital , production capacity 17 What does theory of consumer indicate ? Consumer theory describes how consumers, based on their preferences, maximize their well-being by trading off the purchase of more of some goods with the purchase of less of others 18 Give some examples of trade-off among consumers ? Consumer have limited income, so they have to trade off buying more of some goods with buying less of others / trade off spending now with saving 19 Give some examples of trade-off among workers ? Workers have limited time, skills, health, education and experience, [ anlehvtc@gmail.com ] so they have to trade off working now with studying / work with leisure / working in good enviroment with less opportunity of advancement with working in worse enviroment with more opporturnity of advancement 20 What does theory of firms indicate ? It describes how trade-offs can be best made 21 Give some examples of trade-off among firms ? Firms have limited technology, they choose the kind of products to produce Firms have limited capital , production capacity , they choose the number of goods to produce / they choose to hire workers or to build more factories 22 What are three important themes of microeconomics? They are how to make optimal trade-offs, the role of prices and the role of market 23 What is the goal of macroeconomics ? The goal of macroeconomics is to look at overall economic trends of a country such as : Economic growth, Employment level, inflation , balance of payments, GDP, GNP, and so on 24 What are two main policies of Macroeconomics, their tools and their purposes ? They are Fiscal policy and Monetary policy Their tools: the government’s spending and revenue , money supply The purpose of these main macroeconomic policies : High economics growth, Keeping inflation under control 25 What are differences between microeconomics and macroeconomics ? Macroeconomics - The study of economic activities of individuals and firms - Look at overall economic trends: employment levels, economic growth, inflation, - Top-down approach Microeconomics The study of economic activities of a country or international market - Study how to allocate of limited resources - Bottom-up approach 26 Why is it said that microeconomics and macroeconomics are interdependent and complement one another ? Because there are many overlapping issues between the two fields [ anlehvtc@gmail.com ] 27 What is GDP ? Inflation ? GDP ( or Gross Domestic Products ) is the total value of goods and services produces in a country in a year Inflation is the rate at which the general level of prices for goods and services is rising 28 What is demand ? Quantity demanded ? What is the difference between “demand” and “quantity demanded” ? Definition • Quantity demanded is the quantity of goods and services buyers are able and willing to buy at a certain price • Demand is the quantity of goods and services buyers are able and willing to buy at various prices Factor price factors shift factors Change in demand curve the movement along the demand curve the entire demand curve to shift to the left/right 29 What is supply ? Quantity supplied ? What is the difference between “supply” and “quantity supplied” ? Definition • Quantity supplied is the Factor quantity of goods and services sellers are able and willing to sell at a certain price price factors • Supply is the quantity of goods and services sellers are able and willing to sell at various prices shift factors the movement along the supply curve the entire supply curve to shift to the left/right Change in supply curve 30 What are some shift factors of demand , supply ? Shift factors of demand : people’s income, population, tax, inflation, seasonality, quality,… Shift factors of supply : price of input, tax, inflation, technology, import quotas, 31 How does price of good affect demand, supply ? A change in the price of a good causes a change in quantity demanded Other factors are constant If the price of a good increases, quantity demanded will decrease decreases, increase A change in the price of a good causes a change in quantity supplied Other factors are constant If the price of a good increases, quantity supplied will increase [ anlehvtc@gmail.com ] decreases, decrease 32 When is a market in equillibrium ? What is excess demand ? What is excess supply ? A market is in equillibrium when there is no tendency for the price to change Quantity demanded is equal to quantity supplied Excess demand / Excess supply occurs when quantity demanded is more than quantity supplied / when quantity supplied is more than quantity demanded 33 What is public finance concerned with ? Public finance is concerned with how the government raises and spends money 34 What is Federal fund ? Trust fund ? Trust fund is from Payroll tax It is used for specific programs such as security and social medicare Programs are the same from year to year Federal fund is from individual income tax and corporate tax It is used for general programs Programs can be different from year to year basing on annual appropriation process 35 By what way does the government borrow money ? Government can borrow money by issuing and selling bonds and pays prefixed interest rate 36 Who does the government owe money to ? The public , which includes individuals and organizations in the country and from foreign countries 37 What are main sources of government’s revenue ? From Taxtation 38 What is deficit ? When the government spends more than it receives, it runs Deficit 39 What is deficit spending? Is it harmful or helpful? Why ? [ anlehvtc@gmail.com ] - Deficit spending: Spending money from borrowing or printing instead of taxation - It’s helpful when unemployment rate is high, economy grows slowly because government borrows money to undertake projects, it can create jobs for idle workers - It’s harmful when unemployment rate is low, economy overheats because it can increase inflation when the government increase money supply 40 How does the government to finance deficit ? Deficit which can be financed by issuing government bonds ( borrowing ) or printing more money 41 Under what circumstances can fiscal policy be expansionary? Contractionary ? Why ? > Government should use expansionary fiscal policy when slow economic growth and high unemployment Because government can restrict spending throughout reducing taxation and increasing public spending > Government should use contractionary fiscal policy when overheating economy and high inflation Because government can increase money supply throughout increasing taxation and reducing public spending 42 What are some factors to be considered when making fiscal policy ? Inside factors: Future employment level, economic growth, borrowing or printing money, political consideration Outside factors: Fiscal policy of other countries, requirement of IMF 43 Why should the government consider the fiscal policies of other countries ? Because the government want to give generous tax programs or the government want to control benefits to attract foreign investments 44 What is progressive tax ? Regressive tax ? Progressive is a tax charging at higher rates on higher incomes Regressive is a tax charging at lower rates on higher sales 45 What is direct and indirect taxes ? Direct tax is a tax levied on taxable person such as income tax Indirect tax is a tax levied on goods and services such as payroll tax, excise tax and custom duties,… 46 What is payroll tax ? Corporate income tax ? Custom duties ? Excise duties ? Capital gain tax ? Capital transfer tax ? [ anlehvtc@gmail.com ] Payroll tax is the tax imposed on employee’s salary, paid by both employers and employees Corporate income tax is the tax imposed on profit of a company Customs duties is the tax imposed on imports, exports Excise duties is the tax imposed on specific goods to limit consumption Capital gain tax is a tax levied on capital gains, which are profits from the sale of specific types of assets, including stocks, bonds VAT ( value added tax ) is a tax collected at each stage of production 47 What is tax avoidance ? Tax evasion ? Tax evasion: making false declarations to the tax authorities to reduce tax Tax avoidance: reducing the tax money to the legal minimum 48 What are some ways to for an individual, a company to avoid tax ? Avoiding tax on salaries: Using loopholes in tax law, tax shelter, tax deductible Avoiding tax on company’s profits: make a tax loss, set up head office in tax heavens, launder money 49 What is tax shelter ? Tax deductible ? Tax heaven ? Laundering money ? Tax shelter: postpone paying tax Tax deductible: subtract money from taxable money Tax heaven: a country has low tax rate Laundering money: put taxable money into different companies to disguise the origin of money 50 What criminal organizations to disguise the origin of money ? Laundering money 51 What are some functions of taxation ? Raise government revenue Redistribute society income Regulate the economy Limit consumptions Protect domestic goods 52 What is marginal rate ? The marginal rate : the tax people pay on any additional income [ anlehvtc@gmail.com ] 53 What is insurance in financial definition ? Insurance is the financial arrangement that redistributes the cost of unexpected losses 54 What is insurance premium ? Compensation ? Insurance policy ? Insurance premium: the amount of money insurer collects from insured and promise to compensate in case of losses Compensation: the amount of money insurer pays to insured in case of losses Insurance policy: financial agreement between insured and insurer 55 What does the insured receive when a loss occurs ? The insured receive compensation when unexpected losses occur 56 Why are people willing to pay an insurance premium ? If loss occurs , Insured gets compensation from insurance company If not, insured has no anxiety about a loss 57 What is difference between insurance and gambling ? Gambling is illegal and insurance is legal 58 How can an insurance system accomplish the redistribution of costs of unexpected losses ? Insurer collects premium from every participants but very few participants suffer from unexpected losses 59 What you know about contract of insurance ? Contracts of insurance is a special class of contract in that the law requires the insured and the insurer, to exercise the good faith towards each other 60 What is the concept of money ? A commodity as a medium of economic exchange Express prices and values of goods Measure of wealth Circulates from person to person and country to country to facilitate trade [ anlehvtc@gmail.com ] 61 What are functions of money ? What is the most important function in your opinion ? Medium of exchange (The most important function of money) Measure of value Store of value Standard of deferred payments 62 What is unit of account? Medium of exchange ? Unit of account is the unit in which the price is quoted and account is kept Medium of exchange is anything used for payments for goods and services and in settlement of debts 63 How is money functioned as a standard of medium of exchange ? measure of value ? deferred payments ? store of value ? Medium of exchange: Money is used in payment for goods and services Measure of value: Money is used to measure value in its unit of account Standard of deferred payments: Money is used to pay after you buy something Store of value: Money is used to make purchases in the future This function can suffer from inflation 64 What are kinds of money and differences between them? They are Commodity money and Token money Commodity money The value in use of commodity money is about equal to the value of material contained in it Token money The value in use of token money is higher than its cost of production Example: gold, copper Example: paper note 65 What are major tools of monetary policy? What is the most popular tool ? - Reserve Requirement - Discount Rate - Open Market Operation (OMO) OMO is the major and most common tool because it is faster for central bank to change money supply on OMO than changing reserve requirement or discount rate 66 What is Reserve Requirement ? Discount Rate ? Open Marketing Operation ? 10 [ anlehvtc@gmail.com ] Reserve Requirement is the percentage of customers’ deposit commercial banks must keep in Central Bank Discount Rate is the interest rate commercial banks pays to Central Bank when commercial banks borrow from Central Bank / or Fed charges to banks when they lend to commercial banks Open Marketing Operation is the government’s buying and selling government securities It takes shorter time to change money supply with OMO 67 What is Expansionary money policy ? Restrictive monetary policy ? Expansionary monetary policy Central bank uses expansionary monetary policy when the economy is growing slowly In this case, central bank decreases reserve requirement, decreases discount rate or buy more bonds This can increase money supply, increase aggregate demand Restrictive monetary policy Central banks uses restrictive monetary policy when the economy is overheating In this case, central bank increases reserve requirement, increases discount rate or sell more bonds This will reduce lending capacity, so reduce money supply in the market 68 What are some services of banks and how banks make profit ? Services of banks: lending, saving, exchange currency, payment, insurance, transfer money, Make profit from difference between interest rate of lending and saving, selling and buying rate, fee for services 69 What is foreign exchange market ? Foreign exchange market is the market in which national currencies are exchanged 70 What is OTC market ? A market which has : No fixed trading hours, trading 24 hours a day No physical meeting place Communication instruments: telephone or computer 71 What are types of transactions in foreign exchange market ? A forward transaction ? Spot transaction ? types of foreign exchange transactions: Spot transaction and Forward transaction 11 [ anlehvtc@gmail.com ] Spot transaction: the actual exchange date is business days after the value date Forward transaction: the actual exchange date is specified date in the future, more than days after the value date 72 What is bid rate and offer rate ? Bid rate : The highest exchange rate at which a buyer is willing to buy a currency Offer rate : The lowest exchange rate at which a seller is willing to sell a currency 73 What are types of participants in the foreign exchange market ? Customers Market makers Brokers 74 What is the main function of financial markets ? Transfer funds from lenders/savers to borrowers/spenders 75 What is securities market? Securities market is the market in which bonds and stocks are exchanged 76 What is debt market ? Equity market ? Debt market Equity market Debt instruments are exchanged Equities are exchanged kinds of debt: short, intermediate and long term long-term Borrower pays the lenders fixed interest rate at regular intervals until the maturity date Lenders share net income and assets of the borrowers basing on the percentage of shares Lenders don’t interfere in the company’s operation Lenders have a say in the company’s operation 77 What is a primary market ? Secondary market ? 12 [ anlehvtc@gmail.com ] Primary market Secondary market New issues of a security are sold to initial buyers Securities previously issued are resold Not well known to public Well known to public Companies get new funds Companies get no new funds 78 What is a debt instrument ? Short-term and long-term debt instrument ? Debt instrument is a contractual agreement by the borrower to pay the holder of the instrument fixed dollar amounts at regular intervals until a specified date, when a final payment is made > A debt instrument is short-term if its maturity is less than a year and long-term if its maturity is ten years or longer 79 What is a money market ? Capital market ? Money market Capital market Short-term debts are exchanged Intermediate and long-term debts and equities are exchanged High liquid Less liquid 13 ... short-term if its maturity is less than a year and long-term if its maturity is ten years or longer 79 What is a money market ? Capital market ? Money market Capital market Short-term debts are exchanged