Đáp án 79 câu hỏi TACN hoàn thành converted

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79 câu hỏi Tiếng Anh chuyên ngành
Unit 1 -> 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.

3. 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.

4. 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.

5. What are two types of Economics ?

They are Microeconomics and Macroeconomics

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6. Why do 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.

7. What are factors of production ?
Anything that people use for producing goods and services . For example : tools, equipments, machines,..

8. What are some examples of economic relations ?
Buyers – sellers
Lenders – borrowers
Employers – employees

9. 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

13. What is a free market economy ? planned economy ? mixed economy ? What are
differences between free market economy and planned economy?

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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 do 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,
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

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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 2 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.

27. What is GDP ? Inflation ?

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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” ?
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

• Quantity demanded is the

Definition

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
decreases,

decrease

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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 ?
- 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.
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- 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 do 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 ?
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
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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 do criminal organizations do 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.
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 ?
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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 do 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

61. What are 4 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 ?
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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 2 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 3 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 ?
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 ?
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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 2 types of transactions in foreign exchange market ? A forward transaction ? Spot
transaction ?
2 types of foreign exchange transactions: Spot transaction and Forward transaction.
Spot transaction: the actual exchange date is 2 business days after the value date.
Forward transaction: the actual exchange date is specified date in the future, more than 2 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 3 types of participants in the foreign exchange market ?

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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.

3 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 ?
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
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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

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