Nate’s Finance Family
From early 80s, the transition from a secondary industry （第二產業）economy to a tertiary industry （第三產業）economy benefited the development in financial services sector in Hong Kong. Hong Kong is now recognised as one of the most important financial centres in the world. The contribution of financial services sector to Hong Kong’s GDP increased from 14% in 2005 to 23% in 2020. In 2020, the financial services sector employed 273,000 persons, or 7% of total employment in Hong Kong.
Nate is a junior secondary student. Growing up in a family working in the financial services sector, he has developed a strong interest in finance（金融；財務管理）. Recently, he was asked to do a research （研究；調查）on “What is Money?” at school, so he sought advice from his mother.
“Mum, I am writing an essay on “What is Money”. An outline has been drawn, which includes i) History of Money, ii) Use of Money and iii) Future of Money,” Nate told his mother.
“That’s an interesting topic! The outline is very clear. I’d suggest you look for the definition （定義）of money first,” his mother said.
“Yes, I was going to ask you about the research! How should I do it? Can you give me some hints?” Nate asked.
“You may try “investopedia.com”. Definitions of most finance terms can be found there. You may also get information from the library,” replied his mother.
Nate began to surf the net. He also borrowed reference books from the library. There was so much information both online and offline. This made Nate feel so puzzled.
“Mum, according to Investopedia, money is a medium（媒介）of exchange of goods and services, and it allows the economy to grow as transactions （交易）can be completed at greater speeds. However, I don’t understand how the value of money is determined, and why everyone trusts the concept of ‘MONEY’. That’s all beyond my understanding!” Nate felt frustrated.
“It is a wonderful start, isn’t it?” said his mother. “You already knows the definition of money. The way of how to determine the value of money and the trustworthiness（可信度）of the whole system are in your next task, you’ll find the answer when you explore the ‘History of Money’, as set in your outline. I can give you some hints, you may try, ‘Bartering’ （以物易物）, ‘Bretton Woods System’, and ‘Central Bank’ as your keywords search.”
Nate’s mother threw back the questions to him.
“Oh, I know what is Central Bank, The People’s Bank of China is the central bank of China, right? I always see this in news.” Nate was so excited that he knows it.
“Yes, indeed. Well done! As there’s no central bank in Hong Kong, so which organisation is acting like a central bank in Hong Kong?” Nate was tested by his mother again.
To be continued….
