THE GREAT ECONOMIC KNOWLEDGE TEST – QUESTIONS

ROUND 1

1. The aim of the so-called Balcerowicz Plan of 1989 was:
A. far-reaching nationalisation of Polish enterprises
B. stabilisation and privatisation of the Polish economy
ANSWER B

2. What level of own contribution should be provided by a person who wants to obtain a housing loan from a bank this year ?
A. 10%
B. 20%
ANSWER A

3. Which country joined the euro area at the beginning of 2015?
A. Lithuania
B. Croatia
ANSWER A

4. Ten years ago the gross minimum wage in Poland was 849 PLN. What is it now?
A. 1680 PLN
B. 1750 PLN
ANSWER B

5. The saying “The bull climbs up the stairs but the bear jumps out the window” is a metaphor:
A. of long-lasting falls and rapid increases in share prices
B. of long-lasting increases and rapid falls in share prices
ANSWER B

6. Trousers cost 100 PLN. Their price went up by 10% but then it was reduced by 10% in the sales. How much do they cost now?
A. 99 PLN
B. 100 PLN
ANSWER A

ROUND 2

1. The Swiss franc costs approx. 3.94 PLN today. Was its value almost 4 PLN in recent years?
A. Yes
B. No
ANSWER A

2. The interest on a loan in a so-called shadow bank is usually:
A. higher than in a commercial bank
B. lower than in a commercial bank
ANSWER A

3. During 12 months the salary of Mr. Kowalski fell by 2%. During this time prices fell by 3%. This means that the purchasing power of his salary:
A. fell by about 1%
B. grew by about 1%
ANSWER B

4. Currency spread means:
A. the funds paid by banks to entities which took credit in foreign currency
B. the difference between the buying and selling exchange rate
ANSWER B

5. The total Gross Domestic Product of 28 states of the European Union compared to the USA is:
A. larger
B. smaller
ANSWER A

6. The so-called “janosikowe” solidarity tax is a popular term for:
A. the “fee” for selfies taken by speed cameras
B. financial charges paid by richer municipal governments to assist the poorer ones
ANSWER B

ROUND 3
 
1. In Poland households cannot save by changing their:
A. supplier of electricity
B. tax office
C. car insurer
ANSWER B

2. Placing one’s savings in units of investment funds compared with a bank deposit:
A. involves the possibility of higher profits, but also the risk of higher losses
B. gives the possibility to make higher profits because the funds are guaranteed by the state
C. is less risky because the banks have lowered the interest on deposits to almost zero.
ANSWER A

3. A member of a cooperative:
A. is responsible for the financial liabilities to the value of the whole of his/her assets
B. is not responsible for its financial liabilities at all
C. is responsible for its financial losses to the value of his/her contribution in the cooperative
ANSWER C

4. Mr. Wiśniewski took out a loan from a bank, thanks to which he increased the sales and profit of his company. This means that in order to increase the profit he made use of:
A. a financial club
B. financial leverage
C. a financial pyramid
ANSWER B

5. In 1994 the average annual salary in Poland was almost 64 million zlotys. One year later after redenomination it was approximately 8,500 zlotys. This means the average salary:
A. decreased
B. increased
C. remained the same
ANSWER B
Money was exchanged according to the rate: 1 new zloty = 10,000 old zlotys

6. Deflation occurs when:
A. there is a long-term fall in the level of prices
B. prices of only one product fall
C. a short-term increase in prices occurs
ANSWER A

Round 4

1. Does NBP intervene on the currency market in order to stabilise the zloty exchange rate?
A. never
B. rarely
C. regularly
ANSWER B

2. In 2014 Greece:
A. left the euro area and introduced a new currency “new drachma”
B. obtained permission from its creditors to write off 2/3 of the public debt
C. remained in the euro area with a public debt exceeding 150% of GDP
ANSWER C

3. Which of the contributions to the Social Insurance Institution is not compulsory for entrepreneurs?
A. pension insurance contribution
B. health insurance contribution
C. labour fund contribution
ANSWER B

4. How much will the Bank Guarantee Fund spend on paying the deposits of the failed credit union SKOK Wołomin?
A. more than 2 billion zlotys
B. between 1.5 and 2 billion zlotys
C. less than 1.5 billion zlotys
ANSWER A

5. Mutual insurance companies, which insure their members on a mutual basis, were in the inter-war period:
A. more numerous than now
B. less numerous than now
C. as numerous as now
ANSWER A

6. Mr. Nowak deposited 1000 PLN in a bank for 1 year with monthly capitalisation and a nominal annual interest rate of 12%. After one year the capital and interest amount to a total of:
A. approx. 1012 PLN
B. approx. 1120 PLN
C. approx. 1127 PLN
ANSWER C

ROUND 5

1. The fall in the price of oil means that:
A. countries producing oil gain from this and countries importing oil lose
B. everyone benefits from this
C. countries importing oil gain from this and oil producers lose
D. everyone loses from this
ANSWER C

2. It will be possible to transport to Poland through the Gasport in Świnoujście:
A. more gas than we currently import from Russia
B. the same amount of gas as we currently import from Russia
C. more than half of the current import from Russia
D. less than half of the current import from Russia
ANSWER C

3. The concentration of wealth in the world is growing. Currently the one percent richest people in the world own what percentage of the total wealth of humankind?
A. 10%
B. 26%
C. 48%
D. 70%
ANSWER C

4. In January 2015 the exchange rate of the Swiss franc against the zloty rose dramatically as a result of:
A. changes in the monetary policy of Narodowy Bank Polski
B. changes in the monetary policy of the European Central Bank
C. changes in the monetary policy of the National Bank of Switzerland
D. the purchase by the Polish government of bonds denominated in Swiss francs
ANSWER C

5. A high level of exports of raw materials can lead to an excessive strengthening of the national currency and a fall in the exports of other sectors. This phenomenon is known as the:
A. French disease
B. Polish disease
C. Dutch disease
D. German disease
ANSWER C

6. In which country is the highest public debt in relation to GDP?
A. in Japan
B. in Italy
C. in Belgium
D. in Greece
ANSWER A

PLAY–OFF

What was the total value of all the banknotes and coins in the banks’ vaults at the end of 2014?

12,636.784 million PLN in other words 12.6 billion