Financial English 《金融英语》内容结构.docx

Financial English 《金融英语》内容结构.docx

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FinancialEnglish《金融英语》内容结构

Chapter1

（1）CommodityMoney:

ismoneywhosevaluecomesfromacommodityoutofwhichitismade.

（2）RepresentativeMoney:

representativefull–bodiedmoneyreferstopapermoneyfullybackedbyapreciousmetal.

Types

（3）CreditMoney:

isissuedisbasedonthecreditofitsissuerandcreditprocess.

（4）ElectronicMoney:

referstodepositorymoneythatisstoredandprocessedthroughcomputersystemorelectronicpaymentsystem.

（1）Mediumofexchange:

eliminatesandovercomesthedifficultyofbartersystem.

（2）Unitofaccount:

providingacommonnumericalmeasureofthevalueofgoodsandservicesexchanged.

Functions

（3）Storevalue:

havesomefunctions:

savepurchasingpower,depreciateswithinflation,moreliquid,standardofdeferredpayment

（1）Simpleinterest:

referstointerestearnedonlyontheprincipaloftheinitialinvestment.

Formula:

I=PRnS=P+I=P（1+Rn）I得到的利息P本金R每年利息率n付息频率S:

本息和

（2）Compoundinterest:

Interestforpreviousperiodsisaddedtoprincipalforthecalculationofinterest.

Formula:

s=P（1+r）^nI=S-P

Money

InterestandInterestRate

isgenerallyacceptedinthepaymentforgoodsandservicesorintherepaymentofdebt.

Interestisafeepaidonborrowedassets.

InterestRate

InterestRatereferstotheratiooftheinterestformedduringtheperiodofborrowingandlendingtotheprincipalofthegrantedloan.

（3）Nominalandrealinterestrates.Realinterestratesisapproximatelythenominalinterestrateminustheinflationrate.

（4）Officialandmarketinterestrates.Theformerissetbythecentralbanksormonetaryauthorities.Marketinterestrateiswhollydeterminedbythedemandandsupplyoffunds.

（1）Narrowmeasureofmoney:

M0andM1

Includecurrencyanddemanddepositusedforeverydayexpenditures.

MoneySupply

referstothecollectionofmoneyinaneconomyincludingthevolumeofcurrencyincirculationandthevolumeofdepositsatanypointoftime.

（2）Broadmeasureofmoney:

M2andM3

Narrowmeasureofmoneyaddstimedepositsandsavingsaccountandcertainotherfinancialassets

1.Renminbiisthelegaltenderandhadnorelationtogold,noranyforeigncurrencies.

2.RenminbiisthesolelegalmoneyinChina.

3.TheissuanceofRenminbiishighlyconcentratedandthePeople’sBankofChinaholdstherightofissuanceofRenminbi.

China‘sMonetarySystem

Chapter2

Thespotexchangerate:

referstothecurrentexchangerate

Theforwardexchangerate:

referstoanexchangeratethatisquotedandtraded

Definition:

Itisthevalueofaforeignnation’scurrencyintermsofthehomenation’scurrency.

Foreignexchangerate

Types

Directquotation:

1foreigncurrencyunit=Xhomecurrencyunits

Quotation

Indirectquotation:

1homecurrencyunit=Xforeigncurrencyunit

Definition:

arepurchasesandsalesofforeignexchangeswithapurposetomeettheneedsofacertaineconomicactivity.

Spottransaction:

purchaseandsaleofFXwithdeliveryandpaymenttotakeplacenomorethantwoworkingdaysafterthedateofdeal.

ForeignExchange

Forwardtransaction:

istheFXtransactionthatissettledonanypre-agreeddatethreeormorebusinessdaysafterthedealdate.

foreignexchangetransactions

Definition:

Inthefirstplace,itmeansthesystemutilizedfinancinginternationalpayment.

Inthesecondplace,itmeansthemediausedtodischargeinternationalobligations.

Thethird,meanstheratesatwhichforeignexchangeisquoted.

Swaptransaction:

isthesimultaneouspurchaseandsalesofagivenofFXfortwodifferentvaluedate.

Foreignexchangefuturescontract:

isanagreementbetweentwopartiestobuy/sellaparticularcurrencyataparticularpriceonaparticularfuturedate,asspecifiedinastandardizedcontractcommontoallparticipantsinthatcurrencyfuturesexchange.Whichisrarelybuyingorsellinganything。

Types

Foreignexchangeoptioncontract:

givesthebuyertheright,butnottheobligation,tobuy（orsell）aspecifiedamountofonecurrencyforanotherataspecifiedpriceonaspecifieddate.

Chapter3

Thefirstisaboutthedistinctionbetweendomesticresidentandforeigners.Thedistinctionisonthebasicofnormallocationofresident.

TheGeneralPrincipleofBOP

UnrequitedTransfers

directinvestmentandportfolioinvestment（differentfrominvestorwhetherintendstotakeanactiverole.）

Non-financialServices

InvestmentIncome

TheTradeBalance

CurrentAccount

IsthebasicpartoftheBOPaccount,whichshowsalltransactionsinvolvingmanufacturedgoodsorrenderedservices.

othercapital

CapitalandFinancialAccount

Monetarygold

Specialdrawingrights

ThereservepositionintheFund

Foreignexchange

changeinreserves

CounterpartItems

Double-entrysystem,inwhicheachtransactiongivesrisetobothacreditentryandadebitentry.

NetErrorsandOmissions

Thecomponentsofbalanceofpaymentstatement:

1.tradeequilibrium,whichmeansexportsequalimports.

2.current’sequilibrium

3.theoverallbalanceofpaymentstatement.

EquilibriumofBOP

BalanceofPayment

（BOP）

Definition:

istherecordoftheeconomicandfinancialflowsthattakeplaceoveraspecifiedtimeperiodbetweenresidentsandnon-residentsofagivencountry.

Chapter4

Features:

1）amembercountryisfreetochooseitsownexchangeratesystem

2）goldcannotbeusedforinternationaltransactions

3）SDRastheprincipalreserveassetintheinternationalmonetarysystem.

Period:

1976-now

TheJamaicasystem

Brettonwoodssystem

Financialsystems

Demerit:

Triffinparadox

Merits:

facilitatedinternationalbusiness

Feature:

1）WorldBank,andtheInternationalMonetaryFund

2）USdollarbasedgoldstandard

3）USdollarservingasthefund’s

4）ItscurrencyintermsofgoldandtheUSdollarandtokeepfluctuationsofthedollarexchangerate.

5）usinganadjustablepeg.

6）thedollerbecamethemostwidelyusedcurrencyintheinternationaltrade.

Period:

1944-1976

Period:

1870-1914

Thegoldstandard

Disadvantage:

itsinherentlackofliquidity

Advantage:

itsstabilizinginfluence

features:

1）Currenciesaredefinedintermsoftheirgoldcontent.

2）Paymentimbalancesbetweencountriesaresettledingold.

3）Goldcoinscirculatedinmostoftheworld.

4）Papermoney.

5）Underthesystem,goldwastheonlystandardofvalue.

Themechanismofadjustmenttopaymentsdeficitsandsurpluses

Thetypesofassetsusedforfinancingorsettlingpaymentsimbalancesamongcountries

Thekeyfeatures

Thewaytheforeignexchangemarketisorganized

InternationalMonetarySystem

Merit:

hasunfetteredflexibility.

Demerit:

lackedaunifiedstablemonetary.

Chapter5

Functions

3）achannelthroughwhichanationalgovernmentcarriesoutitsmacro-economicpolicies.

2）Optimizethereallocationandtheefficientuseofresourcesbypromotingreasonableflowoffunds.

1）Facilitatesthelendingoffundsfromsaverstothosewhowishtoundertakeinvestments.

Definition:

financialmarketexistasawholeoftheplacesandactivitiesofthefinancialandtransactionsoffinancialinstruments.

financialmarket

ThemoneymarketandCapitalmarket

Theprimarymarketandsecondarymarket

Types

Thespotmarketandforwardmarket

Definition:

aremoneymarketinwhichshort–termfundstransferredbetweenfinancialinstitutions,usuallyforaperiodofoneday,thatis,theyareusuallyovernightinvestment.

Functions:

itcanreflectthedemandforandsupplyoffundsinmoneymarketsandalmostallotherfinancialmarketsacutelyandtimely.Asthewindvaneofthemarketrate.

Inter-bankMarket

TypicalRate:

LIBOR,SHIBORandHIBOR.

Definition:

isamarketwherebillsaretransferred.

Types:

discount,on-discount,re-discount.

DiscountMarket

EurodollarMarket:

denominateddepositsatbanksoutsideoftheunitedstates.

Advantage:

isrelativelyfreeofregulation.circumventingregulatorycosts

Moneymarket

1）mostmarketable.

2）2）areissuedbythegovernment.

3）3）T-billsareshort–termsecurities

Features

Margin:

isthedifferencebetweenthepurchasepriceandpoorvalueofthesecurityandwhatyougetatmaturity.

MarketforTreasuryBills

Advantage:

1.virtuallyfreeofdefaultrisk.

2.Changesininflationinalsolowbecauseoftheshorttermtomaturity.

Definition:

isabank-issuedsecuritythatdocumentsadepositandspecifiestheinterestrateandthematuritydate.

Features

1）isatermsecurity.

2）isabearinstrument.

3）canbeboughtandsolduntilmaturity.

4）inlargedenominations.

5）individualstobeindirectinvestorsinNCDs.

MarketforNegotiableCertificatesofDeposit

（NCDsorCDs）

isshortrepurchaseagreement.

MarketforRepos

Variations:

1）reverserepo

2）termrepo

MarketforCommercialPapers

Definition:

isanunsecured,short-termloanissuedbyacorporation,typicallyforfinancingaccountsreceivablesandinventories.

Interestrate:

adiscountrate,higherthanthedepositrate.

Maturities:

1）onlongerthanamonths.

2）theaverageis1-2months.

ListingandOTCdealing:

OTC,over-the-countermarketisadecentralizedmarketmainlyforunlistedstocksandparkoflistedstocksofsmallfirms.

Publicofferingisthroughunderwriting.

Privateplacemenisofferedinaprivateplacement.

Publicofferingandprivateplacement

Secondarymarket:

isafinancialmarketinwhichsecuritiesthathavebeenpreviouslyissuedcanberesold.

Intermediary:

USisinvestmentbanks.

Ukismerchantbanks.

Chinaissecuritiescompanies.

Functions:

1）underwritebyaninvestment.

2）Underwriting.

3）besteffortagreement.

Definition:

isthatpartofthecapitalmarketthatdealswiththeissueofnewsecurities.

Theprimarymarket

Features:

1）Longmaturityfromoneyear