完整Fabozzi金融市场与金融机构基础课后答案.docx

完整Fabozzi金融市场与金融机构基础课后答案.docx

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完整Fabozzi金融市场与金融机构基础课后答案

2021年7月30日星期五多云

文档名称：

《（完整word版）Fabozzi_金融市场与金融机构基础课后答案》

文档作者：

凯帆

创作时间：

2021.07.30

CHAPTER4

THEU.S.FEDERALRESERVE

ANDTHECREATIONOFMONEY

CENTRALBANKSANDTHEIRPURPOSE

Theprimaryroleofacentralbankistomaintainthestabilityofthecurrencyandmoneysupplyforacountryoragroupofcountries.Theroleofcentralbankscanbecategorizedas:

（1）riskassessment,

（2）riskreduction,（3）oversightofpaymentsystems,（4）crisismanagement.

Oneofthemajorwaysacentralbankaccomplishesitsgoalsisthroughmonetarypolicy.Forthisreason,centralbanksaresometimescalledmonetaryauthority.Inimplementingmonetarypolicy,centralbanks,actingasareservebank,requireprivatebankstomaintainanddeposittherequiredreserveswiththecentralbank.Intimesoffinancialcrisis,centralbanksperformtheroleoflenderoflastresortforthebankingsystem.Countriesthroughouttheworldmayhavecentralbanks.Additionally,theEuropeanCentralBankisresponsibleforimplementingmonetarypolicyforthemembercountriesoftheEuropeanUnion.

Thereiswidespreadagreementthatcentralbanksshouldbeindependentofthegovernmentsothatdecisionsofthecentralbankwillnotbeinfluencedforshort-termpoliticalpurposessuchaspursuingamonetarypolicytoexpandtheeconomybutattheexpenseofinflation.

Inimplementingmonetaryandeconomicpolicies,theUnitedStatesisamemberofaninformalnetworkofnations.Thisgroupstartedin1976astheGroupof6,orG6:

US,France,Germany,UK,Italy,andJapan.Thereafter,CanadajoinedtofortheG7.In1998,RussiajoinedtoformtheG8.

THECENTRALBANKOFTHEUNITEDSTATES:

THEFEDERALRESERVESYSTEM

TheFederalReserveSystemconsistsof12bankingdistrictscoveringtheentirecountry.Createdin1913,theFederalReserveisthegovernmentagencyresponsibleforthemanagementoftheUSmonetaryandbankingsystems.Itisindependentofthepoliticalbranchesofgovernment.TheFedismanagedbyaseven-memberBoardofGovernors,whoareappointedbythePresidentandapprovedbyCongress.

TheFed’stoolsformonetarymanagementhavebeenmademoredifficultbyfinancialinnovations.Thepublic’sincreasingacceptanceofmoneymarketmutualfundshasfunneledalargeamountofmoneyintowhatareessentiallyinterest-bearingcheckingaccounts.Securitizationpermitscommercialbankstochangewhatoncewereilliquidconsumerloansofseveralvarietiesintosecurities.SellingthesesecuritiesgivesthebanksasourceoffundingthatisoutsidetheFed’sinfluence.

INSTRUMENTOFMONETARYPOLICY:

HOWTHEFEDINFLUENCESTHESUPPLYOFMONEY

TheFedhasthreeinstrumentsatitsdisposaltoaffectthelevelofreserves.

ReserveRequirements

Underourfractionalreservebankingsystemhavetomaintainspecifiedfractionalamountsofreservesagainsttheirdeposits.TheFedcanraiseorlowertheserequiredreserveratios,therebypermittingbankstodecreaseorincreasetheirlendingandinvestmentportfolios.Abank’stotalreservesequalitsrequiredreservesplusanyexcessreserves.

OpenMarketOperations

TheFed’smostpowerfulinstrumentisitsauthoritytoconductopenmarketoperation.Itbuysandsellsinopendebtmarketsgovernmentsecuritiesforitsownaccounts.TheFedpreferstouseTreasurybillsbecauseitcanmakeitssubstantialtransactionswithoutseriouslydisruptingthepricesoryieldsofbills.

TheFederalOpenMarketCommittee,orFOMC,istheunitthatdecidesonthegeneralissuesofchangingtherateofgrowthinthemoneysupply,byopenmarketsalesorpurchasesofsecurities.TheimplementationofpolicythroughopenmarketoperationsistheresponsibilityofthetradingdeskoftheFederalReserveBankofNewYork.

OpenMarketRepurchaseAgreements

TheFedoftenemploysvariantsofsimpleopenmarketpurchasesandsales,thesearecalledtherepurchaseagreement（orrepo）andthereverserepo.Inarepo,theFedbuysaparticularamountofsecuritiesfromasellerthatagreestorepurchasethesamenumberofsecuritiesforahigherpriceatsomefuturetime.Inareverserepo,theFedsellssecuritiesandmakesacommitmenttobuythembackatahigherpricelater.

DiscountRate

AbankborrowingfromtheFedissaidtousethediscountwindow.ThediscountrateistheratechargedtobanksborrowingdirectlyfromtheFed.Raisingtherateisdesignedtodiscouragesuchborrowing,whileloweringshouldhavetheoppositeeffect.

DIFFERENTKINDSOFMONEY

Moneyisthatitemwhichservesasanumeraire.Inabasicsensemoneycanbedefinedasanythingthatservesasaunitofaccountandmediumofexchange.Wemeasurepricesindollarsandexchangedollarsforgoods.Hencecoins,currency,andanyitemsreadilyexchangedintodollars（checkingdepositsorNOWaccounts）constituteourmoneysupply.

MONEYANDMONETARYAGGREGATES

Monetaryaggregatesmeasuretheamountofmoneyavailabletotheeconomyatanytime.Themonetarybaseisdefinedascurrencyincirculation（coinsandfederalreservenotes）andreservesinthebankingsystem.TheinstrumentsthatserveasamediumofexchangecanbenarrowlydefinedasM1,whichiscurrencyanddemanddeposits.M2isM1plustimeandsavingsaccounts,andmoneymarketmutualfunds.Finally,M3isM2plusshort-termTreasuryliabilities.Whileallthreeaggregatesarewatchedandmonitored,M1isthemostcommonformofthemoneysupply,withitstraitasbeingthemostliquid.Theratioofthemoneysupplytotheeconomy’sincomeisknownasthevelocityofmoney.

THEMONEYMULTIPIER:

THEEXPANSIONOFTHEMONEYSUPPLY

Themoneymultipliereffectarisesfromthefactthatasmallchangeinreservescanproducealargechangeinthemoneysupply.Throughourfractionalreservesystem,asmallincreasewillallowanindividualbank,tolendoutthegreaterpartoftheseadditionalfunds.Theseloanssubsequentlybecomedepositsinotherbanksallowingthemtoexpandproportionately.So,whileonebankcanexpanditsloans（ordeposits）byanamount1%ofreservesrequired,allbanksinthesystemcandolikewise.Thus,inasimpleformattotalchangeindepositscanbestatedaschangeinreservesdividedbythereserverequirement,whichisalsotheformulaforperpetuity.Forexample,ifthechangeinthelevelofreservesis$100andthereserverequirementis20%,thechangeintotaldepositswillbe$500foramultiplierof5.Ofcourse,majorassumptionsarethatbankswillfullyloanouttheirexcessreservesandthatdepositorswillnotwithdrawanyoftheseextrareserves.

THEIMPACTOFINTERESTRATESONTHEMONEYSUPPLY

Highratesofinterestmaymakekeepingexcessreservescostly,sinceunusedfundsrepresentloansnotmadeandinterestnotearned.Highratesofinterestwillalsoaffectthepublic’sdemandforholdingcash.Ifdepositspaycompetitiveinterestrates,customerswillbemorewillingtoholdsuchbankliabilitiesandlesscash.Therefore,ahigherrateofinterestcanactuallyspurgrowthofthemoneysupply.Morelikely,however,itwilldeterborrowingandslowmonetarygrowth.

THEMONEYSUPPLYPROCESSINANOPENECONOMY

Inthemodernera,almosteverycountryhasanopeneconomy.ForeigncommercialandcentralbanksholddollaraccountsintheUnitedStates.Theirpurchasesandsalesofthesedepositscanaffectexchangeratesofthedollaragainsttheirowncurrency.TheFedhasresponsibilityformaintainingstabilityinexchangerates.Apurchaseofforeignexchangewithdollarsdepreciatesthedollar’svalue,butitalsoaddsdollarstotheaccountsofforeignbanksinthiscountry,thusaddingtotheU.S.monetarybase.Mostcentralbanksoflargeeconomiesownorstandreadytoownalargeamountofeachoftheworld’smajorcurrencies,whichareconsideredinternationalreserves.Salesofforeignexchangetransactionshavemonetarybaseimplicationandhenceconsequencesforthedomesticmoneysupply,emphasisisgiventocoordinatingmonetarypoliciesamongdevelopednations.

ANSWERSTOQUESTIONSFORCHAPTER4

（Questionsareinboldprintfollowedbyanswers.）

1.Whatistheroleofacentralbank?

Theroleofacentralbankhasseveralfunctions:

riskassessment,riskreduction,oversightofpaymentsystems,andcrisismanagement.Itcandothisthroughmonetarypolicies,andthroughtheimplementationofregulations.

2.Whyisitarguedthatacentralbankshouldbeindependentofthegovernment?

Centralbanksshouldbeindependentoftheshort-termpoliticalinterestsandpoliticalinfluencesgenerallyinsettingeconomicpolicies.

3.Identifyeachparticipantanditsroleintheprocessbywhichthemoneysupplychangesandmonetarypolicyisimplemented.

TheFeddeterminesmonetarypolicyandseekstoimplementitthroughchangesinreserves.Itisuptothenation’sbankingsystemtoactonchangesinreservestherebyaffectingdeposits,whichconstitutethegreaterpartoftheM1definitionofthemoneysupply.

4.DescribethestructureoftheboardofgovernorsoftheFederalReserveSystem.

TheBoardofGovernorsoftheFederalReserveSystemconsistsof7memberswhoareappointedtostaggered14-yearterms.TheBoardreviewsdiscountoperationsandsetslegalreserverequirements.Inaddition,all7membersoftheBoardserveontheFederalOpenMarketCommittee（FOMC）,whichdeterminesthedirectionandmagnitudeofopen-marketoperations.Suchoperationsconstitutethekeyinstrumentforimplementingmonetarypolicy.

5.

a.Explainwhatismeantbythestatement“theUnitedStateshasafractionalreservebankingsystem.”

b.Howaretheseitemsrelated:

totalreserves,requiredreserves,andexcessreserves?

a.Afractionalreservesystemrequiresthatafractionorpercentofabank’