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专业英语汇总
1. How to define the aggregate price level? 如何衡量价格指数？
Three measures of the aggregate price level are commonly encountered in economic data.
(1)The first is the GDP deflator (GDP平减指数), which is defined as nominal GDP divided by real GDP.
(2)Another popular measure of the aggregate price level is the Producer Price Index (生产者价格指数) which is a measure of the cost of a basket of goods and services bought by firms.
(3) The measure of the aggregate price level that is most frequently reported in the press is the Consumer Price Index (消费者价格指数), which is measured by pricing a basket of goods and services bought by a typical urban household.
2. What’s the disadvantage and advantage of holding equity rather than debt? 持有股权的优劣？
(1)The main disadvantage of owning a corporation’s equities rather than its debt is that an equity holder is a residual claimant (剩余求偿权), that is, the corporation must pay all its debt holders before it pays its equity holders .
(2)The main advantage of holding equities is that equity holders benefit directly from any increases in the corporation’s profitability or asset value because equities confer ownership rights on the equity holders. Debt
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holders do not share in this benefit, because their payments are fixed.
3. What’s the difference between primary and secondary market? 一级市场与二级市场的区别？
(1)A primary market is a financial market in which new issues of a security, such as a bond or a stock, are sold to initial buyers by the corporation or government agency borrowing the funds.
(2)A secondary market is a financial market in which securities that have been previously issued can be resold.
4. What’s the difference between foreign bond and Eurobond? 外国债券和欧洲债券的区别？
(1)Foreign bonds are sold in a foreign country and are denominated in that country’s currency. For example, a bond issued by a Chinese company denominated in U.S. dollars sold in New York.
(2)Eurobond is a bond denominated in a currency other than that of the country in which it is sold. For example, a bond denominated in U.S. dollars sold in China.
5. What’s asset transformation and diversification？资产转换和分散化 (1)Financial intermediaries create and sell assets with risk characteristics that people are comfortable with, and the intermediaries then use the funds they acquire by selling these assets to purchase other assets that may have
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far more risk. This process of risk sharing is referred as asset transformation, because in a sense, risky assets are turned into safer assets for investors.
(2)Diversification entails investing in a portfolio of assets whose returns do not always move together with the result that overall risk is lower than for individual assets. It also refers to “You shouldn't put all your eggs in one basket”. Diversification can eliminate firm-specific risk—the uncertainty associated with the specific companies. But diversification cannot eliminate market risk—the uncertainty associated with the entire economy, which affects all companies traded on the stock market. For example, when the economy goes into a recession, most companies experience falling sales, profit and low stock returns. Diversification reduces the risk of holding stocks, but it does not eliminate it.
6. Explain the following concepts: asymmetric information, adverse selection and moral hazard.
(1)Asymmetric information (信息不对称) refers to that one party often does not know enough about the other party to make accurate decisions. For example, a borrower who takes out a loan usually has better information about the potential returns and risk associated with the investment projects for which the funds are invested than the lender does.
(2)Adverse selection (逆向选择) is the problem created by asymmetric information before the transaction occurs. Adverse selection in financial
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markets occurs when the potential borrowers who are the most likely to default are the ones who most actively seek out a loan and are thus most likely to be selected.
(3)Moral hazard (道德风险) is the problem created by asymmetric information after the transaction occurs. Moral hazard in financial markets is the risk that the borrower might engage in activities that are undesirable from the lenders point of view, because they make it less likely that the loan will be paid back.
7. What’s the function of money? 货币的职能？
Money has three primary functions in any economy: as a medium of exchange, as a unit of account, and as a store of value.
(1)When money is used to pay for goods and services, it plays the role of a medium of exchange (流通手段). The use of money as a medium of exchange promotes economic efficiency by minimizing the time spent in exchanging goods and services.
(2)The second role of money is to provide a unit of account (价值尺度), that is, it is used to measure value of goods and services in the economy. (3)Money also functions as a store of value (储藏手段). A store of value is used to save purchasing power from the time income is received until the time it is spent. This function of money is useful, because most of us do not want to spend our income immediately upon receiving it, but rather prefer to wait until we have the time or the desire to shop.
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8. What’s the Fisher equation and Fisher effect? 费雪等式与费雪效应？ (1)The Fisher equation states that the nominal interest rate equals the real interest rate plus the expected rate of inflation. The equation tells us that all else equal, a rise in a country’s expected inflation rate will eventually cause an equal rise in the nominal interest rate. Similarly, a fall in the expected inflation rate will eventually cause a fall in the nominal interest rate.
(2)This long-run relationship between inflation and interest rates is called the Fisher effect. The Fisher effect implies, for example, that if U.S. inflation were to rise permanently from a constant level of 5 percent per year to a constant level of 10 percent per year, dollar interest rates would eventually catch up with the higher inflation, rising by 5 percentage points per year from their initial level. These changes would leave the real rate of return on dollar assets unchanged. The Fisher effect is therefore another example of the general idea that in the long run, purely monetary developments should have no effect on an economy’s real variables.
9. How to explain the negative relation between the quantity of money demanded and the interest rate?
We can explain that the quantity of money demanded and the interest rate should be negatively related by using the concept of opportunity cost (机会成本), the amount of revenue sacrificed by taking one course of action rather than
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复试金融专业英语(传世版)
