货币银行学章节知识点及问题答案
Chapter 1 Why Study Money, Banking ,and Financial Markets?
1. Financial markets: markets in which funds are transferred from people who have an excess of available funds Lo people who have a shortage. 2. Interest rate: an interest rate is the cost of borrowing or the price paid for the rental of funds
3. Stock : A common stock (typically just called a stock) represents a share of ownership in a corporation.
4. Money : Money is defined as anything that is generally accepted in payment for goods or services or in the repayment of debts.
5. Foreign exchange market : The foreign exchange market is where this conversion takes place, so it is instrumental in moving funds between countries.
6. Foreign exchange rate :the price of one country's currency in terms of another's.
Questions and answers Num.1:Why study money ,banking and financial markets? A: 1.To examine how financial markets such as bond ,stock and foreign exchange markets work.
2.To examine how financial institutions such as banks and insurance companies work.
3.To examine the role of money in the economy. Num.2:What is the banking and financial institution?
A: 1. financial intermediaries, institutions that borrow funds from people who have saved and in turn make loans to others.
2.Banks are financial institutions that accept deposits and make loans.
3.Other financial institutions—insurance companies, finance companies, pension funds, mutual funds and investment banks. Num.3:How we will study money ,banking and financial markets?
A: 1. Exploring the Web
2.Collecting and Graphing Data.
Chapter 2 An overview of the Financial System
1. Capital(资本) : wealth, either financial or physical, that is employed
to produce more wealth.
2. Primary market : 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. 3. Secondary market : A secondary market is a financial market in which
securities that have been previously issued can be resold.
4. Exchanges (证券交易所): where buyers and sellers of securities (or
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their agents or brokers) meet in one central location to conduct trades.
5. Capital market : The capital market is the market in which longer-term
debt and equity instruments are traded.
Questions and answers Num.1: How could Secondary markets be organized?
A: Secondary markets can be organized in two ways. One method is to organize exchanges, where buyers and sellers of securities (or their agents or brokers) meet in one central location to conduct trades.
The other method of organizing a secondary market is to have an over-the-counter (OTC) market.
Num.2:How to distinguish between money and capital market?
A:Money market securities are usually more widely traded than longer-term securities and so tend to be more liquid.short-term securities have smaller fluctuations in prices than long-term securities, making them safer investments. As a result, corporations and banks actively use the money market to earn interest on surplus funds that they expect to have only temporarily. Capital market securities, such as stocks and long-term bonds, are often held by financial intermediaries such as insurance companies and pension funds, which have little uncertainty about the amount of funds they will have available in the future.
Num. 3:What’s the International Bond Market, Eurobonds, and Eurocurrencies?
A:The traditional instruments in the international bond market are known as foreign bonds. Foreign bonds are sold in a foreign country and are denominated in that country's currency.
The Eurobond is a bond denominated in a currency other than that of the country in which it is sold.
Eurocurrencies, which are foreign currencies deposited in banks outside the home country. The most important of the Eurocurrencies are Eurodollars.
Chapter 3 What Is Money?
1. Wealth: The total collection of pieces of property that serve to store
value.
2. Income : Income is a flow of earnings per unit of Lime.
3. Medium of exchange : promotes economic efficiency by minimizing the
time spent in exchanging goods and services.
4. Store of value : It is a repository of purchasing power over time.
A store of value is used to save purchasing power from the time income is received until the time it is spent.
5. Electronic money (or e-money): money that exists only in electronic
form.
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6. Ml : which includes the most liquid assets: currency, checking account
deposits, and travelers checks.
Questions and answers Num.1: Example the evolution of the Payments System.
A: Commodity Money Fiat Money Checks
Electronic Payment E-Money
Num.2:Explain M1 and M2.
A:The narrowest measure of money that the Fed reports is Ml, which
includes the most liquid assets: currency, checking account deposits, and traveler’s checks.
The M2 monetary aggregate adds to M l other assets that are not quite as liquid as those included in M l: assets that have check-writing features (money market deposit accounts and money market mutual fund shares) and other assets (savings deposits and small-denomination time deposits) that can be turned into cash quickly at very little cost.
Num.3:What the function of money? A: 1.Medium of Exchange
In almost all market transactions in our economy, money in the form of currency or checks is a medium of exchange; it is used to pay for goods and services. The use of money as a medium of exchange promotes economic efficiency by minimizing the time spent in exchanging goods and services. 2. Unit of Account
Unit of account, that is, it is used to measure value in the economy. We measure the value of goods and services in terms of money, just as we measure weight in terms of pounds or distance in terms of miles. 3.Store of Value
Store of value it is a repository of purchasing power over time. 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.
Chapter 4 Understanding Interest Rates
1. Present value (orPresent discounted value): a dollar paid to you one
year from now is less valuable to you than a dollar paid to you today. 2. Yield to Maturity(到期收益率)：the interest rate that equates the
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货币银行学章节知识点与问题答案
