Lecture 1 Financial development and economic growth
财金英语教程参考答案
财金英语教程参考答案Chapter 1: Introduction to Finance1. What is finance?- Finance is the management of money and includesactivities such as investing, borrowing, lending, budgeting, saving, and forecasting.2. What are the three main functions of finance?- The three main functions of finance are planning, acquiring, and managing financial resources.3. What is the time value of money?- The time value of money is the concept that a sum of money is worth more now than the same sum in the future dueto its potential earning capacity.4. How does inflation affect the value of money?- Inflation erodes the purchasing power of money over time, meaning that the same amount of money will buy fewer goodsand services in the future.5. What is the difference between a bond and a stock?- A bond is a debt instrument where an investor lends money to an entity in exchange for interest payments, while a stock represents ownership in a company and offers thepotential for capital gains and dividends.Chapter 2: Financial Statements1. What are the four main financial statements?- The four main financial statements are the balance sheet, income statement, cash flow statement, and statement of changes in equity.2. What is the purpose of a balance sheet?- The balance sheet provides a snapshot of a company's financial position at a specific point in time, showing its assets, liabilities, and equity.3. How is net income calculated?- Net income is calculated by subtracting all expensesfrom the total revenue of a company during a specific period.4. What does the cash flow statement show?- The cash flow statement shows the inflow and outflow of cash within a business over a period of time, categorizedinto operating, investing, and financing activities.5. What is the statement of changes in equity?- The statement of changes in equity shows the changes in the equity accounts of a company over a period of time, including retained earnings, capital contributions, and other comprehensive income.Chapter 3: Financial Analysis1. What are the main types of financial analysis?- The main types of financial analysis are ratio analysis,horizontal analysis, vertical analysis, and trend analysis.2. What is the purpose of ratio analysis?- Ratio analysis is used to evaluate a company's financial health by comparing various financial ratios such asliquidity, profitability, and leverage ratios.3. What is horizontal analysis?- Horizontal analysis involves comparing financial statement items over multiple periods to identify trends and changes in performance.4. What is vertical analysis?- Vertical analysis, also known as common-size analysis,is a method of financial statement analysis where each itemis expressed as a percentage of a base figure, typicallytotal assets or total revenue.5. What is trend analysis?- Trend analysis involves examining the historical data of financial metrics over time to predict future trends and performance.Chapter 4: Risk Management1. What is risk management?- Risk management is the process of identifying, assessing, and prioritizing potential risks to an investment or project, and taking steps to mitigate or avoid these risks.2. What are the types of risks in finance?- The types of risks in finance include market risk,credit risk, liquidity risk, operational risk, and legal risk.3. What is diversification?- Diversification is a risk management strategy that involves spreading investments across various financial instruments, industries, or geographic regions to reduce overall risk.4. What is hedging?- Hedging is a risk management technique used to reducethe risk of price fluctuations in an asset by taking an offsetting position in a related security.5. What is the role of insurance in risk management?- Insurance is a risk management tool that providesfinancial protection against potential losses or damages by transferring the risk to an insurance company in exchange for a premium.Chapter 5: Investment Strategies1. What are the different types of investment strategies?- Types of investment strategies include passive investing, active investing, value investing, growth investing, and income investing.2. What is the difference between passive and active investing?- Passive investing involves a "set it and forget it" approach, typically using index funds, while active investingrequires regular buying and selling of individual securities based on market research and analysis.3. What is value investing?- Value investing is an investment strategy that involves buying stocks that are considered undervalued by the market, with the expectation that their true value will eventually be recognized.4. What is growth investing?- Growth investing focuses on companies that are expected to grow at an above-average rate compared to the market, often investing in companies with strong competitive advantages and high growth potential.5. What is income investing?- Income investing is an investment strategy aimed at generating a steady stream of income from investments, typically through dividends or interest payments.Chapter 6: International Finance1. What is international。
Lecture1-Introduction
2
Risk Management
• Risk can be defined as the variability or volatility of unexpected outcomes. • Risk management is the process by which various risk exposures are identified, measured and controlled
Note: OTC in 2015 $553 trillion
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Derivatives in China
• • • • • Dalian Commodity Exchange (DCE) Shanghai Futures Exchange (SHFE) Zhengzhou Commodity Exchange (ZCE) China Financial Futures Exchange (CFFEX) Shanghai Stock Exchange
6
Risk Management with Derivatives
• Hedging
Strategy used to offset some of the risk associated with a given market commitment. A perfect hedge eliminates the possibility of future gain or loss. Example: A firm that wants to be assured the price they will receive (or pay) for a commodity
• Over-the-counter (OTC)
《财经英语》课件
Summary
Learning Methods for Financial English
Detailed description
Learning financial English can be achieved through various means, such as reading professional books, attending training courses, and using online learning resources. In addition, practice is also an important way to learn financial English, which can deepen the understanding and mastery of financial English through practical operations.
Accurate pronunciation
Possess good communication skills, able to understand and respond to financial issues or needs of the other party.
Effective communication
The content includes lessons on complex presence structures, passive voice, financial jargon, and common misses to avoid when writing or speaking in financial English
发展经济学英文原著
发展经济学英文原著English:"Development economics is a field of study that examines the economic aspects of the development process in low-income countries. It seeks to understand the causes and consequences of poverty, inequality, and underdevelopment, and to formulate policies and strategies to promote economic growth, reduce poverty, and improve living standards in these countries. The foundational works in development economics include seminal contributions by economists such as Arthur Lewis, Gunnar Myrdal, and Walt Rostow. Arthur Lewis's dual-sector model, which posits a transition from a traditional agricultural sector with surplus labor to a modern industrial sector as the engine of economic growth, remains influential in understanding structural transformation in developing economies. Gunnar Myrdal's concept of cumulative causation emphasizes the role of positive feedback loops in perpetuating poverty traps and underdevelopment, highlighting the importance of policy interventions to break these cycles. Walt Rostow's stages of economic growth theory proposes a linear progression of economic development through stages of traditional society, preconditions fortake-off, take-off, drive to maturity, and high mass consumption, providing a framework for understanding the trajectory of economic development. These foundational texts laid the groundwork for subsequent research and policy debates in development economics, which continue to evolve with changing global dynamics and emerging challenges."中文翻译："发展经济学是研究低收入国家发展过程中的经济方面的一个领域。
大学财务会计专业英语教材
大学财务会计专业英语教材In recent years, the field of accounting has witnessed significant advancements and developments, necessitating comprehensive and up-to-date academic resources to meet the demands of students studying finance and accounting. With the increasing globalization of business and finance, proficiency in English is an essential skill for accounting professionals, particularly those specializing in financial accounting. Therefore, the creation of a specialized English textbook for university-level finance and accounting students is of great importance.Chapter 1: Introduction to Financial Accounting1.1 The Role and Importance of Financial Accounting1.2 Basic Concepts and Principles in Financial AccountingChapter 2: Preparation of Financial Statements2.1 The Accounting Equation2.2 Recording Transactions: The Double-Entry System2.3 The Chart of Accounts2.4 Journalizing and Posting Transactions2.5 Trial BalanceChapter 3: Income Statement and Statement of Financial Position3.1 Understanding Income Statement3.2 Income Statement Components3.3 Statement of Financial Position: Assets, Liabilities, and EquityChapter 4: Revenue Recognition and Measurement4.1 Revenue Recognition Principles4.2 Measurement of Revenue: Sales, Services, and Other IncomeChapter 5: Expense Recognition and Measurement5.1 Expense Recognition Principles5.2 Measurement of Expenses: Cost of Goods Sold, Operating Expenses, and OthersChapter 6: Cash Flow Statements6.1 Importance and Purpose of Cash Flow Statements6.2 Operating, Investing, and Financing Activities6.3 Preparing a Cash Flow StatementChapter 7: Analysis and Interpretation of Financial Statements7.1 Financial Ratios and Metrics7.2 Horizontal and Vertical Analysis7.3 Limitations and Adjustments in Financial StatementsChapter 8: International Financial Reporting Standards (IFRS)8.1 Overview of IFRS8.2 IFRS Framework and Key Concepts8.3 Differences between IFRS and Generally Accepted Accounting Principles (GAAP)Chapter 9: Corporate Financial Reporting9.1 Financial Reporting for Corporations9.2 Disclosure Requirements and Auditors’ Opinions9.3 Regulatory Framework for Corporate Financial ReportingChapter 10: Accounting for Business Combinations10.1 Mergers and Acquisitions10.2 Consolidation Methods and Procedures10.3 Accounting for Non-controlling InterestsChapter 11: Financial Statement Analysis and Valuation11.1 Valuation of Assets and Liabilities11.2 Valuation Techniques: Cost Approach, Market Approach, and Income Approach11.3 Interpreting Financial Statement Analysis for Investment and Decision MakingBy providing a systematic overview of the principles, concepts, and techniques in financial accounting, this specialized English textbook addresses the needs of university students studying finance and accounting. It equips them with the necessary knowledge and skills to understand and apply financial accounting practices in an international context. With itscomprehensive content and clear explanations, this textbook serves as an indispensable resource for students pursuing a career in finance and accounting.。
unit1Financialsystem金融英语第一课省名师优质课赛课获奖课件市赛课一等奖课件
Ⅱ. Constitution of financial system
2. Financial intermediaries
current year.
2. allocation
allocation of capital allocation of resources
资本配置 资源配置
The total cost of the project was found on allocation to be the materials ₤ 255, labor ₤ 570, machine-hire ₤ 175, total ₤ 1000.
3. Other components of the financial system
33 system
Key words, phrases and special terms
1. allocate 2. deficit 3. investor 4. return 5. consumption 6. prospective 7. incentive 8. pose 9. maturity 10.mismatch 11. coordinate 12. intermediary 13. bond 14. stock
UK RBS 5 HSBC Holdings 汇丰集团 UK HBC 6 Wells Fargo & Co 美国富国银行 US
❖13 Goldman Sachs 高盛集团 US GS 14 BNP Paribas 法国巴黎银行 France BNPQY 15 Barclays Bank 英国巴克莱银行 UK BCS 16 Mizuho Financial Group 日本瑞穗金融集团 Japan MFG 17 Morgan Stanley 摩根士丹利企业 US MS 18 UniCredit 意大利联合信贷银行 Italy 19 Sumitomo Mitsui Financial Group 日本三井住友金融集团 Japan SMFJY 20 ING Bank 荷兰国际集团 Netherlands ING 21 Deutsche Bank 德意志银行 Germany DB 22 Rabobank Group 荷兰合作银行 Netherlands 23 Societe Generale 法国兴业银行 France SCGLY 24 Agricultural Bank of China 中国农业银行 China 25 Intesa Sanpaolo 意大利联合圣保罗银行 Italy IITSF
IFR_lecture_1
Links to other learning
Accounting plays a vital ra branch of economics and provides information about a firm and its transactions to make resource allocation decisions import or to export Manage a business Obtain financing across national borders Cultural practices Business practices Regulatory structures Legal systems Currency values Local inflation rates Business risks Tax codes
新发展研究生英语综合教程1词汇
1. Academic: university, college, professor, student, degree, diploma, curriculum, lecture, seminar, laboratory, library, textbook, syllabus, examination, assignment, research, thesis, dissertation, degree program, postgraduate, undergraduate, alumni, faculty, faculty member, dean, tutor, mentor, supervisor, advisor, graduate, postdoc, doctoral, Ph.D., master’s, bachelor’s, associate’s, certificate, honors, grade, GPA, transcript, credit, accreditation, enrollment, course, major, minor, elective, prerequisite, core, concentration, semester, quarter, summer, winter, spring, fall.2. Business: business, corporation,enterprise, industry, market, finance, investment, banking, accounting, management, advertising, consulting, customer, customer service, sales, marketing, strategy, production, supply chain, logistics, distribution, inventory, negotiation, human resources, payroll, labor, employee, job, career, salary, wages, tax, budget, audit, financial analysis, venture capital, merger, acquisition, startup, IPO, dividend, stock, bond, commodity, foreign exchange, venture, portfolio, risk management, venture capital, venture fund, private equity, hedge fund.3. Technology: computer, software, hardware, technology, internet, website, app, mobile, tablet, cloud, network, security, programming, coding, system, algorithm, artificial intelligence, machine learning,data, analytics, automation, robotics, virtual reality, augmented reality, blockchain, cryptocurrency, quantum computing.4. Communication: communication, message, conversation, dialogue, talk, language, writing, reading, listening, speaking, grammar, pronunciation, accent, vocabulary, phrase, idiom, slang, dialect, accent, intonation, tone, register, discourse, rhetoric, media, broadcasting, journalism, presentation, public speaking, speech.5. Education: education, teaching, learning, instruction, school, kindergarten, primary, secondary, high school, college, university, curriculum, pedagogy, lesson, class, student, teacher, professor, tutor, mentor,supervisor, advisor, mentor, mentor-mentee, mentor-protégé, pupil, school board, administrator, parent, guardian, classmate, peer, colleague, student-teacher ratio, student-faculty ratio, student-faculty interaction, student-faculty exchange, student-faculty collaboration.6. Politics: politics, government, policy, law, legislation, regulation, democracy, freedom, liberty, rights, justice, equality, democracy, constitution, nation, state, executive, legislative, judiciary, election, vote, campaign, candidate, party, coalition, diplomat, embassy, ambassador, foreign, international, treaty, alliance, agreement, treaty, protocol, dispute, conflict, war, terrorism, security, defense, military, navy, army, air force, intelligence, espionage, surveillance, investigation.7. Economics: economics, economy, market, finance, investment, banking, stock, bond, commodity, foreign exchange, venture, portfolio, risk management, venture capital, venture fund, private equity, hedge fund, budget, tax, trade, export, import, currency, inflation, deflation, recession, depression, economic growth, economic development, supply, demand, production, consumption, labor, unemployment, poverty, wealth, income, wealth distribution, inequality, competition, monopoly, oligopoly, business cycle.8. Society: society, culture, civilization, community, population, family, gender, race, ethnicity, religion, belief, tradition, custom, value, norm, lifestyle, behavior,attitude, lifestyle, trend, fashion, generation, youth, elderly, generation gap, social class, social status, social mobility, social network, social media, social issue, social problem, social justice, human rights, civil rights, disability rights, animal rights, environmental protection, sustainability, conservation, pollution, climate change.9. Health: health, medicine, doctor, nurse, hospital, clinic, disease, illness, infection, symptom, treatment, surgery, medication, prescription, vaccine, nutrition, diet, exercise, fitness, lifestyle, obesity, mental health, psychology, counseling, therapy, stress, depression, anxiety, addiction, recovery, rehabilitation, wellness, hygiene, safety, prevention, diagnosis, prognosis.10. Science: science, research, experiment, technology, engineering, mathematics, physics, chemistry, biology, astronomy, geology, ecology, environment, natural, climate, evolution, genetics, biochemistry, nanotechnology, quantum mechanics, astrophysics, cosmology, neuroscience, paleontology, archaeology, anthropology, zoology, botany, meteorology, geophysics, oceanography, hydrology.。
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I provided by the banking system are critical for economic growth (Schumpeter, 1912). • "More financial development reduces poverty by easing credit constraints on the poor, reduces income inequality, and improves the allocation of capital.“ (Beck, DemirgucKunt, and Levine, 2004, NBER) • “One of the most important problems in the field of finance, if not the most single important one, … is the effect that financial structure and financial development have on Economic growth.” (Goldsmith, 1969, p. 390). • “The causal link between finance and growth is one of the most striking macroeconomic relationships uncovered in the past decade”. Honohan (2004, p.1).
How does financial development affect economic growth?: main contributions
• • • • Gurley and Shaw (1955) Patrick (1966) Goldsmith (1969) King and Levine (1993)
Financial system
Money
Financial instruments
Central bank
Financial system
Financial markets
Financial intermediaries
Selected measures of financial development
University of Bangor Bangor Business School (1st semester 2010-11) Comparative Banking (ASB2505-3505)
Lecture 1: Introduction Financial intermediation and economic growth
Gurley and Shaw: Debt-Intermediation View
• Debt-intermediation view establishes relations between finance and growth. • First, economic growth would be associated with financial development (because external indirect finance provides surplus units with the capacity to spend beyond their earnings) • Second, growth would stimulate and be stimulated by the “institutionalisation of saving and investment”; income grows, richer wealth-holders will increase their desire to diversify their asset portfolio. If financial innovation is such to accommodate this “diversification demand”, financial institutions can enhance their lending capacity and thus boost growth; the process becomes a cycle. • However, ... Gurley and Shaw do not address the issue of causality between financial development and economic growth.
2
Lecture outline
• Introduction • Financial development and economic development • Main contributions on the relationship between economic growth and financial development
The contribution of Patrick (1966)
• The causality issue is addressed. • Two hypotheses are developed:
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Financial structure of selected countries (1960-2007)
Bank assets/ GDP France Germany Japan United Kingdom United States
Source: World Bank (2010)
Stock market capitalisation / GDP 0.6169 0.3907 0.8299 1.2964 1.1213
Credits by financial intermediaries to the private sector /GDP.
Stock market capitalisation ratio: The value of shares/ GDP.
Capitalisation is obtained by taking the number of shares and multiplying them by their price.
Measure of economic growth: Gross Domestic Product (GDP) growth • GDP: the value of final output produced in a country during a period of time. • Real versus nominal GDP • GDP per capita – GDP divided by the population (GDP per head, GDP per capita)
Financial development and structure
• Finance:
- Direct finance - Indirect finance
• Financial development • Financial system • Financial structure
- Bank-based structure - Market-based structure
0.7188 1.0334 1.6192 0.8198 0.6157
Finance-growth nexus
There are three views: • First, financial development has impact on economic growth (i.e. Bagehot, 1873; Schumpeter , 1912; McKinnon, 1973; Shaw, 1973; Patrick, 1966; Goldsmith, 1969; Fry, 1973). • Second, economic growth leads to financial development, and that where there is economic growth financial development follows (i.e. Robinson, 1952; ). • The third view, however, contends that both financial development and economic growth Granger cause one another.
Ratio
Liquid liabilities of the financial system/ GDP Total bank credit/ GDP
Comment
A measure of financial depth (the overall size of the financial sector) This ratio includes credit extended to the economy to the size of the economy. This ratio captures the effectiveness of banks in researching firms, mobilising savings, easing transactions, and providing risk management facilities.
The contribution of Gurley and Shaw (1955)
• Financial development enhances the intermediation of loanable funds and therefore growth will be stimulated . • “..the development of financial institutions… is both a determined and determining variable in the growth process.” (Gurley and Shaw, 1995, p. 532) • Debt-Intermediation view