Financial English 金融英语教程chapter 1 money-张铁军教材版本
[教材]高等院校金融英语教科书第一单元翻译
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货币（Money）1,1货币的定义：货币是指在支付购买商品和服务的款项方面以及在清偿债务方面为人们所普遍接受的事物。
currency(指纸币和硬币)显然符合这一定义，是money的一种类型。
然而，money仅仅是被定义为currency对于现在的人们来说太狭隘了，因为事实上不仅可以通过currency(货币，指硬币和纸币)进行支付，还可以通过支票转账和电子转账来进行支付。
因此，支票也作为被接受的用于购买的支付工具，支票账户存款也被认为是种货币。
有时，就有必要使用货币（money）的广义定义，因为如果money可以很便捷的转换为currency,那么像储蓄存款等实际上也可以发挥货币的作用。
1.2货币的类型1.2.1商品货币：商品货币或者实物货币是一种其价值来源于制作商品的货币，制作商品货币或实物货币的商品本身也拥有价值同时也可作为货币来使用。
曾被用来作为交换媒介的商品有金、银、铜、盐、大的石头、装饰的腰带、贝壳、酒、烟、大麦等。
实际上，在过去的4000年期间，主要的商品货币是贵金属：大多数是银、金，也称为足值货币，贵金属货币阶段是商品货币的阶段之一。
几乎所有的国家都曾经经历过贵金属货币（是货币的一种完美的形式）阶段。
1.2.2代用货币：代用货币或者代用足值货币是指完全有贵金属作为支持的货币。
代用货币的价值与商品有着直接固定的关系，然而它们本身并不是由商品构成。
在20世纪30年代，经济与金融危机爆发，纸币不再能兑换为贵金属，金本位制或者银本位制瓦解，主要的西方国家不得不脱离金属本位制。
因此，纸币不能再被兑换为黄金。
自那时开始，代用货币退出流通领域，信用货币就出现了。
1.2.3信用货币：信用货币既不是由特定的有价值的商品构成的也不代表特定的有价值的商品。
信用货币的价值取决于其普遍接受程度（而普遍接受程度又是以发行者的信用为基础的），信用货币是通过信用流程发行的。
信用货币有两个特征：一是和贵金属的联系，另一个其价值是基于国家政府和银行的信用。
金融专业英语 Unit 1 Money
Learning Targets
After learning this unit, you will be able to: understand the general definition of money; explain the functions of money; explain the forms of money; describe the contents of monetary system.
0 9 International Financing
1 0 Financial Derivatives
1 1 International Financial Institution
12
International Banking Regulatory Framework
Unit 1 Money
1.1 Introduction 1.2 Functions of Money 1.3 Forms of Money 1.4 Monetary System
1.1.1 History of Money
简单或偶然的价值形式
扩大的价值形式
一般价值形式
货币形式
Simple or Accidental Expanded Form of
Form of Value
Value
General Form of Value
Currency Form
1.1.1.1 Simple or Accidental Form of Value
1.1 Introduction
1.1.1 History of Money
Human society has existed for millions of years, but the emergence of money is only a few thousand years. There are many theories about the origin of money in history, but none of them have formed a complete theoretical system. Until Marx, from the view of dialectical materialism (辩证唯物 主义) and historical materialism (历史唯物 主义), explained the essence of money— the labor theory of value (劳动价值论). Marx believed that money originated from commodity exchange, and its economic root was private ownership. It was formed spontaneously in the process of commodity exchange.
Financial English 金融英语教程chapter 1 money-张铁军教材版本
2. Compound Interest S=P(I+R)n I=S-P
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1.4.2 Nominal and Real Interest Rates
1. The definition of nominal interest. P7, 1.4.2, L1-2 2. The definition of real interest. P7, 1.4.2, L3-4
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Benefits
Financial English course will provide you with:
- Greater confidence when discussing financial documents and data
- Increased verbal fluency for face-to-face negotiations
Assignment
20%
Exam
50%
Total
100%
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Part 1 Money
1. Definition of Money 2. Types of Money 3. Functions of Money 5. Interest and Interest Rate 6. Money Supply 7. China’s Monetary System
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Chapter 1 Money
Professional Terms
1．monetary area货币区 货币区是货币一体化的较高层次，它是指成员国之间的货
币建立紧密联系的地理区域。 货币区的初级阶段是固定汇率制度，包括货币局制度和美
大学金融英语chapter 1 Basics of Money
Main Text
Why Studying Money
Money is essential for the operation of any economy. It is widely used in modern society by people, governments and businesses.
the text. 6. How many kinds of money do you know? Name
them as many as you can.
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This is the end of Chapter 1
Thank you for your attention
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Notes
16. ready money or ready cash 现金 17. danger money 危险工作补贴 18. standard money 本位货币 19. smart money 投资于有高回报工程的钱 20. safe-heaven money 币值稳定且有升值空间的钱 21. fiat money 不兑现纸币 22. token money 辅币
hyperinflation）
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Notes
8. legal tender 法定货币，法币 9. legal process 法律手续 10. Say’s Law 萨伊法则 11. Milton Friedman 米尔顿·弗雷德曼（美国和世界知名货币主义者
who is for steady government-controlled money growth） 12. negotiable instruments 可转让票据（又译流通票据/证券） 13. near money 准货币=quasi money 14. postal orders （英）邮政汇票 15. bill of exchange（英）汇票（美语带用draft表示同样意思）
财经英语ChapterOneMoney
Chapter One MONEYWarming upLook at the pictures above and try to answer the following questions.1.What do the pictures show?2.How many stages of development can you recognize from the pictures shown above?3.What are the advantages and disadvantages of the different forms of monies? Text AWHAT IS MONEYP1 If you had lived in America before the Revolutionary War, your money might have consisted primarily of Spanish doubloons (silver coins that were also called pieces of eight). Before the Civil War, the principal forms of money in the United States were gold and silver coins and paper notes, called banknotes, issued by private banks. Today, you use not only coins and dollar bills issued by the government as money, but also checks written on accounts held at banks. Money has been different things at different times, but it has always been important to people and to the economy.P2 To understand the effects of money on the economy, we must understand exactly what money is. In this chapter, we develop precise definitions by exploring the functions of money, looking at why and how it promotes economic efficiency, tracing how its forms have evolved over time, and examining how money is currently measured.1.Meaning of moneyP3 As the word money is used in everyday conversation, it can mean many things, but to economists, it has a very specific meaning. To avoid confusion, we must clarifyhow economists’ use of the word money differs from conventional usage.P4 Economists define money (also referred to as the money supply) as anything that is generally accepted in payment for goods or services or in the repayment of debts. Currency, consisting of dollar bills and coins, clearly fits this definition and is one type of money. When most people talk about money, they’re talking about currency (paper money and coins). If, for example, someone comes up to you and says, “Your money or your life,” you should quickly hand over all your currency rather than ask, “What exactly do you mean by ‘money’?”P5 To define money merely as currency is much too narrow for economists. Because checks are also accepted as payment for purchases, checking account deposits are considered money as well. An even broader definition of money is often needed, because other items such as savings deposits can, in effect, function as money if they can be quickly and easily converted into currency or checking account deposits. As you can see, no single, precise definition of money or the money supply is possible, even for economists.P6To complicate matters further, the word money is frequently used synonymously with wealth. When people say, “Joe is rich—he has an awful lot of money,”they probably mean that Joe not only has a lot of currency and a high balance in his checking account but also has stocks, bonds, four cars, three houses, and a yacht. Thus, while“currency”is too narrow a definition of money, this other popular usage is much tooP7broad. Economists make a distinction between money in the form of currency, demand deposits, and other items that are used to make purchases and wealth, the total collection of pieces of property that serve to store value. Wealth includes not only money but also other assets such as bonds, common stock, art, land, furniture, cars, and houses.2.Functions of MoneyP8Whether money is shells or rocks or gold or paper, it has three primary functions in any economy: as a medium of exchange, as a unit of account, and as a store of value. Of the three functions, its function as a medium of exchange is what distinguishes money from other assets such as stocks, bonds, and houses.2.1 Medium of ExchangeP9In 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. To see why, let’s look at a barter economy, one without money, in which goods and services are exchanged directly for other goods and services.P10Take the case of Ellen the Economics Professor, who can do just one thing well: give brilliant economics lectures. In a barter economy, if Ellen wants to eat, she must find a farmer who not only produces the food she likes but also wants to learn economics. As you might expect, this search will be difficult and time-consuming, and Ellen might spend more time looking for such an economics-hungry farmer than she will teaching. It is even possible that she will have to quit lecturing and go into farming herself. Even so, she may still starve to death.P11The time spent trying to exchange goods or services is called a transaction cost. In a barter economy, transaction costs are high because people have to satisfy a “double coincidence of wants”—they have to find someone who has a good or service they want and who also wants the good or service they have to offer.P12Let’s see what happens if we introduce money into Ellen the Economics Professor’s world. Ellen can teach anyone who is willing to pay money to hear her lecture. She can then go to any farmer (or his representative at the supermarket) and buy the food she needs with the money she has been paid. The problem of the double coincidence of wants is avoided, and Ellen saves a lot of time, which she may spend doing what she does best: teaching.P13As this example shows, money promotes economic efficiency by eliminating much of the time spent exchanging goods and services. It also promotes efficiency by allowing people to specialize in what they do best. Money is therefore essential in an economy: It is a lubricant that allows the economy to run more smoothly by lowering transaction costs, thereby encouraging specialization and division of labor.P14The need for money is so strong that almost every society beyond the most primitive invents it. For a commodity to function effectively as money, it has to meet several criteria: (1) It must be easily standardized, making it simple to ascertain its value; (2) it must be widely accepted; (3) it must be divisible, so that it is easy to “make change”; (4) it must be easy to carry; and (5) it must not deteriorate quickly. Objects that have satisfied these criteria have taken many unusual forms throughout human history, ranging from wampum (strings of beads) used by Native Americans; to tobacco and whiskey, used by the early American colonists; to cigarettes, used in prisoner-of-war camps during World War II. The diverse forms of money that have been developed over the years is as much a testament to the inventiveness of the human race as the development of tools and language.2.2 Unit of AccountP15The second role of money is to provide a 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. P16 To see why this function is important, let’s look again at a barter economy, in which money does not perform this function. If the economy has only three goods—say, peaches, economics lectures, and movies—then we need to know only three prices to tell us how to exchange one for another: the price of peaches in terms of economics lectures (that is, how many economics lectures you have to pay for a peach), the price of peaches in terms of movies, and the price of economics lectures in terms of movies. If there were 10 goods, we would need to know 45 prices to exchange one good for another; with 100 goods, we would need 4,950 prices; and with 1,000 goods, 499,500 prices.P17 Imagine how hard it would be in a barter economy to shop at a supermarket with 1,000 different items on its shelves and be faced with deciding whether chicken or fish is a better buy if the price of a pound of chicken were quoted as 4 pounds of butter and the price of a pound of fish as 8 pounds of tomatoes. To make it possible to compare prices, the tag on each item would have to list up to 999 different prices, and the time spent reading them would result in very high transaction costs.P18 The solution to the problem is to introduce money into the economy and have all prices quoted in terms of units of that money, enabling us to quote the price of economics lectures, peaches, and movies in terms of, say, dollars. If there were only three goods in the economy, this would not be a great advantage over the barter system, because we would still need three prices to conduct transactions. But for 10 goods we would need only 10 prices; for 100 goods, 100 prices; and so on. At the 1,000-goods supermarket, now only 1,000 prices need to be looked at, not 499,500!P19 We can see that using money as a unit of account lowers transaction costs in an economy by reducing the number of prices that need to be considered. The benefits of this function of money grow as the economy becomes more complex.2.3 Store of ValueP20Money also functions as a 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.P21Money is not unique as a store of value; any asset—whether money, stocks, bonds, land, houses, art, or jewelry—can be used to store wealth. Many such assets have advantages over money as a store of value: They often pay the owner a higher interest rate than money, experience price appreciation, and deliver services such as providing a roof over one’s head. If these assets are a more desirable store of value than money, why do people hold money at all?P22The answer to this question relates to the important economic concept of liquidity, the relative ease and speed with which an asset can be converted into a medium of exchange. Liquidity is highly desirable. Money is the most liquid asset of all becauseit is the medium of exchange; it does not have to be converted into anything else to make purchases. Other assets involve transaction costs when they are converted into money. When you sell your house, for example, you have to pay a brokerage commission (usually 4–6% of the sales price), and if you need cash immediately to pay some pressing bills, you might have to settle for a lower price if you want to sell the house quickly. Because money is the most liquid asset, people are willing to hold it even if it is not the most attractive store of value.P23How good a store of value money is depends on the price level. A doubling of all prices, for example, means that the value of money has dropped by half; conversely, a halving of all prices means that the value of money has doubled. During inflation, when the price level is increasing rapidly, money loses value rapidly, and people will be more reluctant to hold their wealth in this form. This is especially true during periods of extreme inflation, known as hyperinflation, in which the inflation rate exceeds 50% per month.P24 Hyperinflation occurred in Germany after World War I, with inflation rates sometimes exceeding 1,000% per month. By the end of the hyperinflation in 1923, the price level had risen to more than 30 billion times what it had been just two years before. The quantity of money needed to purchase even the most basic items became excessive. There are stories, for example, that near the end of the hyperinflation, a wheelbarrow of cash would be required to pay for a loaf of bread. Money was losing its value so rapidly that workers were paid and given time off on several occasions during the day to spend their wages before the money became worthless. No one wanted to hold on to money, so the use of money to carry out transactions declined and barter became more and more dominant. Transaction costs skyrocketed, and, as we would expect, output in the economy fell sharply.3.Evolution of the Payments SystemP25We can obtain a better picture of the functions of money and the forms it has taken over time by looking at the evolution of the payments system, the method of conducting transactions in the economy. The payments system has been evolving over centuries, and with it the form of money. At one point, precious metals such as gold were used as the principal means of payment and were the main form of money. Later, paper assets such as checks and currency began to be used in the payments system and viewed as money. Where the payments system is heading has an important bearing on how money will be defined in the future.3.1 Commodity MoneyP26To obtain perspective on where the payments system is heading, it’s worth exploring how it has evolved. For any object to function as money, it must be universally acceptable; everyone must be willing to take it in payment for goods and services. An object that clearly has value to everyone is a likely candidate to serve as money, and a natural choice is a precious metal such as gold or silver. Money made upof precious metals or another valuable commodity is called commodity money, and from ancient times until several hundred years ago, commodity money functioned as the medium of exchange in all but the most primitive societies. The problem with a payments system based exclusively on precious metals is that such a form of money is very heavy and is hard to transport from one place to another. Imagine the holes you’d wear in your pockets if you had to buy things only with coins! Indeed, for large purchases such as a house, you’d have to rent a truck to transport the money payment.3.2 Fiat MoneyP27The next development in the payments system was paper currency (pieces of paper that function as a medium of exchange). Initially, paper currency carried a guarantee that it was convertible into coins or into a fixed quantity of precious metal. However, currency has evolved into fiat money, paper currency decreed by governments as legal tender (meaning that legally it must be accepted as payment for debts) but not convertible into coins or precious metal. Paper currency has the advantage of being much lighter than coins or precious metal, but it can be accepted as a medium of exchange only if there is some trust in the authorities who issue it and if printing has reached a sufficiently advanced stage that counterfeiting is extremely difficult. Because paper currency has evolved into a legal arrangement, countries can change the currency they use at will. Indeed, this is what many European countries did when they abandoned their currencies for the euro in 2002.P28Major drawbacks of paper currency and coins are that they are easily stolen and can be expensive to transport in large amounts because of their bulk. To combat this problem, another step in the evolution of the payments system occurred with the development of modern banking: the invention of checks.3.3 ChecksP29 A check is an instruction from you to your bank to transfer money from your account to someone else’s account when she deposits the check. Checks allow transactions to take place without the need to carry around large amounts of currency. The introduction of checks was a major innovation that improved the efficiency of the payments system. Frequently, payments made back and forth cancel each other; without checks, this would involve the movement of a lot of currency. With checks, payments that cancel each other can be settled by canceling the checks, and no currency need be moved. The use of checks thus reduces the transportation costs associated with the payments system and improves economic efficiency. Another advantage of checks is that they can be written for any amount up to the balance in the account, making transactions for large amounts much easier. Checks are also advantageous in that loss from theft is greatly reduced and because they provide convenient receipts for purchases.P30 Two problems arise, however, with a payments system based on checks. First, it takes time to get checks from one place to another, a particularly serious problem ifyou are paying someone in a different location who needs to be paid quickly. In addition, if you have a checking account, you know that it often takes several business days before a bank will allow you to make use of the funds from a check you have deposited. If your need for cash is urgent, this feature of paying by check can be frustrating. Second, the paper shuffling required to process checks is costly; currently, the cost of processing all checks written in the United States is estimated at over $10 billion per year.3.4 Electronic PaymentP31The development of inexpensive computers and the spread of the Internet now make it cheap to pay bills electronically. In the past, you had to pay bills by mailing a check, but now banks provide websites at which you just log on, make a few clicks, and thereby transmit your payment electronically. Not only do you save the cost of the stamp, but paying bills becomes (almost) a pleasure, requiring little effort. Electronic payment systems provided by banks now even spare you the step of logging on to pay the bill. Instead, recurring bills can be automatically deducted from your bank account. Estimated cost savings when a bill is paid electronically rather than by a check exceed one dollar per transaction. Electronic payment is thus becoming far more common in the United States.3.5 E-MoneyP32Electronic payments technology can substitute not only for checks but also for cash, in the form of electronic money (or e-money)—money that exists only in electronic form. The first form of e-money was the debit card. Debit cards, which look like credit cards, enable consumers to purchase goods and services by electronically transferring funds directly from their bank accounts to a merchant’s account. Debit cards are used in many of the same places that accept credit cards and are now often becoming faster to use than cash. At most supermarkets, for example, you can swipe your debit card through the card reader at the checkout station, press a button, and the amount of your purchases is deducted from your bank account. Most banks and companies such as Visa and Master-Card issue debit cards, and your ATM card typically can function as a debit card.P33A more advanced form of e-money is the stored-value card. The simplest form of stored-value card is purchased for a preset dollar amount that the consumer pays up front, like a prepaid phone card. The more sophisticated stored-value card is known as a smart card. It contains a computer chip that allows it to be loaded with digital cash from the owner’s bank account whenever needed. In Asian countries, such as Japan and Korea, cell phones now have a smart card feature that raises the expression “pay by phone” to a new level. Smart cards can be loaded from ATM machines, personal computers with a smart card reader, or specially equipped telephones.P34A third form of electronic money is often referred to as e-cash, which is used on the Internet to purchase goods or services. A consumer gets e-cash by setting up anaccount with a bank that has links to the Internet and then has the e-cash transferred to her PC. When she wants to buy something wiThe-cash, she surfs to a store on the Web and clicks the “buy”option for a particular item, whereupon the e-cash is automatically transferred from her computer to the merchant’s computer. The merchant can then have the funds transferred from the consumer’s bank account to his before the goods are shipped.P35Given the convenience of e-money, you might think that we would move quickly to a cashless society in which all payments are made electronically. However, this hasn’t happened.4. Measuring MoneyP36The definition of money as anything that is generally accepted in payment for goods and services tells us that money is defined by people’s behavior. What makes an asset money is that people believe it will be accepted by others when making payment. As we have seen, many different assets have performed this role over the centuries, ranging from gold to paper currency to checking accounts. For that reason, this behavioral definition does not tell us which assets in our economy should be considered money. To measure money, we need a precise definition that tells us exactly which assets should be included.The Federal Reserve’s Monetary AggregatesP37The Federal Reserve System (the Fed), the central banking authority responsible for monetary policy in the United States, has conducted many studies on how to measure money. The problem of measuring money has recently become especially crucial because extensive financial innovation has produced new types of assets that might properly belong in a measure of money. Since 1980, the Fed has modified its measures of money several times and has settled on the following measures of the money supply, which are also referred to as monetary aggregates (see Table 1).P38The narrowest measure of money that the Fed reports is M1, which includes the most liquid assets: currency, checking account deposits, and traveler’s checks. The components of M1 are shown in Table 1. The currency component of M1 includes only paper money and coins in the hands of the nonbank public and does not include cash held in ATMs or bank vaults. Surprisingly, more than $3,000 cash is in circulation for each person in the United States. The traveler’s checks component of M1 includes only traveler’s checks not issued by banks. The demand deposits component includes business checking accounts that do not pay interest, as well as traveler’s checks issued by banks. The other checkable deposits item includes all other checkable deposits, particularly interest-bearing checking accounts held by households. These assets are clearly money because they can be used directly as a medium of exchange.P39Until the mid-1970s, only commercial banks were permitted to establish checkingaccounts, and they were not allowed to pay interest on them. With the financial innovation that has occurred, regulations have changed so that other types of banks, such as savings and loan associations, mutual savings banks, and credit unions, can also offer checking accounts. In addition, banking institutions can offer other checkable deposits, such as NOW (negotiated order of withdrawal) accounts and ATS (automatic transfer from savings) accounts, which do pay interest on their balances.P40 The M2 monetary aggregate adds to M1 other assets that are not quite as liquid as those included in M1: 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. Small-denomination time deposits are certificates of deposit with a denomination of less than $100,000 that can be redeemed only at a fixed maturity date without a penalty. Savings deposits are nontransaction deposits that can be added to or taken out at any time. Money market deposit accounts are similar to money market mutual funds, but are issued by banks. The money market mutual fund shares are retail accounts on which households can write checks.Table 1[Frederic S. Mishkin. The Economics of Money, Banking, and Financial Markets, 10The d., Chapter 3 What Is Money? 2013, pp.52-59]Listening Signpost words/phrases to listen forWhether in a lecture or a speech, there is much information and it’s impossible (nor is it necessary) for an English-as-a-foreign-language (EFL) student to understand every single word and phrase used by the lecturer or the speaker. Being able to listen for and catch certain signal words and phrases may help an EFL student to better get the big picture and the key points of the lecture or speech.There are two types of signal words and phrases often used by a speaker to either summarize the point(s) already elaborated or wake up and attract (or re-attract) the attention of the audience. These signal words and phrase include, but not limited to, so, therefore, but you know what, let me show you something, etc. Once these words and phrases are used, the audiences will know what comes next will be a brief summary or repetition and clarification of some previously mentioned point(s), or something important such as a new point of view, or a piece of evidence, or a keen observation, etc.Task 1 Watch the video titled Hidden Secrets of Money, from 9:00 minutes to 21:00 minutes. Listen for and write down the signpost words and phrases you have got and appreciate their function in the talk.Task 2 Below is a summary of the designated part of the video on money. Please fill in the missing words from the video.The American dollar is viewed as unreliable as __________(1) of value because it has lost much of its purchasing power since its creation as __________(2) money in 1913. It’s not backed by gold like it used to be in the past. Actually it becomes a __________(3) check against nothing. Instead of maintaining value, the dollar is said to be a __________(4), and __________(5) away people’s wealth, their purchasing power. On the other hand, __________(6) is praised as the _________(7) form of gold because it is divisible, permanent, and cannot be manipulated.Inflation is the result of __________(8) currency supply. With the __________(9) system replaced with a single currency, and without the constraint of gold, every government is racing to increase their ___________(10) currency by printing money to allow for deficit spending and bailouts of troubled institutions. As a result, inflation runs out of control and leads to revolutions in certain parts of the world.ReadingTask 1Read the text and choose the best answer from the choices for the following questions.1.The example of “Your money or your life” in para.? is meant toA.warn readers of the danger of taking currency while going out.B.point out a setback of coins and paper money.C.demonstrate how people understand money in daily life.D.suggest that economist would respond differently from common people in such a situation.2.Which of the following is NOT a purpose of the example of “Joe is rich--he has an awful lot of money” in para. ?? toA.show that people sometimes confuse money with wealth.B.disapprove a certain definition of money.C.give the word richness a new definition.D.clarify the differences between money and wealth.3.The author mentions the barter economy in para.?? mainly toA.prove that ancient people aren’t as smart as people today.B.explain the necessity of introducing a better form of exchange.C.indicate that barter should have never been used by any society.D.imply that the more specialized people are, the cheaper products will be.4.Which of the following statements about money as a store of value is the LEAST likely to be true ?A.Money is the most attractive form of store of value.B.A person who is bullish on gold may not want to hold money as a store of value.C.A person expecting deflation may want to hold on to his/her money.D.Rapid price increases may lead people to lose confidence in money as a store of value.5.In Where the payments system is heading has an important bearing on how money will be defined in the future in para.25, the word “bearing” is closest in meaning to which of the following words?A.enduranceB.supportC.mannerD.interconnection6.Which of the following is NOT one of the prerequisites to fiat money?A.advanced printing technologyB.confidence in the issuing authoritiesC.Convertibility into precious metalsernment order7.The first form of e-money isA.credit cardsB.debit cardsC.stored-valued cards。
金融英语 chapter 1 money
Course Structure
• Chapter 1 Money, the Functions of Money and the Financial System • Chapter 2 The Banking system • Chapter 3 Interest Rate and Interest Rate Policies • Chapter 4 Money Market
• 铸币税（Seigniorage） • 也称为“货币税”。发行货币的组织或 国家的政府可以不需任何补偿地用纸制 货币向自己的居民换取实际经济资源， 从中攫取发行货币所产生的特定收益。 这部分由货币发行主体垄断性地享受 “通货币面价值超出生产成本”的收益， 就被定义为“铸币税”。Professional源自TermsQuestion
• When you buy a pair of jeans or a CD, for example, you never wonder whether the merchant will accept the bills and coins in your wallet as payment. • But suppose money didn't exist. How would you pay for the things you want to buy?
• 45．fund obligation基金负担
• 基金负担或称基金总数是指当时发行在 外的基金的总量
Professional Terms
• 58．monetary ease银根松动 • 银根monetary situation 指金融市场上的 资金供应。因中国1935年法币改革以前 曾采用银本位制，市场交易一般都用白 银，所以习惯上称资金供应为银根。 • 银根有紧松之分，判断依据是资金供需 状况。如果市场上资金供不应求，称为 “银根紧俏”或“银根紧”；市场上资 金供过于求，称为“银根松疲”或“银 根松”
金融英语第一单元试讲
金融英语教程 COURSE OF FINANCIAL ENGLISH
UNIT 1 Financial System
Li Shengnan 2016.7.26
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UNIT 1
Hale Waihona Puke Ⅰ. Lead in Ⅱ. New Words and Expressions Ⅲ. Class Practice
Ⅳ. Consolidation
V. Homework
Finance in Our Life
UNIT 1
UNIT 1
Finance in Our Life
credit card 信用卡 credit report 信用报告 to mortgage a house 按揭购 房 stock market 股市 gold 黄金 equity investment 股权投资 fund 基金 insurance保险
community bank 社区银行 micro institutions financing 小微金融 alipay 支付宝 credit loans 信用贷款 mobile finance 移动金融 internet finance互联网金融 wealth management 财富管 理
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UNIT 1
Ⅳ. Consolidation
1. Pay attention to the meaning of financial words and terms. 2. Don’t confuse the correspondence between the two pairs of terms: surplus unit VS deficit unit; borrower VS investor
金融英语Lecture 1 Money
MoneyIf you can actually count your money, then you are not really a rich man.——American oil billionaire J. Paul Getty What is money?Economists define money as anything that is generally accepted in payment for goods or services or in the repayment of debts.Types of moneyA. Commodity moneyB. Convertible paper moneyC. Fiat money(or fiat currency):Usually paper money, is a type of currency whose only value is that a government made a fiat that the money is a legal method of exchange.Unlike commodity money or representative money it is not based in another commodity such as gold or silver and is not covered by a special reserve.D. Private debt moneyE. Electronic moneyPrivate debt moneyA loan that the borrower promises to repay in currency ondemand. E.g. IOU the checkable deposit at commercial banks and other financial institutions.Commercial notes（商业票据）:Short-term, unsecured, discounted, and negotiable notes sold by one company to another in order to satisfy immediate cash needs.Include: promissory note (期票，拮据) draft (汇票) check and so on.Electronic money: Electronic Check, Internet Payment System, Credit Card ServiceWhat does money do?A. Medium of ExchangeIn 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 eliminating much of the time spent in exchanging goods and services. Terms: Transaction cost, Time value of moneyB. Unit of AccountThe second role of money is to provide a 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 ofpounds or distance in terms of miles.Note: Fiat money has not only no particular value in use; it doesn't even really have a value in exchange except that which is decreed that it would have.Terms: Good money, Bad moneyC. Store of ValueMoney also functions as a store of value: it is a repository of purchasing power over time. It is an asset. It 's something that we can use to store value away to be retrieved at a later point in time. So we can not consume today, we can hold money instead - and transfer that consumption power to some point in the future.Term: Hard currencyMeasuring Monetary Aggregates1. Measure as “money” only those assets that are most liquid, hence that function best as a medium of exchange.2. Include all financial assets in the measure of money, but weight them in proportion to their liquidity.1. M1 = Most Narrow Measure (Most Liquid)M1 = currency + traveler’s checks + demand deposits + other checkable deposits2. M2 = M1 + Less Liquid AssetsM2 = M1 + small denomination time deposits + savings deposits + money market deposit accounts + money market mutual fund shares3. M3 = M2 + Less Liquid AssetsMoney supplyThe revenue raised through the printing of money. When the government prints money to finance expenditure, it increases the money supply. The increase in the money supply, in turn, causes inflation. Printing money to raise revenue is like imposing an inflation tax.To expand the money supply:The Federal Reserve buys Treasury Bonds and pays for them with new money.To reduce the money supply:The Federal Reserve sells Treasury Bonds and receives the existing dollars and then destroys them.InflationInflation is an increase in the average level of prices, and a price is the rate at which money is exchanged for a good or service.Here is a great illustration of the power of inflation:In 1970, the New York Times cost 15 cents, the median price of a single-family home was $23,400, and the average wage in manufacturing was $3.36 per hour. In 2008, the Times cost $1.50, the price of a home was $183,300, and the average wage was $19.85 per hour.Hyperinflation is defined as inflation that exceeds 50 percent per month, which is just over 1 percent a day. Questions1. Money is not unique as a store of value; any asset, be it money, stocks, bonds, land, houses, art, or jewelry, can be used to store wealth. Many such assets have advantages over money as a store of value: They often pay the owner a higher interest rate than money, experience price appreciation, and deliver services such as providing a roof over one's head. If these assets are a more desirable store of value than money, why do people hold money at all?The answer to this question relates to the important economic concept of liquidity.2. Rank the following assets from most liquid to least liquid:a.Checking account depositsb. Housesc. Currencyd. Washing machinese. Savings depositsf. Common stock3. Why have some economists described money during a hyperinflation as a “hot potato” that is quickly passed from one person to another?4. Was money a better store of value in the United States in the 1950s than it was in the 1970s? Why or why not? In which period would you have been more willing to hold money?5. In Brazil, a country that was undergoing a rapid inflation before 1994, many transactions were conducted in dollars rather than in Reals, the domestic currency. Why? Quiz1. Fiat money is:A. credit card chargesB. CoinsC. not convertible into precious metals.D. checks Answer: C2. Which of these is not a function of money in an economy?A. Store of valueB. Medium of exchangeC. Source of incomeD. Unit of account3. Which of the following is not part of M1?A. checking accountsB. traveler's checksC. savings accountsD. currency Answer:C4. If Mary deposits $100 of her currency in her checking account, then:A. M1 will increase by $100.B. M2 will fall by $100.C. M1 and M2 will not change.D. M2 will increase by $100.Answer:C5. If Mary moves $100 from her savings account to her checking account, then:A. M1 will not change.B. M2 will not change.C. M1 will fall by $100.D. M2 will fall by $100. Answer:B6. Which of the following is not part of M2?A. Small time depositsB. CurrencyC. Institutional money market mutual fundsD. Saving accounts7. Inefficiencies that are created when using checks as money include:A. Checks can transfer funds slowly.B. There are too many bad checks written.C. Checkbooks can be stolen.D. Checks can be written for any amount.Answer:A8. The liquidity of an asset is:A. the ability of an asset to earn interest income.B. the amount of an asset sold at discount or premium.C. the relative ease with which an asset can be converted into a medium of exchange.D. the relative ease with which an asset can be converted into a common stock.Answer:C9. For a commodity to function effectively as money, it mustA. Be widely accepted.B. Be backed by gold or silver.C. Be indestructible.D. Be printed by the government.10. Money supply data is generated by:A. The Department of CommerceB. The Federal Deposit Insurance Corporation (FDIC)C. The Federal Reserve System (the Fed)D. The Treasury DepartmentAnswer:C11. Which of the following correctly shows the evolution of the payments system?A. Commodity money, fiat money, checks, electronic money.B. Commodity money, fiat money, electronic money, checks.C. Commodity money, checks, fiat money, electronic money.D. Fiat money, commodity money, checks, electronic money. Answer:A12.Which of the following is true regarding money's store of value function?A. money does not allow a person to hold purchasing power from the time income is earned until it is spent.B. money is the only store of value available.C. money is the most liquid store of value available.D. money is superior to all other stores of value during periods of inflation.Answer:C13. Which of the following is not a disadvantage of electronic money?A. People are concerned about the privacy and security of e-money transactions.B. E-money transactions cost more than paper check transactions.C. The cost of setting up a system for processing e-money payments is high.D. E-money does not allow people to take advantage of float. Answer:B14. Wealth isA. Generally accepted for the repayment of debtsB. A flow of earnings per unit of timeC. A stock conceptD. The total collection of pieces of property that serve to store valueAnswer:D15. The Fed's measurements of monetary aggregatesA. Are more reliable in the short run than the long run.B. Are revised once a year.C. Does not depend on the definition of money.D. Are more reliable in the long run than the short run. Answer:D（资料素材和资料部分来自网络，供参考。
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1.3.3 Store of value
Any commodity or token that can be held and exchanged later for goods and services is called a store of value．
任何一种可以保存并能够在以后交换物品与劳务的商品或符号，
Assignment
20%
Exam
50%
Total
100%
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Part 1 Money
1. Definition of Money 2. Types of Money 3. Functions of Money 5. Interest and Interest Rate 6. Money Supply 7. China’s Monetary System
1.1 Definition of Money
Money can be defined as any object that is generally accepted in the payment for goods and services or
in the repayment of debts.
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1.4.3 Official and Market Interest Rates
1. The definition of official interest. P7, 1.4.3, L1 2. The definition of real interest. P7, 1.4.3, L8-9
But suppose money didn't exist. How would you pay for the things you want to buy?
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12.1 Commodity Money
Barter
Disadvantages of Barter：
—exchange goods Deterioration（退化）
(2) Unit of Account — Standard for measuring value. (3) Store of value —repository( 贮藏室，仓库；) of
purchasing power over time.
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1.3.1 Medium of exchange
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1.3.2 Unit of Account
A unit account is an agreed measure for stating the prices of goods and services．
计价单位是一种双方同意的表示物品与劳务价格的衡量标准.
Money provides a standard for measuring value (unit of account), so that the worth of different goods and services can be compared.
Financial English
金融英语 niucpfc@
010-52645239
Financial English courses are developed to provide you with the key skills, tools and terminology（术语） you need to operate in an ever competitive international financial environment.
- The confidence to produce professional written reports in English
- Key financial English terminology
Page 3
Requirements
Attendance
10%
Daily performance 20%
A medium of exchange is an objective that is generally accepted in exchange for goods and services．
交换媒介是一种在物品与劳务交换中被普遍接受的东西。
Money is a medium of exchange accepted by the community, meaning it's what people buy things with and sell things for.
都称为价值储藏。
Money is a store of value that can be saved for later purchases.
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1.4 Interest and Interest Rate
1. The definition of interest. P5, 1.4, L1-2 & L11-12 & L16-17
Page 2
Benefits
Financial English course will provide you with:
- Greater confidence when discussing financial documents and data
- Increased verbal fluency for face-to-face negotiations
Page 8
Professional Terms
3．money credit货币信用 信用货币是由国家法律规定的，强制流通不 以任何贵金属为基础的独立发挥货币职能的 货币。目前世界各国发行的货币，基本都属 于信用货币。 货币信用指货币的发行和流通中引起的信用 活动。
Page 9
Professional Terms
Page 5
Chapter 1 Money
Professional Terms
1．monetary area货币区 货币区是货币一体化的较高层次，它是指成员国之间的货
币建立紧密联系的地理区域。 货币区的初级阶段是固定汇率制度，包括货币局制度和美
元化的货币安排，其最高阶段 是成员国使用统一货币，如欧盟的欧元。
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12.1 Commodity Money
1. Definition: Commodity money or money in kind is money whose value come from a commodity out of which it is made.
2. Examples of commodities that has been used as mediums of exchange include gold, silver, copper, salt, large stones, decorated belts, shells, alcohol, cigarettes, barley, etc.
1. Simple Interest I=PRn S=P+I=P(I+Rn)
2. Compound Interest S=P(I+R)n I=S-P
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1.4.2 Nominal and Real Interest Rates
1. The definition of nominal interest. P7, 1.4.2, L1-2 2. The definition of real interest. P7, 1.4.2, L3-4
3. Full-bodied money is one of the stages of commodity money using precious metals, mostly silver and gold.
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1.2.2 Representative Money
1. What is representative money? P3, 1.2.2, L1-2 2. Why credit money emerged? P3, 1.2.2, L 2-8
4．near money准货币
准货币(quasi-money)----又叫亚货币或近似 货币，是一种以货币计值，虽不能直接用于 流通但可以随时转换成通货的资产。准货币 虽不是真正意义上的货币，但因可随时转化 为现实的货币，故对货币流通有很大影响， 是一种潜在货币。
准货币主要由银行定期存款、储蓄存款以及各种短期信用流 通工具等构成，如国库券储蓄存单、外汇券、金融卡等。
It includes:
1. currency
Байду номын сангаас
2. deposit balance
3. checking account deposits
4. saving deposits
5. time deposits
Page 12
1.2 Types of Money
Question:
When you buy a pair of jeans or a CD, for example, you never wonder whether the merchant will accept the bills and coins in your wallet as payment.
Page 7
Professional Terms
2．monetary ease银根松动 银根monetary situation 指金融市场上的资金供应。 因中国1935年法币改革以前曾采用银本位制，市场 交易一般都用白银，所以习惯上称资金供应为银根。 银根有紧松之分，判断依据是资金供需状况。如果 市场上资金供不应求，称为“银根紧俏”或“银根 紧”；市场上资金供过于求，称为“银根松疲”或“银 根松”