金融专业英语简答
金融英语问答题
一、问答题1，货币的职能T h e F u n c t i o n s o f M o n e y1.M e d i u m o f E x c h a n g e o r M e a n s o f E x c h a n g e （交易媒介和交易手段）2.U n i t o f A c c o u n t o r S t a n d a r d o f V a l u e（计量单位和价值尺度）3.S t o r e o f V a l u e（价值储备）2，货币的定义T h e M e a n i n g o f M o n e yMarx defines money as a special commodity that permanently serves as a general equivalent.Western economists define money (or, equivalently, the money supply) as anything that is generally accepted in payment for goods or services or in the repayment of debts3，T y p e s o f M o n e y(货币的种类)Since the primitive economy, money changed from commodity money to metallic money, from metallic money to representative money, from representative money to credit money and finally electronic money. In economic life, the need for money is so strong that almost every society, except the most primitive one, invents it.(1)C o m m o d i t y m o n e y o r m o n e y i n k i n d（商品货币或事物货币）(2)R e p r e s e n t a t i v e m o n e y（银行券代用货币）(3)C r e d i t m o n e y（信用货币）(4)E l e c t r o n i c M o n e y（电子货币）3.T h e e x t e n s i o n o f m o d e r n m o n e y（现代货币信用的扩展）T h e g e n e r a l m e a s u r e o f m o n e y s u p p l y （货币供给的一般度量）M0i s t h e c u r r e n c y o r c a s h i n c i r c u l a t i o n i n c l u d i n g b a n k n o t e s a n d c o i n s.M0i s a l s o c a l l e d b a s e m o n e y t h a t m e a s u r e s t h e q u a n t i t y o f c u r r e n c y i s s u e d b y t h e c e n t r a l B a n k.M1=M0+D dM1c o m p r i s e s t h o s e a s s e t s w h i c h a r et h e m s e l v e s a c c e p t a b l e i n e x c h a n g e a n dn o r m a l l y h e l d w i t h t h e i n t e n t i o n o f s p e n d i n g t h e m i n t h e i m m e d i a t e f u t u r e.M1i n c l u d e s M0,p l u s D d—c h e c k a b l e o r d e m a n d d e p o s i t s a t b a n k s.T h e b r o a d e r m e a s u r e o f m o n e y s u p p l y:M2 a n d M3M2=M1+D s+D tM2i s a b r o a d e r m e a s u r e o f p u r c h a s i n gp o w e r t h a n M1.I t i n c l u d e s a l l o f M1p l u s s a v i n g s d e p o s i t s a n d t i m e d e p o s i t s a tb a n k s.M3=M2+s h o r t-t e r m g o v e r n m e n t s e c u r i t i e s +c o m m e r c i a l p a p e r+l i f e I n s u r a n c e p o l i c i e sQ u a s i-m o n e y(准货币)4.T h e D e v e l o p m e n t o f M o n e t a r y S y s t e m sa n d T h e i r T y p e s（货币制度的发展和种类）(1)T h e s i l v e r s t a n d a r d(16t h c e n t u r y)银本位(2)T h e b i m e t a l l i c s t a n d a r d(16t h—18t hc e n t u r y)金银复本位(3)T h e g o l d s t a n d a r d(1813—1914t h eb e g i n n i n g o f W o r l d W a r I I)金本位(4)I n c o n v e r t i b l e c r e d i t m o n e y s t a n d a r d（不可兑换的信用货币本位）每一部分特征：（1）T h e s i l v e r s t a n d a r d(16t h c e n t u r y)银本位Under the silver system, the standard money was minted with silver. Silver coins had unlimited power of legal tender, and could be minted, exported and imported freely(2)T h e b i m e t a l l i c s t a n d a r d(16t h—18t hc e n t u r y)金银复本位Under this system, both gold and silver were recognized by law as monetary metal. Both gold and silver coins were in circulation and could be minted freely and had unlimited power of legal tender.(3)T h e g o l d s t a n d a r d(1813—1914t h eb e g i n n i n g o f W o r l d W a r I I)金本位The basic features of the gold coin standard were:a. Gold coins circulated freely and had unlimited power of legal tender. Gold coins could be minted and melted freely;b. Gold and gold coins could be imported or exported freely(this guaranteed the stable ratio of gold coins to foreign currencies);c. Bank notes could be converted into gold or gold coins freely(4)I n c o n v e r t i b l e c r e d i t m o n e y s t a n d a r d （不可兑换的信用货币本位）Inconvertible credit money system is a system that has no metal standard money. . Bank notes do not have the provision of gold content are the legal tender and cannot be converted into gold. Under this system, bank notes are put into circulation through credit process.If a government puts more money into circulation than needed, inflation will surely occurs. Almost every western country has once suffered sustained inflation since adoption of theinconvertible credit money system.5.信用的内容Credit has four elements:1) Credit relationship---.lender and borrower .The two parties form a relationship of debt and credit by directly or indirectly financing.2) The object of credit. In a credit relationship, there is a trading object. The object to be transacted is a lender’s asset, which takes the form of either funds or commodities. The former is typical of bank credit while the latter is typical of commercial credit.3) Credit carrier. In the relationship of credit, the right and the obligation of the two parties of credit are embodied in credit carrier, -----credit instruments or financiali n s t r u m e n t s.4 ) Credit conditions. Credit conditions refer to terms and interest rates. The term is the time interval from the time when the relationship of credit starts to the time when the relationship of credit ends. In credit, the ownership of funds or commodity and the right to use them are separated temporarily. The time interval when funds or commodities are used should be decided. So terms are the condition of credit behavior. For creditors, interests are the compensation after giving away the right to use fundsor commodities. For debtors, interests are the costs of using these commodities or funds.6.信用的特征(1)T e m p o r i z a t i o n（期限性）(2)R e p a y m e n t（偿还性）(3)P r o f i t a b i l i t y（收益性）(4)R i s k（风险性）7.信用的功能The relationship of credit solves the difficulties of matching owners of surpluses and deficits of money and overcomes the disequilibrium in time and space of monetary income among different types of economic entities that have revenue and Expenditure.So the basic function of credit is to reallocate funds or it is a reallocation of funds in the form of borrowing and lendingWhat’s more, credit also plays the role in providing and creating means of exchange and means of payment.8.信用的形式1.C o m m e r c i a l C r e d i t（商业信用）2.B a n k C r e d i t（银行信用）3.P u b l i c C r e d i t（公共信用）4. C o n s u m e r C r e d i t（消费信用）5.P r i v a t e C r e d i t（民间信用）各自的特点：（1）C o m m e r c i a l C r e d i t（商业信用）The traits of commercial credit are as follows:(1) Commercial credit is closely linked to a certain commodity transaction.(2) The creditor and the debtor in commercial credit are either producers or managers of certain commodities;(3) The supply of and demand for commercial credit is in line with economic Activities.1.商业信用是以商品形态提供的信用2.商业信用的债权人和债务人都是企业3.商业信用的盛衰和经济周期的变化相一致（2）B a n k C r e d i t（银行信用）Compared with commercial credit, bank credit has its own features:(1) Bank credit is granted in the form of money，the capital provided by banks is not the capital on any stage of cycling of industrial capital, but it is monetary income saved by all walks of life or monetary income drafting from cycling of industrial capital.(2) Bank credit is an intermediate credit, as banks and other financial institutions are intermediaries between the owners and users of monetary capital in credit activities.(3) The trends of bank credit is different from those of the industrial capital in most stages of capital cycling except for prosperity when the increase of bankers’credit and the enlargement of the industrial capital are roughly simultaneous（同步的）.(4) Bank credit has the function of money creation. Any entity can grant credit only after it had acquired monetary capital or commodity capital and the size of such commercial credit is confined to its existing capital. Only banks can overcome such limitations. Banks can not only place funds according to fund resources, but also create fund recourses through their use of funds, i. e. creating money through granting loans.∙银行能把社会上各种闲置资金集中起来，形成巨额银行资本，因此，银行信用不受个别资本的数量和周转的限制。
金融专业英语简答
Answer the questions1、What are the ways by which the money flows from individual surplus unitsto deficit units?financial markets facilitate the flow of funds from surplus units to deficit units. Those financial markets that facilitate the flow of short-term funds (with maturities of less than one year) are known as money markets.Those that facilitate the flow of long-term funds are known as capital markets. Debt bond stock fund deritives2、How does the level of tax, do you think, affect the demand of household forloanable funds? (please explain by pictures)if tax rates on household income are expected to significantly decrease in the future, households might believe that they can more easily afford future loan repayment and thus be willing to borrow more funds. For any interest rate, the quantity of loanable funds demanded by households would be greater as a result of tax law adjustment. This represents an outward shift in the demand schedule.tax rates on household income (income tax decreases →the line of household demand moves right)3、What is the relationship between the government demand for loanable fundsand interest rate? (explain by pictures)Whenever a government’s planed expenditures cannot be completely covered by its incoming revenues from taxes and other sources, it demands loanable funds.The way to obtain fund: Municipal (state and local) governments issue municipal bonds to obtain funds, while the federal government and its agencies issue Treasury securities and federal agency securitiesInterest-inelastic (insensitive to interest rates): federal government expenditure and tax policies are generally thought to be independent ofinterest rate. Thus the federal government demand for funds is said to beInterest-inelastic, or insensitive to interest rates. In contrast, municipalgovernments sometimes postpone proposed expenditures if the cost offinancing is too high, implying that their demand for loanable funds issomewhat sensitive to interest rates.•Like the household and business demand, the government demand for loanable funds can shift in response to various events.Deficit increases →move rightExhibit 2.3 impact of increased government budget deficit on the government demand for loanable fundsThe federal government demand-for-loanable-funds schedule is Dg1, if newbills are passed that cause a net increase in the deficit of USD20 billion, thefederal government demand for loanable funds will increaseby that amount.The new demand schedule is Dg2.4、What are the economic factors that affect interest rates?1)Impact of Economic Growth on Interest Rates2)Impact of Inflation on Interest Rates3)Impact of the Money Supply on Interest Rates4)Impact of the Budget Deficit on Interest Rates5)Impact of foreign Flows of Funds on Interest Rates6)Summary of Forces that Affect Interest Rates5、Explain “crowding-out effect” please.The deficit might not necessarily place upward pressure on interest rates.Given a certain amount of loanable funds supplied to the market( through saving), excessive government dem and for these funds tends to “crowd out” the private demand (by consumer and corporation) for funds. The federal government may be willing to pay whatever is necessary to borrow these funds, but the private sector may not. This impact is known as the crowding-out effect.6、What are the monetary policy tools?Open market operationsAdjustments in the discount rateAdjustments in the reserve requirement ratio7、What are the ways by which the money flows from individual surplus unitsto deficit units?8、How does the Fed use the monetary policy tools to adjust the money supply?（答案待定）1.Open Market OperationsThe buying and selling of government securities (through the Trading Desk) is referred to as open market operations.✓When the Fed issues securities, the commercial banks purchase those that are most attractive. The total funds decrease and the money supply falls.✓When the Fed purchase securities, the total funds increase, which representsa loosening of money supply growth.✓Adjusting the Discount RateThe interest rate that an eligible(有资格的) depository institution is charged to borrow short-term funds directly from a Federal Reserve Bank.To increase the money supply, the Fed can authorized a reduction in thediscount rate; to decrease the money supply, the Fed can increase thediscount rate.3.Adjusting the Reserve Requirement RatioReserve Requirement Ratio is the proportion of their deposit accounts thatmust be held as reserves.The lower the reserve requirement ratio, the greater the lending capacity ofdepository institutions, so a larger money supply.When the fed manipulates the money supply to influence economic variables, it must decide what form of money to manipulate. The optimal form of money should (1)be controllable by the fed and (2)have a predictable(可预测的) impact on economic variables when adjusted by the fed. The most narrow form of money, known as M1, includes currency held by the public and checking deposits(such as demand deposits, NOW accounts, and automatic transfer balances) at depository institutions.9、What are the differences between the general obligation bonds and revenuebonds both of which belong to municipal bonds?Like the federal government, state and local government frenquently spend more than the revenues they receive. To finance the difference, they issue municipal bonds, most of which can be classified as either General obligation bonds or revenue bonds. payments on General obligation bonds are supported by the municipal government’s ability to tax, whereas payments on revenue bond s must be generated by revenues of the project( tollway, toll bridge, state college dormitory, etc) for which the bonds were issued.Material: municipal bond10、What are the characteristics of corporate bonds?The bond indenture, trusteeCorporate bonds can be described according to a variety of characteristics. The bond indenture(契约) is a legal document specifying the rights and obligations of both the issuing firm and the bondholders. It is very comprehensive( normally several hundred pages) and is designed to address all matters related to the bond issue ( collateral, payment dates, default provision, call provisions, etc)Sinking-Fund Provision(偿债基金准备)Bond indentures frequently include a sinking-fund provision, or a reqirement that the firm retire a certain amount of bond issue each year. This provision is considered to be an advantage to the remaining bondholders because it reduces the payments necessary at maturity.Protective Covenants(保护条款)Bond indentures normally place restrictions on the issuing firm that are designed to protest the bondholders from being exposed to increasing risk during the investment period. Those so called Protective Covenants frequently limit the amount of dividends and corporate officers’ salaries the firm can pay and also r estrict theamount of additional debt the firm can issue. Other financial policies may be restricted as well.10、What are the main differences between common stock and preferredstock?●The ownership of common stock entitles shareholders to a number of rights notavailable to other individuals. Normally, only the owner of common stock are permitted to vote on certain key matters concerning the firm,such as theelection of the board of directors, authorization to issue new shares of common stock, approval of amendments to the corporate charter, and adoption ofbylaws(附例).●Usually not allow for significant voting rights,The preferred stockholders have the priority to earn dividends compared with common stockholders .But a firm is not legally required to pay preferred stock dividends.11、What are the similarities and differences between forward contract andfuture contract?Futures and forward contracts are similar in the following ways: Both are derivative securities for future delivery. The parties agree today on price and quantity for settlement in the future.Both are used to hedge currency risk, interest rate risk or commodity price risk.They differ in these ways:Forward contracts are private, customized定制contracts between a bank and its clients depending on the client’s needs (OTC). There is no secondarymarket for forward contracts since they are private contractual agreements.Forward contracts are settled at expiration. Futures contracts are continually settled (mark to market)12、What are the risks of trading futures contracts?Market riskBasis riskLiquidity riskCredit riskPrepayment riskOperational risk13、What are the determinants of call option premiums?Market price of the underlying instrumentInfluence of the market price: the higher the existing market price of the underlying financial instrument relative to the exercise price, the higher the call option premium, other things being equal.Volatility of the underlying instrumentInfluence of the stock’s volatility: the greater the volatility of t he underlying stock, the higher the call option premium, other things being equal.Time to maturity of the call optionInfluence of the call option’s time to maturity: the longer the call option’s time to maturity, the higher the call option premium, other things being equal14、What are the reasons that the Eurodollar market is attractive for bothdepositors and borrowers?the spread between the rate banks pay and the rate they charge is relativelysmall✓Only governments and large corporations participate in this market—lower risk✓Investors in the market avoid some costs (no deposit insurance, lower taxes, no government-mandated credit allocations)✓Eurodollar CDs are not subject to reserve requirements✓Less regulations and restrictions✓✓【本文档内容可以自由复制内容或自由编辑修改内容期待你的好评和关注，我们将会做得更好】✓✓。
金融专业英语复习1
一、名词解释1、Financial system金融体系: 指一个经济体中资金流动的基本框架，它是资金流动的工具（金融资产）、市场参与者（中介机构）和交易方式（市场）等各金融要素构成的综合体。
P42、Treasury bill国库券:a short-term obligation that is not interest-bearingP243、fiat money不可兑现货币：指由政府发行的不能兑换成黄金或白银的货币，其购买力完全来自政府的权威和信誉 money that the government declares tobe legal tender although it cannot be converted into standard specie.P23 4、Monetary policy货币政策： the process by which the government,central bank,or monetary authority of a country controls the supply of money,availability of money, and interest rate ,in order to keep growth and stability of the economy. P375、discount loan贴息贷款:A loan on which the interest and financing charges are deducted from the face amount when the loan is issued P376、Chinese Banking Regulatory Commission:the watchdog for banks in china,responsible for making the rules and regulations for the financial and banking institutions it supervises. P507、consolidation合并：the merger or acquisition of many smaller companies into much larger ones P508、P/B ratio市净率:a ratio used to compare a stock's market value to its book value. P669、H-shares:shares of companies in china's mainland that are listed on Hong Kong Stock Exchange. P6610、Risk management:the process of identification,analysis and either acceptance or mitigation of uncertainty in investment decision-making.11、trust fund:property,especially money and securities,held or settledin trust. P7812、Quota配额:in international trade,a government-imposed limit on the quantity of goods and services that may be exported over a specified periodof time.(不确定P90)13、Balance of payments:14、Eurodollar欧洲美元:the dollar-denominated deposit in foreign banks outside the United States banks. P10515、Time deposit定期存款:the fixed-maturity account that cannot be withdrawn without advance notice. P10516、Floating exchange rate浮动汇率:a type of exchange rate regime whereina currency's value is allowed to fluctuate according to the foreign exchange market. P11417、Draft汇票：a written order from one person (the payer)to another,signed by the person giving it,requiring the person to whom itis addressed to pay on demand or at some fixed future date ,a certain sum of money,to either the person identified as payee or to any person presenting the bill. P14018、Secondary market: a financial market in which securities that have been previously issued can be resold. P15219、Security证券，抵押品：an investment instrument issued by a corporation,government,or other organization which offers evidence of debt or equity. P15220、common stock普通股:a share of ownership in a corporation carrying voting rights that can be exercised in corporate decisions. P163 21、Futures期货:a standardized contract,traded on a futures exchange,to buy or sell a certain underlying instrument at a certain date in the future,at a specified price.22、Option期权:a privilege sold by one party to another that offers the buyer the right,but not the obligation,to buy or sell a security at an agreed-upon price during a certain period of time or on a specific date.二、课后翻译题：1、共同基金是向大众出售股票的机构，并用由此所得的收益选择购买各种类型的股票或者债券，或者投资组合，或者同时购买股票和债券的投资组合。
金融考研复试专业英语(终极版)
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 own ing 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 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 c ountry’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 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)A symmetric 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 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.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 equat ion 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 another. As the interest rate on bonds rises, the opportunity cost of holding money rises, thus money is less desirable and the quantity of money demanded must fall.10. Risk Premium 风险溢价The spread between the interest rates on bonds with default risk and default-free bonds, both of the same maturity, called the risk premium, indicates how much additional interest people must earn to be willing to hold that risky bond.11. Briefly introduce expectations theory, segmented markets theory and liquidity premium theory. (1)The expectations theory (预期假说) of the term structure states the following proposition: the interest rate on a long-term bond will equal an average of the short-term interest rates that people expect to occur over the life of the long-term bond.(2)The segmented markets theory (市场分割假说) of the term structure sees markets for different-maturitybonds as completely separate and segmented. The interest rate for each bond with a different maturity is then determined by the supply of and demand for that bond, with no effects from expected returns on other bonds with other maturities.(3)The liquidity premium theory(流动性溢价假说) of the term structure states that the interest rate on a long-term bond will equal an average of short-term interest rates expected to occur over the life of the long-term bond plus a liquidity premium. It is also called preferred habitat theory (偏好停留假说).12. What’s the difference between adaptive expectation and rational expectation?(1)Adaptive expectation (适应性预期) states that expectations form from past experience only and changes in expectations will occur slowly over time as past data change. For example, expectations of inflation is typically viewed as being an average of past inflation rates. So if inflation had formerly been steady at a 5% rate, expectations of future inflation would also be 5% .(2)Rational expectation(理性预期) can be stated as follows: expectations will be identical to optimal forecasts (the best guess of the future) using all available information.13. Efficient Market Hypothesis 有效市场假说In finance, the efficient-market hypothesis (EMH) asserts that financial markets are "informationally efficient". In consequence of this, one cannot consistently achieve returns in excess of average market returns on a risk-adjusted basis, given the information available at the time the investment is made.There are three major versions of the hypothesis: "weak", "semi-strong", and "strong". The weak-form EMH claims that prices on traded assets (e.g., stocks, bonds, or property) already reflect all past publicly available information. The semi-strong-form EMH claims both that prices reflect all publicly available information and that prices instantly change to reflect new public information. The strong-form EMH additionally claims that prices instantly reflect even hidden or "insider" information. Critics have blamed the belief in rational markets for much of the late-2000s financial crisis.[1][2][3] In response, proponents of the hypothesis have stated that market efficiency does not mean having no uncertainty about the future, that market efficiency is a simplification of the world which may not always hold true, and that the market is practically efficient for investment purposes for most individuals.[4]14. “Lemons Problem”次品问题A particular aspect of the way the adverse selection problem interferes with the efficient functioning of a market is called “lemons problem”.We can use the used-car market to illustrate this concept. Potential buyers of used cars are frequently unable to assess the quality of the car, that is, they can’t tell whether a particular used car is a good car or a lemon (次品). The price that a buyer pays must therefore reflect the average quality of the cars in the market, somewhere between the low value of a lemon and the high value of a good car. The owner of a used car, by contrast, is more likely to know whether the car is a good car or a lemon. If the car is a lemon, the owner is more than happy to sell it at the price the buyer is willing to pay, which, being somewhere between the value of a lemon and a good car, is greater than the lemons value. However, if the car is a good car, the owner knows that the car is undervalued at the price the buyer is willing to pay, and so the owner may not want to sell it. As a result of this adverse selection, few good used cars will come to the market. Because the average quality of a used car available in the market will be low and because few people want to buy a lemon, there will be few sales. The used-car market will function poorly or even disappear.15. Principal-agent Problem 委托-代理问题Principal-agent problem refers to that the managers in control (the agents) may act in their own interest rather than in the interest of the stockholder (the principals) because the managers have less incentive to maximize profits than the stockholder do. The principal-agent problem, which is an example of moral hazard, arises onlybecause a manager has more information about his activities than the stockholder does. So, there is asymmetric information.16. What’s “irrational exuberance” proposed by Alan Greenspan? 非理性繁荣Irrational exuberance refers to a phenomenon that asset prices, in the stock market and real estate, are driven well above their fundamental economic values by investor psychology. The result is an asset-price bubble (资产价格泡沫), such as the tech stock market bubble of the late 1990s or the recent housing price bubble in subprime crisis.17. How to solve asymmetric information problems? 如何解决信息不对称的问题？18. Securitization and Subprime mortgage 资产证券化与次级抵押贷款(1)Subprime mortgages are mortgages for borrowers with less-than-stellar credit records.(2)Securitization is the process of transforming otherwise illiquid financial assets (such as residential mortgages, auto loans, and credit card receivables), which have typically been the main business of banking institutions, into marketable capital market securities.19. What’s time-inconsistency problem? 时间不一致问题The time -inconsistency problem is some thing we deal with continually in everyday life. We often have a plan that we know will produce a good outcome in the long run, but when tomorrow comes, we just can't help ourselves and we deny our plan because doing so has short-run gains. In other words, we find ourselves unable to consistently follow a good plan over time, and the good plan is said to be time-inconsistent and will soon be abandoned .20. Political Business Cycle 政治经济周期Political business cycle is a process that can be illustrated in the following example. Just before an election, expansionary policies are pursued to lower unemployment and interest rates. After the election, the bad effects of these policies, that is high inflation and high interest rates, come home to roost, requiring contractionary policies that politicians hope the public will forget before the next election.21. What’s money multiplier and what are the factors that affect it? 货币乘数及其影响因素？(1)The money multiplier, denoted by m, tells us how much the money supply changes for a given change in the monetary base. The relationship between the money supply, the money multiplier and the monetary base isdescribed by the following equation: M = m ×MB(2)The money multiplier is a function of the currency ratio set by depositor c, the excess reserves ratio set by banks e, and the required reserve ratio set by the Fed r. The money multiplier m is thus22. What are the tools of monetary policy? 货币政策工具There are three tools of monetary policy that can be conducted by the central bank, such as open market operations, discount lending and reserve requirements.(1)Open market operations (公开市场操作) are the most important monetary policy tool, because they are the primary determinants of changes in interest rates and the monetary base, the main source of fluctuations in the money supply. Open market purchases expand reserves and the monetary base, thereby increasing the money supply and lowering short-term interest rates. Open market sales shrink reserves and the monetary base, decreasing the money supply and raising short-term interest rates.Open market operations have four advantages over the other tools of monetary policy: ①Open market operations occur at the initiative of the Fed, which has complete control over their volume. ②Open market operations are flexible and precise, and they can be used to any extent. ③Open market operations are easily reversed.④Open market operations can be implemented quickly, since they involve no administrative delays. (2)The facility at which banks can borrow reserves from the Fed is called the discount window (贴现窗口). The facility is intended to be a backup source of liquidity for banks during financial crisis.The most important advantage of discount policy is that the Fed can use it to perform its role of lender of last resort (最后贷款人). The disadvantage of discount policy is that the decisions to take out discount loans are made by banks and are therefore not completely controlled by the Fed.(3)Changes in reserve requirements (法定存款准备金) affect the money supply by causing the money supply multiplier to change. A rise in reserve requirements reduces the amount of deposits that can be supported by a given level of the monetary base and will lead to a contraction of the money supply. A rise in reserve requirements also increases the demand for reserves and raises the federal funds rate. Conversely, a decline in reserve requirements leads to an expansion of the money supply and a fall in the federal funds rate.Reserve requirements have at least three disadvantages: ①Owing to financial innovation, reserve requirements are no longer binding for most banks, so this tool is much less effective than it once was. ②Raising the requirements can cause immediate liquidity problems for banks where reserve requirements are binding. ③Continually fluctuating reserve requirements would also create more uncertainty for banks and make their liquidity management more difficult.23. Law of One Price and Theory of Purchasing Power Parity一价定理与购买力评价理论(1)The law of one price states that if two countries produce an identical good, and transportation costs and trade barriers are very low, the price of the good should be the same throughout the world no matter which country produces it.(2)T he theory of purchasing power parity (PPP) states that exchange rates between any two currencies will adjust to reflect changes in the price levels of the two countries. The theory of PPP is simply an application of the law of one price to national price levels rather than to individual prices. The statement that exchange rates equal relative price levels is sometimes referred to as absolute PPP (绝对购买力平价). Relative PPP (相对购买力平价) states that the percentage change in the exchange rate between two currencies over any period equals the difference between the percentage changes in national price levels.24. Real Exchange Rate 实际汇率The real exchange rate refers to the rate at which domestic goods can be exchanged for foreign goods. In effect, it is the price of domestic goods relative to the price of foreign goods denominated in the domesticcurrency. For example, if a basket of goods in New York costs $50, while the cost of the same basket of goods in Tokyo costs $75 because it costs 7500 yen while the exchange rate is at 100 yen per dollar, then the real exchange rate is 0.66 (=$50/$75). The real exchange rate is below l, indicating that it is cheaper to buy the basket of goods in the United States than in Japan.25. Why the theory of purchasing power parity cannot fully explain exchange rates? 购买力平价的缺陷(1)Contrary to the assumption of the law of one price, transport costs and restrictions on trade certainly do exist. These trade barriers may be high enough to prevent some goods from being traded between countries.(2)Monopolistic practices in goods markets may interact with transport costs and other trade barriers to weaken further the link between the prices of similar goods sold in different countries.(3)Because the inflation data reported in different countries are based on different commodity baskets, there is no reason for exchange rate changes to offset official measures of inflation differences, even when there are no barriers to trade and all products are tradable.26. Monetary Neutrality 货币中性Monetary neutrality states that in the long run, a one-time percentage rise in the money supply is matched by the same one-time percentage rise in the price level, leaving unchanged the real money supply and all other real variables such as real interest rates.27. Exchange Rate Overshooting 汇率超调The phenomenon that the exchange rate falls by more in the short run than it does in the long run when the money supply increases is called exchange rate overshooting. It can help explain why exchange rates exhibit so much volatility.Exchange rate overshooting is a direct consequence of the short-run rigidity of the price level. In a hypothetical world where the price level could adjust immediately to its new, long-run level after a money supply increase, the interest rate would not fall because prices would adjust immediately and prevent the real money supply from rising. Thus, the exchange rate would maintain equilibrium simply by jumping to its new, long-run level right away.28. Interest Parity Condition 利率平价条件(1)The uncovered interest parity condition(非抛补利率平价) states that the domestic interest rate equals the foreign interest rate minus the expected appreciation of the domestic currency, or equivalently, the domestic interest rate equals the foreign interest rate plus the expected appreciation of the foreign currency. If the domestic interest rate is higher than the foreign interest rate, there is a positive expected appreciation of the foreign currency, which compensates for the lower foreign interest rate. This condition can be rewritten as(2)The covered interest parity condition(抛补利率平价) states that the rates of return on dollar deposits and “covered” foreign deposits must be the same. Suppose you want to buy a euro deposit with dollars but would like to be certain about the number of dollars it will be worth at the end of a year. You can avoid exchange rate risk by buying a euro deposit and, at the same time, selling the proceeds of your investment forward. We say you have “covered” yourself, that is, avoided the possibility of an unexpected depreciation of the euro.29. Unsterilized Foreign Exchange Intervention and Sterilized Foreign Exchange Intervention(1)A foreign exchange intervention in which a central bank allows the purchase or sale of domestic currency to have an effect on the monetary base, is called an unsterilized foreign exchange intervention (非冲销式干预). An unsterilized intervention in which domestic currency is sold to purchase foreign assets leads to a gain in international reserves, an increase in the money supply, and a depreciation of the domestic currency. Anunsterilized intervention in which domestic currency is purchased by selling foreign assets leads to a drop in international reserves, a decrease in the money supply, and an appreciation of the domestic currency.(2)A foreign exchange intervention with an offsetting open market operation that leaves the monetary base unchanged is called a sterilized foreign exchange intervention (冲销式干预). A sterilized intervention leaves the money supply unchanged and so has no direct way of affecting interest rates or the expected future exchange rate.30. Fixed Exchange Rate Regime, Floating Exchange Rate Regime and Managed Float Regime(1)In a fixed exchange rate regime (固定汇率制), the value of a currency is pegged relative to the value of one other currency, which is called the anchor currency (锚货币), so that the exchange rate is fixed in terms of the anchor currency.(2)In a floating exchange rate regime (浮动汇率制), the value of a currency is allowed to fluctuate against all other currencies.(3)When countries intervene in foreign exchange markets in an attempt to influence their exchange rates by buying and selling foreign assets, the regime is referred to as a managed floating regime (管理浮动汇率制)ora dirty floating (肮脏浮动).31. What are the advantages and disadvantages of Gold Standard? 金本位的利与弊？(1)Before World War I, the world economy operated under the gold standard, a fixed exchange rate regime in which the currency of most countries was convertible directly into gold at fixed rates, so exchange rates between currencies were also fixed.(2)The fixed exchange rates under the gold standard had the important advantage of encouraging world trade by eliminating the uncertainty that occurs when exchange rates fluctuate.(3)There are disadvantages of gold standard as follows: ①Adherence to the gold standard meant that a country had no control over its monetary policy, because its money supply was determined by gold flows between countries. ②Monetary policy throughout the world was greatly influenced by the production of gold and gold discoveries.32. Currency Board and Dollarization 货币局制度与美元化(1)Currency board (货币局制度) means that the domestic currency is backed 100% by a foreign currency and in which the note-issuing authority, whether the central bank or the government, establishes a fixed exchange rate to this foreign currency and stands ready to exchange domestic currency for the foreign currency at this rate whenever the public requests it. A currency board is just a variant of a fixed exchange-rate target in which the commitment to the fixed exchange rate is especially strong because the conduct of monetary policy is in effect put on autopilot, and taken completely out of the hands of the central bank and the government.(2)Dollarization (美元化) means the adoption of a sound currency, like the U.S. dollar, as a country’s money. Indeed, dollarization is just another variant of a fixed exchange-rate target with an even stronger commitment mechanism than a currency board provides. The common disadvantage of both regimes is that a country that ties its exchange rate to an anchor currency of a larger country loses control of its monetary policy.33. Quantity Theory of Money 货币数量论The quantity theory of money states that nominal income is determined solely by movements in the quantity of money. We can derive the conclusion from the equation of exchange (交易方程式): MV=PY.Since the institutional and technological features of the economy would affect velocity of money (货币流通速度) only slowly over time, so velocity V would normally be reasonably constant in the short run.Because the classical economists thought that wages and prices were completely flexible, they believed that the level of aggregate output Y produced in the economy during normal times would remain at the full-employment level, so Y in the equation of exchange could also be treated as reasonably constant in the short run.So, for the classical economists, the quantity theory of money provided an explanation of movements in the price level: movements in the price level result solely from changes in the quantity of money.34. Liquidity Preference Theory 流动性偏好理论The liquidity preference theory of John Maynard Keynes pointed out that there are three motives behind the demand for money: the transactions motive, the precautionary motive, and the speculative motive. The demand of money for transaction and precautionary motives is proportional to income, while the demand of money for speculative motive is negatively related to the level of interest rate. So the demand for real money balances is a function of interest rate and income as follow35. Friedman’s Modern Quantity Theory of Money 弗里德曼的现代货币数量论Friedman stated that the demand for money should be a function of the resources available to individuals (their wealth) and the expected returns on other assets relative to the expected return on money. From this reasoning, Friedman expressed his formulation of the demand for money as follows:Unlike Keynes’s theory, which indicates that interest rates are an important determinant of the demand for money, Friedman's theory suggests that changes in interest rates should have little effect on the demand for money.36. Crowding Out Effect of Fiscal Policy 财政政策的挤出效应Expansionary fiscal policy will crowd out investment and net exports, which decrease because of the rise in the interest rate. This situation is called crowding out (挤出效应).When the demand for money is unaffected by the interest rate, the LM curve is vertical. An expansionary fiscal policy does not lead to a rise in output but a sharp in interest rate, which means the increased government spending have completely crowed out investment and net exports. This situation is called complete crowding out (完全挤出).37. Transmission Mechanisms of Monetary Policy 货币政策传导机制(1)Traditional Interest-Rate Channel 利率机制An expansionary monetary policy leads to a fall in real interest rates, which in turn lowers the cost of capital, causing a rise in investment spending, thereby leading to an increase in aggregate demand and a rise in output.(2)Exchange Rate Channel 汇率机制An expansionary monetary policy leads to a fall in real interest rates, which in turn the currency depreciates, causing a rise in net exports, thereby leading to an increase in aggregate demand and a rise in output.(3)Tobin’s q Theory 托宾q理论。
《金融专业英语》习题答案
Chapter One Functions of Financial Markets 一．Translate the following sentences into Chinese.1.China’s banking industry is now supervised by the PBC and CBRC. In addition, the MOFis in charge of financial accounting and taxation part of banking regulation and management.目前中国银行业主要由中国人民银行和银监会进行监管。
此外，财政部负责银行业监管的财务会计及税收方面。
2.Currently Chinese fund management companies are engaged in the following business:securities investment fund, entrusted asset management, investment consultancy, management of national social security funds, enterprise pension funds and QDII businesses.目前中国的基金管理公司主要从事以下业务：证券投资基金业务、受托资产管理业务、投资咨询业务、社保基金管理业务、企业年金管理业务和合格境内机构投资者业务等。
3.China's economy had 10% growth rate in the years before the world financial crisisof 2008. That economic expansion resulted from big trade surpluses and full investment.Now China is seeking to move away from that growth model. The country is working to balance exports with demand at home.在2008年世界经济危机之前的那些年，中国经济增长速度曾达到10%。
金融行业英语面试常见问题
金融行业英语面试常见问题1. 请谈谈你对金融行业的了解和兴趣。
金融行业是一个关键的经济领域，涉及到资金的流动和风险的管理。
我对金融行业非常感兴趣，因为它与全球经济的稳定和发展密切相关。
我一直关注金融新闻，并对金融产品和市场运作有一定的了解。
2. 你能谈谈金融行业的风险管理吗？金融行业的风险管理是确保金融机构能够在面临各种风险时保持稳定和可持续性的关键过程。
这包括识别、评估和处理各种风险，如信用风险、市场风险、操作风险和法律风险。
风险管理的目标是最大限度地降低潜在的损失，并确保金融机构能够满足监管要求。
3. 对你来说，金融分析的重要性是什么？金融分析是评估和解释公司或个人的财务状况和业绩的过程。
它有助于投资者和管理层做出明智的决策。
金融分析的重要性在于提供了洞察力，帮助了解企业的健康状况、潜在的风险和增长机会。
通过金融分析，可以确定投资的价值和收益潜力。
4. 你能解释一下什么是货币政策吗？货币政策是由中央银行制定和执行的政策，旨在控制货币供应和利率，以影响经济的发展和稳定。
它通过改变利率、控制货币供应、调整外汇储备等手段来实现目标。
货币政策的主要目标是保持物价稳定、促进经济增长和维护金融稳定。
5. 请谈谈你对金融市场的了解。
金融市场是进行金融交易和资金调配的场所。
它由各种各样的市场组成，如股票市场、债券市场、外汇市场和商品市场等。
金融市场提供了资金融通和风险转移的机制，促进了经济的发展和资源的配置。
了解金融市场对金融从业者非常重要，因为它涉及到资产定价、交易策略和投资组合管理等方面。
以上是金融行业英语面试中常见的问题和简短的回答。
希望对您的面试准备有所帮助！。
金融英语课后答案汇总
Part One1. What are the main roles of banks?答：Although banks share many common features with other profit-seeking business,they play a unique role in the economy through mobilizing savings,allocating capital funds to fiance productive investment,transmitting monetary policy,providinga payment system and transforming risks.3. According to the revised edition of the Law of the People's Republic of China on the People's Bank of China ,what functions does the PBC perform?答：The PBC 's key functions are to conduct monetary policy, prevent and dissolve financial risks, and maintain financial stability under the leadership of the State Council.4. Can you give some examples of indirect instruments for implementing monetary policy?答：Indirect instruments as required reserve ratio, interest rate adjustment and open market operations.9. What is your definition of share and bond?答：Shares are certificates or book entries representing ownership in a corporation or similar entity.Bonds are written evidences of debts.13. What is your definition of “securities”?答：Securities are paper certificates (definitive securities) or electronic records (book-entry securities) evidencing ownership of equity (stock) or debt obligations (bonds).Part Two2. What are the objectives of banking supervision?First, the key objective of supervision is to maintain stability and public confidence in financial system.The second goal of bank supervisions to ensure that bank operate in a safe and sound manner and that they hold capital and reserve sufficient to cover the risks that may arise in their business.Third, a related goal is to protect depositors’ funds and , if any bank should fail, to minimize the losses to be absorbed by the deposit insurance fund.The fourth goal of bank supervision is to foster an efficient and competition banking system that is responsive to the public need for high quality financial services at reasonable cost.The fifth and final goal of bank supervision is to ensure compliance with banking laws and regulations.3. What risks might the commercial banks have to face?(1)credit risk (2)market risk (3)liquidity risk (4)operational risk (5)legal risk (6)reputation risk4. What are the implication of credit risk, market risk, liquidity risk and operational risk?Credit risk: A major type of risk that banks face is credit risk or the failure of a counterpart to perform according to a contractual arrangement.Market risk: Two specific elements of market risk are foreign exchange risk and interest risk. Banks face a risk of losses in on- and off-balance sheet positions arising from movement in exchange rates. Interest rate risk prefers to the exposure of a bank’s financial condition to adverse movements in interest rates.Liquidity risk: Liquidity risk arises from the inability of a bank to accommodate decreases in liabilities or to fund increases in assets.Operational risk: The most important types of operational risk involve breakdowns in internal controls and corporate governance..5.At what levels does the Basel Accord set the minimum capital ratio requirements for internationally active banks?The Accord sets minimum capital ratio requirements for internationally active banks of 4% tier one capita and 8% total capital (tier one plus tier two) in relation to risk-weighted assets.Part Three1. What does foreign exchange include ?答：Foreign exchange includes the following means of payments and assets denominated in a foreign currency that can be used for international settlement:●Foreign currencies, including banknotes and coins;●Payment vouchers denominated in foreign currency, including negotiableinstruments, bank certificates of deposit and certificates of postal savings;●Securities denominated in foreign currency, including government bonds,corporate bonds and stocks;●Super-national currencies such as Special Drawing Rights and the Euro; and●Other assets denominated in foreign currency.3. What are the requirements for domestic institutions for opening foreign exchange accounts abroad?答：Domestic entities which meet one of the following requirements may apply for opening a foreign exchange account abroad:●Expecting small amount income during a certain period of time abroad;●Expecting small amount ex penditure during a certain period of time abroad;●Undertaking overseas construction projects;and issuing securities denominated in foreign currency abroad.6. Give the definition of foreign exchange?答：Foreign exchange , or forex , is foreign money. All foreign currency, consisting of founds held with banks abroad, or bills or cheques, again in foreign currency and payable abroad , are termed foreign exchange.9. Give the definition of spot and forward transaction?答：Spot transactions involve today’s p rices of currency and delivery of the currency within two business days, except for Canadian dollar (CAD), which must be delivered in one day.10. Tell the difference between forward and futures transactions?答：(1) Forward transactions involve today’s pr ices of currency and delivery on a stipulated future date.(2) Futures transactions are always traded on exchanges. In order to be marketable on exchanges, futures contracts are standardized in terms of quantity, settlement datesand quotation.Part Four14. How could a bank earn interest income?答：The principal source of income for the majority of banks is still the interest received on the funds that the institution has at its disposal and is able to lend out in some form.Whenever a bank lends out money it will generally charge interest to the customer.21. Why should a bank keep sufficient liquid assets?答：It is important for a bank to hold sufficient liquid assets to meet the demands of depositors who may seek to withdraw their funds. However,maintenance of too high a level of liquid assets could be expensive. Cash balances in particular yield no income,yet will cost the same as any other asset to fund.25. What are the three major activities included in a bank's Statement of Cash Flows?答：The statement of cash flows reports cash flows relating to operating,investing and financing activities of a bank.Part five4. What are negotiable instruments? list some examples.答：From a functional perspective, negotiable instruments are documents used in commerce to secure the payment of money. Paying large sums of money in cash is both inconvenient and, unfortunately, risky. In all cases, negotiable instruments represent a right to payment. A right is, by definition, a promise and not a tangible piece of property. So, negotiable instruments are classified as choses in action. The three main types of them are the following: Bills of Exchange, Cheques, Promissory Notes.7. What’s the difference between capital lease and operating lease?答：1: Whether the ownership of property is to be transferred by the end of lease term.2: Whether the lease has an operation to purchase the leased property at a bargain price.3: The lease term is long to or short in according to the estimated economic life of the leased property.4: Whether the lease is a cancelable lease.5: Whether the lease is full-payout lease.9. What’s the meaning of Account Receivable Financing?答：Accounts Receivable represents a promise from customers to pay for a goods sold or services rendered. Account Receivable Financing is a form of collateralized lending in which accounts receivables are the collateral.12. What are basic characteristics of money mark securities?答：Money-mark securities, which are discussed in details later in this chapter, have three basic characteristics in common:They are usually sold in large denominations.They have low default risk.They mature in one year or less from their original issue date. Most money marker instruments mature in less than 120 days.Why teasury bills are attractive to investors?答：Teasury bills are attractive to investors because they are backed by the government and therefore are virtually free of default risk .Even if the government ran out of money, it could simply print more to pay them off when they mature.The risk of unexpected changes in inflation is also low because of their short-termmaturity. 15. What are the features of inter-bank markets?答：Inter-bank markets are money markets in which short-term funds transferred (lent or borrowed) between financial institutions, usually for one day, that is , they are usually overnight investment . The interest rate for borrowing these funds is close to ,but always slightly higher than ,the rate that is available from the central bank. 17．How have NCDs become the second most popular money market instruments?答：Negotiable CDs are in large denominations .Although NCDs denominations are too large for individual investors , they are sometimes purchased by money market funds that have pooled individua l investor’s funds. Thus , the existence of money market funds allows individuals to be indirect investors in NCDs ,marking a more active NCD market.19.What products does the on-line banking provide?答：basic products and services, intermediate products and services ,advanced products and services.Part Six1,What categories can the loan be divided according to their risk?答：The five-category system classifies bank loans according to their inherent risks as pass(normal),special-mention,substandard,doubtful and loss.What are the commonly used methods of credit analysis?答：Tranditionally,key risk factors have been classified according to the five CS of credit:character,capital,capacity,conditions,and collateral. Golden and Walker identify the five CS of bad credit,representing things to guard against to help prevent problems.These include complacency,carelessness,communication breakdown,contingencies,and competition.A useful framework for sorting out the facts and opinions in credit analysis is the 5Ps approach:people,purpose,payment,protection,and perspective.How can a bank take security for an advance?答：A bank has different kinds of security as cover for advance to his customers.There are several ways in which a bank may take security for an advance by lien,pledge,mortgage and hypothecation.。
金融英语试题及答案
金融英语试题及答案一、选择题（每题2分，共20分）1. Which of the following is not a type of financial instrument?A. StockB. BondC. DerivativeD. Commodity2. The term "leverage" in finance refers to:A. The use of borrowed funds to increase the potential return of an investment.B. The amount of money invested in a project.C. The process of buying and selling securities.D. The risk associated with a particular investment.3. What does the acronym "IPO" stand for?A. International Public OfferingB. Initial Public OfferingC. Internal Private OfferingD. International Private Offering4. The primary market is where:A. Securities are issued for the first time to the public.B. Securities are traded after they have been issued.C. Companies buy back their own securities.D. Investors sell their securities to other investors.5. A bear market is characterized by:A. A prolonged period of falling prices.B. A period of economic growth.C. A period of high inflation.D. A period of low unemployment.6. The term "risk management" in finance involves:A. Predicting future market trends.B. Identifying potential risks and taking steps tomitigate them.C. Maximizing returns on investments.D. Managing the day-to-day operations of a financial institution.7. A "blue chip" stock refers to:A. A stock that is considered to be of high quality and carries a lower risk.B. A stock that is traded on a blue-colored chip.C. A stock that is considered to be very risky.D. A stock that is traded on a major stock exchange.8. The process of "short selling" involves:A. Borrowing securities and selling them in the hope of buying them back at a lower price.B. Selling securities that the investor does not own.C. Buying securities with the expectation that their price will increase.D. Holding securities for a long period of time.9. What is the role of a "broker" in finance?A. To provide financial advice to clients.B. To facilitate the buying and selling of securities between investors.C. To manage a company's financial transactions.D. To underwrite securities for companies.10. The "efficient market hypothesis" suggests that:A. Stock prices fully reflect all available information.B. It is possible to consistently beat the market by picking individual stocks.C. Investors are irrational and make poor decisions.D. The market is always undervalued.二、填空题（每题1分，共10分）11. The _______ is the process by which a company raisescapital by issuing shares to the public for the first time. 12. A _______ is a financial contract that obligates thebuyer to purchase an asset or the seller to sell an asset ata predetermined future date and price.13. The _______ is the market where existing securities are bought and sold.14. The _______ is a measure of the risk of an investment compared to the return it is expected to generate.15. When the stock market is experiencing a significant and sustained increase in prices, it is known as a _______ market.16. A _______ is a financial institution that acceptsdeposits and provides various types of loans to customers. 17. The _______ is a measure of the ability of a company to pay its current debts with its current assets.18. A _______ is a financial statement that shows a company's financial performance over a period of time.19. The _______ is a type of investment strategy that focuseson long-term growth potential.20. An _______ is a financial instrument that derives its value from an underlying asset.三、简答题（每题5分，共30分）21. Explain the difference between a "mutual fund" and a "hedge fund".22. Describe the concept of "diversification" in investment.23. What is "inflation" and how does it affect the value of money?24. Discuss the role of "central banks" in the economy.四、论述题（每题20分，共20分）25. Discuss the impact of globalization on the financial markets and provide examples to support your argument.五、案例分析题（每题20分，共20分）26. Analyze a recent financial crisis and discuss the factors that contributed to it, the impact it had on the global economy, and the lessons that can be learned from it.答案：一、选择题1-5 D A B A A6-10 B A A B A二、填空题11. Initial Public Offering (IPO)。
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Answer the questions1、What are the ways by which the money flows from individual surplus unitsto deficit units?financial markets facilitate the flow of funds from surplus units to deficit units. Those financial markets that facilitate the flow of short-term funds (with maturities of less than one year) are known as money markets.Those that facilitate the flow of long-term funds are known as capital markets. Debt bond stock fund deritives2、How does the level of tax, do you think, affect the demand of household forloanable funds? (please explain by pictures)if tax rates on household income are expected to significantly decrease in the future, households might believe that they can more easily afford future loan repayment and thus be willing to borrow more funds. For any interest rate, the quantity of loanable funds demanded by households would be greater as a result of tax law adjustment. This represents an outward shift in the demand schedule.tax rates on household income (income tax decreases →the line of household demand moves right)3、What is the relationship between the government demand for loanable fundsand interest rate? (explain by pictures)Whenever a government’s planed expenditures cannot be completely covered by its incoming revenues from taxes and other sources, it demands loanable funds.The way to obtain fund: Municipal (state and local) governments issue municipal bonds to obtain funds, while the federal government and its agencies issue Treasury securities and federal agency securitiesInterest-inelastic (insensitive to interest rates): federal government expenditure and tax policies are generally thought to be independent ofinterest rate. Thus the federal government demand for funds is said to beInterest-inelastic, or insensitive to interest rates. In contrast, municipalgovernments sometimes postpone proposed expenditures if the cost offinancing is too high, implying that their demand for loanable funds issomewhat sensitive to interest rates.•Like the household and business demand, the government demand for loanable funds can shift in response to various events.Deficit increases →move rightExhibit 2.3 impact of increased government budget deficit on the government demand for loanable fundsThe federal government demand-for-loanable-funds schedule is Dg1, if newbills are passed that cause a net increase in the deficit of USD20 billion, thefederal government demand for loanable funds will increaseby that amount.The new demand schedule is Dg2.4、What are the economic factors that affect interest rates?1)Impact of Economic Growth on Interest Rates2)Impact of Inflation on Interest Rates3)Impact of the Money Supply on Interest Rates4)Impact of the Budget Deficit on Interest Rates5)Impact of foreign Flows of Funds on Interest Rates6)Summary of Forces that Affect Interest Rates5、Explain “crowding-out effect” please.The deficit might not necessarily place upward pressure on interest rates.Given a certain amount of loanable funds supplied to the market( through saving), excessive government demand for these funds tends to “crowd out” the private demand (by consumer and corporation) for funds. The federal government may be willing to pay whatever is necessary to borrow these funds, but the private sector may not. This impact is known as the crowding-out effect.6、What are the monetary policy tools?Open market operationsAdjustments in the discount rateAdjustments in the reserve requirement ratio7、What are the ways by which the money flows from individual surplus unitsto deficit units?8、How does the Fed use the monetary policy tools to adjust the money supply?（答案待定）1.Open Market OperationsThe buying and selling of government securities (through the Trading Desk) is referred to as open market operations.✓When the Fed issues securities, the commercial banks purchase those that are most attractive. The total funds decrease and the money supply falls.✓When the Fed purchase securities, the total funds increase, which representsa loosening of money supply growth.✓Adjusting the Discount RateThe interest rate that an eligible(有资格的) depository institution is charged to borrow short-term funds directly from a Federal Reserve Bank.To increase the money supply, the Fed can authorized a reduction in thediscount rate; to decrease the money supply, the Fed can increase thediscount rate.3.Adjusting the Reserve Requirement RatioReserve Requirement Ratio is the proportion of their deposit accounts thatmust be held as reserves.The lower the reserve requirement ratio, the greater the lending capacity ofdepository institutions, so a larger money supply.When the fed manipulates the money supply to influence economic variables, it must decide what form of money to manipulate. The optimal form of money should (1)be controllable by the fed and (2)have a predictable(可预测的) impact on economic variables when adjusted by the fed. The most narrow form of money, known as M1, includes currency held by the public and checking deposits(such as demand deposits, NOW accounts, and automatic transfer balances) at depository institutions.9、What are the differences between the general obligation bonds and revenuebonds both of which belong to municipal bonds?Like the federal government, state and local government frenquently spend more than the revenues they receive. To finance the difference, they issue municipal bonds, most of which can be classified as either General obligation bonds or revenue bonds. payments on General obligation bonds are supported by the municipal government’s ability to tax, whereas payments on revenue bond s must be generated by revenues of the project( tollway, toll bridge, state college dormitory, etc) for which the bonds were issued.Material: municipal bond10、What are the characteristics of corporate bonds?The bond indenture, trusteeCorporate bonds can be described according to a variety of characteristics. The bond indenture(契约) is a legal document specifying the rights and obligations of both the issuing firm and the bondholders. It is very comprehensive( normally several hundred pages) and is designed to address all matters related to the bond issue ( collateral, payment dates, default provision, call provisions, etc)Sinking-Fund Provision(偿债基金准备)Bond indentures frequently include a sinking-fund provision, or a reqirement that the firm retire a certain amount of bond issue each year. This provision is considered to be an advantage to the remaining bondholders because it reduces the payments necessary at maturity.Protective Covenants(保护条款)Bond indentures normally place restrictions on the issuing firm that are designed to protest the bondholders from being exposed to increasing risk during the investment period. Those so called Protective Covenants frequently limit the amount of dividends and corporate officers’ salaries the firm can pay and also r estrict theamount of additional debt the firm can issue. Other financial policies may be restricted as well.10、What are the main differences between common stock and preferredstock?●The ownership of common stock entitles shareholders to a number of rights notavailable to other individuals. Normally, only the owner of common stock are permitted to vote on certain key matters concerning the firm,such as theelection of the board of directors, authorization to issue new shares of common stock, approval of amendments to the corporate charter, and adoption ofbylaws(附例).●Usually not allow for significant voting rights,The preferred stockholders have the priority to earn dividends compared with common stockholders .But a firm is not legally required to pay preferred stock dividends.11、What are the similarities and differences between forward contract andfuture contract?Futures and forward contracts are similar in the following ways: Both are derivative securities for future delivery. The parties agree today on price and quantity for settlement in the future.Both are used to hedge currency risk, interest rate risk or commodity price risk.They differ in these ways:Forward contracts are private, customized定制contracts between a bank and its clients depending on the client’s needs (OTC). There is no secondarymarket for forward contracts since they are private contractual agreements.Forward contracts are settled at expiration. Futures contracts are continually settled (mark to market)12、What are the risks of trading futures contracts?Market riskBasis riskLiquidity riskCredit riskPrepayment riskOperational risk13、What are the determinants of call option premiums?Market price of the underlying instrumentInfluence of the market price: the higher the existing market price of the underlying financial instrument relative to the exercise price, the higher the call option premium, other things being equal.Volatility of the underlying instrumentInfluence of t he stock’s volatility: the greater the volatility of the underlying stock, the higher the call option premium, other things being equal.Time to maturity of the call optionInfluence of the call option’s time to maturity: the longer the call option’s time to maturity, the higher the call option premium, other things being equal14、What are the reasons that the Eurodollar market is attractive for bothdepositors and borrowers?the spread between the rate banks pay and the rate they charge is relativelysmall✓Only governments and large corporations participate in this market—lower risk✓Investors in the market avoid some costs (no deposit insurance, lower taxes, no government-mandated credit allocations)✓Eurodollar CDs are not subject to reserve requirements✓Less regulations and restrictions。