金融英语chapter 1

FinancialEnglish金融英语[e-mail]•Chapter1Money,theInterestRatesandtheFinancialSystem•Chapter2CentralBank•Chapter3CommercialBank•Chapter4InvestmentBank•Chapter5MoneyMarketCourseStructure•Chapter6CapitalMarket•Chapter7ForeignexchangeMarket•Chapter8TheBalanceofInternationalPayments•Chapter9InternationalSettlements•Chapter10RiskandInsuranceBenefits•FinancialEnglishcoursewillprovideyouwith:•-Improvethefinancialvocabulary•-UnderstandbasicdefinitionsandbusinessproceduresBenefits•-Greaterconfidencewhendiscussingfinancialdocumentsanddata•-Increasedverbalfluencyforface-to-facenegotiations•-TheconfidencetoproduceprofessionalwrittenreportsinEnglish•-KeyfinancialEnglishterminologyThereforeto•Prepareforfurtherlearning,forexample,academicEnglishreadingsduringmasterprogramRequirements•Attendance10%•Assignment10%•Presentation10%•Exam70%•Total100%Requirements•Attendance20%•Assignment20%•Exam60%•Total100%Chapter1Money,theInterestRatesandtheFinancialSystemPart1Money•1.OriginofMoney•2.DefinitionofMoney•3.FunctionsofMoney•4.FormsofMoneyQuestions•Whatismoney?•Whendidmoneyappear?•Whatarethefunctionsofmoney?•Whatarethetypesofmoney?•Howcanwemeasuremoney?Question•WhenyoubuyapairofjeansoraCD,forexample,youneverwonderwhetherthemerchantwillacceptthebillsandcoinsinyourwalletaspayment.•Butsupposemoneydidn'texist.Howwouldyoupayforthethingsyouwanttobuy?1.OriginofMoney•Barter•—exchangegoodswithgoods.•Suchas:•Goat,stone,ox,salt,shell,peal,jade,iron,……•DisadvantagesofBarter•Deterioration•Indivisibility•InefficientandProtracted(rateofexchange)•Doublecoincidenceofwants•silver,goldovercamesuchshortcomings13centuryA.D.Papercurrency(fiatmoney)BillofexchangePromissoryNoteCheque/checkCommoditymoney—PreciousmetalslikegoldandsilverExchangeforGBP1,250.00Beijing,1April,2003AtsightpaytotheorderofDEFCo.thesumofPoundsonethousandtwohundredandfiftyonlyToXYZBank,ForABCCo.,BeijingLondon(signature)Endof18centuryExpensiveRiskyTurnoveroffundsslowForeignexchangebankEvolutionofMoney•Papercurrency(fiatmoney)(intrinsicallyworthless)—Fiatmoneyhasnotonlynoparticularvalueinuse;itdoesn’tevenreallyhaveavalueinexchangeexceptthatwhichisdecreedthatitwouldhave.•Checks—18thcentury•Electronicmeansofpayment—creditcard.2.DefinitionofMoney•Question1:•——Whatismoney?seep1,p9•Moneycanbedescribedasanycommodityortokenthatisgenerallyacceptableasameansofpaymentforgoodsorservicesorintherepaymentofdebt.•货币是普遍作为支付手段接受的任何一种商品或符号。•Canyoulistsomekindsofmoney?•——Papercash,coins2.DefinitionofMoney•Question2:•——Doyouknowcurrencyandmoney?•Currency—consistingofdollarbillsandcoins,isonetypeofmoney.•Andthereareothertypesofmoneyarenotcurrency,suchascheck,savingdeposits.2.DefinitionofMoney•Question3:•——Doyouknowthedifferencebetweenwealthandmoney?•—Wealthmeansgreatamountofproperty,money,etc.•(1)Intheprivatesense,allpropertywhichhasamoneyvalue.•(2)Inthepublicsense,allobjects,esp.materialobjects,whichhaveeconomicutility.•Canyoulistsomekindsofwealthdonotbelongtomoney?•—Art,houses,stocks,bonds,cars,jewels……2.DefinitionofMoney•Question4:•——Doyouknowthedifferencebetweenincomeandmoney?•—Incomeisaflowofearningsperunitoftime;•—Moneyisastock:itisacertainamountatagivenpointintime.Additionalquestion•Whatisdifferencebetweenrevenueandincome?•—Forcorporations,revenuesminuscostofsales,operatingexpenses,andtaxes,overagivenperiodoftime.Functionsofmoney•Mediumofexchange•Unitofaccount•StoreofvalueMediumofexchange•Inalmostallmarkettransactionsinoureconomy,moneyintheformofcurrencyorchecksisamediumofexchange;itisusedtopayforgoodsandservices.•Theuseofmoneyasamediumofexchangepromoteseconomicefficiencybyeliminatingmuchofthetimespentinexchanginggoodsandservices.Mediumofexchange•Thetimespenttryingtoexchangegoodsorservicesiscalledatransactioncost.Inabartereconomy,transactioncostsarehighbecausepeoplehavetosatisfya“doublecoincidenceofwants”—theyhavetofindsomeonewhohasgoodsorservicetheywantandwhoalsowantsthegoodsorservicetheyhavetooffer.Mediumofexchange•Moneyisthereforeessentialinaneconomyitisalubricantthatallowstheeconomytorunmoresmoothlybyloweringtransactioncosts,therebyencouragingspecializationandthedivisionoflabor.Unitofaccount•Thesecondroleofmoneyistoprovideaunitofaccount;thatis,itisusedtomeasurevalueintheeconomy.Wemeasurethevalueofgoodsandservicesintermsofmoney,justaswemeasureweightintermsofpoundsordistanceintermsofmiles.Storeofvalue•Moneyalsofunctionsasastoreofvalue:itisarepositoryofpurchasingpowerovertime.Itisanasset.It’ssomethingthatwecanusetostorevalueawaytoberetrievedatalaterpointintime.Sowecannotconsumetoday,wecanholdmoneyinstead—andtransferthatconsumptionpowertosomepointinthefuture.•Ismoneytheonlychoicewehavetostorevalue?•Theyoftenpaytheownerahigherinterestratethanmoney,experiencepriceappreciation,anddeliverservicessuchasprovidingaroofoverone'shead.•Iftheseassetsareamoredesirablestoreofvaluethanmoney,whydopeopleholdmoneyatall?Liquidity•Therelativeeaseandspeedwithwhichanassetcanbeconvertedintoamediumofexchange.Liquidity•Liquidityishighlydesirable.•Moneyisthemostliquidassetofallbecauseitisthemediumofexc