商务英语阅读王关富答案

商务英语阅读王关富答案【篇一：商务英语阅读(第二版)王关富unit10banking课后答案】thealchemistsoffinanceexercises1.questionsonthetext1)what’sthemaindifferencebetweencommercialbanksandinvestmentbanks?intodaysbusinessenvironment,themainbusinessofcommercialbanksistocollectdepositsandmakeloans,whilethatofinvestmentbanksistounderwritestocksandbondsandadvisecompaniesonmergersandacquisitions.2)whydoinvestmentbankstrytokeepquietabouttheirbigprofits?investmentbankstrytokeepquietabouttheirbigprofitsfortwomajorreasons:first,theyareundermorescrutinybyregulatorsandinvestors;second,privateequityandhedgefundshaveovertakentheminraisingmoneyandmakingexcessivebets.3)whatchangeshavetakenplaceinthefinancialmarketssincethe1980s?themainchangessince1980shavebeentherapidgrowthoffinancialinstrumentswithunprecedentedbreadth,depthandrichness,broughtoutbytechnologyandinnovation.examplesofthosefinancialinstrumentsarepublicandprivatedebtsecuritiesandderivatives.4)whydobankersandregulatorsworryaboutapossiblecollapseofaninvestmentbank?theyworryaboutapossiblecollapseofaninvestmentbankbecausesuchaneventwillhaveseriousimplicationsforthewholefinancialsystem,anditisvitaltoknowhowsuchinstitutionsevolve,howtheyhandlerisksandhowwellthoserisksarespreadaroundthefinancialsystem.5)whichthreefactorscanexplainthehugeprofitforinvestmentbanks?thosefactorsare:first,thealchemiststrickofturningdebt(mostlyleaden)intoderivatives(mostlyliquid);second,theemergenceofanewclassofleveragedclient(hedgefundsandprivateequity);third,seekingoutnewcapitalmarketsandclientsaroundtheworld.meanwhile,inallthesepursuitsthebanksarenowusingtheirownmoney,todifferingdegrees.6)whatdoestheexpression“thewildeast”referto?thatexpressionreferstothenewmarketsemergingineuropeandasia.theintroductionoftheeuroin1999andtherapidgrowthofeconomiesinthoseregionshaveattractedinvestmentbanks.7)whatmakeslondonanimpressiverivaltonewyorkasaglobalfinancialcenter?londonhasbecomeanimpressiverivaltonewyorkasaglobalfinancialcenterbecause:first,londontradesawiderangeofassetsandisregulatedonthespot;second,londonisahubforeuropeandcontinenteuropeancountriescanraisecapitalthere;third,londonisalsoregardedasaspringboardforemergingmarketssuchaschinaandrussia.8)howdoinvestmentbanksmanagetherisks?investmentbankstrytofindthemosttalentedpeopletohandletheintricateassets;theymeasurethecorrelationsbetweendifferentfinancialinstrumentsinanattempttospreadrisk;theyinvesthundredsofmillionsofdollarsayearintechnologiestomeasureandstress-testrisks;theyalsotrytoboosttheirrisk-weightedcapital.9)accordingtothetext,what’stherelationshipbetweenrevenueandriskinfinance?therelationshipbetweenrevenueandriskisfundamentalinfinance.risk-takingisawardedbypossiblehighrevenue.lowriskoftenmeanslessrevenue.however,inordertogainmorerevenue,youneedtotakemorerisks.youshouldcarefullycalculatetheriskandbalanceitagainstrevenuebeforehand,oryouwillpayahighpriceforfoolishinvestmentbet.10)whichoneismoreimportanttothegrowthofthefinanceindustry,innovationorregulation?basedonthetext,bothinnovationandregulationarevitaltothehealthygrowthofthefinanceindustry.withoutinnovation,investorshavefewerplacestogainreturnsontheirmoneyandthoseseekingmoneywouldhavemuchmoredifficultiesinobtainingit.thusinnovationbooststherapidgrowthoffinanceindustryandbringsbenefitstomorepeoplebothindevelopedcountriesanddevelopingcountries.however,innovationwithoutproperregulation,suchasthesecuritiesthatnooneknowshowtoexactlymeasuretheirrisk,couldleadthegrowthofthefinanceindustrytoadisastrousend.2.fillineachblankofthefollowingsentenceswithoneofthephrasesinthelistgivenbelow:1)thegovernmenthastakenmanymeasuresto2)employeesareaskedto3)regulatorsdemandthemonopolycompanytosmallerentities.4)it’sreportedthatchinatelecomplanstoitsnetworkservicesunitinhk.5)thetraffichadformilesbecauseoftheaccident.6)accordingtothoserepresentatives,newforcesareintherefiningindustry.7)weshallneverknowhowshemanagedtoacquireherpromotion;thereisnowayto8)anationwidelawaimedatstampingoutpassivesmokinginpublicspacesinswitzerlandonsaturday.9)innovationswilldramaticchangesinthisindustrialsector.10)iwouldsaythat,3.matchthetermsincolumnawiththeexplanationsincolumnb:1)liquiditycrisisa)abankthatprovidescheckingaccounts,2)leveragedbuy-out3)creditcrunch4)over-the-countersecurities5)initialpublicoffering6)commercialbank7)stresstest8)investmentbank9)hedgefund10)riskmanagementsavingsaccounts,andmoneymarketaccountsandthatacceptstimedeposits.b)acompanyissuescommonstockorsharestothepublicforthefirsttime.c)thesituationinwhichabusinessexperiencesalackofcashrequiredtogrowthebusiness,payforday-to-dayoperations,ormeetitsdebtobligationswhentheyaredue,causingittodefault.d)theacquisitionofanothercompanyusingasignificantamountofborrowedmoney(bondsorloans)tomeetthecostofacquisition.e)afinancialinstitutionthatassistsindividuals,corporationsandgovernmentsinraisingcapitalbyunderwritingand/oractingastheclientsagentintheissuanceofsecurities.f)anaggressivelymanagedportfolioofinvestmentsthatusesadvancedinvestmentstrategiessuchasleveraged,long,shortandderivativepositionsinbothdomesticandi