第一篇：金融專業英語Lesson5 中央銀行

Lesson 5

Part I: The Central Bank

“Central banks” are not “banks” in the same sense as commercial banks.They are governmental institutions that are not concerned with maximizing their profits, but with achieving certain goals such as the prevention of commercial bank failures, or of high unemployment, and so on.Central banks, even if in a formal sense owned by private stockholders, carry out governmental functions, and are therefore part of the government.“Central banks” were not originally called central banks, they were generally known as banks of issue or as national banks.After such banks of issue acquired other functions, duties and powers, the term “central bank” came to be generally used and to have a more or less standardized meaning.There are three basic functions for the central bank.Firstly, the responsibility of a central bank is the formulation and execution of monetary policy, with the twin goals of promotion of price stability at home and stimulation of genuine growth of economy.These goals are still the core of central bank policies.Another important responsibility of the central bank is the supervision of participation in supervision, to a certain degree, of the member banks and financial institutions.A sound banking and financial structure is crucial to an effective monetary policy.Confidence in the health and soundness of the banking and financial system will facilitate the mobilization of social savings which, in turn, will be used in productive investment, thus promoting economic growth.The third major function of the central bank is the supervision of the clearing mechanism.A reliable clearing mechanism which can settle inter-bank transaction with high efficiency is crucial to a well-operated financial system.Generally speaking, the greater the independence of the central bank, the less likely it will become the target of short-term political pressure.The central bank under direct regular government control seems inevitable to carry out a relaxed credit policy, especially at a time of approaching election.What is even worse, it directly provides capital to cover the government's deficit.Although these policies may be a remedy to the critical situation of some short-term problems, they will in the end produce an upward swing of.inflation and lead to an inevitable tightening of credit in the future.Independence is also conducive to the central bank in its execution of the supervisory responsibility and makes it possible for the central bank to resist the pressure for relaxing or tightening regulation standard, depending on inwhich direction the political wind blows.America's Federal Reserve Board and the Bank of Japan(BOJ)are the most two important central banks in the world, steering the monetary policies of a pair of economies which together account for more than half of the industrial world's GNP.Which is better equipped to do the job? And which, in fact, is doing it better?

The answer to both questions should be the Fed.Political meddling is a notorious enemy of sound money, and the Fed, in theory, is freer from that than is the BOJ.The

Fed is one of the world's most independent central banks.Among the Group of Seven, it is usually ranked second only to the Bundesbank.It is run by a board of seven governors, appointed by the American president.Their chairman, also picked by the president, has a four-year renewable term.The other six have14-year terms, one of them retiring every two years.If a governor retires early, his successor takes over what is left of his term.So a new occupant of theWhite House cannotinstantly stack the Fed board with his own men.The board sets the Fed's discount rate.But the Fed's real policy-making body is the Federal Open Market Committee(FOMC).Through open-market operations, it fixes the federal-funds rate(the rate at which banks lend to one another)and decides monetary-growth targets.The FOMC consists of the seven board members, each with one vote, plus the12 presidents of the district Federal Reserve banks, only five of whom can vote at any one time.The president of the Federal Reserve Bank of New York has a permanent vote, the remaining four votes are shared among the other presidents in rotation, for one-year terms.These 12 are not chosen by the president, but by private citizens on the boards of their banks, subject to the approval of the Fed governors.In appearance, the Bank of Japan is less free.It operates under the BOJ Law of 1942, which placed it firmly under government control and gave the minister of finance the right to overrule BOJ policy.A 1949 amendment, however, set up a Policy Board as the top decision-making body.It has seven members.Five have voting rights: the governor(appointed by the cabinet for a five-year term)and one representative apiece of Japan's “city” banks, regional banks, industry and agriculture(all appointed for four-year terms).The two non-votes come from the Ministry of Finance and the Economic Planning Agency.The board sets the discount rate.But open-market operations to steer money-market rate are decided by an Executive Committee, equivalent to the FOMC.This consists of the governor, the deputy governor and seven BOJ executive directors, appointed by the minister of finance.Thus, on the face of the law, it is unclear who really holds the monetary reins.Supposedly, the Policy Board takes the decisions.But the finance minister can overrule it.The relationship between the bank and the ministry is therefore often uneasy.The Fed, it thus seems, has all the advantages.It has no government officials on its board, and members of that board have, at least in theory, much longer terms of office.Not all the members of its key policy-making body, the FOMC, are even appointed by politicians.It is not obliged to consult the administration when it changes rates.Part II: The Bank of England（自學）

Among all the central banks, Bank of England was the first bank of issue to have the functions of a central bank and to develop what are now generally recognized as the fundamentals of central banking.Founded in 1694, the Bank of England is the Central Bank of UK.It was a joint stock company when it was originally formed for the sole purpose of financing the war against France.By virtue of the Bank Charter Act 1844, which gave it sole power to issue banknotes, the Bank of England was split into two parts: the Banking Department and the Issuing Department.The Banking Department handles the banking operations which may influence government policies, the operations of the commercial banks and the money market.The Issuing Department is responsible for the issuance of banknotes.The Bank of England Act 1946 allowed the State's acquisition of the Bank-a transformation of the Bank from private to public ownership.The Act, which empowers the Treasury(in consultation with the Governor of the Bank of England)to give the Bank such directives as it considered necessary in the public interest, also provides for recommendations to other banking institutions who have to comply with certain rules and regulations.If they do not comply, the Bank may issue certain directives to them.The Banking Act 1979 gave the Bank of England even more power to control the operations of the deposit-taking institutions.In addition, the Act also extended authority to oversee matters concerning the protection of depositors and commercial advertising in connection with institutional deposit.Functions of the Bank of England:

●Central Bank: responsible for the issue of banknotes in England and ~/Vales, raising finance for the government, implementing monetary policies of the government.●Bankers' Bank: handles the daily settlements of clearing, operates as a discount house, and serves a limited number of private customers.●Lender of last resort: provides liquidity assistance to banks in difficulties when there is a massive bank run.●Market intervention: operates in the markets, especially the discount market, to influence interest rates and foreign exchange rates and to implement other governmental monetary policies.●International role: participates in the international activities of organizations such as the International Monetary Fund, the International Bank for Reconstruction and Development or the World Bank.●Domestic supervisory responsibilities: ensures the registration of deposit-taking institutions, performs a broad supervisory role for the conduct of the domestic deposit-taking institutions and maintains open channels for communication between the Bank and other financial institutions.Exercises:

I.Translations:

1．制定與實施貨幣政策2．刺激經濟的實際增長3．促進國內物價穩定

4．生產性投資5．寬松的信貸政策6．赤字預算7．美國聯邦儲備委員會8．貼現率9．銀行間拆借率10．銀行擠兌11．市場干預

12．銀行營業部13．股份公司14．規章制度15．貼現行

II.E TO C:

Compared with the central banks of some other countries, the Federal Reserve System of the United States, which has a history of only about 80 years, is relatively young.The “Federal Reserve Act" passed by American congress in 1913 aims at providing a relatively secure and flexible banking and monetary system.Today, the Federal Reserve System is an institution with regional dispersion.In terms of ownership and control, there are representatives of government interests as well as private interests.This is a recognition of a long-standing conviction: the participation of private sector is essential to the creditability and management of the Central Bank.Currently, the Board of Governors of the Federal Reserve System consists of seven members, appointed by the President, subject to Senate approval.Each member must come from a different geographical region.In order to maintain a balance between central supervision in Washington and participation of various regions as well as private sector, Congress established 12 regional Federal Reserve Banks, each providing service for a geographical region.As an independent institutional entity, the regional bank, with a board of directors and member banksasshareholders,is an important aspect of the Federal Reserve Act.Of the 9 membersof the board of directors of each regional bank, 6 are selected by member banks and 3 appointed by the Board of Governors.There of the directors represent the bank, six the government, with special consideration given to the interests of agriculture, commerce, industry, service industry, labor and consumers.The presidents of the regional Federal Reserve Banks are appointed by the directors,subject to the approval of the Board of Governors.III.E TO C：

聯邦貯備系統跟蹤三種貨幣的供應量并每周公布一次。這三種供應量標記為M1,M2,M3。Ml是狹義的貨幣供應量，含主要用于交易或作為交換手段的紙幣、硬幣、商業銀行的活期存款等。M2貨幣供應量的定義范圍較寬。除Ml中的各項以外，M2還包括儲蓄和小額定期存款，貨幣市場存款賬戶，貨幣市場共同基金和其它短期貨幣市場資金。M2是衡量貨幣供應量的標準。M3是更為廣義的貨幣供應量。含M1,M2中的各項加上一些金融資產和金融票據，通常為大額存款單。

第二篇：金融專業英語Lesson5_cn 中央銀行

第5課

第一部分：中央銀行

“央行”是不是“銀行”作為商業銀行在同樣的意義。他們不與自己的利潤最大化有關政府機構，但與實現，例如，或商業銀行倒閉，失業率高企預防某些目標，等等。中央銀行，即使攜帶私人股東擁有一個正式的感覺，出于政府職能，因此政府的一部分。“央行”原本不是所謂的中央銀行，他們普遍認為發行銀行或國家銀行稱。這些銀行發行后獲得的其他職能，職責和權力，術語“中央銀行”已被普遍采用，并有或多或少標準化的意義。有三個基本功能的中央銀行。

首先，中央銀行的責仸是制定和執行貨幣政策與物價穩定的雙重目標，促進家庭和經濟的真正增長的刺激。這些目標仍是央行政策的核心。

中央銀行的另一個重要職責是監督參與監督，在一定程度的會員銀行和金融機構。一個健全的銀行和金融結構是非常重要的一個有效的貨幣政策。在健康和銀行和金融系統的健全性的信心會促進，這反過來將投資用于生產性的社會動員儲蓄，從而促進經濟增長。

第三，中央銀行的主要功能是信息交換機制的監督。一個可靠的信息交換機制，可以解決銀行間交易的高效率是至關重要的一個運作良好的金融體系。

一般來說，越大，中央銀行的獨立性，不太可能會成為短期的政治壓力的目標。政府定期下直接控制中央銀行似乎是不可避免的進行尤其是在接近選舉的時候放松信貸政策。更糟糕的是什么，它直接提供資金以彌補政府的財政赤字。

盡管這些政策可能是對一些短期問題的危急情況的補救措施，他們將在年底產生向上擺動。通貨膨脹，導致信貸緊縮，在未來必然的。獨立性是有利于在其執行的監管責仸向中央銀行，并有可能為央行放松或收緊抗拒監管標準的壓力，這取決于政治風向哪個方向吹。美國聯邦儲備委員會和日本銀行（央行）是最重要的中央銀行在兩個世界，轉向一個經濟體一起以上的工業世界的國民生產總值的一半對的貨幣政策。這是更好地完成這項工作？而這，其實是做的更好？

對這兩個問題的答案應該是美聯儲。政治干預是一個臭名昭著的敵人健全貨幣，美聯儲從理論上講，是從該自由比日本銀行。美聯儲是世界上最獨立的中央銀行的銀行之一。其中七國集團，它通常是排名第二，僅次于德國央行。它是由七個理事會由美國總統仸命。他們的主席，也由總統挑選，具有4年，可連仸。其他六人14年的條款，其中一人退休每兩年一次。如果總督退休早，他的繼仸者接替他的仸期是什么了。因此，一個白宮的新主人不能馬上用他自己的男人堆美聯儲董事會。

董事會制定，美聯儲的貼現率。但美聯儲的真正決策機構是聯邦公開市場委員會（FOMC）。通過公開市場操作，它修正了聯邦基金利率（銀行的速度，借錢給彼此決定）和貨幣增長目標。聯邦公開市場委員會由董事會成員的七個，每個一票，再加上區聯邦儲備銀行的12個總統，只有5人可以在仸何時間投票。聯邦儲備銀行紐約總裁有永久投票權，剩下的4票是在轉動之間共享其他總統的仸期一年。這12個不選為總統，但通過他們的銀行板，受美聯儲理事批準私人公民。

在外觀上，日本央行更不自由。它的運作下，1942年日本銀行法，這給它牢牢地控制了政府的財政有權推翻日本央行政策部長。

一個1949年的修正案，但是，設立最高決策機構，一個政策局。它有七個成員。五有投票權：總督（由一個五年仸期內閣仸命）和一名代表每人日本的“城市”的銀行，區域性銀行，工業和農業（所有仸期四年獲委仸）。兩個非票來自財政部，經濟企劃廳。董事會制定的折扣率。但是，公開市場操作，引導貨幣市場利率是由執行委員會決定，相當于聯邦公開市場委員會。這包括州長，副州長和七名日本央行執行董事由財政部長仸命。

因此，在法律面前，目前還不清楚到底是誰持有的貨幣韁繩。據說，采取政策委員會的決定。但財政大臣可以否決它。銀行之間的關系和該部因此經常感到不安。

美聯儲，因此，它似乎擁有所有的優點。該公司董事會對沒有政府官員，以及該委員會的成員，至少在理論上，辦公條件更長時間。并非所有的關鍵決策機構聯邦公開市場委員會，成員甚至仸命政客。它沒有義務向當局在征詢其變動率。

第二部分：英國央行

在所有的央行，英格蘭銀行發行第一銀行有中央銀行的職能，并制定了如今普遍認為中央銀行的基本認可。

公司成立于1694年，英國銀行是英國中央銀行。這是一個聯合股份公司時，原本是為籌資的抗法戰爭的唯一目的而成立的。通過對1844年銀行法憲章，這給它的唯一發行紙幣的權力美德，英國銀行被分成兩部分：銀行部和發行部。

銀行業務部門在辦理銀行業務，可能影響政府的政策，商業銀行和貨幣市場的運作。該發行部負責發行的鈔票負責。

1946年的英國銀行法允許私人該國的銀行轉型的銀行收購公有制。該法令，授權（在與英國央行行長協商）財政部給銀行等指令，因為它認為必要的公共利益，也為建議提供給其他銀行機構誰必須遵守一定的規則法規。如果他們不履行的，銀行可向他們發出某些指示。1979年銀行法賦予英國央行更多的權力來控制接受存款機構的運作。此外，該法案還擴大權力監督事項有關存款和商業廣告與機構存款連接保護。

職能英格蘭銀行：

●央行：為在英國發行的鈔票負責和?/瓦萊斯，為政府籌集資金，落實政府的貨幣政策。●銀行的銀行：處理日常的清理結算，貼現公司作為經營，服務的私人客戶數量有限。●最后貸款人：提供流動性困難的銀行提供援助時，是一個龐大的銀行擠兌。

●市場干預：操作來影響利率和匯率以及其他政府實施貨幣政策的市場，尤其是貼現市場。●國際作用：參與了諸如國際貨幣基金會，國際復興和開發銀行和世界銀行組織的國際活動。●國內監管職責：確保接受存款機構的注冊，執行為國內存款機構進行廣泛的監督作用，維護了與銀行等金融機構的溝通渠道暢通。

第三篇：金融專業英語

金融專業英語

1、Financial System

見photo1和photo2，監管機構要把一行三會、發改委、財政部、外管局、統計局的全稱寫上，其他三個部分也要寫全稱。

2、Money Market（定義、金融工具及特點）

從P57第二段第三行the money market is actually…開始，一直到P57倒數第四行的expirations。

Money market funds & Money market accounts的區別

P58-59,老師重點劃了P59倒數第七行Money market accounts typically offer…carry additional restrictions。

3、LIBOR（定義，上升、下降會帶來什么）

P18第二段和P19倒數第三段、第二段

4、TED（定義，增大、縮小會帶來什么）

P20第二段、第四段、第五段

5、OIS（這部分記得有點混亂。。）

P21第二段第一句話Overnight…other financial institutions。

P21最后一句話To set up the swap…the other institution。P22第十行One of the key…are paying。第十六行To resolve this issue…each day。

P23第十六行As usual…the gears of expansion。

這個知識點老師一直講到P25的第三段，后面的就不考了，上課打瞌睡，這部分記得不全，歡迎大家補充哈~O(∩_∩)O~

第四篇：金融專業英語

lessee 租單人

lessor租賃人

heirs繼承人

successor繼任人

assigns受托人，代理人

paymaster收款方，出納

principal委托人

beneficiary 受益人

undersigned 簽字人

authorized signatory授權簽字人

issued country簽發國

issued date簽發日期

bank guarantee銀行保函（BG）

documentary letter of credit跟單信用證（DLC）

standby letter of credit 備用信用證（SBLC）

fees protection agreement 傭金保護協議（FPA）

irrevocable master fees protection agreement 不可撤銷的傭金保護協議（IMFPA）

hard copy 正本

bank bonded courier 銀行保價專遞

unencumbered 無抵押

free of liens無留置

borrower's initials借方名稱首字母縮寫

details of secuties 有價證券說明

be no callable prior to maturity 到期前不能支取

operating bank營業銀行

contract quantity 合同總額

tranche schedule分期日程

tentative schedule臨時計劃表

withdraw slip 提款單

institutional costs手續費

sign and seal簽字蓋章

restrictions限制條件

imposts間接稅

liens留置

tranching分期

memorandum of understanding 諒解備忘錄（MOU）

physical gold實物黃金

paper gold紙黃金

ingots金錠

tax incentive稅收優惠

quote引文開始

unquote引文結束

rolls & extension 可滾動可展期（R&E）

performance bond 履約保函（PB）

specimen draft樣本

letter of instruction委托購買書

letter of intent意向書（LOI）

letterhead公用信箋

bridge channel牽線人

power of attoney委托書

regional centre經濟特區

pro forma invoice形式發票

irrevocable corporate purchase/pay order不可撤銷購買/支付訂單（ICPO）

permissory note本票，期票（PN）

assignment of agreement;deed of agreement轉讓協議

pre-advice預通知

due dilligence盡職調查（DD）

IBAN國際銀行賬號（International bank Account Number）

SWIFT 全球銀行間金融通信社（Society for Worldwide Financial Telecommunication）FATF金融行動特別工作組（Financial Action Task Force）

MTN中期票據（medium term note）

POF資金證明（proof of funds）

bank coordinates 銀行坐標

payment order 支付令，付款通知

treasury bill國債，國庫券

call option購買選擇權，看漲期權，買入期權，延買期權

legal advisor 法律顧問

legal firm律師事務所

penalty of perjury 偽證罪

tear sheet銀行聲明；樣張(尤指有廣告的一頁，送給廣告客戶以證明廣告已登出)force majeure 不可抗力

international chamber of commerce國際商會（ICC）

non-circumvention and non-disclosure 保密原則（NCND）

hongkong and shanghai banking corporation 匯豐銀行（HSBC）

non-solicitation letter誠信契約書

board of directors corporate resolution董事會決議

whereas鑒于（這個詞在合同中會大寫）

in witness whereof 茲證明

issuing bank發證行

indemnity letter賠償保證書

wire transfer電匯

minute book會議記錄簿

request for proposals標書（RFP）

registered financial planner注冊金融策劃師（RFP）credit enhancement增強信貸

soft probe軟調查

bank reference資信證明

第五篇：金融專業英語參考

金融專業英語

一、選擇題（一共10題，每題2分，共20分）

第8題和第16題替補再后面。

1.Only what happens if the supply is less than demand?（actual price is higher than the equilibrium price）2.When the Consumer income and established conditions for commodity prices is still, consumers can buy the two commodities to the greatest number of combinations.What did the Line call?

（consumption may Line）

3.Opportunity cost:（Measures the cost of doing “x” in terms of what else might be done）4.The normal downward slope of demand curves is necessarily explained by:（Limited spending power）5.For a closed two-good economy, the output of the two goods should be at the point where:（The highest indifference curve touches the production possibility curve）.The “J-curve” shows that following depreciation:（The cost of imports rises immediately from the price effect, worsening the current account bal-ance, but later quantities of imports and exports respond and the current account balance im-proves）

7.Which of the following statements about standby letters of credit is true? :（They can serve as a guarantee to a buyer against a seller defaulting）8.What information would you find in a statement of cash flows that you would not be able to get from the other two primary financial statements?（Total liabilities due to creditors at the end of the period）*8&16.Which of the following is not a characteristic of a competitive industry?(There is a fierce price war among rivals.)9.Which of these best describes the U.S.Federal Reserve?（Responsible for monetary policy/money supply）10.What is the basic purpose of profits in our market economy?（Lead businesses to produce what consumers want）

11.Which of the following will NOT cause a shift in the demand for baseballs?(An increase in the price of baseballs)12.Decreasing returns to scale may arise from(Inefficiencies in management)

13.If the marginal rate of technological substitution(MRTS)is more than the price ratio of labor over capital(w/r), then to minimize cost the firm should Decrease the input of capital and increase the input of labor.14.The price of a good changes, both the substitution effect and the income effect reinforce each other, then the good is a(n)(Normal good)15.What market is the Most in need of the advertising?(Competitive monopoly market)16.American economist Modigliani’s life-cycle hypothesis is that:(Work time after retirement savings for the consumer finance)17.According to the rules of debit and credit for balance sheet accounts:(Decreases in asset and liability accounts are recorded by credits)18.Individuals will accept the medium of exchange in return for goods and services only if they are confident that:(They can exchange it for gold)

19.The prices of meat products in a competitive market are determined by:(Supply and demand)20.Which one of the following is most likely to improve the wages of American workers?(An increase in productivity)

二、閱讀題（一共5題，每題4分，共20分）

Reading A:Laura James is the head portfolio manager for national Fund 1.Assume an industry exhibits tendencies of “regression toward the mean.”This could mean all of the following EXCEPT:（Profits increase as firms enter the industry）2.In a recessionary environment, an automaker such as Ford would be expected to:（Produce lower end vehicles）

3.Assume domestic automakers are growing at a rate of –2%.Ford expects to increase its market share by 0.5%.What is Ford’s growth rate?（–1.51%）(1 + growth of firm sales)=(1 + growth of industry sales)x(1 + fractional change of market share)= 0.98 x 1.005

= 0.9849

Growth of firm sales = –1.51%

4.Suppose instead that Ford’s growth of firm sales is expected to be –3% and the growth of industry sales is 1%.What is Ford’s expected change in market share?（-4%）0.97 = 1.01 x(1 + x)

0.9604 = 1 + x

–3.96% = x

5.Which of the following scenarios would be most likely to have a positive impact on Ford’s market share?（An increase in its marketing budget）Reading B:Liquidity is a measure of how quickly an item may be converted to cash.1.Long-term assets are all assets other than current assets.(Doesn’t say)2.Supplies are less liquid than accounts receivable, and furniture and buildings are even less so.(Right)

3.People are interested in liabilities on the balance sheet because it is relatively liquid.(Wrong)Reading C:Whereas the money markets provide very short-term loans, the capital market takes account of medium and long-term loans.4.An industrial corporate can meet its financial needs by seeking funds from the capital markets.(Right)

5.Nowadays a private business usually obtains its working capital through a commercial bank.(Wrong)6.In the UK commercial banks often raise funds by issuing bands and stocks.(Doesn’t say)

三、簡答題（一共8題，每題5分，共40分）

需要先把題目翻譯成中文，用英語回答內容。

1.What is finance? 什么叫金融？ The word “finance” signifies capital in monetary form, that is, in the form of funds lent or borrowed, normally for capital purposes, through financial markets or financial institutions.When finance goes international, it is then an international finance.2.What is financial market?什么是金融市場？

It is a place where financial transactions take place.Financial markets facilitate the lending of funds from savers to those who wish to undertake investments.Those that wish to borrow to finance investment projects sell financial instruments to savers.3.what is primary market? 什么是初級市場？ 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.4.What is secondary market? 什么是二級市場？ A secondary market is a financial market in which securities that have been previously issued(and are thus secondhand)can be resold.5.Which methods could be used to balance the international payment deficit? 哪些方法可以用來平衡國際收支逆差？

The methods will be used as following:

a.import restrictionb.export promotion c.tighten monetary policy

d.tighten fiscal policy e.devaluation

6.What are the major functions of modern commercial bank?現代商業銀行的主要功能是什么？ a.They are medium of credit.b.They are medium of payment.c.They change money into capital.d.They are creation of credit.7.先解釋貨幣市場再說特征

businesses have aggressively pursued alternatives to low-interest-rate bank accounts.One such alternative is provided by the money markets.Money market have three basic characteristics in common:

a.They are usually sold in large denominations.b.They have low default risk.c.They mature in one year or less from their original issue date.Most money market instruments mature in less than 120 days.8.Participants of Money Market 貨幣市場的參與者（選擇其中兩個解釋即可）a.The Government In money market, the government is unique because it is always a supplier and demander of money market funds.The U.S.Treasury is the largest of all money market borrowers worldwide.It issues Treasury bills(often called T-bills)and other securities that are popular with other money market participants.Short-term issues enable the government to raise the maturing issues.b.The Central Bank The Central Bank is the Treasury’s agent for the distribution of government securities.The central bank holds vast quantities of Treasury securities that it sells if it believes that the money supply should be reduced.Similarly, the central bank purchases Treasury securities if it believes that the money supply should be expanded.The central bank’s responsibility for the money supply makes it the single most influential participant in the money market.c.Commercial BanksCommercial banks hold a larger percentage of government securities than any other group of financial institutions.This is partly because of regulations that limit the investment opportunities available to banks.Specifically, banks are prohibited from owning risky securities, such as stocks or corporate bonds.There are no restrictions against holding Treasury securities because of their low risk and high liquidity.Banks are also the major issuer of negotiable certificates of deposit(CDs), banker’s acceptances, and repurchase agreements.In addition to money market securities to help manage their own liquidity, many banks trade on behalf of their customers.Not all commercial banks deal for their customers in the secondary money market.The ones that do are among the largest in the country and are often referred to as money center banks.d.Businesses

Many businesses buy and sell securities in the money market.Such activity is usually limited to major corporations because of the large transactions involved.As discussed earlier, the money market is used extensively by businesses both to warehouse surplus funds and to raise short-term funds.e.Investment Companies Large diversified brokerage firms are active in money markets.The primary function of these dealers is to “make a market” for money market securities by maintaining an inventory from which to buy or sell.These firms are very important to the liquidity of the money market because they help ensure that both buyers and sellers can readily market their securities in the primary market as well as in the secondary market.f.Insurance Companies Property and casualty insurance companies must maintain liquidity because of their unpredictable need for funds.To meet this demand, the insurance companies sell some of their money market securities to raise cash.As to the life insurance companies, because their obligations are reasonably predictable, large money market security holdings are unnecessary.However, it is a common practice that an individual can have his/her money invested in the money market through the agent department of banks and investment companies, to earn a higher interest rate than otherwise deposited in the banks.9.Inter-bank Markets 銀行同業拆借市場 Inter-bank markets are money markets in which short-term funds transferred(loaned or borrowed)between financial institutions, usually for a period of one day, that is, they are usually overnight investment.The interest rate for borrowing these funds is close to, but always slightly higher than rate that is available from the central bank.10.Bank’s Acceptances 銀行承兌

A bank’s acceptance is an order to pay a specified amount of money to the bearer on a given date.Banker’s acceptances have been in use since the twelfth century, and are commonly used for international trade transactions.四、綜合運用題（共20分）

1.What is financial crisis?金融危機是什么 A financial crisis is a disruption to financial markets in which adverse selection and moral hazard problems become much worse, so that financial markets are unable to efficiently channel funds to those who have the most productive investment opportunities.As a result, a financial crisis can drive the economy away from an equilibrium with high output in which financial markets perform well to one in which output declines sharply.2.The effects of financial crisis?金融危機的影響 ①Many financial institutions went broke or recombined

②Global income redistribution is appearing

③The development of financial liberation has been inhibited

④International currency system is forced to be changed