金融英语练习答案

1、金融英语练习答案Lesson 1I. 1.need 2.specialization 3.double coincidence of wants 4.exchange rate 5. money 6.medium of exchange 7. Commodity money such as corn 8.Commodity / common standard value 9. store of wealth 10.parchasing power 11.Banknotes. 12.Fiduciary money 13.redemption rate14.Fiat money 15. legal

2、 tender 16.fiduciary money17.paper money 18.price level 19.reserve rax 20. checkII Translation:Money mainly serves three functions :a medium of exchange, a standard of value and a store of wealth.The greater the specialization in the division of labor increased ,the more difficult in finding goods t

3、hat have a double coincidence of wants.The value of money is reflected by its purchasing power.Fiat money is declared legal tender by the government ,meaning that creditors must accept it as payment for debt.The bearers/holders of fiduciary money may require bank to redeem for gold or other valuable

4、 commodity.The fractional reserve banking system requires the banks to keep certain reserve ratio.The money that most countries in the world use today is fiat money.The wide application of fiduciary money reduces that cost of transactions.There were several metals which have been used as commodity m

5、oney in the history, such as iron, copper, gold ,silver and so on.The value of fiat money lies in that people believe that it can be exchanged for commodity and service.Lesson 2:I.1.investors 2.consumoption / saving 3.enterprises 4. savings 5.investment 6.home7.loan 8.deposit 9.uill rise 10.fallIITh

6、e interest rate refers to the ratio of the interest amount to the proceeds deposited and loaned in a given period.Interest is the price of capital; which is like the market price for general commodity .Theoretically ,it is determined by demand and supply.China s interest rate has been adjusted and r

7、eformed for several times .Before 1978,the policy of gradually rising interest rate was adopted.The mutual relation of all kinds of interest rate comprises the structure of interest rate. Generally ,the interest rate of longer tenor is higher than that of shorter tenor in terms of the same kind of i

8、nterest rate.Among various interest rate, the interest rate for deposit is lower that for loan; the interest rate offered by commercial bank is higher than discount rate offered by the central bank.At present ,China s interest rate system consists of the interest rate of bank, non-bank financial ins

9、titution, portfolio and market.The discount rate offered by central bank refers to the discount rate for the instrument held by the commercial banks. it reflects the redemption rate for the amounts of rediscount instrument.Due to free competition ,the demand and supply of currency borrowing and lend

10、ing tend to be balanced out through market mechanism .in this case ,the market interest rate is called equilibrium rate.The bond interest rate is interest rate paid by the government, banks and corporation for the accommodation in the form of issuing, securities in domestic or foreign financial mark

11、ets.The interest rate for corporate bond is basically determined by the bond issuing corporation itself, but the government exercises control by setting the ceiling.Lesson 3:I.1.Firrancial intermediary 2.demard deposit /checking account 3.savings and loan associations, mutual savings bank and credit

12、 union. 4.Federal reserve system 5.government securities/require that member banks hold reserves equal to some fraction of their deposits. 6.Feder Reserve Board 7.Federal Open market committee 8.reserve requirements 9.the ceiling 10. interest rate level 11.portfolios 12.outstanding loans 13.were der

13、egulated 14.deposit insurance 15.merge with other banks 16. automatic teller machines 17.By pooling funds of many share holders 18.branches 19.The banking holding company 20.financialIIFederal Reserve System was established in 1914,with its aim to stabilize the banking system. the power of the Feder

14、al Reserve System was enhanced and centralized after the failures of many American banks in the Great Depression. The Arts passedin1980s authorized the Federal Reserve System with the power to regulate all the saving institutions. The main powers of Federal Reserve System were:(1)guide the transacti

15、ons of open market so to control supply of money by buying and selling government securities,(2)determine the reserve requirements for saving institution (3)setting rediscount rate.The banking regulations in Great Depression made bank a trade that closely controlled and predictable. But the high int

16、erest rate in 1970s disturbed the peaceful days of saving institutions. But many banks still couldn t survive in the transive period of keen competition.2.concerned about/at the outset 3.offerd to take/inLesson 4:.as a result of /helped to /by the time dollars/departure fromTransaction account is ch

17、ecking account which can write checks on deposits balance. They have three forms, the first one is “Demand Deposit” which banks don t pay explicit interest; the second one is “other checkable deposits”, which includes NOW(Negotiable Order of Withdrawal)accounts; the third one is Money Market Deposit

18、 accounts. Although banks can t pay explicit interest on demand deposit, they can pay implicit interest in the form of proving free services. Different from NOW accounts, commercial banks dont need to maintain reserves, so banks pay higher interest on the NOW accounts. At present, transaction accoun

19、t is the second largest debt form of the commercial banks.Lesson 5.as well as 2.in total assets 3.intermediate 4. title 5.an agent 6.Financial instruments 7.pay8.as par 9.documentary letters of credit 10.prof-of -shipmentdocuments .11. HedgingII. Translation:Lesson 6bank 2.discount 3.buyers/sellers

20、4.short-term 5.borrowing/lending 6.deposits7.brokers8.loans 9.linked10.marketII Translation:The activities of money market mainly aim at keeping the liquidity of assets so that they can be changed into cash on demand.On one hand, the money market meets the demand for short-term money of borrowers, o

21、ne the other hand, it finds a way out for lenders who have temporary excessive money.The Financial instruments of money market mainly are short-term treasury bill, commercial bill, bank acceptance, certificate of deposits, the tenors of these instruments range from one day shortest to one year longe

22、st.The participants of buying and selling short-term assets in the money market are individuals, business firms, various financial institutions, and governments. They act either as the provider of funds or as the demander of funds.As the intermediary of money market, various financial institutions h

23、ave different functions in affecting the demand for and supply of funds in the capital market, because their stress of importance on business if different.The commercial banks provide the money market mainly with short-term loans mainly with the money obtained from deposits and other sources.In many

24、 countries, commercial banks are in the position of key importance in the money market, while the central bank controls commercial banks by various means so as to control money market.Just as a country can t be without a government, the money market can t be without a central bank,whose activities i

25、n money market will affect the volume of money and interest rate at any time.The inter-bank market refers to the market where financial institutions solve the problem of excessive or short of money by financing one another.With the development of the reform of financial system in our country, the in

26、ter-bank markets started to develop rapidly.Lesson 7irms 2.inter rate /exchange 3. regional exchange 4.negotiable 5.exchange6.bond 7.funds 8.outstanding 9.brokers 10.dealers.Translation:According to the situation of various countries, the issuance of government bonds adopts the method of raising mon

27、ey from public, which can be divided into direct and indirect ones.The government bonds outstanding are not all held by individuals, but by the government units, financial institutions and the public commonly.The government should keep a stable increase for the issuance of securities, if the market

28、price for the government bonds often fluctuate, the investors will be reluctant to hold the government bonds.Corporate bonds are the certificates that the business owes to the public, it is the issuing corporation that makes a promise to pay certain amount of money plus interest at a fixed date in f

29、uture.The better the credit standing of a company, the longer maturity of the bond is ,but the solvency of corporate bonds cannot be compared with that of government, so the longest tenor of corporate bond will not be very long.Compared with stock investment, the holders of corporate bonds can only

30、have the interest income as the fixed reward for the investment, but they can t share the profit of the corporation like share holders.Compared with stocks, corporation bonds have lower risks, but the safety ca tnbe compared to that of governments bonds, tha ts why the return ration is always higher

31、 than government bonds.With the rapid development of capitalist industry, shareholding corporation system becomes irresistible trend.The price of stocks are of substantial fluctuation, which makes investment of stocks very speculative.The market price of stocks is subject to the status of operation,

32、 allocation of profits, as well as to the economical, political social factors that make the price of stocks more volatile.Lesson 81.foreign 2.activities/lend 3.standing 4.role 5.independent 6.consortium banks7.money 8.bond 9.subsidiary 10.EurocurrencyTranslation:In most countries, commercial banks

33、all establish international department or foreign department inorder to deal in foreign exchange or to raise money for foreign trade.Due to the development of international banking business and the establishment of the bank s overseas network organization, commercial banks of western countries becom

34、e real multinational banks.The international network of the multinational bank includes branch, subsidiary, correspondent, resident representative and so on.The activities of the multinational bank through exclusive international network are retail deposit, money market activities, foreign trade fin

35、ancing, corporation loans, foreign trade business, investment business, trust business and so on .Because most of the clients of the multinational bank are large corporations and banks, they mainly deal in retail deposits with few retail loans.The multinational banks put surplus money into money mar

36、ket when the demand is low, but raise money when demand is on rise.The tenor of foreign trade financing is usually short with high return, mostly denominated in the currency other that of the country where the bank locates.Corporation loans refer to the loans given to private business, state-owned b

37、usiness, especially to the multinational corporation.Foreign exchange business includes buying and selling foreign exchange and hedging conducting in foreign exchange market for the clients.Investment business refers to the underwriting of international securities and the distribution activities, as

38、 well as advisory service for customers and governments in the issue of securities.Lesson 9I.1.short-term 2.medium-term /long-term 3.restrictions 4.deposits 5.absence6.Euro currencies 7.borrowers abroad 8.entities 9.deposits 10. convertibleTranslation:Eurodollar refers to the deposits denominated in

39、 US dollar in various banks outside USA and European branches of American banks, as well as the loans obtained by these banks.Off-shore money market is concentrated by Eurocurrency market , which is habitually called the Eurodollar market, because the currency traded in this market is mainly Eurodol

40、lar.Eurobanks deal in Eurocurrency business which is strictly separated from domestic banking.London in the largest Eurodollar market, engaging in both deposit and loan, with huge volume of transactions.Eurobank s business usually not subject to local banking rules, such as deposit rate and maturity

41、, therefore, banks can compete freely to attract customers.The interest rate for Eurodollar deposit is higher than for US domestic deposit since there is no reserve requirement for Eurodollar deposit nor premium insurance.The emergence of Eurodollar is due to the deficit of American balance of payme

42、nts The accumulation of huge deficit and the outflow of large amount of US dollar resulted in substantial increase of Eurodollar deposits.The brokers or dealers of American stock Exchange often borrow Eurodollars from Eurodollar market.The Eurodollar market is a short-term wholesale market of inter

43、bank, it functions in Europe as providing banks with liquidity like the federal fund market in USA.Banks put the money in the Eurodollar market when the liquidity is excessiveand borrow money when the liquidity is in squeeze.Lesson 10I. Part(1)1.the creation of erative /voluntarily 3.external/econom

44、ic reforms4.the par value system 5.on demand 6.stable/predictable/disadvantages 7.float8.quota subscriptions 9.needy/favorable 10.buying power/importsPart(2)1.subsidize 2. internal 3.bargain 4.peg 5.payments 6.assistance/sufficient 7.stabilizing/strengthening 8.repay/repayment period 9.effectively11

45、. lower/export/governmentII. Translation:The fund shows great concern over the internal economic policies of its member countries.The Fund is a cooperative institution, overseeing/supervising and monitoring the foreign exchange policies its member countries.The exchange of currency is the center of

46、financial connection/relation among various countries, as well as a dispensable tool of world trade.Due to constant fluctuation of exchange rate for major/leading currency, the dealers of foreign exchange may gain profit or suffer loss.The convertibility of currencies facilitates tourism, trade and

47、investment in a worldwide scale.By analyzing the wealth and economic status of each member the fund determines the quota subscription for each member. The richer the country is, the higher quota it Subscribes.Since the abandonment of the par value system, the membership of the Fund has agreed to all

48、ow each member to choose its own method of determine an exchange value for its money.Man large industrial nations allow their currencies to float, other countries peg the value of their currency to that of a major currency of a group of currencies so that, for example, as the U.S. dollar rises in va

49、lue their own currencies rise too.The source of finance of the Fund mainly comes from the quota subscription of its member countries at the same time, the Fund also borrows money from member governments or their monetary authorities.The Fund lends money according to regulation to the member countrie

50、s with a payments problem, due to their expenditure in foreign exchange exceeding income.Lesson 11I. Part(1)1.catalyst 2.equity 3. creditworthy 4.reschedule/made 5.carry6.fourfold 7.share 8.foreign exchange 9.attained 10.indexPart(2)1.productivity 2.affiliates 3.self-sustaining 4.call up 5.quota/eco

51、nomic strength6.a third/raised 7.political 8.military/political 9.enjoined 10.indexII Translation:The IBRD has more than 140 member countries, which all subscribe quotas to the bank.The IBRD gives loans only to creditworthy borrowing countries for the project that has a high real rates of economic r

52、eturn.The IDA gives loans only to poorest countries with a annual GNP per capita lower than $795. Actually, 80% of IDA s loans are given to the countries with annual per capita GNP lower than $410.The IDA gives loans only to the government of the borrowing countries, with maturity of 50 years (repay

53、able over 50 years) with grace period of 10 years, no interest.In the past decade, the volume of the IBRD s loans have increased by fourfold.The IBRD has helped to develop agriculture, improve education, increase the output of energy, expand industry, create better urban facilities, promote family p

54、lanning, extend telecommunications network, modernize transportation systems, improve water supply and sewerage facilities, and establish medical care.Its hard to say that the IBRD s decisions on loans are not influenced by the political character of the borrowing countries.Some of the earliest borr

55、owing countries of the IBRD have graduated from the reliance on the IBRDs loans, in return they become the provider of the IBRD s finance source.The IBRD and IFC jointly provide funds for many projects.The more quota the member country subscribes, the more votes it gains.Lesson 12I . Part(1) 1.foste

56、r 2.raise 3.subregional/regional 4.multilateral 5.cost-effective6.evaluationPart(2) 1.equity6.coordinate7.weighted 8.proportional 9.paid in 10.developrnental2.private 3.subscriptions 4.installment 5.curement 8.absorb 9.pooling 10.bidsTranslation:The purpose of the ADB is to provide fu

57、nd and technical assistance to its developing member countries in the Asia-Pacific region and to promote investment and foster economic growth.The shortage of capital, lack of skilled labor, poor technology, limited markets and the vagaries of nature have impeded the economic development of the deve

58、loping countries.The Bank s Charter provides that the capital owned by the Asia-Pacific member countries should not be less than 60% of total equity.Multilateral institution plays an important role in the economic development.The projects for bank financing are identified after strictly evaluated.Th

59、e ADB keeps close working relationship with the United Nations as well as all kinds of special institution.Some member countries in Asia-Pacific region voluntarily increase their subscriptions.The main subscribers of the ADB have no veto. In practice, decisions are reached by process of discussion r

60、ather than by voting.The capital structure of the ADB is crucial/vital key to its loan/financing capacity.The ADB is authorized to make and guarantee loans to its member countries.Lesson 13I 1. surplus 2.surplus 3.deficit 4.capital 5.demand 6.supply 7.supply/demand 8.outstanding 9.demand10.supplyTra