金融英语简答题金融语简答题.docVIP

Chapter 1 1. What are the five parts of the financial system and their functions? The five parts of the financial system are money, financial instruments, financial markets, financial institutions, and central banks. We use money to pay for our purchases and to store wealth. We use financial instruments to transfer resources from savers to investors and to transfer risk to those who are best equipped to bear it. Financial markets allow us to buy and sell financial instruments quickly and cheaply. Financial institutions provide a number of services, including access to the financial markets and collection of information about prospective borrowers to ensure they are creditworthy. Central banks monitor and stabilize the economy. 2. What does the international financial system include? The international financial system includes the international money and capital markets and the foreign exchange market. The international money market trades short-term claims with an original maturity of one year or less while the international capital market trades capital market instruments with an original maturity greater than one year. A crucial part of the international financial system is the foreign exchange market, where foreign currencies are bought and sold in the course of trading goods, services, and financial claims among countries. Chapter 2 1. What is the difference between money and currency? Economists define money(also referred to as the money supply) as anything that is generally accepted in payment for goods or services or in the repayment of debts. Currency, consisting of dollar bills and coins, clearly fits this definition and is one type of money. 2.Please summarize the measures of the monetary aggregates as defined by the Federal Reserve of the United States. M1=currency+Demand deposits+Other checkable deposits M2=M1+Small-denomination time deposits+ Savings deposits and money market deposit accounts+ Money market mutual fund shares( non-institutional) M3=M2+La