给11国会2的货银复习大纲.pdfVIP

The Economics of Money, Banking and Financial Markets (For 11 IA02, Dec 2012) Chapter 1 1. Financial Markets ? Security (financial instrument): a claim on the issuer’s future income or assets ? Bond: a debt security that promises to make payments periodically for a specified period of time ? Interest rate: the price of money, the cost of borrowing ? Common stock: a share of ownership in a corporation, claim on the earnings and assets of the corporation 2. Foreign Exchange Market ? The foreign exchange rate: the price of one currency in terms of another currency ? The foreign exchange market determines the foreign exchange rate 3. With FIs ? Financial Intermediaries(FI)—institutions that borrow funds from people who have saved and make loans to other people ? Aggregate price level: average price of goods and services in an economy ? 经济衰退前期伴随着货币增长率的下降 4. Monetary and Fiscal Policy ? Monetary policy is the management of the money supply and interest rates, by Fed ? Fiscal policy is government spending and taxation ? Budget deficit is the excess of expenditures over revenues for a particular year. Any deficit must be financed by borrowing. ? Budget surplus is the excess of revenues over expenditures for a particular year The Economics of Money, Banking and Financial Markets (For 11 IA02, Dec 2012) Chapter 2 1. Function of Financial Markets Channeling funds; Promotes economic efficiency; Time purchases better 2. Primary and Secondary Markets Primary market: New security issues sold to initial buyers Investment Banks Secondary market: Brokers and dealers Make financial instruments more liquid Determine the price in primary market 3. Function of Financial Intermediaries: Indirect Finance ? Lower transaction costs：Economies of scale Liquidity services ? Reduce Risk：Risk Sharing (Asset Transformation) Diversification ? Asymmetric Information Adverse Selection (before the transaction)—more likely to select risky borrower Moral Hazard (after the transaction)—less likely borr