金融英语chapter 4 Money Market.ppt

Financial English 金融英语 recle02@Course Structure Chapter 1 Money, the Functions of Money and the Financial System Chapter 2 The Banking system Chapter 3 Foreign exchange rates International Monetary System Chapter 4 Money Market Course Structure Chapter 5 Bond Market Chapter 6 Equity Market Chapter 7 Foreign Exchange Market Chapter 8 International Settlements Chapter 9 Insurance Basics Course Structure 1.The Money Markets Defined 2.The Purpose of the Money Markets 3.Who Participates in the Money Markets? 4.Money Market Instruments About Money Market The term money market is actually a misnomer误称. Money—currency—is not traded in the money markets. Because the securities that do trade there are short-term and highly liquid, however, they are close to being money. Definition Market for short-term debt securities, such as call market短期拆借市场, bankers acceptances银行承兑票据市场, commercial paper商业票据市场, repos回购市场, negotiable certificates of deposit大额可转让存单市场, and Treasury Bills国库券市场 with a maturity of one year or less and often 30 days or less. Characteristics They are usually sold in large denominations 面额 They have low default risk They mature in one year or less from their original issue date. Most money market instruments mature in less than 120 days Where? Money market transactions do not take place in any one particular location or building. Instead, traders usually arrange purchases and sales between participants over the phone and complete them electronically. Why Do We Need the Money Market? In theory, the money markets should not be needed. The banking industry exists primarily to provide short-term loans and to accept short-term deposits with an efficiency advantage in gathering information and eliminating消除 the need for the money markets Why Do We Need the Money Market? The banking industry is subject to服从 more regulations and government costs than are the money markets. In situations where the asymmetric information problem is not severe, th