利率 金融课程 双语.ppt

Chapter 5The Behavior of Interest Rates Preview Determinants of assets demand Supply and demand in the bond market Changes in equilibrium interest rates Supply and demand in the market for money: Changes in equilibrium interest rates in the Liquidity Preference Framework 5.1 Determinants of Asset Demand Whether to buy and hold one asset rather than another, an individual must consider the following factors: 1.Wealth 2.Expected return 3.Risk － The degree of uncertainty 4.Liquidity -- The ease and speed 5.1.1 Wealth －The total resources owned by the individual, including all assets. The effect of changes in wealth on the quantity demanded of an asset can be summarized as follows: holding everything else constant, an increase in wealth raises the quantity demanded of an asset. 5.1.2 Expected return －The return expected over the next period on one asset relative to alternative assets. An increase in an asset’s expected return relative to that of an alternative asset, holding everything else unchanged, raises the quantity demanded of the asset. 5.1.3 Risk － The degree of uncertainty associated with the return on one asset relative to alternative assets. 1.in terms of their attitudes towards risk，people can be classified as two types of person -the risk-averse person and the risk preferred or risk lover. 2.Because most people are risk-averse, hence, holding everything else constant, if an asset’s risk rises relative to that of alternative assets, its quantity demanded will fall. 5.1.4 Liquidity -- The ease and speed with which an asset can be turned into cash relative to alternative assets. (class exercise) Rank the following assets from most liquid to least liquid: （A）house；（B）cash;（C）treasury bond;（D）stock. The more liquid an asset is relative to alternative assets, holding everything else unchanged, the more desirable it is, and the greater will be the quantity demanded. 5.1.5 The Theory of Asset Demand 5.1.6 Conclusion: 1.The quant