英语考试剑桥商务英语BEC金融英语之银行利率部分课件.ppt

Interest Rate;Part One: What is interest rate?;In the absence of a psychological preference for owning an asset per se, ;If the price exceeds the sum of the discounted expected rental values, ;Of course, many of us get a psychological kick out of owning an asset rather than renting one. ;This value of ownership can be converted into monetary terms and added to the ownership price. ;The annual rental tee may be viewed as the owners return on the asset. ;If you rented, the market rental fee would be the sum of two component fees -- the pure rental price and depreciation. ;As a result, you would have to compensate the agency for the value of the services it could not use. ;As you use the automobile , you consume transportation services and use up part of the automobiles ability to generate additional services, which reduces its market value. This ;The greater the cost of either component, the greater the overall rental fee is.; As with the automobile rental, ;If $1 could purchase ten market-basket units at the beginning of a loan and only nine a year later, the depreciation is one unit, or 10 percent. ;Thus, the pure rental fee of money is the constant purchasing-power fee and is referred to as the real rental fee. The faster the rate of inflation, ;If prices decline, the market rental fee would be less than real rental fee. ;The interest rate is the rental price of money. In the words of Keynes, ;When money is lent, the borrower creates an IOU stipulating the repayment date, the amount and timing of any periodic cash interest payments, and the other terms of the agreement. ;If there is a firm commitment to pay the lender specific amounts at specific intervals, the IOU is called a bond. The market value of a bond is related to the interest rate promised by the borrower.;EXERCISES;2) Business firms always want to turn the ownership pride into _______. ;3) If you required transportation services and rented an automobile, the rental fee would be _________. ;4) If the c