chap02financialsystemofchina-公开课件（精选）.pptVIP

Chapter 2 An Overview of the Financial System FIGURE 1 Flows of Funds Through the Financial System Table 3 Primary Assets and Liabilities of Financial Intermediaries Table 4 Principal Financial Intermediaries and Value of Their Assets Table 5 Principal Regulatory Agencies of the U.S. Financial System Copyright ? 2010 Pearson Addison-Wesley. All rights reserved. 2-* Copyright ? 2010 Pearson Addison-Wesley. All rights reserved. Function of Financial Markets Perform the essential function of channeling funds from economic players that have saved surplus funds to those that have a shortage of funds Direct finance: borrowers borrow funds directly from lenders in financial markets by selling them securities. Function of Financial Markets Promotes economic efficiency by producing an efficient allocation of capital, which increases production Directly improve the well-being of consumers by allowing them to time purchases better Structure of Financial Markets Debt and Equity Markets Debt instruments (maturity) Equities (dividends) Primary and Secondary Markets Investment Banks underwrite securities in primary markets Brokers and dealers work in secondary markets Structure of Financial Markets Exchanges and Over-the-Counter (OTC) Markets Exchanges: NYSE, Chicago Board of Trade OTC Markets: Foreign exchange, Federal funds. Money and Capital Markets Money markets deal in short-term debt instruments Capital markets deal in longer-term debt and equity instruments. Table 1 Principal Money Market Instruments Table 2 Principal Capital Market Instruments Internationalization of Financial Markets (Glossary) Foreign Bonds: sold in a foreign country and denominated in that country’s currency Eurobond: bond denominated in a currency other than that of the country in which it is sold Eurocurrencies: foreign currencies deposited in banks outside the home country Eurodollars: U.S. dollars deposited in foreign banks outside the U.S. or in foreign branches of U.S. banks World Sto