金融英语Lecture 1 Money资料.doc

金融英语Lecture 1 Money 精品文档 精品文档 收集于网络，如有侵权请联系管理员删除 收集于网络，如有侵权请联系管理员删除 精品文档 收集于网络，如有侵权请联系管理员删除 Money If you can actually count your money, then you are not really a rich man. ——American oil billionaire J. Paul Getty What is money? Economists define money as anything that is generally accepted in payment for goods or services or in the repayment of debts. Types of money A. Commodity money B. Convertible paper money C. Fiat money(or fiat currency): Usually paper money, is a type of currency whose only value is that a government made a fiat that the money is a legal method of exchange. Unlike commodity money or representative money it is not based in another commodity such as gold or silver and is not covered by a special reserve. D. Private debt money E. Electronic money Private debt money A loan that the borrower promises to repay in currency on demand. E.g. IOU the checkable deposit at commercial banks and other financial institutions. Commercial notes（商业票据）: Short-term, unsecured, discounted, and negotiable notes sold by one company to another in order to satisfy immediate cash needs. Include: promissory note (期票，拮据) draft (汇票) check and so on. Electronic money: Electronic Check, Internet Payment System, Credit Card Service What does money do? A. Medium of Exchange In almost all market transactions in our economy, money in the form of currency or checks is a medium of exchange; it is used to pay for goods and services. The use of money as a medium of exchange promotes economic efficiency by eliminating much of the time spent in exchanging goods and services. Terms: Transaction cost, Time value of money B. Unit of Account The second role of money is to provide a unit of account; that is, it is used to measure value in the economy. We measure the value of goods and services in terms of money, just as we measure weight in terms of pounds or distance in terms of miles. Note: Fiat money has not only no particular value in us