金融专业英语Lesson5 中央银行

第一篇：金融专业英语Lesson5 中央银行

Lesson 5

Part I: The Central Bank

“Central banks” are not “banks” in the same sense as commercial banks.They are governmental institutions that are not concerned with maximizing their profits, but with achieving certain goals such as the prevention of commercial bank failures, or of high unemployment, and so on.Central banks, even if in a formal sense owned by private stockholders, carry out governmental functions, and are therefore part of the government.“Central banks” were not originally called central banks, they were generally known as banks of issue or as national banks.After such banks of issue acquired other functions, duties and powers, the term “central bank” came to be generally used and to have a more or less standardized meaning.There are three basic functions for the central bank.Firstly, the responsibility of a central bank is the formulation and execution of monetary policy, with the twin goals of promotion of price stability at home and stimulation of genuine growth of economy.These goals are still the core of central bank policies.Another important responsibility of the central bank is the supervision of participation in supervision, to a certain degree, of the member banks and financial institutions.A sound banking and financial structure is crucial to an effective monetary policy.Confidence in the health and soundness of the banking and financial system will facilitate the mobilization of social savings which, in turn, will be used in productive investment, thus promoting economic growth.The third major function of the central bank is the supervision of the clearing mechanism.A reliable clearing mechanism which can settle inter-bank transaction with high efficiency is crucial to a well-operated financial system.Generally speaking, the greater the independence of the central bank, the less likely it will become the target of short-term political pressure.The central bank under direct regular government control seems inevitable to carry out a relaxed credit policy, especially at a time of approaching election.What is even worse, it directly provides capital to cover the government's deficit.Although these policies may be a remedy to the critical situation of some short-term problems, they will in the end produce an upward swing of.inflation and lead to an inevitable tightening of credit in the future.Independence is also conducive to the central bank in its execution of the supervisory responsibility and makes it possible for the central bank to resist the pressure for relaxing or tightening regulation standard, depending on inwhich direction the political wind blows.America's Federal Reserve Board and the Bank of Japan(BOJ)are the most two important central banks in the world, steering the monetary policies of a pair of economies which together account for more than half of the industrial world's GNP.Which is better equipped to do the job? And which, in fact, is doing it better?

The answer to both questions should be the Fed.Political meddling is a notorious enemy of sound money, and the Fed, in theory, is freer from that than is the BOJ.The

Fed is one of the world's most independent central banks.Among the Group of Seven, it is usually ranked second only to the Bundesbank.It is run by a board of seven governors, appointed by the American president.Their chairman, also picked by the president, has a four-year renewable term.The other six have14-year terms, one of them retiring every two years.If a governor retires early, his successor takes over what is left of his term.So a new occupant of theWhite House cannotinstantly stack the Fed board with his own men.The board sets the Fed's discount rate.But the Fed's real policy-making body is the Federal Open Market Committee(FOMC).Through open-market operations, it fixes the federal-funds rate(the rate at which banks lend to one another)and decides monetary-growth targets.The FOMC consists of the seven board members, each with one vote, plus the12 presidents of the district Federal Reserve banks, only five of whom can vote at any one time.The president of the Federal Reserve Bank of New York has a permanent vote, the remaining four votes are shared among the other presidents in rotation, for one-year terms.These 12 are not chosen by the president, but by private citizens on the boards of their banks, subject to the approval of the Fed governors.In appearance, the Bank of Japan is less free.It operates under the BOJ Law of 1942, which placed it firmly under government control and gave the minister of finance the right to overrule BOJ policy.A 1949 amendment, however, set up a Policy Board as the top decision-making body.It has seven members.Five have voting rights: the governor(appointed by the cabinet for a five-year term)and one representative apiece of Japan's “city” banks, regional banks, industry and agriculture(all appointed for four-year terms).The two non-votes come from the Ministry of Finance and the Economic Planning Agency.The board sets the discount rate.But open-market operations to steer money-market rate are decided by an Executive Committee, equivalent to the FOMC.This consists of the governor, the deputy governor and seven BOJ executive directors, appointed by the minister of finance.Thus, on the face of the law, it is unclear who really holds the monetary reins.Supposedly, the Policy Board takes the decisions.But the finance minister can overrule it.The relationship between the bank and the ministry is therefore often uneasy.The Fed, it thus seems, has all the advantages.It has no government officials on its board, and members of that board have, at least in theory, much longer terms of office.Not all the members of its key policy-making body, the FOMC, are even appointed by politicians.It is not obliged to consult the administration when it changes rates.Part II: The Bank of England（自学）

Among all the central banks, Bank of England was the first bank of issue to have the functions of a central bank and to develop what are now generally recognized as the fundamentals of central banking.Founded in 1694, the Bank of England is the Central Bank of UK.It was a joint stock company when it was originally formed for the sole purpose of financing the war against France.By virtue of the Bank Charter Act 1844, which gave it sole power to issue banknotes, the Bank of England was split into two parts: the Banking Department and the Issuing Department.The Banking Department handles the banking operations which may influence government policies, the operations of the commercial banks and the money market.The Issuing Department is responsible for the issuance of banknotes.The Bank of England Act 1946 allowed the State's acquisition of the Bank-a transformation of the Bank from private to public ownership.The Act, which empowers the Treasury(in consultation with the Governor of the Bank of England)to give the Bank such directives as it considered necessary in the public interest, also provides for recommendations to other banking institutions who have to comply with certain rules and regulations.If they do not comply, the Bank may issue certain directives to them.The Banking Act 1979 gave the Bank of England even more power to control the operations of the deposit-taking institutions.In addition, the Act also extended authority to oversee matters concerning the protection of depositors and commercial advertising in connection with institutional deposit.Functions of the Bank of England:

●Central Bank: responsible for the issue of banknotes in England and ~/Vales, raising finance for the government, implementing monetary policies of the government.●Bankers' Bank: handles the daily settlements of clearing, operates as a discount house, and serves a limited number of private customers.●Lender of last resort: provides liquidity assistance to banks in difficulties when there is a massive bank run.●Market intervention: operates in the markets, especially the discount market, to influence interest rates and foreign exchange rates and to implement other governmental monetary policies.●International role: participates in the international activities of organizations such as the International Monetary Fund, the International Bank for Reconstruction and Development or the World Bank.●Domestic supervisory responsibilities: ensures the registration of deposit-taking institutions, performs a broad supervisory role for the conduct of the domestic deposit-taking institutions and maintains open channels for communication between the Bank and other financial institutions.Exercises:

I.Translations:

1．制定与实施货币政策2．刺激经济的实际增长3．促进国内物价稳定

4．生产性投资5．宽松的信贷政策6．赤字预算7．美国联邦储备委员会8．贴现率9．银行间拆借率10．银行挤兑11．市场干预

12．银行营业部13．股份公司14．规章制度15．贴现行

II.E TO C:

Compared with the central banks of some other countries, the Federal Reserve System of the United States, which has a history of only about 80 years, is relatively young.The “Federal Reserve Act" passed by American congress in 1913 aims at providing a relatively secure and flexible banking and monetary system.Today, the Federal Reserve System is an institution with regional dispersion.In terms of ownership and control, there are representatives of government interests as well as private interests.This is a recognition of a long-standing conviction: the participation of private sector is essential to the creditability and management of the Central Bank.Currently, the Board of Governors of the Federal Reserve System consists of seven members, appointed by the President, subject to Senate approval.Each member must come from a different geographical region.In order to maintain a balance between central supervision in Washington and participation of various regions as well as private sector, Congress established 12 regional Federal Reserve Banks, each providing service for a geographical region.As an independent institutional entity, the regional bank, with a board of directors and member banksasshareholders,is an important aspect of the Federal Reserve Act.Of the 9 membersof the board of directors of each regional bank, 6 are selected by member banks and 3 appointed by the Board of Governors.There of the directors represent the bank, six the government, with special consideration given to the interests of agriculture, commerce, industry, service industry, labor and consumers.The presidents of the regional Federal Reserve Banks are appointed by the directors,subject to the approval of the Board of Governors.III.E TO C：

联邦贮备系统跟踪三种货币的供应量并每周公布一次。这三种供应量标记为M1,M2,M3。Ml是狭义的货币供应量，含主要用于交易或作为交换手段的纸币、硬币、商业银行的活期存款等。M2货币供应量的定义范围较宽。除Ml中的各项以外，M2还包括储蓄和小额定期存款，货币市场存款账户，货币市场共同基金和其它短期货币市场资金。M2是衡量货币供应量的标准。M3是更为广义的货币供应量。含M1,M2中的各项加上一些金融资产和金融票据，通常为大额存款单。

第二篇：金融专业英语Lesson5_cn 中央银行

第5课

第一部分：中央银行

“央行”是不是“银行”作为商业银行在同样的意义。他们不与自己的利润最大化有关政府机构，但与实现，例如，或商业银行倒闭，失业率高企预防某些目标，等等。中央银行，即使携带私人股东拥有一个正式的感觉，出于政府职能，因此政府的一部分。“央行”原本不是所谓的中央银行，他们普遍认为发行银行或国家银行称。这些银行发行后获得的其他职能，职责和权力，术语“中央银行”已被普遍采用，并有或多或少标准化的意义。有三个基本功能的中央银行。

首先，中央银行的责仸是制定和执行货币政策与物价稳定的双重目标，促进家庭和经济的真正增长的刺激。这些目标仍是央行政策的核心。

中央银行的另一个重要职责是监督参与监督，在一定程度的会员银行和金融机构。一个健全的银行和金融结构是非常重要的一个有效的货币政策。在健康和银行和金融系统的健全性的信心会促进，这反过来将投资用于生产性的社会动员储蓄，从而促进经济增长。

第三，中央银行的主要功能是信息交换机制的监督。一个可靠的信息交换机制，可以解决银行间交易的高效率是至关重要的一个运作良好的金融体系。

一般来说，越大，中央银行的独立性，不太可能会成为短期的政治压力的目标。政府定期下直接控制中央银行似乎是不可避免的进行尤其是在接近选举的时候放松信贷政策。更糟糕的是什么，它直接提供资金以弥补政府的财政赤字。

尽管这些政策可能是对一些短期问题的危急情况的补救措施，他们将在年底产生向上摆动。通货膨胀，导致信贷紧缩，在未来必然的。独立性是有利于在其执行的监管责仸向中央银行，并有可能为央行放松或收紧抗拒监管标准的压力，这取决于政治风向哪个方向吹。美国联邦储备委员会和日本银行（央行）是最重要的中央银行在两个世界，转向一个经济体一起以上的工业世界的国民生产总值的一半对的货币政策。这是更好地完成这项工作？而这，其实是做的更好？

对这两个问题的答案应该是美联储。政治干预是一个臭名昭著的敌人健全货币，美联储从理论上讲，是从该自由比日本银行。美联储是世界上最独立的中央银行的银行之一。其中七国集团，它通常是排名第二，仅次于德国央行。它是由七个理事会由美国总统仸命。他们的主席，也由总统挑选，具有4年，可连仸。其他六人14年的条款，其中一人退休每两年一次。如果总督退休早，他的继仸者接替他的仸期是什么了。因此，一个白宫的新主人不能马上用他自己的男人堆美联储董事会。

董事会制定，美联储的贴现率。但美联储的真正决策机构是联邦公开市场委员会（FOMC）。通过公开市场操作，它修正了联邦基金利率（银行的速度，借钱给彼此决定）和货币增长目标。联邦公开市场委员会由董事会成员的七个，每个一票，再加上区联邦储备银行的12个总统，只有5人可以在仸何时间投票。联邦储备银行纽约总裁有永久投票权，剩下的4票是在转动之间共享其他总统的仸期一年。这12个不选为总统，但通过他们的银行板，受美联储理事批准私人公民。

在外观上，日本央行更不自由。它的运作下，1942年日本银行法，这给它牢牢地控制了政府的财政有权推翻日本央行政策部长。

一个1949年的修正案，但是，设立最高决策机构，一个政策局。它有七个成员。五有投票权：总督（由一个五年仸期内阁仸命）和一名代表每人日本的“城市”的银行，区域性银行，工业和农业（所有仸期四年获委仸）。两个非票来自财政部，经济企划厅。董事会制定的折扣率。但是，公开市场操作，引导货币市场利率是由执行委员会决定，相当于联邦公开市场委员会。这包括州长，副州长和七名日本央行执行董事由财政部长仸命。

因此，在法律面前，目前还不清楚到底是谁持有的货币缰绳。据说，采取政策委员会的决定。但财政大臣可以否决它。银行之间的关系和该部因此经常感到不安。

美联储，因此，它似乎拥有所有的优点。该公司董事会对没有政府官员，以及该委员会的成员，至少在理论上，办公条件更长时间。并非所有的关键决策机构联邦公开市场委员会，成员甚至仸命政客。它没有义务向当局在征询其变动率。

第二部分：英国央行

在所有的央行，英格兰银行发行第一银行有中央银行的职能，并制定了如今普遍认为中央银行的基本认可。

公司成立于1694年，英国银行是英国中央银行。这是一个联合股份公司时，原本是为筹资的抗法战争的唯一目的而成立的。通过对1844年银行法宪章，这给它的唯一发行纸币的权力美德，英国银行被分成两部分：银行部和发行部。

银行业务部门在办理银行业务，可能影响政府的政策，商业银行和货币市场的运作。该发行部负责发行的钞票负责。

1946年的英国银行法允许私人该国的银行转型的银行收购公有制。该法令，授权（在与英国央行行长协商）财政部给银行等指令，因为它认为必要的公共利益，也为建议提供给其他银行机构谁必须遵守一定的规则法规。如果他们不履行的，银行可向他们发出某些指示。1979年银行法赋予英国央行更多的权力来控制接受存款机构的运作。此外，该法案还扩大权力监督事项有关存款和商业广告与机构存款连接保护。

职能英格兰银行：

●央行：为在英国发行的钞票负责和〜/瓦莱斯，为政府筹集资金，落实政府的货币政策。●银行的银行：处理日常的清理结算，贴现公司作为经营，服务的私人客户数量有限。●最后贷款人：提供流动性困难的银行提供援助时，是一个庞大的银行挤兑。

●市场干预：操作来影响利率和汇率以及其他政府实施货币政策的市场，尤其是贴现市场。●国际作用：参与了诸如国际货币基金会，国际复兴和开发银行和世界银行组织的国际活动。●国内监管职责：确保接受存款机构的注册，执行为国内存款机构进行广泛的监督作用，维护了与银行等金融机构的沟通渠道畅通。

第三篇：金融专业英语

金融专业英语

1、Financial System

见photo1和photo2，监管机构要把一行三会、发改委、财政部、外管局、统计局的全称写上，其他三个部分也要写全称。

2、Money Market（定义、金融工具及特点）

从P57第二段第三行the money market is actually…开始，一直到P57倒数第四行的expirations。

Money market funds & Money market accounts的区别

P58-59,老师重点划了P59倒数第七行Money market accounts typically offer…carry additional restrictions。

3、LIBOR（定义，上升、下降会带来什么）

P18第二段和P19倒数第三段、第二段

4、TED（定义，增大、缩小会带来什么）

P20第二段、第四段、第五段

5、OIS（这部分记得有点混乱。。）

P21第二段第一句话Overnight…other financial institutions。

P21最后一句话To set up the swap…the other institution。P22第十行One of the key…are paying。第十六行To resolve this issue…each day。

P23第十六行As usual…the gears of expansion。

这个知识点老师一直讲到P25的第三段，后面的就不考了，上课打瞌睡，这部分记得不全，欢迎大家补充哈~O(∩_∩)O~

第四篇：金融专业英语

lessee 租单人

lessor租赁人

heirs继承人

successor继任人

assigns受托人，代理人

paymaster收款方，出纳

principal委托人

beneficiary 受益人

undersigned 签字人

authorized signatory授权签字人

issued country签发国

issued date签发日期

bank guarantee银行保函（BG）

documentary letter of credit跟单信用证（DLC）

standby letter of credit 备用信用证（SBLC）

fees protection agreement 佣金保护协议（FPA）

irrevocable master fees protection agreement 不可撤销的佣金保护协议（IMFPA）

hard copy 正本

bank bonded courier 银行保价专递

unencumbered 无抵押

free of liens无留置

borrower's initials借方名称首字母缩写

details of secuties 有价证券说明

be no callable prior to maturity 到期前不能支取

operating bank营业银行

contract quantity 合同总额

tranche schedule分期日程

tentative schedule临时计划表

withdraw slip 提款单

institutional costs手续费

sign and seal签字盖章

restrictions限制条件

imposts间接税

liens留置

tranching分期

memorandum of understanding 谅解备忘录（MOU）

physical gold实物黄金

paper gold纸黄金

ingots金锭

tax incentive税收优惠

quote引文开始

unquote引文结束

rolls & extension 可滚动可展期（R&E）

performance bond 履约保函（PB）

specimen draft样本

letter of instruction委托购买书

letter of intent意向书（LOI）

letterhead公用信笺

bridge channel牵线人

power of attoney委托书

regional centre经济特区

pro forma invoice形式发票

irrevocable corporate purchase/pay order不可撤销购买/支付订单（ICPO）

permissory note本票，期票（PN）

assignment of agreement;deed of agreement转让协议

pre-advice预通知

due dilligence尽职调查（DD）

IBAN国际银行账号（International bank Account Number）

SWIFT 全球银行间金融通信社（Society for Worldwide Financial Telecommunication）FATF金融行动特别工作组（Financial Action Task Force）

MTN中期票据（medium term note）

POF资金证明（proof of funds）

bank coordinates 银行坐标

payment order 支付令，付款通知

treasury bill国债，国库券

call option购买选择权，看涨期权，买入期权，延买期权

legal advisor 法律顾问

legal firm律师事务所

penalty of perjury 伪证罪

tear sheet银行声明；样张(尤指有广告的一页，送给广告客户以证明广告已登出)force majeure 不可抗力

international chamber of commerce国际商会（ICC）

non-circumvention and non-disclosure 保密原则（NCND）

hongkong and shanghai banking corporation 汇丰银行（HSBC）

non-solicitation letter诚信契约书

board of directors corporate resolution董事会决议

whereas鉴于（这个词在合同中会大写）

in witness whereof 兹证明

issuing bank发证行

indemnity letter赔偿保证书

wire transfer电汇

minute book会议记录簿

request for proposals标书（RFP）

registered financial planner注册金融策划师（RFP）credit enhancement增强信贷

soft probe软调查

bank reference资信证明

第五篇：金融专业英语参考

金融专业英语

一、选择题（一共10题，每题2分，共20分）

第8题和第16题替补再后面。

1.Only what happens if the supply is less than demand?（actual price is higher than the equilibrium price）2.When the Consumer income and established conditions for commodity prices is still, consumers can buy the two commodities to the greatest number of combinations.What did the Line call?

（consumption may Line）

3.Opportunity cost:（Measures the cost of doing “x” in terms of what else might be done）4.The normal downward slope of demand curves is necessarily explained by:（Limited spending power）5.For a closed two-good economy, the output of the two goods should be at the point where:（The highest indifference curve touches the production possibility curve）.The “J-curve” shows that following depreciation:（The cost of imports rises immediately from the price effect, worsening the current account bal-ance, but later quantities of imports and exports respond and the current account balance im-proves）

7.Which of the following statements about standby letters of credit is true? :（They can serve as a guarantee to a buyer against a seller defaulting）8.What information would you find in a statement of cash flows that you would not be able to get from the other two primary financial statements?（Total liabilities due to creditors at the end of the period）*8&16.Which of the following is not a characteristic of a competitive industry?(There is a fierce price war among rivals.)9.Which of these best describes the U.S.Federal Reserve?（Responsible for monetary policy/money supply）10.What is the basic purpose of profits in our market economy?（Lead businesses to produce what consumers want）

11.Which of the following will NOT cause a shift in the demand for baseballs?(An increase in the price of baseballs)12.Decreasing returns to scale may arise from(Inefficiencies in management)

13.If the marginal rate of technological substitution(MRTS)is more than the price ratio of labor over capital(w/r), then to minimize cost the firm should Decrease the input of capital and increase the input of labor.14.The price of a good changes, both the substitution effect and the income effect reinforce each other, then the good is a(n)(Normal good)15.What market is the Most in need of the advertising?(Competitive monopoly market)16.American economist Modigliani’s life-cycle hypothesis is that:(Work time after retirement savings for the consumer finance)17.According to the rules of debit and credit for balance sheet accounts:(Decreases in asset and liability accounts are recorded by credits)18.Individuals will accept the medium of exchange in return for goods and services only if they are confident that:(They can exchange it for gold)

19.The prices of meat products in a competitive market are determined by:(Supply and demand)20.Which one of the following is most likely to improve the wages of American workers?(An increase in productivity)

二、阅读题（一共5题，每题4分，共20分）

Reading A:Laura James is the head portfolio manager for national Fund 1.Assume an industry exhibits tendencies of “regression toward the mean.”This could mean all of the following EXCEPT:（Profits increase as firms enter the industry）2.In a recessionary environment, an automaker such as Ford would be expected to:（Produce lower end vehicles）

3.Assume domestic automakers are growing at a rate of –2%.Ford expects to increase its market share by 0.5%.What is Ford’s growth rate?（–1.51%）(1 + growth of firm sales)=(1 + growth of industry sales)x(1 + fractional change of market share)= 0.98 x 1.005

= 0.9849

Growth of firm sales = –1.51%

4.Suppose instead that Ford’s growth of firm sales is expected to be –3% and the growth of industry sales is 1%.What is Ford’s expected change in market share?（-4%）0.97 = 1.01 x(1 + x)

0.9604 = 1 + x

–3.96% = x

5.Which of the following scenarios would be most likely to have a positive impact on Ford’s market share?（An increase in its marketing budget）Reading B:Liquidity is a measure of how quickly an item may be converted to cash.1.Long-term assets are all assets other than current assets.(Doesn’t say)2.Supplies are less liquid than accounts receivable, and furniture and buildings are even less so.(Right)

3.People are interested in liabilities on the balance sheet because it is relatively liquid.(Wrong)Reading C:Whereas the money markets provide very short-term loans, the capital market takes account of medium and long-term loans.4.An industrial corporate can meet its financial needs by seeking funds from the capital markets.(Right)

5.Nowadays a private business usually obtains its working capital through a commercial bank.(Wrong)6.In the UK commercial banks often raise funds by issuing bands and stocks.(Doesn’t say)

三、简答题（一共8题，每题5分，共40分）

需要先把题目翻译成中文，用英语回答内容。

1.What is finance? 什么叫金融？ The word “finance” signifies capital in monetary form, that is, in the form of funds lent or borrowed, normally for capital purposes, through financial markets or financial institutions.When finance goes international, it is then an international finance.2.What is financial market?什么是金融市场？

It is a place where financial transactions take place.Financial markets facilitate the lending of funds from savers to those who wish to undertake investments.Those that wish to borrow to finance investment projects sell financial instruments to savers.3.what is primary market? 什么是初级市场？ A primary market is a financial market in which new issues of a security, such as a bond or a stock, are sold to initial buyers by the corporation or government agency borrowing the funds.4.What is secondary market? 什么是二级市场？ A secondary market is a financial market in which securities that have been previously issued(and are thus secondhand)can be resold.5.Which methods could be used to balance the international payment deficit? 哪些方法可以用来平衡国际收支逆差？

The methods will be used as following:

a.import restrictionb.export promotion c.tighten monetary policy

d.tighten fiscal policy e.devaluation

6.What are the major functions of modern commercial bank?现代商业银行的主要功能是什么？ a.They are medium of credit.b.They are medium of payment.c.They change money into capital.d.They are creation of credit.7.先解释货币市场再说特征

businesses have aggressively pursued alternatives to low-interest-rate bank accounts.One such alternative is provided by the money markets.Money market have three basic characteristics in common:

a.They are usually sold in large denominations.b.They have low default risk.c.They mature in one year or less from their original issue date.Most money market instruments mature in less than 120 days.8.Participants of Money Market 货币市场的参与者（选择其中两个解释即可）a.The Government In money market, the government is unique because it is always a supplier and demander of money market funds.The U.S.Treasury is the largest of all money market borrowers worldwide.It issues Treasury bills(often called T-bills)and other securities that are popular with other money market participants.Short-term issues enable the government to raise the maturing issues.b.The Central Bank The Central Bank is the Treasury’s agent for the distribution of government securities.The central bank holds vast quantities of Treasury securities that it sells if it believes that the money supply should be reduced.Similarly, the central bank purchases Treasury securities if it believes that the money supply should be expanded.The central bank’s responsibility for the money supply makes it the single most influential participant in the money market.c.Commercial BanksCommercial banks hold a larger percentage of government securities than any other group of financial institutions.This is partly because of regulations that limit the investment opportunities available to banks.Specifically, banks are prohibited from owning risky securities, such as stocks or corporate bonds.There are no restrictions against holding Treasury securities because of their low risk and high liquidity.Banks are also the major issuer of negotiable certificates of deposit(CDs), banker’s acceptances, and repurchase agreements.In addition to money market securities to help manage their own liquidity, many banks trade on behalf of their customers.Not all commercial banks deal for their customers in the secondary money market.The ones that do are among the largest in the country and are often referred to as money center banks.d.Businesses

Many businesses buy and sell securities in the money market.Such activity is usually limited to major corporations because of the large transactions involved.As discussed earlier, the money market is used extensively by businesses both to warehouse surplus funds and to raise short-term funds.e.Investment Companies Large diversified brokerage firms are active in money markets.The primary function of these dealers is to “make a market” for money market securities by maintaining an inventory from which to buy or sell.These firms are very important to the liquidity of the money market because they help ensure that both buyers and sellers can readily market their securities in the primary market as well as in the secondary market.f.Insurance Companies Property and casualty insurance companies must maintain liquidity because of their unpredictable need for funds.To meet this demand, the insurance companies sell some of their money market securities to raise cash.As to the life insurance companies, because their obligations are reasonably predictable, large money market security holdings are unnecessary.However, it is a common practice that an individual can have his/her money invested in the money market through the agent department of banks and investment companies, to earn a higher interest rate than otherwise deposited in the banks.9.Inter-bank Markets 银行同业拆借市场 Inter-bank markets are money markets in which short-term funds transferred(loaned or borrowed)between financial institutions, usually for a period of one day, that is, they are usually overnight investment.The interest rate for borrowing these funds is close to, but always slightly higher than rate that is available from the central bank.10.Bank’s Acceptances 银行承兑

A bank’s acceptance is an order to pay a specified amount of money to the bearer on a given date.Banker’s acceptances have been in use since the twelfth century, and are commonly used for international trade transactions.四、综合运用题（共20分）

1.What is financial crisis?金融危机是什么 A financial crisis is a disruption to financial markets in which adverse selection and moral hazard problems become much worse, so that financial markets are unable to efficiently channel funds to those who have the most productive investment opportunities.As a result, a financial crisis can drive the economy away from an equilibrium with high output in which financial markets perform well to one in which output declines sharply.2.The effects of financial crisis?金融危机的影响 ①Many financial institutions went broke or recombined

②Global income redistribution is appearing

③The development of financial liberation has been inhibited

④International currency system is forced to be changed