金融市场学双语 郭宁 思考题整理 ZUCC

Chapter 1

3.Some economists suspect that one of the reasons that economies in developing countries grow so slowly is that they do not have well-developed financial markets. Does this argument make sense?

Financial markets are crucial to promoting greater economic efficiency by channeling funds from people who do not have a productive use for them to those who do. Well-functioning financial markets are a key factor in producing high economic growth, and poorly performing financial markets are one reason that many countries in the world remain poor.

Chapter 2

3.Why are financial intermediaries so important to an economy?

Because the intermediary obtains funds from savers then makes loans/investments with borrowers. This process, called financial intermediation, is actually the primary means of moving funds from lenders to borrowers. More important source of finance than securities markets Needed because of transactions costs, risk sharing, and asymmetric information .

4. Discuss the differences between depository institutions, contractual savings institutions, and investment intermediaries.

Depository institutions are financial intermediaries that accept deposits from individuals and institutions and make loans.

Contractual saving institutions are financial intermediaries that acquire funds at periodic intervals on a contractual basis.

Investment intermediaries are finance companies, mutual funds, and money market mutual funds that provide transactionary services.

Chapter 11

3.Explain how the Federal Reserve can influence the federal funds interest rate.

The Federal Reserve cannot directly control fed funds rates. It can and does indirectly influence them by adjusting the level of reserves available to banks in the system. The Fed can increase the amount of money in the financial system by buying securities. when investors sell securities to the Fed, the proceeds are deposited in their banks' accounts at the Federal Reserve. These deposits increase the supply of reserves by selling securities, fed funds rates will increase.

4.Explain why money market interest rates move so closely together over time.

Because all of comparing money market securities have very low risk and a short term. They all have deep markets and so are priced competitively. In addition , because these instruments have so many of the same risk and term characteristics, they are close substitutes.

5.How are Treasury bills sold? How do competitive and noncompetitive bids differ?

The Fed has set up a direct purchase option that individuals may use to purchase Treasury bills over the Internet.The significant difference between the two methods is that competitive bidders may or may not end up buying securities whereas the noncompetitive bidders are guaranteed to do so.

Chapter 12

3.What role do restrictive covenants play in bond markets?

The restrictive covenants include rules and restrictions on managers designed to protect the bondholders’ interest. And they usually limit the amount of dividends the firm can pay, and the ability of the firm to issue additional debt.