金融英语练习答案

金融英语练习答案:

Lesson 1

I. 1.need 2.specialization 3.double coincidence of wants 4.exchange rate 5. money

6.medium of exchange

7. Commodity money such as corn

modity / common standard value

9. store of wealth 10.parchasing power 11.Banknotes. 12.Fiduciary money 13.redemption rate 14.Fiat money 15. legal tender 16.fiduciary money 17.paper money 18.price level 19.reserve rax 20. check

II Translation:

1.Money mainly serves three functions :a medium of exchange, a standard of value and a store of

wealth.

2.The greater the specialization in the division of labor increased ,the more difficult in finding goods

that have a double coincidence of wants.

3.The value of money is reflected by its purchasing power.

4.Fiat money is declared legal tender by the government ,meaning that creditors must accept it as

payment for debt.

5.The bearers/holders of fiduciary money may require bank to redeem for gold or other valuable

commodity.

6.The fractional reserve banking system requires the banks to keep certain reserve ratio.

7.The money that most countries in the world use today is fiat money.

8.The wide application of fiduciary money reduces that cost of transactions.

9.There were several metals which have been used as commodity money in the history, such as iron,

copper, gold ,silver and so on.

10.The value of fiat money lies in that people believe that it can be exchanged for commodity and

service.

Lesson 2:

I.1.investors 2.consumoption / saving 3.enterprises 4. savings 5.investment 6.home

7.loan 8.deposit 9.uill rise 10.fall

II

1.The interest rate refers to the ratio of the interest amount to the proceeds deposited and loaned in a

given period.

2.Interest is the price of capital; which is like the market price for general commodity .Theoretically ,it

is determined by demand and supply.

3.China’s interest rate has been adjusted and reformed for several times .Before 1978,the policy of

gradually rising interest rate was adopted.

4.The mutual relation of all kinds of interest rate comprises the structure of interest rate. Generally ,the

interest rate of longer tenor is higher than that of shorter tenor in terms of the same kind of interest rate.

5.Among various interest rate, the interest rate for deposit is lower that for loan; the interest rate offered

by commercial bank is higher than discount rate offered by the central bank.

6.At present ,China’s interest rate system consists of the interest rate of bank, non-bank financial

institution, portfolio and market.

7.The discount rate offered by central bank refers to the discount rate for the instrument held by the

commercial banks. it reflects the redemption rate for the amounts of rediscount instrument.

8.Due to free competition ,the demand and supply of currency borrowing and lending tend to be

balanced out through market mechanism .in this case ,the market interest rate is called equilibrium rate.

9.The bond interest rate is interest rate paid by the government, banks and corporation for the

accommodation in the form of issuing, securities in domestic or foreign financial markets.

10.The interest rate for corporate bond is basically determined by the bond issuing corporation itself, but

the government exercises control by setting the ceiling.

Lesson 3:

I.1.Firrancial intermediary 2.demard deposit /checking account 3.savings and loan associations, mutual savings bank and credit union. 4.Federal reserve system ernment securities/require that member banks hold reserves equal to some fraction of their deposits. 6.Feder Reserve Board 7.Federal Open market committee 8.reserve requirements 9.the ceiling 10. interest rate level 11.portfolios 12.outstanding loans 13.were deregulated 14.deposit insurance 15.merge with other banks 16. automatic teller machines 17.By pooling funds of many share holders 18.branches 19.The banking holding company 20.financial

II

1.Federal Reserve System was established in 1914,with its aim to stabilize the banking system. the

power of the Federal Reserve System was enhanced and centralized after the failures of many American banks in the Great Depression. The Arts passed in1980s authorized the Federal Reserve System with the power to regulate all the saving institutions. The main powers of Federal Reserve System were:(1)guide the transactions of open market so to control supply of money by buying and selling government securities,(2)determine the reserve requirements for saving institution (3)setting rediscount rate.

2.The banking regulations in Great Depression made bank a trade that closely controlled and

predictable. But the high interest rate in 1970s disturbed the peaceful days of saving institutions. But many banks still couldn’t survive in the transive period of keen competition.

Lesson 4:

1.as a result of /helped to /by the time

2.concerned about/at the outset

3.offerd to take/in dollars/departure from