金融英语名词解释

金融英语名词解释(仅供参考)

We use money to pay for our purchases and to store wealth.

We use financial instruments to transfer resources from savers to investors and to transfer risk to those who are best equipped to bear it.

Financial markets allow us to buy and sell financial instruments quickly and cheaply.

Financial institutions provide a number of services, including access to the financial markets and collection of information about prospective borrowers to ensure they are creditworthy.

Central banks monitor and stabilize the economy.

Difference between Money and Currency

Economists define money (also referred to as the money supply) as anything that is generally accepted in payment for goods or services or in the repayment of debts.

Currency, consisting of dollar bills and coins, clearly fits this definition and is one type of money. Transaction Cost

The time spent trying to exchange goods and services is called a transaction cost.

Liquidity

Liquidity is a measure of the ease with which an asset can be turned into a means of payment, namely money.

Inflation

Inflation is a sustained rise in the general price level—that is, the price of everything goes up more or less at the same time.

M1=currency

+Traveler’s checks

+Demand deposits

+Other checkable deposits

M2=M1

+Small-denomination time deposits

+Savings deposits and money market deposit accounts

+Money market mutual fund shares (non-institutional)

M3=M2

+Large-denomination time deposits

+Money market mutual fund shares (institutional)

+Repurchase agreements

+Eurodollars

Credit unions (CUs)

Credit unions (CUs) are nonprofit organizations composed of members with a common bond, such as an affiliation with a particular labor union, church, university, or even residential area. Pension fund

Like an insurance company, a pension fund offers people the ability to make premium payments today in exchange for promised payments under certain future circumstances.

Defined-contribution pension plan

In a defined-contribution pension plan, each employee has an account into which the employer and usually the employee make regular contributions.

◆At retirement, the employee receives a benefit whose size depends on the accumulated value

of the funs in the retirement account.

Defined-benefit pension plan

In a defined-benefit pension plan, the employee’s pension benefit is determined by a formula that takes into account years of service to the employer and, in most cases, wages or salary.

◆ A typical formula would be 1% of average retirement salary for each year of service.

Mutual fund

A mutual fund is a portfolio of stocks, bonds, or other assets purchased in the name of a group of investors and managed by a professional investment company or other financial institution. Securities brokers

Securities brokers are pure intermediaries who act as agents for investors in the purchase or sale of securities.

Their function is to match buyers with sellers, a function for which they are paid brokerage commissions.

Security dealers

Security dealers link buyers and sellers by standing ready to buy and sell securities at given prices. Dealers hold inventories of securities and make their living by selling these securities for a slightly higher price than they paid for them.

Organized exchange

An organized exchange actually functions as a hybrid of an auction market (in which buyers and seller trade with each other in a central location);

Dealer market

A dealer market (in which dealers make the market by buying and selling securities at given prices).

Legal reserves

All depository institutions offering selected kinds of deposits are required to hold a small percentage of those deposits in an asset account of the central bank known as legal reserves. Discount rate

Discount rate is the interest rate charged by a central bank on loans to commercial banks.

Money markets

Firms and individuals use the money markets primarily to warehouse funds for short periods of time until a more important need or a more productive use for the funds arises.

Capital markets

Firms and individuals use the capital markets for long-term investments. The capital markets provide an alternative to investment in assets such as real estate or gold.

The capital market is the market in which long-term debt (generally those with original maturity of one year or greater) and equity instruments are traded.

Face value

The face value, or par value, of a bond is the value of the bond at maturity, the date when the loan is paid off. A common face value is $1,000 per bond.

Coupon rate

A bond’s coupon rate refers to the amount of interest that will be paid based on the face value of the bond.

Common stock

Common stock makes up the majority of stocks. As a common stock holder, you have a right to claim dividends and get to have one vote per share when electing board of directors.