Question for Chapter 1 & 2
1. What’s the specialty of Treasury Securities?
● Low risk
● High liquidity.
2. What’s the specialty of Money Market?
● They are usually sold in large denominations;
胖人服装
● The have low default risk;
● They mature in one year or less from their original issue date. Most money market instruments mature in less than 120 days.
3. Who are the participants of money market?
● The government;
● The Central Bank
● Commercial Banks
● Business
● Investment Companies
● Insurance Companies
4. What market does international financial market include?
They include Foreign exchange market, money market, capital market and gold market.
5. What does international financial transaction include?
It includes Purchas and sales of foreign currency, curities, gold bullion , an lending and borrowing.
6. What does financial intermediary mean? Give 2 examples.
Financial intermediary means financial rvice agent, such as Bank, credit union etc.
7. What does foreign exchange influenced by?
It is influenced by economic and political circumstances of the currencies of the relative countries.
8. 冷静的英文How to eliminate foreign exchange risk?
The risk can be eliminated through forward transactions and foreign currency futures.
9. What’s the difference between primary market and condary market?
Primary market: initial issue of bond / stock
Secondary market: subquent trading of bond / stock.
10. What’s the difference between money market and capital market?
Money market: short term debt instruments (maturity of less than one year) are traded;
Capital market: long-term debt and equity instruments (maturity of one year of longer) are traded.
11. Which methods could be ud to balance the international payment deficit?
● Import restriction;
● Export promotion
● Tighten monetary policy
● Tighten fiscal policy
● devaluation
12. What are risky curities?
Stock (shares) and corporate bonds.
13. Name 3 products traded in Money market.
● Treasury bills;
● Inter-bank markets;
● Commercial paper;
● Negotiable certificates of deposit
● Banker’s acceptance
(any three of above will do)
14. Name 2 words have similar meaning to characteristics.
Specialty, mark, state, condition (any 2 of them will do)
15. What’s the other word for “Borrower” and “Lender”?
Borrower – debtor
Lender – Creditor
16. shenhWhat does “significance” mean? Defination
17. What does APEC stand for?
Asia-Pacific Economic Cooperation
在线成人英语18. windturbineWhat’s the word has similar meaning as “mergers”?
acquisitions
19. What are the 3 functions of Central Bank?
● Banker to the government;
● Banker to the commercial banks;brainiac
● Lender of last resort.
20. What are the 3 steps for central Bank to turn its direct macro-economic control system into indirect control system?
● Replaced the credit line system with the ast-liability management system from the 1st of January;
● To reform the rerve requirement policy;
● The central bank has reduced interest rates 3 times this year to regulate the macro economy.一路平安英文
21. What’s Chine central bank?
The People’s Bank of China
22. What does “par’ mean?
It means face value.
23. What does “yield” mean?
It means return.
24. Which two forms are there of inflation?
● Demand-full inflation;
● Cost-push inflation
25. What does market risk include?
● Exchange rate risk
● Interest rate risk
Question for Chapter 3 & 4
1. Who are primary issuers of capital market curities?
P33
● Governments and
● corporations.
2. Which interest rate is higher between long term and short term interest rate? Why
P33
Long term interest rates are higher than short-term rates due to risk premiums.
3. Government can issue both stocks and bonds in the capital market. This statement is T/F?
P33
Fal. Governments never issue stocks.
4. Name 2 ways that Corporation can finance its growth.
P33
● Debt
corncob
● equity
5. Capital market trading occurs only in the Secondary market. It is T/F?
P34
Fal. The trading occurs in both primary and condary market.
6. What’s the different between government notes & bonds?
tsfP34
● notes have an original maturity of 1 to 10 years
● bonds have an original maturity of 10 to 30 years.
7. Corporate Bonds with high credit rating has lower interest rate, and vice versa. It is T/F?
P35
True.
8. Name 2 ways that the investors earn returns from the shares.
P35
● Share price ri over time.
● Dividend received from the company.
9. friendship作文Shareholders (Stockholders) have a lower priority than bondholders when the company is in trouble. It is T/F?
