Assignment
1. Does the Barter system have any disadvantage that makes it disappear nowadays?
Yes {补充 Barter
—exchange goods with goods.
Such as:Goat, stone, ox, salt, shell,peal, jade,iron,……
宁的多音字组词Disadvantages of Barter
• Deterioration
• 读伊索寓言有感Indivisibility
• Inefficient and Protracted (rate of exchange)
• Double coincidence of wants
• silver, gold overcame such shortcomings}
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2. What is money and its functions?
Money can be described as any commodity or token that is generally acceptable as a means of payment for goods or rvices or in the repayment of debt.
Functions
Medium of exchange
Unit of account
Store of value
3. What does contribute the monetary aggregates?
. M0 现金(currency—paper money and coins)
. M1 狭义货币供应量=M0(currency—paper money and coins)+活期存款(demand deposit)
.
M2 广义货币供应量=M1+定期存款(time deposit)+储蓄存款(savings deposit)+其他存款+货币市场共同基金
. M3=M2+大额定期存款和期限存款
4. What is the differences between interest rate and yield?
In finance ,the yield carre is the relation of between the interest rate and time to maturity of the debt for a given borrower in a given currency.
5. Plea briefly introduce some about the motives which could determine the demand for liquidity according to Keynes.
The transactions motive 交易动机 The precautionary motive预防 Speculative motive投机
6. What kinds of factors could be ud to explain the risk structure of interest rates? And briefly describe the relation between each factor and the risk structure of interest rates?
Default Risk
Risk Premium
Liquidity Risk
Tax Considerations
300字作文大全7. What's difference between expansionary and contractionary monetary policy?
an expansionary policy increas the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it.
8. What are the goals of monetary policy?
• the promotion of sustainable economic growth
• full employment
• stable prices
父母的爱是• Stable balances of payments
9. Briefly describe the characteristics of open market operation?
踏春古诗Initiative
• Open market operations could be fully controlled by the central bank.
Flexibility
• The relead or absorbed amount of money also is a decision coming from the central bank.
Timeliness
• The buying or lling proposals could be transacted immediately. Thereby, the ex
cess rerves of different financial institutions involving open market operations will be accordingly changed. The open market operations also could be frequently, continuously and reverly.
10. What do you think about the limitation of rediscounting policy?
Rediscounting policy is not an ideal option for controlling the money supply.
First，central banks always are rediscounted by tho commercial banks.
Besides, rediscounting rate will be regulated within a minimum and maximum.
And, if commercial banks extensively depends on rediscounting policy for a long time, it’d put a lot of pressures on central banks, thereby, the ability of central banks to control the money supply will be further weakened.
11. What are some disadvantages to issuer during ast curitization?
Portfolio quality, costs , size limitations
12. How to define the money market? What are basic functions of money market?
Define: The money market is ud by participants as a means for borrowing and lending in the short term, from veral days to just under a year.
Functions: Fulfill the short-term need from central government草堂集序
Provide a good choice for central bank conducting open market operations
Make a default-free investment tool for market investors
山野
function
• They have low default risk
• They are usually sold in large denominations (面额)
• The central bank can be directly involved by monetary policy instruments
13. Which of the money market curities is the most liquid and considered the most risk-free? （五~~67）Why?（一~~90）
Treasury Bills Treasury Bills ,becau it is issued by government and backed by its full faith and credit.
Fuctions
• Fulfill the short-term need from central government
• Provide a good choice for central bank conducting open market operations
• Make a default-free investment tool for market investors
By contrast, U.S. Treasury bonds have usually been considered to have no default risk becau the federal government can always increa taxes to pay off its obligations. Bonds like the with no default risk are called default-free
