金融专业英语(第2版)

Part One Money and Economics



Chapter　1 Money　2

Learning　Objectives　2

Key　Topics　2

Section　1.1 What Is Money　2

1.1.1　History of Money　2

1.1.2　Meaning of Money　4

Section　1.2 Functions of Money　5

1.2.1　Medium of Exchange　5

1.2.2　Unit of Account　5

1.2.3　Store of Value　6

1.2.4　Standard of Deferred Payment　7

Section　1.3 The Forms of Money　7

1.3.1　Commodity Money　8

1.3.2　Paper Money　8

1.3.3　Checks　10

1.3.4　Electronic or Digital Money　11

Section　1.4 Measuring Money　13

1.4.1　Theoretical and Empirical Definition of Money　13

1.4.2　The Federal Reserve’s Monetary Aggregates　14

1.4.3　Money Supply　14

Section　1.5 Monetary Policy　16

Notes　17

Exercises　18



Chapter　2 Financial Markets　21

Learning　Objectives　21

Key　Topics　21

Section　2.1 What Is Financial Market　21

2.1.1　Definition of Financial Market　21

2.1.2　Constituents of Financial Market　22

Section　2.2 Functions of Financial Markets　23

2.2.1　Intermediary Functions　23

2.2.2　Financial Functions　24

Section　2.3 Currency (Money) Markets　24

2.3.1　Participants　25

2.3.2　Functions of the Money Market　25

2.3.3　Common Money Market Instruments　26

Section　2.4 Capital Markets　27

2.4.1　Deeply View on Capital Market　28

2.4.2　Examples of Capital Market Transactions　29

2.4.3　Raising Capitals　30

Section　2.5 Derivative Products Markets　32

2.5.1　Future Contracts　32

2.5.2　Forward Contracts　33

2.5.3　Optional Contracts　34

Notes　35

Exercises　36



Chapter　3 Politics and Economics　39

Learning　Objectives　39

Key　Topics　39

Section　3.1 Macroeconomics & Politics　39

3.1.1　Games Between Policy Makers and Voters　40

3.1.2　Games Between Policy Makers　42

Section　3.2 An General Perspective on the Political Economy of Big Change　43

3.2.1　The Social-Political Context and Co-Evolution　43

3.2.2　Embeddedness　44

3.2.3　The Dilemma of Knowledge as a Product and a Resource　44

3.2.4　The Global Perspective on the Evolution　44

3.2.5　Evolutionary Social-Economic Intricacy　45

3.2.6　The Initiation of Self Re-Enforcing Growth　46

Section　3.3 Explosive Changes of Evolution and Communitarian Collective Ownership　46

3.3.1　The Fall-Variety Constraining Order　47

3.3.2　Self Organization and Economics　47

3.3.3　Communitarian Collective Ownership and Strategic Networks　48

Notes　50

Exercises　51





Part　Two Banking Industry in China



Chapter　4 Central Bank—PBC　55

Learning　Objectives　55

Key　Topics　55

Section　4.1 The Reform of PBC　55

4.1.1　Definition of Central Bank　56

4.1.2　Transformation of PBC　56

4.1.3　Reform the Current Financial Structure　57

Section　4.2 The Functions of PBC　59

4.2.1　The Reason for Transformation　59

4.2.2　The Biggest Change of the Functions of PBC　60

4.2.3　The Main Functions of PBC　61

Section　4.3 The Instruments of Central Bank　64

4.3.1　Open Market Operation　65

4.3.2　Reserve Requirements　67

4.3.3　Rediscount　69

Notes　69

Exercises　70



Chapter　5 Commercial Banks　73

Learning　Objectives　73

Key　Topics　73

Section　5.1 Introduction　73

Section　5.2 What Is a Bank　75

5.2.1　Definition and Development of a Commercial Bank　75

5.2.2　How a Commercial Bank Makes and Creates Money　76

5.2.3　The Role of the Banking Sector in China　77

5.2.4　Vigorous Development of the Banking Sector　78

5.2.5　Increased Openness of the Banking Sector　79

Section　5.3 Intermediary Services　79

5.3.1　Settlement-payments and Funds Transfer　80

5.3.2　Plastic Money　80

5.3.3　International Settlement　82

Section　5.4 Loans　82

5.4.1　Definition and Categories of Loans　82

5.4.2　The Credit Process　83

5.4.3　Post-disbursement Management　85

5.4.4　Compound Interest vs. Simple Interest　87

Section　5.5 Banking on the Internet　87

5.5.1　Backgrounds　87

5.5.2　Advantages and Disadvantages of Online Banking　88

5.5.3　The Future Prospects of Online Banking　89

Notes　90

Exercises　91



Chapter　6 Supervision of Banking　93

Learning　Objectives　93

Key　Topics　93

Section　6.1 Importance and Objectives of Banking Supervision　93

6.1.1　The Role of Banks and Importance of Banking Supervision　93

6.1.2　Objectives of Banking Supervision　94

6.1.3　Preconditions for Effective Banking Supervision　95

Section　6.2 Licensing Process　96

6.2.1　Phases of the Process　96

6.2.2　Factors Evaluated by the Chartering Authorities　96

6.2.3　Basel Committee’s Requirements on Bank Licensing　97

Section　6.3 Arrangements for Ongoing Banking Supervision　97

6.3.1　Risks in Banking　97

6.3.2　Key Prudential Issues　99

6.3.3　Off-site Surveillance　104

6.3.4　On-site Examinations　104

Section　6.4 Dealing with Weak Banks　105

6.4.1　Symptoms and Cause of Bank Problems　105

6.4.2　Principles for Dealing with Weak Banks　106

6.4.3　Corrective Actions　106

6.4.4　Resolution Issues and Exit　107

6.4.5　Closure of the Bank: Depositor Pay-off　108

Notes　109

Exercises　110



Part　Three Financial Instruments and Foreign Exchange



Chapter　7 Securities　114

Learning　Objectives　114

Key　Topics　114

Section　7.1 Stock　114

7.1.1　History　115

7.1.2　Shares　115

7.1.3　Types of Stock　116

7.1.4　Shareholder　116

7.1.5　Stock Market　117

7.1.6　Stock Trade　119

7.1.7　Stock Index　120

7.1.8　Stock Derivatives　121

7.1.9　Stock Price Determination and Fluctuations　121

Section　7.2 Bond　122

7.2.1　Issuance of Bond　123

7.2.2　Main Features of Bond　124

7.2.3　The Kinds of Bond　125

7.2.4　Bond Market　126

7.2.5　Bond Market Participants　127

7.2.6　Investing Risk in Bonds　128

Section　7.3 Fund　129

7.3.1　What Is Fund　129

7.3.2　Fund Constitution　129

7.3.3　Unit or Share Class　131

7.3.4　Investment Aims　131

7.3.5　Types of Risk　132

7.3.6　Kinds of Fund　132

Notes　136

Exercises　137



Chapter　8 Foreign Exchange　139

Learning　Objectives　139

Key　Topics　139

Section　8.1 Foreign Exchange Rate　139

8.1.1　Quotations　140

8.1.2　Exchange Rate Classification　141

8.1.3　Bilateral vs. Effective Exchange Rate　142

8.1.4　Exchange Rate Regime　143

8.1.5　Factors Affecting the Changes of Exchange Rate　144

8.1.6　Fluctuations in Exchange Rates　145

Section　8.2 Foreign Exchange Market　146

8.2.1　Market Participants　147

8.2.2　Characteristics　149

8.2.3　Determinants of Exchange Rates　149

8.2.4　Forex Signals　150

Section　8.3 Foreign Exchange Operation　151

8.3.1　Spot or Foreign Exchange Spot　151

8.3.2　Forward　151

8.3.3　Swap　151

8.3.4　Futures or Currency Futures　153

8.3.5　Option or Foreign Exchange Option　154

Section　8.4 Foreign Exchange Exposure　155

8.4.1　Types of Exposure　156

8.4.2　Measurement at Risk　157

8.4.3　Management at Risk　158

Notes　159

Exercises　160



Chapter　9 Futures & Options　161

Learning　Objectives　161

Key　Topics　161

Section　9.1 Futures Trading　161

9.1.1　What Is Futures　161

9.1.2　Margins　162

9.1.3　Settlement-physical vs. Cash-settled Futures　163

9.1.4　Futures Traders　164

Section　9.2 Futures Exchange　165

9.2.1　History of Futures Exchanges　166

9.2.2　Clearing and Settlement　166

9.2.3　Central Counterparty　167

9.2.4　Mark-to-Market　167

9.2.5　Financial Futures　168

Section　9.3 Options　170

9.3.1　Contract Specifications　170

9.3.2　Types　170

9.3.3　Option Styles　172

9.3.4　Trading　172

Notes　173

Exercises　173



Part　Four Insurance



Chapter　10 To Understand Insurance　176

Learning　Objectives　176

Key　Topics　176

Section　10.1 What Is Insurance　176

10.1.1　Modern Insurance　177

10.1.2　Societal Effects　177

Section　10.2 Insurance Policy　178

10.2.1　General Features　178

10.2.2　Parts of an Insurance Contract　179

10.2.3　Industry Standard Forms　180

Section　10.3 Most Important Principles of Insurance　180

Section　10.4 Insurance Market　183

10.4.1　Insurance Companies　183

10.4.2　Reinsurance Companies　184

10.4.3　Insurance Intermediaries　184

Section　10.5 Insurance Business　185

10.5.1　Product Development　185

10.5.2　Distribution Channels　186

10.5.3　Underwriting　187

10.5.4　Loss Settlement　188

10.5.5　Reserve　189

10.5.6　Investment　190

Notes　190

Exercises　192



Chapter　11 Types of Insurance　194

Learning　Objectives　194

Key　Topics　194

Section　11.1 Personal Insurance　194

11.1.1　What Is Life Insurance　194

11.1.2　Health Insurance　196

11.1.3　Accident Insurance　197

Section　11.2 Property Insurance　198

11.2.1　History　198

11.2.2　Types of Coverage　199

11.2.3　Specific Types　199

11.2.4　US Property Insurance Claims　200

Section　11.3 Liability Insurance　201

11.3.1　What Is Liability Insurance　201

11.3.2　Types of Liability Insurance　202

11.3.3　Insurable Risks　203

Section　11.4 Reinsurance　203

11.4.1　Definition　203

11.4.2　Methods of Reinsuring　204

11.4.3　Forms of Reinsurance　204

Notes　206

Exercises　207



Part　Five Banking Letters



Chapter　12 The Exercise of Banking Letters　210

Learning　Objectives　210

Key　Topics　210

Section　12.1 What Is a Banking Letter？　210

Section　12.2 Basic Principles of Banking Letter Writing　212

Section　12.3 The Format of Banking Letter　214

12.3.1　Standard Parts　214

12.3.2　Optional Parts　217

12.3.3　Letter Style　219

12.3.4　Envelope Addressing　222

Section　12.4 Main Types of Banking Letters　224

12.4.1　Letters Concerning Banks Relationship　224

12.4.2　Letters Concerning Bank Accounts and Bank Accounting　226

12.4.3　Letters Concerning Banking Business　227

Notes　229

Exercises　230

主要参考文献　233

更新勘误表和配套资料索取示意图　234