Chapter 4
Commercial Banks and Services
Exercises
Ⅰ.Answer the following questions in English.
1.Why is a jumbo CD more risky?
A jumbo CD is somewhat more risky, because the FDIC cannot insure it, but is still a sound investment when made with a reputable bank.
2.What is commercial loan?
Commercial loans are bank loans that are granted to different types of business entities．
3.What is credit card?
The plastic credit card with a magnetic strip many people carry in their wallets or purses is the end result of a complex banking process.
4.What is money order?
A money order is an instrument that orders a sum of money to be paid to someone else.
5. What is working capital?
Working capital is a measurement of an entity's currentassets, after subtracting its liabilities.
6. What is a secured loan?
A secured loan is a loan in which the borrower pledges some asset (e.g., a car or property) as collateral (i.e., security) for the loan
7. What are commercial banks?
Commercial banks are banking institutions that are geared more toward the lending of money to customers, rather than focusing on generating or raising money.
8. What is a checking account?
A checking account is a service provided by financial institutions (banks, savings and loans, credit unions, etc. ) which allows individuals and businesses to deposit money and withdraw funds from a federally-protected account.
Ⅱ. Fill in the each blank with an appropriate word or expression.
1. A commercial bank offers a wide range of savings programs for
customers. Along with standard savings accounts, the commercial bank may also__offer____ interest bearing checking accounts, certificates of deposit, and other savings strategies that are___considered____to
provide a small but consistent return in exchange for doing business with the bank.
2. Sometimes people might use an interest checking account instead of a savings account. If you really plan not to__spend___your money for a few months,it makes sense to use a savings account____instead____
3. A fixed rate mortgage is a mortgage in which the __interestrate___does not change during the___entire_____term of the loan.
4. A typical checking account is __handled_____through careful posting of deposits and withdrawals. The account holder has a supply of official checks which___contain____ all of the essential routing and mailing information.
5. In recent years there have been some unfortunate seams involving bank drafts that are phony. Since printers are now so capable of ___creating___very realistic appea rin g che cks,pe ople ha ve be en__fooled__into taking bank drafts that don't truly have any value．
6．Cred it c ard use ofte n___bec omes____p ro b le mat ic wh en the
ho lde r_a cc rues___mo re d e b t th a n a re gu la r mo nth ly p a yme n t
c a n co ve r．
Ⅲ．Trans late the fo llo wing senten ces into Eng lish．
1．商业银行应积极开展电话银行转账功能风险评估和分类，依据收款账户的潜在风险高低，相应设置不同的转账额度和次数限制。
Co m me r c ia l b a n k s s h o u l d a c t i v e l y c a r r y o u t t h e
t e l e p h o n e b a n k t r a n s f e r f u n c t io n s o f r i s k a s s e s s me n t a n d
c la s s if i c a t io n, b a s e
d o n t h
e a c c o u n t s r e c e i v a b le o
f t h e
d e g re e o f p o t e n t ia l r is k s, t h e c o r re s p o n d in g s e t o f d if f e r e n t t ra n s f e r a mo u n t a n d f r e q u e n c y c o n s t ra i n t s.
2.商业银行相对其他行业属于信息化程度较高的行业，银行数据库里积累了海量的客户信息。
Commercial banks relative to other industry belongs to a high degree of information technology industry, bank database has accumulated a mass of customer information
3．商业银行的管理人员在分析客户的贷款申请时必须考虑许多因素。
Commerc ia l bank management in analyz ing a customer's loan request must conside r man y factors
4·除中国银行外，交通银行、农业银行、工商银行、建设银行在城乡也都设立了许多的机构，便于你获得金融服务。
Besides the Bank of China, Bank of communications, industrial and commercial bank, agricultural bank, construction bank in urban and rural areas are established in many institutions, access to financial services for you. 5．定期存款也叫CD，是存款证书的一种类型。
Deposit is also called CD, is a type of certificate of deposit.
6·商业银行作为一家金融机构，其业务范围包括：从个人和公司吸收存款；通过提供贷款和其他对客户的财务或生意的运转很重要的金融业务来建立信贷，包括资金转账、支票兑现.银行保管箱等。
Commercial bank is a financial institution, its business scope includes:
from individual and corporate deposits; by providing loans and other customer 's financial or business operation is very important to establish the credit of financial business, including fund transfers, check cashing bank safe deposit box and so on.
Ⅳ．T ra n s la t e t h e f o l lo w in g s e n t e n c e s in t o Ch in e s e．
l·The risk-based capital requirements imposed on commercial bank and saving and loan associations．
基于风险的资本要求商业银行和储蓄和贷款协会。
2·Who regulates commercial banks and thrifts and types of regulations imposed?
谁规定商业银行和储蓄银行和类型的规定？
3·Banks generate income in three ways：(1)the bid—ask spread；(2)capital gains on the securities or foreign currency used in transactions，and(3)in the case of securities，the spread between interest income earned by holding the security a n d co st o f f un d ing th e pu rch as e of s ecu rit y．
银行产生的收入在三个方面：（1）买卖价差；（2）资本收益的证券或外币交易，和（3）的情况证券所获得的利息收入，蔓延之间保持安全和资金成本的购买保障。
4.Several types of deposit accounts are available．Checking accounts pay no interest a n d c a n b e w i t h d r a w n u p o n d e m a n d．
几种类型的存款账户可用。支票帐户不付利息，可以撤回后的需求。
5.A certificate of deposit can take a wide variety of forms which are negotiable with the issuing bank.
存款证可以采取多种形式，可以转让由开证行。
6. Banks that raise most of their funds from the domestic and international money markets，relying less on depositors for funds，are called money center banks．
银行提高他们的大部分资金来自国内和国际货币市场上，很少依靠存款基金，被称为货币中心银行。
经济学院经济类专业课程教学大纲 金融英语 课程名称：金融英语Financial English 课程编码：012099 学分：2分 总学时：32学时 适用专业：金融学 先修课程：基础英语、金融学、货币银行学 执笔人：曾江辉 审订人：王华明 一、课程的性质、目的与任务 金融英语是金融学专业选修课程，其目的是培养学生的金融专业英语语言能力和实际运用英语处理与金融有关业务的能力。金融英语不仅具有其独特的专业词语、常用句式和文体风格,而且具有金融行业的内在知识体系,具有融思想性、知识性、技术性为一体的特征。要求此课程以现代课程理念为指导，突出学生的主体和多学科知识的综合性，突出培养学生的学习能力。Financial English is a elective courses for Finance Major, which purpose is to cultivate the students' ability of using English language of Finance professional and practical use of English to deal with related financial business. Financial English not only has the professional words, but also has sentence patterns and unique style. It has the internal knowledge system and is melted with the thought and knowledge, technology as the characteristics. The requirements of this course is provided by modern curriculum ideas as a guide, the main highlight comprehensive for students and multi-disciplinary knowledge. It emphasizes the training of students learning ability. 二、教学内容与学时分配 Chapter 1 Money (2学时) 1.1 Definition of Money 1.2 Types of Money 1.3 Functions of Money 1.4 Interest and Interest Rate 1.5 Money Supply 1.6 China's Monetary System Exercises Chapter 2 Foreign Exchange （4学时） 2.1 Definitions and Quotations 2.2 Foreign Exchange Transactions Exercises Chapter 3 Balance of Payments （4学时）
Lesson One Translate the following passage into Chinese 1.紧缩性货币政策和扩张性货币政策都涉及到改变一个国家的货币供应量水平。 扩张性货币政策增加货币供应量，而紧缩性货币政策会减少货币供应量。 2.当联邦储备体系在公开市场上购买有价证券，会引起证券价格上涨。债券价格 和利率成反比关系。联邦贴现率就是一种利率，因此降低联邦利率实际上就是 降低利率。如果联邦储备系统决定降低法定储备要求，那么银行能够进行投资 的资金会增加。这会引起投资比如债券价格的上涨，因此利率会降低。无论联 邦储备体系用何种方法来增加货币供应量，利率都会降低，债券价格会上涨。 Translate the following sentences into English 1. China would maintain a stable currency and prudent monetary policy, and expected to stay within its growth and inflation targets this year 2.China would also maintain a prudent monetary policy to support economic development while preventing inflationary pressure and financial risks 3. China’s economy continued to grow steadily and rapidly in the first quarter, with investment in fixed assets slowing and domestic consumption accelerating. 4.because of China’s large increase in its trade surplus and foreign exchange reserves in the first quarter, the effectiveness of its monetary policy — used to help control inflation — was facing “serious challenges.” 5. The central bank would seek to further streamline its foreign exchange system to facilitate the orderly outflow of funds. At the same time, it would tighten the management of foreign exchange inflows and settlement. —Three Translation: Translate the following passage into Chinese 1．外汇交易当然是指两种不用货币之间的交易了。每一组货币的交易或“买卖”都包含两个部分。一个是即期市场，在这个市场中支付（交付）需在交易时立即进行（在实际操作中一般是在第二个交易日进行），另一个就是远期市场。远期市场的汇率是在交易的时候就先确定了，但实际的交易，或交付则是在未来的某个特定时间进行的。 2．外汇交易期权是指一种货币和另一种货币在未来进行交付的一个合同，在此合同中，
PartⅠ.Decide whether each of the following statements is true or false (10%)每题1分，答错不扣分1. If perfect markets existed, resources would be more mobile and could therefore be transferred to those countries more willing to pay a high price for them. ( T ) 2. The forward contract can hedge future receivables or payables in foreign currencies to insulate the firm against exchange rate risk. ( T ) 3. The primary objective of the multinational corporation is still the same primary objective of any firm, i.e., to maximize shareholder wealth. ( T ) 4. A low inflation rate tends to increase imports and decrease exports, thereby decreasing the current account deficit, other things equal. ( F ) 5. A capital account deficit reflects a net sale of the home currency in exchange for other currencies. This places upward pressure on that home currency’s value. ( F ) 6. The theory of comparative advantage implies that countries should specialize in production, thereby relying on other countries for some products. ( T ) 7. Covered interest arbitrage is plausible when the forward premium reflect the interest rate differential between two countries specified by the interest rate parity formula.( F ) 8．The total impact of transaction exposure is on the overall value of the firm. ( F ) 9. A put option is an option to sell-by the buyer of the option-a stated number of units of the underlying instrument at a specified price per unit during a specified period. ( T ) 10. Futures must be marked-to-market. Options are not. ( T ) PartⅡ:Cloze (20%)每题2分，答错不扣分 1. If inflation in a foreign country differs from inflation in the home country, the exchange rate will adjust to maintain equal( purchasing power ） 2. Speculators who expect a currency to ( appreciate ) could purchase currency futures contracts for that currency. 3. Covered interest arbitrage involves the short-term investment in a foreign currency that is covered by a ( forward contract ) to sell that currency when the investment matures. 4. （Appreciation/ Revalue ）of RMB reduces inflows since the foreign demand for our goods is reduced and foreign competition is increased. 5. ( PPP ) suggests a relationship between the inflation differential of two countries and the percentage change in the spot exchange rate over time. 6. IFE is based on nominal interest rate ( differentials ), which are influenced by expected inflation. 7. Transaction exposure is a subset of economic exposure. Economic exposure includes any form by which the firm’s ( value ) will be affected. 8. The option writer is obligated to buy the underlying commodity at a stated price if a ( put option ) is exercised 9. There are three types of long-term international bonds. They are Global bonds , ( eurobonds ) and ( foreign bonds ). 10. Any good secondary market for finance instruments must have an efficient clearing system. Most Eurobonds are cleared through either ( Euroclear ) or Cedel. PartⅢ:Questions and Calculations (60%)过程正确结果计算错误扣2分 1. Assume the following information: A Bank B Bank Bid price of Canadian dollar $0.802 $0.796 Ask price of Canadian dollar $0.808 $0.800 Given this information, is locational arbitrage possible?If so, explain the steps involved in locational arbitrage, and compute the profit from this arbitrage if you had $1,000,000 to use. (5%) ANSWER: Yes!One could purchase New Zealand dollars at Y Bank for $.80 and sell them to X Bank for $.802.With $1 million available, 1.25 million New Zealand dollars could be purchased at Y Bank.These New Zealand dollars could then be sold to X Bank for $1,002,500, thereby generating a profit of $2,500. 2. Assume that the spot exchange rate of the British pound is $1.90.How will this spot rate adjust in two years if the United Kingdom experiences an inflation rate of 7 percent per year while the United
1. Which of the following is not a function of money? ______. A. To act as a medium of exchange B. To act as a unit of account C. To act as a store of value D. To provide a double coincidence of wants E. To act as a means of payment 2. The price in the foreign exchange market is called ______. A. the trade surplus B. the exchange rate C. the money price D. the currency rate 3. Market risk refers to the risk of______. A. financial prices fluctuations B. default C. fraud D. deferred payments 4. Which of the following is not among the generally accepted accounting principles? ______. A. Cash basis B. Prudence C. Consistency D. Going concern E. Money measurement.
5. What is a documentary letter of credit? ______. A. A conditional bank undertaking to pay an exporter on production of stipulated documentation B. A method of lending against documentary security C. An international trade settlement system biased in favour of importers D. All of the above 6. Holding a group of assets reduces risk as long as the assets ______. A. are perfectly correlated B. are completely independent C. do not have precisely the same pattern of returns D. have a correlation coefficient greater than one 7. An amount, payable in money goods, or service, owed by a business to a creditor, is known as a/an . A. liability B. debt C. equity D. asset 8. What function is money serving when you buy a ticket to a movie? ______. A. store of value B. a medium of exchange C. transaction demand D. a unit of account 9. If foreigners expect that the future price of sterling will be lower, the ______. A. supply of sterling will increase, demand for sterling will fall, and the exchange rate will fall
Chapter13 (exercises) I .Answer the following questions in English. 1.Carefully describe a futures contract. A future contract is a blinding agreement between a seller and a buyer to make and to take delivery of the underlying commodity at a specified future date with agreed upon payment terms. Futures contracts are standardized with respect to the delivery month. 2.Explain how futures contracts are valued daily, It is possible to calculate a theoretical fair value for a futures contract.The fair value of a futures contract should approximately equal the current value of the underlying shares or index,plus an amount referred to as the “cost of carry”.The full value of the contract is not paid or received when the contract is established-instead both buyer and seller pay a small initial margin. 3.Describe the role of the clearinghouse in futures trading. The clearinghouse,an agency or separate corporation of a futures exchange.The clearinghouse becomes the buyer to each seller and assumes responsibility for protecting buyers and sellers from financial loss by assuring performance on each contract. 4. Explain the differences between a hedger and a speculator. The difference between hedgers an speculators is the risk. Hedgers are parties at risk with a commodity or an asset,but speculators trads futures with the objective of making a profit by being on the right side of a price move. 5. Give a brief description of the history of futures. Both the histories of futures are focused on that how people have tried to improve the effectiveness of the commercial marketplace. 6. What is key difference between forward and futures? Forward contracts and futures comparison: the former is a standardized contract, OTC, flexible and high transaction cost, risk is big. The latter are standardized contracts, exchange as a medium, investors and unlike forward contracts as the direct trading, risk is small. Options and futures comparison: futures trading both sides has rights and obligations. While the option buyer the right to sell only, only obligation. In addition from the gains and losses, the futures of profit and loss is uncertain, but the option buyer 's loss is the option premium. Ⅱ. Fill in the each blank with an appropriate word or expression.
第一章： 1、equity（股本） 2、financial system 3、portfolio（投资组合） 4、bond 5、stock 1.another way for Intel to raise funds to build a new semi-conductor factory is to sell stock in the company. Stock represents ownership in a firm and is, therefore a claim to the profits that the firm makes. For example, if Intel sells a total of 1000000 shares of stocks, then share represents ownership of 1/1000000 of the business 2. A mutual fund is an institution that sells shares to the public and uses the proceeds to buy a selection, or portfolio, of various types of stocks, bonds, or both stocks and bonds. The shareholder of the mutual fund accepts all the risks and returns associated with the portfolio. If the value of the portfolio rises, the shareholder benefits, if the value of the portfolio falls, the shareholder suffers the loss. 第二章： 1、commodity money 2、fiate money 3、bank note 4、Treasury Bill 5、money supply Most countries today have an “independent” central bank, that is, one which operates under rules designed to prevent political interference. Examples include the European Central Bank, the US Federal Reserve, the Reserve Bank of Australia, the Reserve Bank of India, the Bank of England, the Bank of Canada, etc. Some central banks are publicly owned, and others are, in theory, privately owned. In practice, there is little difference between public and private ownership, since in the latter case almost all profit of the bank are paid to the government either as a tax or a transfer to the government.
Chapter 1 Money 1.1 Definition of Money 1.2 Types of Money 1.3 Functions of Money 1.4 Interest and Interest Rate 1.5 Money Supply 1.6 China's Monetary System Exercises Chapter 2 Foreign Exchange 2.1 Definitions and Quotations 2.2 Foreign Exchange Transactions Exercises Chapter 3 Balance of Payments 3.1 The Definition of BOP 3.2 The General Principle of BOP 3.3 The Components of Balance of Payment Statement 3.4 Equilibrium of BOP Exercises Chapter 4 International Monetary System 4.1 The Gold Standard 4.2 Bretton Woods System 4.3 The Jamaica System 4.4 The Present and the Future Exercises Chapter 5 Financial Market 5.1 Introduction 5.2 Money Market 5.3 Capital Market Exercises Chapter 6 Securities 6.1 Overview 6.2 Stock 6.3 Bond Exercises Chapter 7 Loans 7.1 Introduction 7.2 Major Loan Categories 7.3 Loan Classification by Risk
Chapter One Functions of Financial Markets 一．Translate the following sentences into Chinese. 1.China’s banking industry is now supervised by the PBC and CBRC. In addition, the MOF is in charge of financial accounting and taxation part of banking regulation and management. 目前中国银行业主要由中国人民银行和银监会进行监管。此外，财政部负责银行业监管的财务会计及税收方面。 2.Currently Chinese fund management companies are engaged in the following business: securities investment fund, entrusted asset management, investment consultancy, management of national social security funds, enterprise pension funds and QDII businesses. 目前中国的基金管理公司主要从事以下业务：证券投资基金业务、受托资产管理业务、投资咨询业务、社保基金管理业务、企业年金管理业务和合格境内机构投资者业务等。 3.China's economy had 10% growth rate in the years before the world financial crisis of 2008. That economic expansion resulted from big trade surpluses and full investment. Now China is seeking to move away from that growth model. The country is working to balance exports with demand at home. 在2008年世界经济危机之前的那些年，中国经济增长速度曾达到10%。这一经济增长源于巨额贸易盈余和大量投资。中国现在正在寻求改变这一增长模式。中国正致力于平衡出口和国内需求。 二．Translate the following sentences into English 1.中国商业银行监管的程序是市场准入监管、市场运营监管和市场退出监管。 Regulatory procedures of China’s commercial banks are market access regulation, market operation regulation and market exit regulation. 2.国务院关于推进资本市场改革开放和稳定发展的若干意见。 Some opinions of the State Council on promoting the reform, opening and steady growth of the capital market 3.只有建立合理的股权结构，才能保证公司取得好的经营业绩。 Only establishing reasonable ownership structure can guarantee perfect corporate performance. 4.该公司股票暴跌，被伦敦交易所摘牌。 The company’s stock nosedived and it was delisted from the London exchange.
金融英语口语教程第1课：西方的银行(一) Banking in the West(1) 西方的银行（一） Situation 1 情景 1 Jiro Ito is visiting with his friend ,Bob Jenson ,a banker in New York . 伊滕次郎正与他的朋友鲍勃·詹森闲谈。鲍勃是纽约的一位银行职员。 They are talking about the history of banking in the west . 他们正在谈论相关西方银行的历史。 Ito：I'm curious about the history of banking in the west ,Bob.Can you tell me something about it ? 伊滕：我很想知道相关西方银行史的一些情况。鲍勃，您能给我讲一讲吗？ Jensen：Well,Jiro,the earliest banks started in Babylon almost 4,000 years ago . 詹森：好的，次郎。最早的银行大约是4，000年前在巴比伦建立的。 They were really temples which collected deposits and made loans . 实际上，那些银行仅仅一种收集存款并实行放款的场所。
I ：That surprises me .I had always thought that banking started during the Renaissance in Europe . 伊滕：这可真是出乎我的意料之外，我原来一直以为银行业务始于欧洲文艺复兴时期呢。 J：No ,it was much earlier than that.Actually ,private firms that handled deposits and loans , 詹森：不，比那个时期要早多了。实际上，早在公元前6世纪就有了私营的商行。 changed coins and even arranged for credit transactions existed as early as the 6th century B.C. 这些商行从事储蓄存款和贷款，兑换硬币以至安排信贷交易。 I：Then ,there were banks in ancient Greece and Rome,too? 伊滕：当时，古希腊和罗马也有银行吗？ J：Yes ,laws in Both Greece and Rome recognized banks and many bank functions . 詹森：是的，希腊和罗马都在法律上承认了银行和银行的很多作用。 It wasn't until the breakup of the Roman Empire and the decline in trade and commercial transactions that banking lost its previous importance . 直到罗马帝国崩溃，商贸业务衰落，银行业才失去了它以往的重要性。 I：What about the laws against usury during the Middle Ages?Didn't such laws made it illegal to charge interest on loans?
Chapter 11 Mutual Funds E x er c is e s Ⅰ、Answer the following questions in English. 1. What is NOT an advantage of a mutual fund? A. Instant Diversification. B. Easy to Use. C. You can easily make monthly contributions. D. You are guaranteed to double your money in 5 years. 2. If you were looking to invest in a specific country or region, which mutual fund would be best suited for you? A. Global Fund B. Regional Fund C. Growth Fund D. Socially Responsible Fund E. Green Fund 3. What is the difference between a front end and back end load? A. Front-end funds charge a fee if the fund is redeemed early, back-end funds don 't. B. Front-end funds don't charge a fee, back-end funds do. C. Front-end funds charge a fee when you buy the fund, back-end funds charge the fee at redemption. D. None of the above. 4.what percent do most mutual funds have administration fees? A. 0% B. 0.5%--2.5% C. 3% -- 5% D. 6% -- 10% 5. Buying a mutual fund based on past performance is a good strategy. A. True. . B. False. Ⅱ、Fill in the each blank with an appropriate word or expression. 1. There are, however, many different types of equity funds because there are many different types of equities. 2. The idea of pooling resources and spreading risk using closed-end investments soon took root in Great Britain and France, making its way to the United States in the 1890s. 3. What was once just another obscure financial instrument is now a part of our daily lives. 4. Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all income it receives over the year to fund owners in the form of a distribution. 5. If the fund sells securities that have increased in price, the fund has a capital . Most funds also pass on
Chapter 3 Money Market Exercises I．Answer the following questions in English． 1．How big is the money market? Money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded．The money market is used by participants as a means for borrowing and lending in the short term，from several days to just under a year．Money market securities consist of negotiable certificates of deposit (CDs)，bankers acceptances，U.S．Treasury bills，commercial paper，municipal notes，federal funds and repurchase agreements(repos)．The money market is a subsection of the fixed income market too． 2．What are the terms of most T—bills? T-bills are short—term securities that mature in one year or less from their issue date．T—bills are issued with 3 month，6 month，and 1 year maturities． 3．Why would a company issue commercial paper? Because For many corporations，borrowing short-term money from banks is often a labored and annoying task．Their desire to avoid banks as much as possible has led to the widespread popularity of commercial paper． 4．A money market instrument usually used for import／export payments is known as? Foreign exchange revenue and spending 5．What does Eurocurrency encompass? Eurodollars are U.S．dollar—denominated deposits at banks outside of the United States． 6．What is a major advantage of money market instruments? Money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded．7．What are Eurodollars? Eurodollars are U.S．dollar—denominated deposits at banks outside of the United States． 8．Who can issue commercial paper? Commercial paper is an unsecured，short-term loan issued by a corporation，typically for financing accounts receivable and inventories．Furthermore，