Chapter 13money supply process

Chapter 1 Why Study Money, Banking, and Financial Markets? 第一章：为什么要研究货币、银行与金融市场1.aggregate income 总收入2.aggregate output 总产出3.aggregate price level 物价总水平4.budget deficit 预算赤字5.GDP 国内生产总值6.unemployment rate 失业率Chapter 2An Overview of the Financial System第二章：金融体系概览1.asset transformation 资产转化2.adverse selection 逆向选择3.asymmetric information 信息不对称4.Eurobond 欧洲债券5.financial panic 金融恐慌6.foreign bonds 外国债券7.liquid 流动性8.economic of scale 规模经济9.primary market 一级市场10.s econdary market 二级市场11.t ransaction costs 交易成本Chapter 3 What Is Money?第三章：什么是货币？modity money 商品货币2.currency 通货3．M14. M25. Fiat money 不兑现货币6. hyperinflation 恶性通货膨胀7. E-cash 电子现金8. M 3Chapter 4 Understanding Interest Rates第四章：理解利率1.real interest rate 实际利率2.coupon bond 息票债券3.indexed bond 指数化债券4.coupon rate 息票利率5.current yield 当期收益率6.yield on a discount basis 贴现基础上的收益率7.present value现值8.discount bond （zero-coupon bond）贴现发行债券（零息债券）9.rate of capital gain资本利得率10.yield to maturity 到期收益率Chapter 5 the behavior of interest rates第五章：利率行为1. opportunity cost 机会成本2. demand curve 需求曲线3. liquidity preference framework 流动性偏好理论4. loanable funds 可贷资金5. loanable funds framework 可贷资金理论6. Fisher effects 费雪效应Chapter 6 the Risk and Term Structure of Interest Rates第6章利率的风险结构与期限结构1. inverted yield curve 翻转的收益率曲线2. junk bonds 垃圾债券3.liquidity premium theory 流动性溢价理论4.preferred habitat theory 期限优先理论5.risk premium 风险溢价6.segmented markets theory 分割市场理论7.yield curve 收益率曲线8.terms structure of interest rates 利率期限结构Chapter 7The Stock Market, the Theory of Rational Expectations, and the efficient Market Hypothesis第7章股票市场、理性预期理论与有效市场假定1. adaptive expectations 适应性预期2. bubble 泡沫3. efficient markets 有效市场4. rational expectations 理性预期5. residual claimant 剩余索取权6. markets fundamentals 市场基本面Chapter 8An Economic Analysis of Financial Structure第8章金融结构的经济学分析1. agency theory 代理理论2. pecking order hypothesis 啄食顺序假定3. debt deflation 债务萎缩4.free-rider problem 免费搭车问题5. incentive-compatible 激励相容6. net worth(equity capital) 净值（权益资本）Chapter 9Banking and the Management of Financial Institutions第9章银行业与金融机构的管理1. compensating balance 补偿性余额2. discount loans 贴现贷款3. discount rates 贴现率4. duration 久期5. excess reserves 超额准备金6. gap analysis 缺口分析7. off-balance-sheet activities 表外业务8. required reserved ratio 法定准备金率9. ROA （return on assets）资产回报率10. ROE （return on equity）股权回报率11. secondary reserves 二级准备金12. vault cash 库存现金Chapter 10 Banking Industry: Structure and Competition 第10章银行业：结构和竞争1. disintermediation 脱媒2. dual banking system 双重银行体制3. economies of scope 范围经济4. financial derivatives 金融衍生工具5. future 期货6. hedge 对冲7. securitization 证券化Chapter 11Economic Analysis of Financial Regulation 第11章银行监管的经济学分析1.leverage ratio 杠杆比例2.leverage ratio 杠杆比例3.regulatory forbearance 监管宽容4.Basel Accord 巴塞尔协议Chapter 12Nonblank Finance第12章非银行金融机构1.annuity 年金2.closed-end fund 封闭式基金3.fully funded 足额基金4.hedge fund 对冲基金5.open-end fund 开放式基金6.load funds 付佣金基金Chapter 13 Financial Derivatives第13章衍生金融工具1.American option 美式期权2.arbitrage 套利3.call option 看涨期权4.currency swap 货币互换5.strike price or exercise price 执行价格6.forward contract 远期合约7.interest-rate swap 利率互换8.long position 多头9.option 期权10.swap 互换11.stock option 股票期权Chapter 14Central Banks and the Federal Reserve System 第14章中央银行的结构与联邦储备体系1.instruments independence 工具独立性2.political business cycle 政治经济周期3.open market operations 公开市场操作4.goal independence 目标独立性Multiple Deposit Creation and the Money Supply Process 第15章多倍存款创造和货币供给过程1.high-powered money 高能的货币2.multiple deposit creation 多倍存款创造3.required reserve ratio 法定存款准备金4.reserves 准备金Chapter 16Determinants of the Money Supply第16章货币供给的决定因素1.money multiplier 货币乘数2.non-borrowed monetary base 非借入基础货币Chapter 17 Tools of Monetary Policy第17章货币政策工具1.discount windows 贴现窗口2.defensive open market operations 防御性公开市场操作3.dynamic open market operations 能动性公开市场操作4.federal funds rate 联邦基金利率5.repurchase agreement 回购协议Conduct of Monetary Policy: Goals and Targets第18章货币政策实施：最终目标和政策指标1.intermediate targets 中介指标2.natural rate of unemployment 自然失业率3.NAIRU(non-accelerating inflation rate of unemployment ) 非加速通货膨胀失业率4.operating target 操作指标5.Phillips curve theory 菲利普斯曲线理论6.real bills doctrine 真实票据原则Chapter 19The Foreign Exchange Market第19章外汇市场1.appreciation 升值2.effective exchange rate index 有效汇率指数3.exchange rate overshooting 汇率超调4.interest parity conditions 利息平价条件w of one price 一价定律6.monetary neutrality 货币中性7.PPP （theory of purchasing power parity）购买力平价理论The International Financial System第20章国际金融体系1.1. balance of payments 国际收支平衡表2.Britton Woods System 布雷顿森林体系3.current account 经常账户4.capital account 资本账户5.fixed exchange rate regime 固定汇率制度6.IMF 国际货币基金组织7.international reserves 国际储备8.managed floating regime，dirty float 有管理的浮动制度或称肮脏的浮动汇率制度9.reserves currency 储备货币10.special drawing rights SDR 特别提款权11.sterilized foreign exchange intervention 冲销性外汇干预Chapter 21Monetary Policy Strategy: The International Experience第21章货币政策策略：国际经验1.dollarization 美元化2.nominal anchor 名义锚3.Seigniorage 铸币税4.time-consistency problem 时间非一致性问题Chapter 22The Demand for Money第22章货币需求1.real money balances 实际货币余额2.liquidity preferences theory 流动性偏好理论3.equation of exchange 交易方程式4.quantity theory of money 货币数量论5.velocity of money 货币流通速度Chapter 23The Keynesian Framework and the ISLM Model第23章凯恩斯理论框架与IS-LM模型1.animal spirits 浮躁情绪2.autonomous consumer expenditure 自主性消费支出3.expenditure multiplier 支出乘数4.IS curve IS曲线5.LM curve LM曲线6.MPC margin propensity to consumer 边际消费倾向Chapter 24Monetary and Fiscal Policy in the ISLM Model第24章IS-LM模型中的货币政策与财政政策1.aggregate demand curve 总需求曲线2.long-run monetary neutrality 长期货币中性3.natural rate level of output 产出的自然率水平pletely crowing out 完全挤出Chapter 25Aggregate Demand and Supply Analysis第25章总需求与总供给分析1.partial crowding out 部分挤出2.modern quantify theory of money 现代货币数量论3.self-correcting mechanism 自我纠错机制4.supply shock 供给冲击Chapter 26 Transmission Mechanisms of Monetary Policy: The Evidence第26章货币政策传导机制的实证分析1.reduced-form evidence 简化形式实证分析2.structural model evidence 结构模型实证分析3.transmission mechanisms of monetary policy 货币政策传导机制4.credit view 信用途径观点Chapter 27 Money and Inflation第27章货币与通货膨胀1.accommodating policy 适应性政策2.demand-pull inflation 需求拉动型通货膨胀3.constant-money-growth-rate rule 单一货币增长率规则4.Ricardo equivalence 李嘉图等价5.cost-push inflation 成本推动型通货膨胀6.monetizing the debt 债务货币化Chapter 28 Rational Expectations: Implications for Policy 第28章理性预期：政策意义1.policy ineffectiveness proposition 政策无效命题。

⼴外货币银⾏学期末重点全英⽶什⾦考试题型以及分数分布：⼀、选择题：1’*20=20’⼆、名词解释：4’*5=20’三、简答题：8’*5=40’四、论述题：20’*1=20’重点制作思路：1.考虑到时间关系，抓⼤放⼩2.结合⽼师提及复习内容进⾏预测3.以理顺书本架构为主，看到⼀个知识点猜⼀下可能会出什么题The economics of money,banking and financial markets----by Kyle Chapter1：Why Study Money, Banking, and Financial Markets？（本章了解⼀下这个问题即可，最多考⼀下选择）Answer：To examine how financial markets such as bond and stock markets workTo examine how financial institutions such as banks workTo examine the role of money in the economyChapter2：An Overview of the Financial System1.Function of Financial MarketsPerform the essential function of channeling funds from economic players that have saved surplus funds to those that have a shortage of fundsDirect finance: borrowers borrow funds directly from lenders in financial markets by selling them securities.Promotes economic efficiency by producing an efficient allocation（分配）of capital（资⾦）, which increases production Directly improve the well-being of consumers by allowing them to time purchases better 2.Structure of Financial Markets Debt and Equity （普通股）MarketsPrimary and Secondary MarketsExchanges and Over-the-Counter (OTC不通过交易所⽽直接售给顾客的) MarketsMoney and Capital Markets（货币和资本市场）3. Financial Market Instruments(要能举出例⼦，很可能考选择)Money markets deal in short-term debt instrumentsCapital markets deal in longer-term debt and equity instruments.4.Internationalization of Financial Markets（重点，选择、名词解释都有可能）Foreign Bonds & EurobondEurocurrencies & EurodollarsWorld Stock Markets5．Function of Financial Intermediaries: Indirect Finance（记⼀下⾦融中介机构的功能，交易成本很可能考名词解释）Lower transaction costs (time and money spent in carrying out financial transactions).Reduce the exposure of investors to riskDeal with asymmetric 不对称information problemsConclusion:Financial intermediaries allow “small” savers and borrowers to benefit from the existence of financial markets.6. Types of Financial Intermediaries（会分类即可）Depository institutionsContractual saving institutionsInvestment intermediaries7.Regulation of the Financial SystemTo increase the information available to investors:To ensure the soundness 健康稳固of financial intermediariesChapter3：What Is Money?1.Meaning of Money（即definition，必考名词解释！！）Money (or the “money supply”): anything that is generally accepted in payment for goods or services or in the repayment of debts.2.Functions of Money（重点）Medium of Exchange:A medium of exchange mustUnit of Account:Store 储藏of Value:3.Evolution of the Payments SystemCommodity 商品MoneyFiat 法定MoneyChecks ⽀票Electronic Payment (e.g. online bill pay).E-Money (electronic money):4.Measuring Money （重中之重，M1/M2都很有可能考名词解释）Construct monetary aggregates using the concept of liquidity:（构建货币总量使⽤流动性的概念）M1 (most liquid assets)= currency + traveler’s checks + demand deposits + other checkable deposits.M2 (adds to M1 other assets that are not so liquid) = M1 + small denomination time deposits + savings deposits and money market deposit accounts + money marketmutual fund shares.Chapter 4：Understanding Interest Rates1.measuring interest rates:Present Value(很可能考察名词解释)A dollar paid to you one year from now is less valuable than a dollar paid to you todaySimple Present Value：PV=CF/(1+i)n次⽅2.Four Types of Credit Market InstrumentsSimple LoanFixed Payment LoanCoupon Bond 附票债券Discount Bond 贴现债券3.Yield to Maturity（重点，很可能名词解释）The interest rate that equates the present value of cash flow payments received from a debt instrument with its value today 计算4种不同信⽤⼯具外加Consol or Perpetuity（⾦边债券或永久债券）的YM4. Yield on a Discount Basis（了解即可）Current Yield当期收益率Yield on a Discount Basis 折价收益率Rate of Return 收益率5.Rate of Return and Interest Rates（收益率与利息率的distinction）The return equals the yield to maturity only if the holding period equals the time to maturityA rise in interest rates is associated with a fall in bond prices, resulting in a capital loss if time to maturity is longer than the holding periodThe more distant a bond’s maturity, the greater the size o f the percentage price change associated with an interest-rate changeThe more distant a bond’s maturity, the lower the rate of return the occurs as a result of an increase in the interest rate Even if a bond has a substantial initial interest rate, its return can be negative if interest rates rise6.Interest-Rate RiskPrices and returns for long-term bonds are more volatile than those for shorter-term bondsThere is no interest-rate risk for any bond whose time to maturity matches the holding period7.Real and Nominal Interest Rates（重点，很可能考察简答题）Nominal interest rate makes no allowance for inflationReal interest rate is adjusted for changes in price level so it more accurately reflects the cost of borrowingEx ante real interest rate is adjusted for expected changes in the price levelEx post real interest rate is adjusted for actual changes in the price level8.Fisher Equation（重点考察）Chapter5：The Behavior of Interest Rates1.Determining the Quantity Demanded of an AssetWealth: the total resources owned by the individual, including all assetsExpected Return: the return expected over the next period on one asset relative to alternative assetsRisk: the degree of uncertainty associated with the return on one asset relative to alternative assetsLiquidity: the ease and speed with which an asset can be turned into cash relative to alternative assets（流动性很有可能考名词解释）2.Theory of Asset Demand（必考，死活都得背下来）Holding all other factors constant:1.The quantity demanded of an asset is positively related to wealth2.The quantity demanded of an asset is positively related to its expected returnrelative to alternative assets3.The quantity demanded of an asset is negatively related to the risk of its returnsrelative to alternative assets4.The quantity demanded of an asset is positively related to its liquidity relative toalternative assets3.Supply and Demand for Bonds（见到看⼀下图）Market Equilibrium4.Shifts in the Demand for BondsWealth: in an expansion with growing wealth, the demand curve for bonds shifts to the rightExpected Returns: higher expected interest rates in the future lower the expected return for long-term bonds, shifting the demand curve to the leftExpected Inflation: an increase in the expected rate of inflations lowers the expected return for bonds, causing the demand curve to shift to the leftRisk: an increase in the riskiness of bonds causes the demand curve to shift to the left Liquidity: increased liquidity of bonds results in the demand curve shifting right 5．Shifts in the Supply of BondsExpected profitability of investment opportunities: in an expansion, the supply curve shifts to the rightExpected inflation: an increase in expected inflation shifts the supply curve for bonds to the rightGovernment budget: increased budget deficits shift the supply curve to the right6.The Liquidity Preference Framework（重中之重）7.Demand for Money in the Liquidity Preference FrameworkAs the interest rate increases:–The opportunity cost of holding money increases…–The relative expected return of money decreases……and therefore the quantity demanded of money decreases.8.Shifts in the Demand for Money（都很重要）Income Effect:a higher level of income causes the demand for money at each interest rate to increase and the demand curve to shift to the rightPrice-Level Effect: a rise in the price level causes the demand for money at each interest rate to increase and the demand curve to shift to the rightLiquidity preference framework leads to the conclusion that an increase in the money supply will lower interest rates: the liquidity effect.Income effect finds interest rates rising because increasing the money supply is an expansionary influence on the economy (the demand curve shifts to the right). Chapter9:Banking1.The Bank Balance SheetLiabilities–Checkable deposits–Nontransaction deposits–Borrowings–Bank capitalAssets–Reserves(准备⾦)–Cash items in process of collection–Deposits at other banks–Securities–Loans–Other assets2.Basic Banking:Cash Deposit：Opening of a checking account leads to an increase in the bank’s reserves equal to the increase in checkable depositsCheck Deposit3．Inter-businessBank settlementFinance leaseFiduciary businessSafe deposit box4.Off-Balance-Sheet ActivitiesLoan sales (secondary loan participation)Generation of fee income. Examples:Chapter12:Central Banks and the Federal Reserve System(此章省略很多)1.Structure of the Fed(了解即可)12 FRBs（9⼈）Member BanksFOMC (7+1+4⼈)Federal Advisory Council （12⼈）2.Federal Reserve Bank（3+3+3⼈）Functions：Clear checksIssue new currencyWithdraw damaged currency from circulationAdminister and make discount loans to banks in their districtsEvaluate proposed mergers and applications for banks to expand their activitiesAct as liaisons between the business community and the Federal Reserve SystemExamine bank holding companies and state-chartered member banksCollect data on local business conditionsUse staffs of professional economists to research topics related to the conduct of monetary policyChapter13&14：The Money Supply Process:1.Players in the Money Supply ProcessCentral bank (Federal Reserve System)Banks (depository institutions; financial intermediaries)Depositors (individuals and institutions)2．Fed’s Balance Sheet4.Open Market PurchaseThe effect of an open market purchase on reserves depends on whether the seller of the bonds keeps the proceeds from the sale in currency or in depositsThe effect of an open market purchase on the monetary base always increases the monetary base by the amount of the purchaseOpen Market SaleReduces the monetary base by the amount of the saleReserves remain unchangedThe effect of open market operations on the monetary base is much more certain than the effect on reserves5.Fed’s Ability to Control the Monetary BaseSplit the monetary base into two components :MBn= MB - BRthe non-borrowed monetary base :MBnborrowed reserves:BR6.The Formula for Multiple Deposit Creation（很重要！必考,记住公式）7.Factors that Determine the Money SupplyChanges in the nonborrowed monetary base MBnChanges in borrowed reserves from the FedChanges in the required reserves ratioChanges in currency holdingsChanges in excess reserves8.The Money Multiplier(重点)Assume that the desired holdings of currency C and excess reserves ER grow proportionally with checkable deposits D. Then,c = {C/D} = currency ratioe = {ER/D} = excess reserves ratioThe monetary base MB equals currency (C) plus reserves (R):MB = C + R = C + (r x D) + ERM=m*MB=m*(MBn+BR)M=1+c/r+e+cChapter 15：Tools of Monetary Policy1. Tools of Monetary PolicyOpen market operationsChanges in borrowed reservesChanges in reserve requirementsFederal funds rate: the interest rate on overnight loans of reserves from one bank to another 2.Demand in the Market for ReservesSupply in the Market for Reserves3.Affecting the Federal Funds Rate4.Open Market Operations（超级重点）Advantages：The Fed has complete control over the volumeFlexible and preciseEasily reversedQuickly implemented5.Discount Policy（超级重点）Advantages：Used to perform role of lender of last resortdisadvantages：Cannot be controlled by the Fed; the decision maker is the bank6.Reserve Requirements（超级重点）Advantages：No longer binding for most banksdisadvantages：Can cause liquidity problemsIncreases uncertainty for banks7.Monetary Policy Tools of the European Central BankOpen market operationsLending to banksReserve RequirementsChapter16：The Conduct of Monetary Policy: Strategy and Tactics1. Goals of Monetary Policy（1）The Price Stability GoalLow and stable inflationInflationNominal anchor to contain inflation expectationsTime-inconsistency problem（2）Other Goals of Monetary PolicyHigh employmentEconomic growthStability of financial marketsInterest-rate stabilityForeign exchange market stability2.Monetary TargetingAdvantages–Almost immediate signals help fix inflation expectations and produce less inflation –Almost immediate accountability Disadvantages–Must be a strong and reliable relationship between the goal variable and the targeted monetary aggregat e3.Inflation TargetingPublic announcement of medium-term numerical target for inflationInstitutional commitment to price stability as the primary, long-run goal of monetary policy and a commitment to achieve the inflation goalInformation-inclusive approach in which many variables are used in making decisions AdvantagesDoes not rely on one variable to achieve targetEasily understoodReduces potential of falling in time-inconsistency trapStresses transparency and accountabilityDisadvantagesDelayed signalingToo much rigidityPotential for increased output fluctuationsLow economic growth during disinflation4.Monetary Policy with an Implicit Nominal AnchorThere is no explicit nominal anchor in the form of an overriding concern for the Fed.Forward looking behavior and periodic “preemptive strikes”The goal is to prevent inflation from getting started.Advantages–Uses many sources of information–Avoids time-inconsistency problemDisadvantages–Lack of transparency and accountability–Strong dependence on the preferences, skills, and trustworthiness of individuals in charge–Inconsistent with democratic principles5.Tactics: Choosing the Policy InstrumentTools–Open market operation–Reserve requirements–Discount ratePolicy instrument (operating instrument)–Reserve aggregates–Interest rates–May be linked to an intermediate targetInterest-rate and aggregate targets are incompatible (must chose one or the other).6.Linkages Between Central Bank Tools, Policy Instruments, Intermediate Targets, and Goals of Monetary Policy(中间⽬标是超级重点，死活都要背下来)Chapter19:The Demand for Money1.Velocity of Money and The Equation ofExchangeV=P*Y/MM*V=P*Y2.Quantity Theory of Money DemandSO: Demand for money is determined by:The level of transactions generated by the level of nominal income PYThe institutions in the economy that affect the way people conduct transactions and thus determine velocity and hence k 3.Keynes’s Liquidity Preference TheoryTransactions motivePrecautionary motiveSpeculative motiveVelocity is not constant:4.Friedman’s Modern Quantity Theory of Money(记住该公式及其含义)5.Differences between Keynes’s and Friedman’s Model (cont’d)Friedman–Includes alternative assets to money–Viewed money and goods as substitutes–The expected return on money is not constant; however, r b – r m does stay constant as interest rates rise–Interest rates have little effect on the demand for moneyFriedman (cont’d)–The demand for money is stable–velocity is predictable–Money is the primary determinant of aggregate spendingChapter23：Transmission Mechanisms of Monetary Policy: The Evidence1.Framework(1)Structural Modelwhether one variable affects anotherTransmission mechanism–The change in the money supply affects interest rates–Interest rates affect investment spending–Investment spending is a component of aggregate spending (output) Advantages and Disadvantages(2)Reduced-FormAnalyzes the effect of changes in money supply on aggregate output (spending) to see if there is a high correlation Advantages and Disadvantages2.Transmission Mechanisms of Monetary Policy(1)Asset Price EffectsTraditional interest rate effectsExchange rate effects on net exports...(2)Credit ViewChapter24:Money and Inflation1.meaning of inflation(死活背下来)extremely high for a sustained period of time, its rate of money supply growth is also extremely highMoney Growth–High money growth produces high inflationFiscal Policy–Persistent high inflation cannot be driven by fiscal policy aloneSupply Shocks–Supply-side phenomena cannot be the source of persistent high inflation ?Conclusion: always a monetary phenomenon 2.Origins of Inflationary Monetary PolicyCost-push inflation–Cannot occur without monetary authorities pursuing an accommodating policy ?Demand-pull inflationBudget deficits–Can be the source only if the deficit is persistent and is financed by creating money rather than by issuing bondsTwo underlying reasons–Adherence of policymakers to a high employment target–Presence of persistent government budget deficits3.The Discretionary (Activist)/ Nondiscretionary (Nonactivist) Policy Debate（1）Advocates of discretionary policy：regard the self-correcting mechanism as slowPolicy lags slow activist policy（2）Advocates of nondiscretionary policy:believe government should not get involvedDiscretionary policy produces volatility in both the price level and output。

Chapter 13一．Chapter Summary1. Liner transport is the import transport of cargoes from one seaport to another along regular maritime routes according to a schedule. Liner rates usually include the stevedoring charges for loading and unloading.2. Liner transport freight covers basic freight and various kinds of surcharges. Basic freight may be collected according to weight, measurement, weight or measurement, ad, val., weight/measure or ad val. Surcharges include bunker adjustment factor, port surcharges, transshipment surcharges, heavy lift and long length additional, etc.3. Charter transport is a tramp service, picking up cargo only when it is chartered(hired)from the ship owner. There are two types of charter transport’ voyage charter and time charter.4. Under a voyage-charter party, the vessel remains under the control of the ship owner who is responsible for equipping and manning the vessel. Some terms used specially in voyage charter-party are: liner terms, FI(Free In), FO(Free Out), FIO(Free In and Out), lay days, dispatch money and demurrage.5. Time charter means the ship owner agrees to charter a vessel to the charter for a specified period of time.6. Rail transport is a major mode of transport in terms of capacity, only second to ocean transport. It is popular in multimodal transport and transshipment and widely used in landbridges.7. Air transport has the benefits of faster delivery, better security, less packaging and lower insurance, though it is generally perceived as expensive. There are three types of air transport services: schedule airline, chartered carriers, and consolidated consignments by freight forwarders.8.Intermodal transport involves the transport of freight in an intermodal container or vehicle, using multiple modes of transport(rail, ship, and truck), without any handling of the freight itself when changing modes.9. Containerization has the advantages of lowing charges, risks and improving efficiency. The modes of container services include CY/CY,CY/CFS,CFS/CY and FS/CFS. Container capacity is measuredin twenty-foot equivalent units(TEU, or sometimes teu). Most containers today are of the 40-ft(12.2m)variety and are known as 40-foot containers.10. The three functions performed by a bill of lading are: receipt for the goods, evidence of the contract of carriage and document of title to the goods. There are a number of different types of bill of lading including shipped (on board) B/L, received for shipment B/L, clean B/L and unclean B/L, straight B/L, blank B/L and order B/L, direct B/L, transshipment B/L, through B/L, liner B/L,charter-party B/L, container B/L, long form B/L, short form B/l, on deck, B/L, stale B/L, ante-datedB/L and advanced B/L.11. The three rules governing bill of lading are the Hague, Hague-Visby and Hamburg Rules, The Hague Rules were generally well received and have been adopted 58 maritime nations. There are some weakness of the Hague Rules. The Hague-Visby Rules 1968 made some important amendments to the Hague Rules. Hamburg Rules drafted in 1978 and came into force on November 1,1992, and several major amendments were made in the Rules.12. Sea waybill is receipt or the goods, an evidence of contract of carriage, but it is not a document of title. The functions of air waybill are the same as sea waybill. Multimodal transport documents evidence the contract of carriage of goods by at least two modes of transport.13. Shipment clause usually includes time of shipment, port(place) of shipment and destination, partialshipment and transshipment,etc. 二．Review QuestionsA. Brief define the concepts1. liner transport2. voyage charter3. charter-party4. lay days5. dispatch money6. demurrage7. time charter8. landbridge transport9. Intermodal transport(multimodal transport)10. Bill of lading11.shipped B/L12. Received for shipment B/L13. Clean B/L14.unclean B/L15.straight B/L16.blank B/L17.order B/L18.blank endoresment19.direct B/L20.transshipment B/L21.through B/L22. Liner B/L23.charterparty B/L24.container B/L25.long form B/L (or blank back B/L)27. On deck B/L28.stale B/L29.ante-dated B/L30,advanced B/L31.sea waybill32.Air waybillB.Questions and problems1.What are the functions performed by ocean Bs/L?2.In international trade ,why do the importer usually require the exporter to provide "clean on board B/L made out to order and blank endorsed"?3.What are the differences between a "through B/L"and a "multimodal transport document"?4.What is the virtue of containerization?C.Multiple-choice questions1.The most commonly used mode of transport in international trade is______a .air transport.b . road transport c.ocean transport d.railway transport2.If an item is marked with "M" in the tariff , the the liner rate for this item is collected on ____a. its unit. b .its weight c. its capacity d. its measurement3.FIO in the voyage charter-party means that the shipowner is ____a .only responsible for the charges of loadingB. Only responsible for the charges of unloadingC. Responsible for both the loading and unloading chargesD.responsible neither for the loading charges nor for the unloading charges.4.Liner terms in the voyage charge-party means that the shipowner is _____a .only responsible for of loading chargesB. Only responsible for unloading chargesC. Responsible for both the loading and unloading chargesD.responsible neither for the loading charges nor for the unloading charges.5. In voyage charter ,the shipowner is only responsible for loading under____a . FI b. FO c.FIO d. Liner terms6. Lay days are commonly expressed as ____a. Running daysb. Working daysc. Weather working daysd. Eight hour's working days7.Which of the following modes provides door-to-door container service or house-to-house container service?a.CY/CY container serviceb.CY/CFS container servicec.CFS/CY container serviced.CFS/CFS container service8.Container capacity is measured in ___A.FEU(Forty-foot Equivalent Units)b.TEU(Twenty-foot Equivalent Units)C.EEU(Eight-foot Equivalent Units)d.NEU(Nineteen-foot Equivalent Units)9.The document which can be transferred by endorsement is ____A.rail waybillB.Air waybillC.Sea waybillD.Order bill of lading10.Which of the following are NOT rules governing bill of lading?a.The Hague Rulesb.The Hague-Visby Rulesc.The Hamburg Rulesd.The New York Rules11. In the filed of consignee of a B/L ,"To order of ABC CO.Ltd"is marked . This B/L is____A.a straight B/LB.A blank B/LC. An order B/LD. A direct B/L12.Marine Bs/L perform a number of functions except____A. Evidence of the contract of carriageB. Receipt for the goods shippedC. Doucment of title to the goodsD. Non-negotiable document13.Which of the following terms on the B/L shows that the Bill of Lading is a clean B/L?A. One carton shortB. Insufficient packingC. In apparent good order and condituionD. Miss safety seal14.The issuance of ___is unlawfulA. Stale Bs/LB. On deck Bs/LC. Ante-date Bs/LD. Charter-party Bs/L15. The air freight forwarder assembles a number of individual shipments into one consignment and dispatched them on one air waybill .This type of air transport service is called____A. ConsolidationB. Scheduled airlineC. Chartered carrierD. Air express serviceD.True or false questions1.Ocean transport is a very fast mode of transport.2.FIO indicates that the shipowner is responsible for the costs of loading goods onto the vessel and unloading goods from the vessel.3.Time charter generally dose not include loading and unloading costs in the charter rate.4.In voyage charter ,the vessel is under the control of the charterer who is responsible for equipping and manning the vessel.5.A "B/L blank endorsed"refers to the B/L without any endorsement6.All bills of lading are transferable7.A bill of lading with a notation of "insufficient packing"is a foul bill of lading8.A short form bill of lading is usually not acceptable9.According to the GISG, in the absence of terms as to whether transshipment is allowed or not in the contract ,transshipment is to construed as allowed.10.Time charter means that the charterer hires the vessel for a period of time without crew11.Dispatch money and demurrage clause normally appear in the time charter-partyE.Calculationpany A exported 200 cartons of Goods X to Australia .The gross weight and measurement for each carton was 80kg and 100cm*4cm*25cm respectively.Suppose that the freight for the goods was calculated on W/M. The basic was US$80 per freight ton .Surcharges including 10% of port surcharges nd 15%of transshipment surcharges were also collected .How much should Company A pay for the freight?pany A exported 20 metric tons of Goods X to Japan . The goods were packed in cartons each containing 20 kilograms. The total gross weight of this batch of goods was 22060 kilograms and themeasurement of each carton was 42cm*28cm*25cm. The export price of the goods was US$570 per M/T CFR Kuwait. The freight was collected on W/M, the basic freight rate was US$70 ,and port surcharges were 20%.Calculate the FOB price for the exports.V. Answers to review questionsA. Briefly define the concepts1.liner transport:The transport of cargoes from one seaport to another regular maritime routes according to a schedule.2.Voyage charter :Transport vessel or vehicle charter for one or a specified number of trips(voyages)3.Charter-party:Written contract between the shipowner and the chartery days:Also called lay time .The number of days allowed by the ship owner to load or unload cargo without incurring demurrage or late charges5.Dispatch money: When so agreed in the charter-party ,this is paid by the shipowner to the charterer as a result of the vessel completing loading or discharging before the stipulated time6.Demurrage :Penalty paid by the charter to the shipowner for exceeding lay days in loading or unloading.7.Time charter :Transport vessel or vehicle charter for a fixed period instead of for a certain number of voyages or trips.ndbridge transport :Transportation from one seaport to another by railway across continents instead of by ocean ship.9.Intermodal transport (multimodal transport):Transport of freight in an intermodal container or vehicle ,using multiple modes of transport(rail,ship ,and truck),without any handing of the freightitself when changing modes10.Bill of landing (B/L):A transport document issued by an ocean carrier to a shipper with whom the carrier has entered into a contract for the carriage of goods.11.Shipped B/L:B/L issued by the shipping company after the goods are actually shipped on board the designated vessel12.Received for shipment B/L: A received for shipment B/L arises where the word "shipped"dose not appear on the bill of lading. It merely ackonwledges that the goods have been received by the carrier for shipment.13.Clean B/L：B/L that is free from any adverse remarks,made by the shipping company, about the condition ,packaging ,or quantity of the goods being shipped.14.Unclean B/L:B/L with adverse remarks or notations (called "clauses")by the carrier that the goods received for shipping (or their packaging )look wet, or otherwise in doubtful condition ,or not ofcorrect quantity.15.Straight B/L:B/L with designated consignee16.Blank B/L:Also called Open B/L or Bearer B/L ,means that there is no definite consignee of the goods17.Order B/L :B/L that the goods are consigned or destined to the order of a named person18.Blank endorsement: An open endorsement that carries only the signature of the endorser and dose not specify in whose favor it is made (who is the endorsee)19.Direct B/L: B/L that indicates the goods are shipped from the port of loading direct to the port of destination without involving transshipment.20.Transshipment B/L:B/L that indicates the goods need to be transshipped at an intermediate port21.Through B/L:B/L issued for containerized door-to door shipments that have to use different shipsand /or different means of transport(aircraft, railcars, ships ,trucks,etc.)from origin to destination .Unlike in case of a multimodal Bill Of Lading, the principal carrier or the freight-forwarder (whoissued the through B/L)is liable under a contract of carriage only for its own phase of the journey, and acts as an agent for the carriers executing the other phases.22.Liner B/L:B/L issued by a liner company for shipment on scheduled port calls through scheduled routes.23.Charter-party B/L:B/L issued by the carrier (or its agent)based on the charter-party.24.Container B/L:B/L issued when the goods are conveyed by container25.Long form B/L:B/L more detailed with the terms and conditions of carriage which are printed onthe back of the page26.Short from B/L(or blank back B/L):An abbreviated type of B/L27.On deck B/L：B/L containing the notation that the goods have been loaded on the deck of the vessel28.Stale B/L:B/L presented to the consignee or buyer or its bank after the stipulated expiry date of presentation or after the goods are due the port of destination29.Ante-dated B/L:B/L which is dated before the date on which it is issued30.Advanced B/L:B/L issued before the shipment hasn't yet been effected31.Sea waybill:A non-negotiable document that constitutes evidence of the contract of carriage and of the receipt of the goods by the carrier32.Air waybill :The consignment note used for the carriage of goods by airB.Questions and problems1. The B/L performed as a receipt for the goods, an evidence of contract of carriage and document of title to the goods.1) Receipt for goods: The bill of exchange acts as a receipt for the goods received. A bill oflading describes the goods put on board a vessel ,states the quantity ,and their condition2) Evidence of the contract of carriage: The B/L is an evidence of the contract of carriagebetween the shipper and the carrier .The bill becomes conclusive evidence of the terms of the contract of carriage once it is negotiated to a good faith third party.3) Document of title to the goods : The named consignee or the holder of a bill of loading ,provided he has receiver it in good faith through due negotiation , has a claim to title and ,by surrendering the bill ,to delivery of the goods2."Clean on board B/L made out to order and blank "endorsed" is a B/L issued when the goods are actually shipped on board the designated vessel and it is free from any adverse remarks.Moreover, it is a negotiable instrument and can be transferred by only carring the signature of the endorser. As such , the importer is ensured that goods had been shipped on board and were in apparent good order and condition when the shipment was effected and the B/L is easy to be transferred.3.Multimodal transport document could be regarded as an extension of the through bill of lading . The essential difference is that under a through bill of lading , the principal carrier concludes several separate contracts carriage for subsequent segments of the transport as agent for the shipper or as agent for the on-carriers . It doses not normally accept responsibility for segments undertaken by the other carriers involved. The multimodal transport document goes a step further . Under this contract of carriage,the multimodal transport operator or freight forwarder takes responsibility as pricipal for the entire carriage. The multimodal transport operator may in fact offer a complete service but often the principal carrier will subcontract with other carriers.It does this not as an agent of the shipper but as the principal party to the subcontracts. So far as the shipper is concerned it can rely on one contract ofcarriage withe the multimodal transport operator4.The virtue of containerization is that by simplifying and speeding up the cargo-handling process at each transfer point , it minimizes interruptions and restores as many efficiencies as possible.C.Multiple-choice questions1.c2.d3. d4.c5.b6.c7.a8.b9.d 10.d 11.c 12,d 13.c 14.c 15.aD.True of false questions1.F2.F3.T4.F5.F6.F7.T8.F9.F 10.F 11.FE.Calculation1. 1)Total weight:0.08M/T*200=16M/T2) Total volume:100/100*40/100*25/100*200=20cm^33)As the total volume was greater than the total weight, thus volume was the basis for collecting freight.4) Total freight=total weight *(basic freight rate +surcharges)2. 1)Total carton :20M/T*1000/20kg=1000cartons2) Total weight:22260kg/1000=22.26M/T3)Total volume :42cm/100*28cm/100*25cm/100*1000=29.4cm^34) As the total volume was greater than the total weight, thus volume was the basis for collecting freight.5) Total freight=total volume *(basic freight rate +surcharges)=29.4*(70+70*20%)=US$2469.66)Freight per M/T=US$2469.6/20=I=US$123.487)FOB price=CFR-F=570-123.48=US$446.52。

Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 13 Financial Crises in Emerging Market Economies13.1 Dynamics of Financial Crises in Emerging Market Economies1) Financial crises generally develop along two basic pathsA) mismanagement of financial liberalization/globalization and severe fiscal imbalances.B) stock market declines and severe fiscal imbalances.C) mismanagement of financial liberalization/globalization and stock market declines.D) stock market declines and unanticipated declines in the value of the domestic currency. Answer: AAACSB: Reflective Thinking2) In emerging market countries, the deterioration in bank's balance sheets has more ________ effects on lending and economic activity than in advanced countries.A) negativeB) positiveC) affirmingD) advancingAnswer: AAACSB: Reflective Thinking3) All of the following might create problems from financial liberalization in emerging countries EXCEPTA) ineffective screening of borrowers.B) limits on risk-taking.C) lax government supervision of banks.D) lenders failure to monitor borrowers.Answer: BAACSB: Reflective Thinking4) The mismanagement of financial liberalization in emerging market countries can be understood as a severeA) principal/agent problem.B) asymmetric information problem.C) lemons problem.D) free-rider problem.Answer: AAACSB: Reflective Thinking5) Factors likely to cause a financial crisis in emerging market countries includeA) severe fiscal imbalances.B) decreases in foreign interest rates.C) a foreign exchange crisis.D) too strong oversight of the financial industry.Answer: AAACSB: Reflective Thinking6) The two key factors that trigger speculative attacks on emerging market currencies areA) deterioration in bank balance sheets and severe fiscal imbalances.B) deterioration in bank balance sheets and low interest rates abroad.C) low interest rates abroad and severe fiscal imbalances.D) low interest rates abroad and rising asset prices.Answer: AAACSB: Reflective Thinking7) Severe fiscal imbalances can directly trigger a currency crisis sinceA) investors fear that the government may not be able to pay back the debt and so begin to sell domestic currency.B) the government may stop printing money.C) the government may have to cut back on spending.D) the currency must surely increase in value.Answer: AAACSB: Reflective Thinking8) In emerging market countries, many firms have debt denominated in foreign currency like the dollar or yen. A depreciation of the domestic currencyA) results in increases in the firm's indebtedness in domestic currency terms, even though the value of their assets remains unchanged.B) results in an increase in the value of the firm's assets.C) means that the firm does not owe as much on their foreign debt.D) strengthens their balance sheet in terms of the domestic currency.Answer: AAACSB: Reflective Thinking9) A sharp depreciation of the domestic currency after a currency crisis leads toA) higher inflation.B) lower import prices.C) lower interest rates.D) decrease in the value of foreign currency-denominated liabilities.Answer: AAACSB: Reflective Thinking10) The key factor leading to the financial crises in Mexico and the East Asian countries wasA) a deterioration in banks' balance sheets because of increasing loan losses.B) severe fiscal imbalances.C) a sharp increase in the stock market.D) a sharp decline in interest rates.Answer: AAACSB: Application of Knowledge11) Factors that led to worsening conditions in Mexico's 1994-1995 financial markets includeA) failure of the Mexican oil monopoly.B) the ratification of the North American Free Trade Agreement.C) increased uncertainty from political shocks.D) decline in interest rates.Answer: CAACSB: Application of Knowledge12) Factors that led to worsening financial market conditions in East Asia in 1997-1998 includeA) weak supervision by bank regulators.B) a rise in interest rates abroad.C) unanticipated increases in the price level.D) increased uncertainty from political shocks.Answer: AAACSB: Application of Knowledge13) Factors that led to worsening conditions in Mexico's 1994-1995 financial markets, but did not lead to worsening financial market conditions in East Asia in 1997-1998 includeA) rise in interest rates abroad.B) bankers' lack of expertise in screening and monitoring borrowers.C) deterioration of banks' balance sheets because of increasing loan losses.D) stock market decline.Answer: AAACSB: Application of Knowledge14) Argentina's financial crisis was due toA) poor supervision of the banking system.B) a lending boom prior to the crisis.C) fiscal imbalances.D) lack of expertise in screening and monitoring borrowers at banking institutions.Answer: CAACSB: Application of Knowledge15) A feature of debt markets in emerging-market countries is that debt contracts are typicallyA) very short term.B) long term.C) intermediate term.D) perpetual.Answer: AAACSB: Analytical Thinking。