金融英语_刘文国第二版课后练习Exercises 01

金融英语_刘文国第二版课后练习Exercises07Answers for Chapter sevenⅠ Answer the following questions in English:1.What is mean about debt financing?Debt financing means borrowing money that is to be repaid over a period of time, usually with interest. Debt financing can be either short-term （full repayment due in less than one year） or long-term (repayment over more than one year).2.What is equity financing?Equity financing describes an exchange of money for a share of business ownership. This form of financing allows you to obtain funds without incurring debt; in other words, without having to repay a specific amount of money at any particular time.3.Why does a company’s organizational form influence people who willbe to invest company’s business?The specific types of equity financing available to a company, to some extent, determined by the organizational form of the company because business forms involve a wide spectrum of other important issues such as the need to attract good business managers, tax considerations and the degree of personal risk.4.How many advantages for a partnership?There are three advantages for a partnership as the following: Inexpensive and simple to form and maintainFavorable tax treatmentSharing of expertise and risk5.How many disadvantages for a partnership?There are three advantages for a partnership as the following: Personal liabilityLimited transferability of ownershipLimited financing options6.What is the major disadvantage to equity financing?The major disadvantage to equity financing is the dilution of your ownership interests and the possible loss of control that mayaccompany a sharing of ownership with additional investors.7.Why does some one say debt financing is attractive?Debt financing is attractive because you do not have to sacrifice any ownership interests in your business, interest on the loan is deductible, and the financing cost is a relatively fixed expense. 8.What are the disadvantages of an LLC?The disadvantages of an LLC are the statutory formalities that must be followed and the expenses that accompany compliance with thoseformalities, as well as several unresolved legal and tax issues (e.g., multi-state transactions, whether single-member LLC are allowed, and conflicts between state LLC laws).Ⅱ Fill in the each blank with an appropriate word or expression:1.Equity financing describes an exchange of money for a share ofbusiness ownership. This form of financing allows you to obtain funds without incurring debt; in other words, without having to repay a specific amount of money at any particular time.2.Financing is categorized into two fundamental types: debt financingand equity financing.3.The effect of selling a large percentage of the ownership interestin your business may mean that your own investment will be short-term, unless you retain a majority interest in the business and control over future sale of the business.4.The business enters into a kind of contract with the state (called acorporate charter) in which the business agrees to abide by thegoverning state regulations, in return for the state's agreeing to treat the business as a separate legal entity for legal liability and tax purposes.5. A limited partnership is a partnership that requires only onepartner to assume personal liability for the business's liabilities (the general partner).6.The business must have at least one general partner who isresponsible for overseeing operations and for making daily management decisions.Ⅲ Translate the following sentences and passage into English:1.企业融资是指企业在发展扩张中筹集所需资金的行为。

Exercises twelveI. Answer following questions1.What does stock mean?A type of security that signifies ownership in a corporation representsa claim on part of the corporation's assets and earnings.2. What does dividend mean?The dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the dollar amount each share receives (dividends per share). It can also be quoted in terms of a percent of the current market price, referred to as dividend yield.3. What Does Equity Mean?A stock or any other security represents an ownership interest. On a company's balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses), also referred to as "shareholders' equity". In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor's portfolio.4. Why does a company issue stock?The reason is that at some point every company needs to raise money. To do this, companies can either borrow it from somebody or raise it by selling part of the company, which is known as issuing stock.5.How to make money for investors if the firm no divident pay? Without dividends, investors just can make money on a stock only through its appreciation in the open market.6.Where can stocks be traded?Most stocks are traded on exchanges, which are places where buyers and sellers meet and decide on a price.7. What kinds of risk do stock-investors want to face?There is no obligation for firms to pay out dividends and any stock may go bankrupt, in which case your investment is worth nothing.8. What is the purpose of a stock market?The purpose of a stock market is to facilitate the exchange of securities between buyers and sellers, reducing the risks of investing.Ⅱ Fill in the each blank with an appropriate word or expression:1. Stock is a share in the ownership of a company. Stock represents a claimon the company's assets and earnings.2. The management of the company is supposed to increase the value of the firm for shareholders. If this doesn't happen, the shareholders can vote to have the management removed, at least in theory.3. Common stock yields higher returns than almost every other investment. This higher return comes at a cost since common stocks entail the most risk.4. Why do stock prices change? The best answer is that nobody really knows for sure. Some believe that it isn't possible to predict how stock prices will change, while others think that by drawing charts and looking at past price movements, you can determine when to buy and sell.5. A bull market is when everything in the economy is great, people are finding jobs, gross domestic product (GDP) is growing, and stocks are rising.6. Understanding supply and demand is easy. What is difficult to comprehend is what makes people like a particular stock and dislike another stock.Ⅲ Translate the following sentences and passage into English:1.新股的发行价总是超过面值的，记录在公司帐上的这个差叫附加实缴资本，也叫资本公积。

Exercises 17Ⅰ. Answer the following in English1.Carefully describe a futures contract.A futures contract is a binding agreement between a seller and abuyer to make (seller) and to take (buyer) delivery of the underlying commodity (or financial instrument) at a specified future date with agreed upon payment terms.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'3.Describe the role of the clearinghouse in futures trading.The clearinghouse, an agency or separate corporation of a futures exchange, is responsible for settling trading accounts, collecting and maintaining margin monies, regulating delivery and reporting trade data. The clearinghouse becomes the buyer to each seller (and the seller to each buyer) 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.Hedgers are interested in the products of the futures contracts.They can be producers, like farmers, mining companies and oil drillers. Or they can be users, like bankers, paper mills and oil distributors. In general, producers sell futures contracts while users buy them. Speculators, trade futures strictly to make money.Typically, speculators trade futures contracts, but never use the commodity itself.5.Give a brief description of the history of futures.The history of futures trading is, in a sense, two histories, both focused on how people have tried to improve the effectiveness of the commercial marketplace. The early story is a tale of how people in an agrarian society used forward contracts (agreements to buy now, but pay and deliver later) as a means of getting farm commodities efficiently from producers to consumers, at established prices and delivery terms, and how those forward contracts evolved into futures contracts. The present day story explains how the futures industry reinvented itself in the latter part of the twentieth century, essentially by redefining the meaning of “commodity,” so that it could accommodate the needs of complex financial markets in a society whose economy was no longer based primarily on agriculture.6.What is key difference between forward and futures?Basically, forward and futures contracts operate in a similar mannerby allowing people to buy or sell a particular type of asset at aspecific time at a specified price. However, the particular detailsof these contracts are quite different.One of the key differences is that futures contracts are traded onthe exchange and are based on standard criteria. Forward contracts,on the other hand, are agreements made privately between two parties.Because of this, there is more flexibility in the terms andconditions.Another issue surrounding these differences is that of security.Because of the private nature of the agreement in forward contracts,there is no guarantee that a party will not default. However, becausefutures contracts have clearing houses, the agreement is guaranteed.A clearing house is a third party who guarantees the transaction.To understand the differences, it is necessary to clarify the exactnature of both futures contracts and forward contracts.Essentially, a futures contract is a contractual agreement made tobuy or sell a specific product or service at a pre-determined pricein the future. The contract specifies the quality and quantity of theproduct or service and are standardized to allow trading on a futuresexchange.A forward contract is a cash market transaction where the contract ismade but the delivery of the specific product or service is postponed.The price is agreed upon at the time the contract is made. Often, afarmer may use a forward contract to ensure a good price for hisproduce.Ⅱ. Fill in the each blank with an appropriate word or expression1.Futures are contractual agreements made between two parties through aregulated futures exchange. Each futures contract specifies the and quality of the item, expiration month, the time of delivery and virtually all the details of the transaction except price whichthe two parties negotiate based on current market conditions.2. The clearinghouse, an agency or separate corporation of a futuresexchange, is responsible for settling trading accounts, collecting and maintaining margin monies, regulating delivery and reportingtrade data.3. A futures contract is an agreement to purchase or sell a commodityfor delivery in the future: (1) at a price that is determined at of the contract; (2) which obligates each party to the contract tothe contract at the specified price; (3) which is used to assume orshift price risk; and (4) which may be satisfied by delivery oroffset.4. The key to any hedge is that a futures position is taken oppositeto the position in the cash market. That is, the nature of market position determines the hedge in the futures market.5. Currency futures are standardized contracts that trade likeconventional commodity futures on the floor of a futures exchange.6. These orders, from companies, individuals, and even market-makingcommercial banks, are communicated to the floor of the futuresexchange.Ⅲ. Translate the following sentences into English1.商品生产者和经营者在生产和经营过程中，时刻面临着价格波动的风险。

Exercises 15Ⅰ Answer the following questions in English:1.What is swaps?A swap is an agreement between two parties to exchange sequences of cash flows for a set period of time2.Where can swaps be changed?Swaps are customized contracts that are traded in the over-the-counter (OTC) market between private parties.3.Who would use a swap?Some companies have a comparative advantage in acquiring certain types of financing. However, this comparative advantage may not be for the type of financing desired. In this case, the company may acquire the financing for which it has a comparative advantage, then use a swap to convert it to the desired type of financing.4. what is an interest swaps?An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party's stream of cash flows. Interest5.What does comparative advantage mean?A situation in which a country, individual, company or region can producea good at a lower opportunity cost than a competitor.6. What is a swaption?A Swaption is an option on a swap.7.What is plain vanilla" interest rate swap? It is the most common and simplest swap, in this swap, Party A agrees to pay Party B a predetermined, fixed rate of interest on a notional principal on specific dates for a specified period of time.8.How to Exit a Swap Agreement?When one of the swap parties needs to exit the swap prior to the agreed-upon termination date, it just like an investor selling an exchange-traded futures or option contract before expiration.Ⅱ Fill in the each blank with an appropriate word or expression:1.Swaps are not exchange-traded instruments. Instead, swaps are customized contracts that are traded in the over-the-counter (OTC) market between private parties.2. In a plain vanilla swap, the two cash flows are paid in the same currency. The specified payment dates are called settlement dates, and the time between is called settlement periods.3. The normal business operations of some firms lead to certain types of interest rate or currency exposures that swaps can alleviate.4. An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party's stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities.5. Today, interest rate swaps are often used by firms to alter their exposure to interest-rate fluctuations, by swapping fixed-rate obligations for floating rate obligations, or vice versa.6. Interest rate swaps expose users to interest rate risk and credit risk.Ⅲ Translate the following sentences and passage into English:1.互换是借款人和投资者用来控制风险的衍生金融工具。

金融英语_刘文国第二版课后练习Exercises04Exercises fourⅠ 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 witha reputable bank.2. What is commecial loan?Commercial loans are bank loans that are granted to different types of business entities. The commercial loan is often thought of in terms ofa short-term source of cash for a business.3.What is credit card?Credit card is any card that may be used repeatedly to borrow money or buy products and services on credit. Issued by banks, savings and loans, retail stores, and other businesses.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 current assets, after subtracting its liabilities. Sometimes referred to as operating capital, it is a valuation of the amount of liquidity a business or organization has for the running and building of the business.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?The 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 interest rate doesnot 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 scams involving bank drafts that are phony. Since printers are now socapable of creating very realistic appearing checks, people have been fooled into taking bank drafts that don’t truly have any value.6. Credit card use often becomes problematic when the holder accrues more debt than a regular monthly payment can cover.Ⅲ Translate the following sentences and passage into English: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。

Exercises 11Ⅰ Answer the following questions in English:1. What is NOT an advantage of a mutual fund? Da. 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? Ba. Global Fundb. Regional Fundc. Growth Fundd. Socially Responsible Funde. Green Fund3. What is the difference between a front end and back end load? Ca. 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 Above4. Most mutual funds have administration fees of what percent? Ba. 0%b. 0.5% - 2.5%c. 3% - 5%e. 6% - 10%5. Buying a mutual fund based on past performance is a good strategy.a. Trueb. False BD B C B BⅡ Fill in the each blank with an appropriate word or expression:1.There are, however, many different types of equity funds becausethere are many different types of equities.2.The idea of pooling resources and spreading risk using closed-endinvestments 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 partof our daily lives.4.Income is earned from dividends on stocks and interest on bonds. Afund pays out nearly all income it receives over the year to fundowners in the form of a distribution.5.If the fund sells securities that have increased in price, the fundhas a capital gain. Most funds also pass on these gains to investors in a distribution.6.There are many, many types of mutual funds. You can classify fundsbased on asset, investing strategy, region, etc.Ⅲ Translate the following sentences and passage into English:1．基金集合了一部分委托人的资金,并代表他们的利益进行有预设目的的投资。

金融英语_刘文国第二版课后练习Exercises08Answers for Chapter eightⅠ Answer the following questions in English:1.In what section of the balance sheet would one find patents andtrademarks?Patents and trademarks can be found in section intangible section.2.Which depreciation method bases depreciation expense for a givenperiod on actual use?The Straight-line depreciation method bases depreciation expense fora given period on actual use.3.Which financial statement is prepared as of a particular date ratherthan for a period ending on a particular date?The balance sheet is prepared as a particular date.4.Who has the primary responsibility for the financial statements?Manager has the primary responsibility for the financial statements. 5.At what value is land used in a business shown on the balance sheet?Land is shown on the balance sheet at historical value.6.Which of the following results from using the LIFO method ofinventory cost flows during a period of inflation?The result is higher costs of goods sold by using the LIFO method of inventory during a period of inflation.7.What reflects the net tax effects of the temporary differencesbetween the carrying values of assets and liabilities for financial reporting purposes and amounts used for income tax purposes?The deferred income taxes result from temporary differences intaxable and financial statement income.8.What is the cost of a fixed asset less its accumulated depreciation?It is the net value of the fixed assets.9.How are held-to-maturity securities reported on the balance sheet?It is reported as current assets on the balance sheet.10.How many types of inventories does a manufacturing firm list on itsbalance sheet?There are three types of inventories that the manufacturing firmlist on its balance sheet. Such as raw material, working-in-process and finished products.11.What does the FIFO inventory method assume about the first unitspurchased?The FIFO inventory method assumes that the first units purchasedshould be first in use in order to reflect the historical cost of goods sold.12.What does a company record when it receives a cash payment forservices before it performs the services?The company should record it as a liability (unearned revenue) increased and meanwhile cash increased.Dr. CashCr. Liability (Unearned revenue)Ⅱ Fill in the each blank with an appropriate word or expression:1.Basic earnings per share are computed by dividing net income bynumber of outstanding shares.2.Financial statements must be prepared in accordance with generallyaccepted accounting principles.3.The annual depreciation expense using the double-declining-balancemethod is equal to multiply the twice of straight-line rate by the book value at the beginning of the year.4.Financial instruments that derive their value from an underlyingasset or index are called Derivatives.5.Accounts receivable are reported on the balance sheet at their netrealizable value.6.The book value of property, plant, and equipment is the purchaseprice minus accounting depreciation expense.7.The reporting of inventory values at the lower of cost or marketreflects the accounting principle or convention of historical.Ⅲ Translate the following sentences and passage into English:1.公司财务报表既反映了公司的财务状况，同时也是公司经营状况的综合反映。

Unit 1 review exercises1. Legal tender includes ( )A. coins onlyB. notes onlyC.notes and coinsD. notes, coins and checks2. Which of the following are not belonged to indirect instruments of central bank?A. open market operationB. rediscount businessC. required reserve systemD. credit ceilings3. The main asset on a bank balanced sheet isA. loans and overdraftsB. depositsC. capital and reservesD. cash4. Which of the following is not belonged to the functions of the central bank according to the law on the PBC?A. issuing notes and coinsB. regulating financial marketsC. discounting practicesD. offering payment &settlement services5. At present, the central bank of China has not adopted ( ) as its major monetary policy tool.A. required reserve ratioB. credit ceilingsC. interest rate adjustmentD. open market operation6. The PBC is entitled by the law to conduct monetary policy under the leadership of ( ).A. the Finance MinistryB. the State CouncilC. China Banking Regulatory CommissionD. the SAFE7. It was not until ( ) the PBC turned to be a central bank to the real meaning.A. 1948B. 1984C. 1994D. 19958. In 1994, three policy banks were established in China in order to ( )A. facilitate the separation of banking business from securities and insurance businessB. facilitate the separation of commercial banking regulation from securities and insurance regulationC. facilitate the separation of commercial banking regulation from policy banking regulationD. facilitate the separation of policy making practices from policy banking operation9. Which of the following is one of the roles played by the banking sector in China?A. aggregating risks and eliminating themB. maintaining the stability of the inter national economyC. keeping a stable and efficient financial orderD. formulating and implementing monetary policyUnit 2 Supervision of banking and financial institutions1. Banking supervision(1) The role of banksA. Occupying a central place in the payments mechanism for households, government and business.B. Accepting deposits which constitute part of society’s financial assets.C. Banks in market economy play a major role in the allocation of financial resources by intermediating.(2) Importance of banking supervisionA. Strong and effective banking supervision is an essential component of strong economic environment.B. Providing a public good which may not be readily available in the marketplace.C. Banking supervision is critical to financial in any country.D. banks are provided with official protection. 银行受到官方保护。

金融英语综合阅读第二版课后答案1、—Does your grandpa live ______ in the country?—Yes. So I often go to visit him so that he won’t feel ______. （）[单选题] *A. alone; aloneB. lonely; lonelyC. lonely; aloneD. alone; lonely(正确答案)2、100．The bus can ______ you to the Great Wall. [单选题] *A．leaveB．take(正确答案)C．changeD．spend3、Betty works as a waitress to earn money for her education. [单选题] *A. 服务员(正确答案)B. 打字员C. 秘书D. 演员4、It' s a pity that we have to stay at home when we are having（）weather. [单选题] *A. so fineB. so fine aC. such fine(正确答案)D. such a fine5、John had planned to leave, but he decided to stay in the hotel for（）two days because of the heavy rain. [单选题] *A. otherB. the otherC. another(正确答案)D. others6、58．—How much is Lucy's skirt?—She________320 yuan for it. I think it's a little dear. [单选题] *A．tookB．paid(正确答案)C．spentD．bought7、Generally speaking, it is _______ to ask a woman’s age in western countries. [单选题] *A. possibleB. importantC. not polite(正确答案)D. polite8、--What would you like to say to your _______ before leaving school?--I’d like to say"Thank you very much!" [单选题] *A. workersB. nursesC. waitersD. teachers(正确答案)9、Don’t ______. He is OK. [单选题] *A. worriedB. worry(正确答案)C. worried aboutD. worry about10、He has bought an unusual car. [单选题] *A. 平常的B. 异常的(正确答案)C. 漂亮的D. 废弃的11、Seldom _____ in such a rude way. [单选题] *A.we have been treatedB. we have treatedC. have we been treated(正确答案)D. have treated12、—Tony, it’s cold outside. ______ wear a jacket?—OK, mom.（）[单选题] *A. Why not(正确答案)B. Why don’tC. Why did youD. Why do you13、If it _______ tomorrow, I won’t go there. [单选题] *A. rains(正确答案)B. is rainingC. will rainD. would rain14、Li Lei often takes a walk early ______ the morning.（）[单选题] *A. atB. onC. in(正确答案)D. for15、John Smith is _______ of the three young men. [单选题] *A. strongB. strongerC. the strongerD. the strongest(正确答案)16、It’s windy outside. _______ your jacket, Bob. [单选题] *A. Try onB. Put on(正确答案)C. Take offD. Wear17、23．Susan doesn’t like cartoons. She would rather ______ Space War”. [单选题] *B．seesC．seeingD．to see18、14．He is cutting the apple ________ a knife. [单选题] *A．inB．toC．with(正确答案)D．by19、34．My mother isn't in now, but she will be back ______ ten minutes. [单选题] *A．forB．beforeC．in(正确答案)D．at20、They lost their way in the forest, and _____ made matters worse was night began to fall. [单选题] *A. thatB. itD. which21、Tom’s mother will let him _______ traveling if he comes back?in five days. [单选题] *A. to goB. goesC. wentD. go(正确答案)22、_____ Lucy _____ Lily has joined the swimming club because they have no time. [单选题] *A. Not only; but alsoB. Neither; nor(正确答案)C. Either; orD. Both; and23、She has no idea of what the book is about. She_______ have read it carefully. [单选题]*A. Can’t(正确答案)B. mustn’tC. shouldn’tD. needn’t24、I usually read English _______ six o’clock _______ six thirty in the morning. [单选题] *A. from;?atB. from; to(正确答案)C. at; atD. at; to25、There _______ no water or milk in the fridge. [单选题] *A. is(正确答案)B. areC. hasD. have26、Miss Smith is a friend of _____. [单选题] *A. Jack’s sister’s(正确答案)B. Jack’s sisterC. Jack sister’sD. Jack sister27、—These shoes look cool. ______ are they?—They are on sale, only $（）[单选题] *A. How much(正确答案)B. How longC. How manyD. How soon28、37．—What will you be ___________?—I'm not sure. Maybe I'll be a doctor like my father. [单选题] *A．right nowB．in the future(正确答案)C．at onceD．at the moment29、3．Shanghai is my hometown. It’s ________ China. [单选题] *A．nearB．far away fromC．to the east ofD．in the east of(正确答案)30、If by any chance someone comes to see me, ask him to leave a _____. [单选题] *A. message(正确答案)B. letterC. sentenceD. notice。

Answers for Chapter TwoI.Answer the following questions in English:1. All sorts of things have been used as money at different times in different places, such as amber, beads, cowries, drums, eggs, feathers, gongs, hoes, ivory, jade, kettles, leather, mats, nails, oxen, pigs, quartz, rice, salt, thimbles, vodka, wampum and yarns. They are widely used for making payments and accounting for debts and credits.2. Money functions as a medium of exchange, a standard of value and a store of wealth.3. In the system of barter, one exchanges goods and services for other goods and services rather than using money. The main disadvantages of the barter system are: double coincidence of wants to be found (Both buyer and seller need each other's goods.), indivisible quantities; rates of exchange to be agreed upon.4. Two types of money are commodity money and fiat money.5. A modern bank is an institution that deals in money and its substitutes and provides other financial services.6. Banks create money in the economy by making loans. When a bank getsa deposit of $100, assuming a reserve requirement of 10 percent, the bank can then lend out $90. That $90 goes back into the economy, purchasing goods or services, and usually ends up deposited in another bank. That bank can then lend out $81 of that $90 deposit, and that $81 goes into the economy to purchase goods or services and ultimately is deposited into another bank that proceeds to lend out a percentage of it.7．If you go to the bank and demand your money, you'll get it.8. If everyone goes to the bank at the same time and demands their money(a run on the bank), there might be problem.9. The interest rate a bank charges its borrowers depends on both the number of people who want to borrow and the amount of money the bank has available to lend.10. Banks make money on the interest they charge on loans because that interest is higher than the interest they pay on depositors' accounts.II.Fill in each blank with a word or expression from the following box:1.in exchange for, save2.Separating, involved, plays3.a medium of exchange4.means5.serves as6.mediumⅢ. Translate the following sentences into English:1．There are two forms of money: commodity money and fiat money. The first money is commodity money.2．Money serves three major functions: medium of exchange, standard of value and store of wealth.3．The traditional businesses of banks are accepting deposits and extending loans. The main profits of banks come from the interest differences, fees income and investment profits.4．The interest rate is the price of capital and it is influenced by the supply and demand in the capital market.5．The funds rate is the interest rate that banks charge each other for short-term loans to meet their legal reserve requirements. 6．Banks create money in the economy by making loans. The amount of money that banks can lend is directly affected by the reserve requirement set by the Federal Reserve.Ⅳ.Translate the following passage into Chinese:1.到2004年9月美国商业银行的数量为7660家，这一点不同与其他国家。

Exercises 14Ⅰ. Answer the following in English1.Why use Options? There are two main reasons why an investor would useoptions: to speculate and to hedge.2.What are options? An option is a contract giving the buyer the right,but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date.3.How many types of options? There are two main types of options(American options and European options).4.What is a call option? A call option gives the holder the right tobuy an asset at a certain price within a specific period of time. Calls are similar to having a long position on a stock. Buyers of calls hope that the stock will increase substantially before the option expires.5.What is a put option? A put gives the holder the right to sell an assetat a certain price within a specific period of time. Puts are very similar to having a short position on a stock. Buyers of puts hope that the price of the stock will fall before the option expires.6.What is the function of stock option? Many companies use stock optionsas a way to attract and to keep talented employees, especially management. They are similar to regular stock options in that the holder has the right but not the obligation to purchase company stock.7.What is an option’s premium? An option's premium is its intrinsicvalue + time value.8.What is advantage of options? The advantage of options is that youaren't limited to making a profit only when the market goes up. Ⅱ. Fill in the each blank with an appropriate word or expression1.An option is a contract between a buyer and a seller that gives thebuyer the right—but not the obligation—to buy or to sell a particular asset (the underlying asset) at a later day at an agreed price. 2. A call gives the holder the right to buy an asset at a certain pricewithin a specific period of time. Calls are similar to having a long position on a stock. Buyers of calls hope that the stock will increase substantially before the option expires.3. A put gives the holder the right to sell an asset at a certain pricewithin a specific period of time. Puts are very similar to having a short position on a stock. Buyers of puts hope that the price of the stock will fall before the option expires.4.People who buy options are called holders and those who sell optionsare called writers; furthermore, buyers are said to have long positions, and sellers are said to have short positions.5.Many companies use stock options as a way to attract and to keeptalented employees, especially management.6.Intrinsic value is the amount in-the-money, which, for a call option,means that the price of the stock equals the strike price. Time value represents the possibility of the option increasing in value.Ⅲ. Translate the following sentences into English1.期权是一份和约，在这份合约中期权出售方授予期权的买方在规定的时间内从卖方购买或卖给卖方一定的产品的权利。

金融英语_刘文国第二版课后练习Exercises16Exercises 16Ⅰ. Answer the following question in English:1.What is the insurance?Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss.2.What is the premium?The fee paid by the insured to the insurer for assuming the risk is called the 'premium'.3.What is an insued?An insured is the person or entity buying the insurance.4.What ways do insurers make money?Insurers make money in two ways: (1) through underwriting, the process by which insurers select the risks to insure and decide how much in premiums to charge for accepting those risks and (2) by investing the premiums they collect from insured parties.5.What is reinsurance companis?Reinsurance companies are insurance companies that sell policies to other insurance companies, allowing them to reduce their risks and protect themselves from very large losses.6.What are claims and loss handing?claims and loss handling is the materialized utility of insurance; it is the actual "product" paid for, though one hopes it will never need to be used.7.What is auto insurance?Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company.8.What is redline?Redlining is the practice of denying insurance coverage in specific geographic areas, supposedly because of a high likelihood of loss, while the alleged motivation is unlawful discrimination.Ⅱ. Fill in the each blank with an appropriate word or expression1.The insurance rate is a factor used to determine the amount to becharged for a certain amount of insurance coverage, called the premium.2.An entity seeking to transfer risk (an individual, corporation, orassociation of any type, etc.) becomes the 'insured' party once risk is assumed by an 'insurer', the insuring party, by means of a contract, called an insurance 'policy'.3.In managing the claims handling function, insurers seek to balance theelements of customer satisfaction, administrative handling expenses, and claims overpayment leakages.4.Reinsurance is a type of insurance purchased by insurance companiesor self-insured employers to protect against unexpected losses.Financial reinsurance is a form of reinsurance that is primarily usedfor capital management rather than to transfer insurance risk.5.Insurance may also be purchased through an agent. Unlikea broker, whorepresents the policyholder, an agent represents theinsurance company from whom the policyholder buys. An agent can represent more than one company.6.Many independent inventors are in favor of patenting new insuranceproducts since it gives them protection from big companies when they bring their new insurance products to market.Ⅲ. Translate the following sentences and passage into Chinese:1.Health insurance provides coverage for medicine, visits to thedoctor or emergency room, hospital stays and other medical expenses.健康保险的保险范围包括药品, 门诊或急救,住院和其它医疗费用。

Exercises fiveI. Answer following questions in English1. How do central banks earn money?Central banks generally earn money by issuing currency notes and "selling" them to the public for interest-bearing assets, such as government bonds.2. What is primary responsibility of central bank?Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized-loan interest rates, and acting as a lender of last resort to the banking sector during times of financial crisis (private banks often being integral to the national financial system).3. What is central bank’s primary liability?Central bank's primary liabilities are the currency outstanding, and these liabilities are backed by the assets the bank owns.4.What is open market operations?Open market operations are the means of implementing monetary policy by which a central bank controls its national money supply by buying and selling government securities, or other financial instruments.5.What are the function of legal reserve requirements?The function of legal reserve requirements is to reduce the risk of banks overextending themselves and suffering from bank runs, as this could lead to knock-on effects on other banks.6.What is mean about M1 and M2?M1: currency in circulation + checkable deposits (checking deposits, officially called demand deposits, and other deposits that work like checking deposits) + traveler's checks. M1 represents the assets that strictly conform to the definition of money: assets that can be used to pay for a good or service or to repay debt. Although checks linked to checking deposits are gradually becoming less popular, debit cards linked to these deposits are becoming more popular. Like checks, debit cards, as a means to complete a transaction through their links to checkable deposits, can also be considered as a form of money.M2: M1 + savings deposits, time deposits less than $100,000 and money market deposit accounts for individuals. M2 represents money and "close substitutes" for money. M2 is a key economic indicator used to forecast inflation.7.Why do central banks establish reserve requirements for other banks? The reserve requirements can limit the money supply.8.Does the lower interest rate stimulate economy development?The lower interest rate stimulates investment because it declines apital cost.II.Fill in blank with suitable words and expressions1.Through open market operations, a central bank influences the moneysupply in an economy directly. Each time it buys securities, exchanging money for the security, it raises the money supply. Conversely, selling of securities lowers the money supply.2.Central banks generally earn money by issuing currency notes and"selling" them to the public for interest-bearing assets, such as government bonds.3.Typically a central bank controls certain types of short-term interestrates. These influence the stock and bond markets as well as mortgage and other interest rates.4.All banks are required to hold a certain percentage of their assetsas capital, a rate which may be established by the central bank or the banking supervisor.5.The mechanism to move the market towards a 'target rate' is generallyto lend money or borrow money in theoretically unlimited quantities, until the targeted market rate is sufficiently close to the target.6.Most countries control bank mergers and are wary of concentration inthis industry due to the danger of groupthink and runaway lending bubbles based on a single point of failure, the credit culture of the few large banks.Ⅲ Translate the following sentences and passage into English:1.中国人民银行运用的货币政策工具包括准备金率，中央银行基准利率，再贴现率，中央银行贷款，公开市场操作和其他由国务院规定的政策工具。

Exercises 10Ⅰ Answer the following questions in English:1.When is bond said to be selling at a premium and when is bond saidto be selling at a discount?When a bond trades at a price above the face value, it is said to be selling at a premium. When a bond sells below face value, it is said to be selling at a discount.2.What is the most important source of risk for bonds in general?Explain.Interest rates are the most important factor in the pricing of bonds, so interest rate will be most important source of risk.3.What is the major advantage for municipal bonds?The major advantage to municipal is that the returns are free from federal tax. Furthermore, local governments will sometimes make their debt non-taxable for residents, thus making some municipal bonds completely tax free.4.What is the coupon?The coupon is the amount the bondholder will receive as interest payments. It's called a "coupon" because sometimes there are physical coupons on the bond that you tear off and redeem for interest.5.What are callable bonds?A bond that can be redeemed by the issuer prior to its maturity.Usually a premium is paid to the bond owner when the bond is called.Also known as a "redeemable bond".6.How to classify fixed-income securities in general?In general, fixed-income securities are classified according to the length of time before maturity. These are the three maincategories:Bills - debt securities maturing in less than one year.Notes - debt securities maturing in one to 10 years.Bonds - debt securities maturing in more than 10 years.7.What are zero-coupon bonds?This is a type of bond that makes no coupon payments but instead is issued at a considerable discount to par value.8.What do bond brokers do for investors?Bond brokers support full service for investors, most bond transactions can be completed through a full service or discount brokerage.Ⅱ Fill in the each blank with an appropriate word or expression:1.Interest Rate Risk is the number one source of risk to fixed-incomeinvestors, because it’s the major cause of price volatility in the bond market.2.In the case of bonds, interest rate risk translates into market risk:The behavior of interest rate, in general, affects all bonds and cuts across all sectors of the market-even the U.S. Treasury market.3.When market interest rates rise, bond prices fall, and vice versa.And as interest rates become more volatile, so do bond prices.4.This is a type of bond that makes no coupon payments but instead isissued at a considerable discount to par value. For example, let's say a zero-coupon bond with a $1,000 par value and 10 years to maturity is trading at $600; you'd be paying $600 today for a bond that will be worth $1,000 in 10 years.5.Bonds have a number of characteristics of which you need to be aware.All of these factors play a role in determining the value of a bond and the extent to which it fits in your portfolio.6.In general, fixed-income securities are classified according to thelength of time before maturity.Ⅲ Translate the following sentences and passage into English:1.债券买卖是指交易双方以约定的价格买卖一定金额的债券并在规定的清算时间内办理债券款交割的交易方式。

金融专业英语第二版课后答案1、During the Spring Festival, people in Northern China usually eat _______ as a traditional Chinese food. [单选题] *A. pizzaB. dumplings(正确答案)C. hamburgersD. noodles2、The plane arrived at London airport _______ Wednesday morning. [单选题] *A. on(正确答案)B. atC. inD. for3、The little girl held _____ in her hand. [单选题] *A. five breadsB. five piece of breadsC. five piece of breadD. five pieces of bread(正确答案)4、Many people prefer the bowls made of steel to the _____ made of plastic. [单选题] *A. itB. ones(正确答案)C. oneD. them5、You have been sitting on my hat and now it is badly out of（）. [单选题] *A. dateB. shape(正确答案)C. orderD. balance6、You cannot see the doctor _____ you have made an appointment with him. [单选题] *A. exceptB.evenC. howeverD.unless(正确答案)7、There are trees on both sides of the broad street. [单选题] *A. 干净的B. 狭窄的C. 宽阔的(正确答案)D. 宁静的8、One effective（）of learning a foreign language is to study the language in its cultural context. [单选题] *A. approach(正确答案)B. wayC. mannerD. road9、62．--There is? ? ? ? ? sale on in the shop today. Let’s go together.--Please wait? ? ? ? ? ?minute. I’ll finish my homework first. [单选题] *A．a; theB．a; a(正确答案)C．the; aD．the; the10、We sent our children to school to prepare them for the time _____ they will have to work for themselves. [单选题] *A. thatB. when(正确答案)C. whileD. as11、We have ______ homework today. （）[单选题] *A. too manyB. too much(正确答案)C. much tooD. very much12、My English teacher has given us some _______ on how to study English well. [单选题] *A. storiesB. suggestions(正确答案)C. messagesD. practice13、31．That's ______ interesting football game. We are all excited. [单选题] *A．aB．an(正确答案)C．theD．/14、( )Keep quiet, please. It’s ________ noisy here. [单选题] *A. many tooB. too manyC. too muchD. much too(正确答案)15、—Look at those purple gloves! Are they ______, Mary?—No, they aren’t. ______ are pink. （）[单选题] *A. you; IB. your; MyC. yours; Mine(正确答案)D. you; Me16、The twins _______ us something about their country. [单选题] *A. told(正确答案)B. saidC. talkedD. spoke17、Neither she nor her friends ______ been to Haikou. [单选题] *A. have(正确答案)B. hasC. hadD. having18、I often _______ music from the Internet. [单选题] *A. download(正确答案)B. spendC. saveD. read19、It is reported（）three people were badly injured in the traffic accident. [单选题] *A. whichB. that(正确答案)C.whileD.what20、Everyone here is _______ to me. [单选题] *A. happyB. wellC. kind(正确答案)D. glad21、His mother’s _______ was a great blow to him. [单选题] *A. diedB. deadC. death(正确答案)D. die22、Grandpa pointed to the hospital and said, “That’s _______ I was born?”[单选题] *A. whenB. howC. whyD. where(正确答案)23、45．—Let's make a cake ________ our mother ________ Mother's Day.—Good idea. [单选题] *A．with; forB．for; on(正确答案)C．to; onD．for; in24、69．Online shopping is easy, but ________ in the supermarket usually ________ a lot of time. [单选题] *A．shop; takesB．shopping; takeC．shop; takeD．shopping; takes(正确答案)25、80．Thousands of ________ from other countries visit the village every year. [单选题] *A．robotsB．postcardsC．tourists(正确答案)D．bridges26、Chinese people spend _____ money on travelling today as they did ten years ago. [单选题] *A. more than twiceB. as twice muchC. twice as much(正确答案)D. twice more than27、How beautiful the flowers are! Let’s take some _______. [单选题] *A. photos(正确答案)B. potatoesC. paintingsD. tomatoes28、Don’t ______. He is OK. [单选题] *A. worriedB. worry(正确答案)C. worried aboutD. worry about29、His father always _______ by subway. [单选题] *A. go to workB. go to schoolC. goes to bedD. goes to work(正确答案)30、____ is standing at the corner of the street. [单选题] *A. A policeB. The policeC. PoliceD. A policeman(正确答案)。

金融学第二版课后答案英文版中国人民大学Bodie2_IM_Ch01CHAPTER 1 – Financial EconomicsEnd-of-Chapter ProblemsDefining Finance1. What are your main goals in life? How does finance play a part in achieving those goals? What are the major tradeoffs you face?SAMPLE ANSWER:Finish schoolGet good paying job which I likeGet married and have childrenOwn my own homeProvide for familyPay for children’s educationRetireHow Finance Plays a Role:SAMPLE ANSWER:Finance helps me pay for undergraduate and graduate education and helps me decide whether spending the money on graduate education will be a good investment decision or not.Higher education should enhance my earning power and ability to obtain a job I like.Once I am married and have children I will have additional financial responsibilities (dependents) and I will have to learn how to allocate resources among individuals in the household and learn how to set aside enough money to pay for emergencies, education, vacations etc. Finance also helps me understand how to manage risks such as for disability, life and health.Finance helps me determine whether the home I want to buyis a good value or not. The study of finance also helps me determine the cheapest source of financing for the purchase of that home.Finance helps me determine how much money I will have to save in order to pay for my children’s education as well as my own retirement.Major Tradeoffs:SAMPLE ANSWERSpend money now by going to college (and possibly graduate school) but presumably make more money once I graduate due to my higher education.Consume now and have less money saved for future expenditures such as for a house and/or car or save more money now but consume less than some of my friendsFinancial Decisions of Households2. What is your net worth? What have you included among your assets and your liabilities? Would you list the value of your potential lifetime earning power as an asset or liability? How does it compare in value to other assets you have listed?SAMPLE ANSWER:$ ____________ (very possibly negative at this point)Assets:Checking account balanceSavings account balanceFurniture/Jewelry (watch)Car (possibly)Liabilities:Student loansCredit card balanceIf renting, remainder of rental agreement (unless sublettingis a possibility)Car payments (possibly)Students typically don’t think about the high value of their potential lifetime earning power when calculating their net worth but for young people it is often their most valuable asset.3. How are the financial decisions faced by a single person living alone different from those faced by the head of a household with responsibility for several children of school age? Are the tradeoffs they have to make different, or will they evaluate the tradeoffs differently?A single person needs only to support himself and therefore can make every financial decision on his own. If he does not want health insurance (and is willing to bear the financial risks associated with that decision) then no one will be affected by that decision other than that single person. In addition, this person needs to make no decisions about allocating income among dependents. A single person is very mobile and can choose to live almost anywhere. The tradeoffs this individual makes generally concern issues of consuming (or spending) today versus saving for consumption tomorrow. Since this person is supporting only himself, the need to save now is less important than for the head of household discussed next.T he head of household with several children must share resources (income) among dependents. This individual must be prepared to deal with risk management issues such as how to be prepared for potential financial emergencies (such as a serious health problem experienced by a member of the family or home owners insurance in case of a fire or other mishap). Because there are more people in this household than with a single person, there are greater risks that someone will get sick or injured. Andbecause there are dependents, the wage earner(s) should think carefully about life and disability insurance. In addition, the family is not as mobile as the single individual. Because of the school age children, the family might want to live near “good schools” thinking that a stronger education will eventually help those children’s future well being and financial situation. Thus, the tradeoffs for the head of household are more complex: more money is needed to consume today (he or she needs to support more dependents), but a lot more money is also needed to save for future expenses such as education and housing and more money is needed for risk management such as life and disability insurance.4. Family A and family B both consist of a father, mother and two children of school age. In family A both spouses have jobs outside the home and earn a combined income of $100,000 per year. In family B, only one spouse works outside the home and earns $100,000 per year. How do the financial circumstances and decisions faced by the two families differ?With two wage earners, there is less risk of a total loss of family income due to unemployment or disability than there is in a single wage earning household. The single wage earning family will probably want more disability and life insurance than the two wage earning family. On the flip side, however, the two wage earning family may need to spend extra money on child care expenses if they need to pay someone to watch the children after school.5. Suppose we define financial independence as the ability to engage in the four basic household financial decisions without resort to the use of relative’s resources when making financing decisions. At what age should children be expected to becomefinancially independent?Students will have differing responses to this question depending upon their specific experiences and opinions. Most will probably say independence should come after finishing their education, and they have a significant flow of income.6. You are thinking of buying a car. Analyze the decision by addressing the following issues:a.Are there are other ways to satisfy your transportation requirements besides buying a car? Make a list ofall the alternatives and write down the pros and cons.Transportation Mode Pros ConsWalking ?Takes you directly where you wantto goNo out of pocket costsConvenient ?Takes a long time ?Destination may be too far Bicycle ?Takes you directly to where youwant to goNo out of pocket marginal costsConvenient ?Requires physical strength and endurance ?Destination may be too farBus ?InexpensiveReaches more distant destinations ?May not take you directly where you want to go ?Inconvenient schedules to go ?Many stops, not efficientSubway ?InexpensiveFast ?May not take you directly where you want to goLocal destinations only on limited networkTrain ?Reaches distant destinations ?Moderately expensive May not take you directly whereyou want to goAirplane ?Reaches distant destinationsFast ?Most expensiveWill not take you directly where you want to gob. What are the different ways you can finance the purchase of a car?F inance through a bank loan or lease, finance through a car dealer with a loan or a lease or finance the car out of your own savings.c. Obtain information from at least three different providers of automobile financing on the terms they offer.d. What criteria should you use in making your decision?Your decision will be to select the financing alternative that has the lowest cost to you.When analyzing the information, you should consider the following:Do you have the cash saved to make an outright purchase? What interest rate would you be giving up to make that purchase? Do you pay a different price for the car if you pay cash rather than finance?For differing loan plans, what is the down payment today? What are the monthly payments? For how long? What is the relevant interest rate you will be paying? Does the whole loan get paid through monthly payments or is there a balloon payment at the end? Are taxes and/or insurance payments included in the monthly payments? ?For differing lease plans, what is the down payment today? What are the monthly payments? For how long? Do you own the car at the end of the lease? If not, what does it cost to buy the car? Do you have to buy the car at the end of the lease or is it an option? Is there a charge if you decide not to buy the car? What relevant interest rate will you be paying? Are taxesand/or insurance payments included in the monthly payments? Are there mileage restrictions?7. Match each of the following examples with one of the four categories of basic types of household financial decisions.At the Safeway paying with your debit card rather than taking the time to write a checkDeciding to take the proceeds from your winning lottery ticket and use it to pay for an extended vacation on the Italian RivieraFollowing Hillary’s advice and selling your Microsoft shares to invest in pork belly futuresHelping your 15-year old son learn to drive by letting putting him behind the wheel on the back road into townTaking up the offer from the pool supply company to pay off your new hot tub with a 15-month loan with zero payments for the first three monthsThe first is the most difficult since in practice it is simply a cash transaction involving no financing. As such the purchase is a consumption decision only and the payment choice is not a financing decision. The second is also a consumption/saving decision. The third is an exchange of one financial asset for another and therefore an investment decision. The fourth is a risk-management decision since you have subjected yourself to increased risk that is not covered by insurance. The final example is a financing decision involving a loan to finance a purchase.Forms of Business Organization8. You are thinking of starting your own business, but have no money.a.Think of a business that you could start without having to borrow any money.A ny business that involves a student’s own personal service would be cheap to start up. For instance he or she could start a business running errands for others, walking their dogs, shopping etc. Along those same lines they could start some kind of consulting business. Both of these businesses could be run out of their dorm room or their own home and could be started with very little capital. If they wanted to hire additional workers, they would have to be paid on a commission basis to limit upfront expenses.b. Now think of a business that you would want to start if you could borrow any amount of money at the going market interest rate.Certainly there are many interesting businesses that could be started if one could finance 100% of the business with borrowed capital and no equity. Since you will be able to borrow 100% of the financing, you will be willing to take a lot greater risk than if you were investing your own money.c. What are the risks you would face in this business?[Answer is, of course, dependent on answer to question “b.”]d. Where can you get financing for your new business?Depending upon the size of the financing needed, students should be looking for both debt and equity financing. The sources of this financing ranges from individuals and credit cards (for very small sums) to banks, venture capitalists, public debt and equity markets, insurance companies and pension funds9. Choose an organization that is not a firm, such as a club or church group and list the most important financial decisions it has to make. What are the key tradeoffs the organization faces? What role do preferences play in choosing among alternatives?Interview the financial manager of the organization and check to see if he or she agrees with you.SAMPLE ANSWER:Local Church group. Most important financial decisions:Whether or not to repair damage done to church and grounds during last big hurricane (specifically repairing the leaking roof)What project to put off in order to pay for repair damageHow to pay for renovations to downstairs Sunday school roomsHow to increase member attendance and contributionsHow to organize and solicit volunteers for the annual Church Sale (largest fund raiser of the year)Key Tradeoffs and Preferences:C hurch group funds are severely limited, so the organization needs to prioritize expenses based upon cost and need. Not all projects that are needed will be undertaken due to the expense involved. An equally large amount of timewill be spent trying to raise financing since funds inflow is variable. Since not all projects can be financed, preferences of different important individuals (such as the pastor) take on great significance in the decision-making process.Market Discipline: Takeovers10. Challenge Question: While there are clear advantages to the separation of management from ownership of business enterprises, there is also a fundamental disadvantage in that it may be costly to align the goals of management with those of the owners. Suggest at least two methods, other than the takeover market, by which the conflict can be reduced, albeit at some cost.One way is to provide incentives for the managers so that they increase their pay when owners interests are improved. An example would be compensating managers with stock options, the value of which increase with the market value of shareholder’s interests. A second method is to more closely monitor the behavior of the managers. Outside management consultants and auditors serve this role in part particularly to the extent that they report their findings to representatives from ownership groups. Both of these solutions assume the management cannot effectively deceive markets or consultant/auditors through misleading information or actions to inflate the market value of the ownership shares or there performance records.11. Challenge Question:Consider a poorly run local coffee shop with its prime location featuring a steady stream of potential clients passing by on their way to and from campus. How does the longtime disgruntled, sloppy and inefficient owner-manager of Cup-a-Joe survive and avoid disciplining from the takeover market? This is not a question about a misalignment of the goals of the owner(s) and manager(s) of a firm since we have explicitly said the firm is owner-managed. If in fact the coffee shop is mismanaged the potential exists for an outsider to purchase a controlling interest in the operation and put more efficient management into place if the purchase price does not exceed the value of profits to be generated by the efficiently managed firm. If the present owner chooses not to sell he must value the firm for more than the value of the profits generated by an efficiently managed firm. Therefore his position in the firm must generate for him non-pecuniary benefits, or benefits unrelated to the firm’s profitability and he is therefore not avalue maximizer. Perhaps he enjoys making fun of his clients or takes pride in his eclectic tastes in interior decorating. In any case the takeover market does discipline him in the sense that he will be forced to pay for his non-pecuniary benefits in the sense that he trades off profits.The same could be said of an owner-manager who lacks the required specialized skills to properly run the firm but never the less continues to operate the company inefficiently because he ‘likes’ the work!The Role of the Finance Specialist in a Corporation12. Which of the following tasks undertaken within a corporate office are likely to fall under the supervision of the treasurer? The controller?Arranging to extend a line of credit from a bankArranging with an investment bank for a foreign exchange transactionProducing a detailed analysis of the cost structure of the company’s alternative product linesTaking cash payments for company sales and purchasing U.S. Treasury BillsFiling quarterly statements with the Securities and Exchange CommissionThe first two and the fourth items are responsibilities of the treasurer while the third and fifth items fall under the workload of the controller’s office.Objectivesy Define finance.y Explain why finance is worth studying.y Introduce two of the main players in the world of finance—households and firms—and the kinds of financial decisions theymake. The other main players, financial intermediaries and government, are introduced in chapter 2.Contents1.1Defining Finance1.2Why Study Finance?1.3Financial Decisions of Households1.4Financial Decisions of Firms1.5Forms of Business Organization1.6Separation of Ownership and Management1.7The Goal of Management1.8Market Discipline: Takeovers1.9The Role of the Finance Specialist in a CorporationSummaryFinance is the study of how to allocate scarce resources over time. The two features that distinguish finance are that the costs and benefits of financial decisions are spread out over time and are usually not known with certainty in advance by either the decision maker or anybody else.A basic tenet of finance is that the ultimate function of the system is to satisfy people’s consumption preferences. Economic organizations such as firms and governments exist in order to facilitate the achievement of that ultimate function. Many financial decisions can be made strictly on the basis of improving the trade-offs available to people without knowledge of their consumption preferences.There are at least five good reasons to study finance:y To manage your personal resources.y To deal with the world of business.y To pursue interesting and rewarding career opportunities.y To make informed public choices as a citizen.y To expand your mind.The players in finance theory are households, business firms, financial intermediaries, and governments. Households occupy a special place in the theory because the ultimate function of the system is to satisfy the preferences of people, and the theory treats those preferences as given. Finance theory explains household behavior as an attempt to satisfy those preferences. The behavior of firms is viewed from the perspective of how it affects the welfare of households.Households face four basic types of financial decisions:y Saving decisions: How much of their current income should they save for the future?y Investment decisions: How should they invest the money they have saved?y Financing decisions: When and how should they use other people’s money to satisfy their wants and needs?y Risk-management decisions: How and on what terms should they seek to reduce the economic uncertainties they face or to take calculated risks?There are three main areas of financial decision making in a business: capital budgeting, capital structure, and working capital management.There are five reasons for separating the management from the ownership of a business enterprise: y Professional managers may be found who have a superior ability to run the business.y To achieve the efficient scale of a business the resources of many households may have to be pooled.y In an uncertain economic environment, owners will want to diversify their risks across many firms. Such efficient diversification is difficult to achieve without separation ofownership and management.y To achieve savings in the costs of gathering information.y The “learning curve” or “going concern” effect: When the owner is also the manager, the new owner has to learn the business from the former owner in order to manage it efficiently. If the owner is not the manager, then when the business is sold, the manager continues in place and works for the new owner.The corporate form is especially well suited to the separation of ownership and management of firms because it allows relatively frequent changes in owners by share transfer without affecting the operations of the firm.The primary goal of corporate management is to maximize shareholder wealth. It leads managers to make the same investment decisions that each of the individual owners would have made had they made the decisions themselves.A competitive stock market imposes a strong discipline on managers to take actions to maximize the market value of the firm’s shares.。

金融英语_刘文国第二版课后练习Exercises06Exercise sixⅠ Answer the following questions in English:1.How many common methods to express a foreign exchange rate?There are two common methods to express a foreign exchange rate. The most widely used method expresses the amount of any currency that is required to buy one U.S. dollar. Another common way of quoting rates is simply the reverse of the first method. Under this second method, the foreign exchange rate is expressed in terms of the US dollar amount that can be exchanged for one unit of foreign currency.2.What is foreign exchange?Foreign exchange consists of trading one type of currency for another.Unlike other financial markets, the FX market has no physical location and no central exchange. It operates "over the counter"through a global network of banks, corporations and individualstrading one currency for another. The FX market is the world'slargest financial market, operating 24 hours a day with enormousamounts of money traded on a daily basis.3.How does Stop Order work?Stop orders can be used to enter the market on momentum or to limit the potential loss of a position. Stop orders are extremely important in foreign currency trading and should beused by all traders that want to participate in the currency markets. Just like for limit orders, when placing a stop order a trader must specify for how long that order is to remain active.4.What do you think about single currency system? Is it possible toestablish single currency system in the world now?The single currency system is good and it will benefit following:Currency stabilityTourismBusiness benefitsCheaper mortgage and lower interest ratesIt is impossible to establish single currency system in the world now because there are too many factors such as economy, politics and labor migration.5.What is Limit Order?A limit is an order to buy or sell a currency at a specified price orbetter. In a limit order, the currency trader not only specifies which currency he wants to buy or sell, but also at which price he wants to do so.6.How to make money for many traders through foreign exchange market?Investors can make profit from change of foreign exchange rate, and different foreign exchange rates in different countries.Ⅱ Fill in the each blank with an appropriate word or expression:1.The currency trader should also decide the time frame that he willbe using to trade in order to determine which trend will bethe most important.2.The bid is the price at which dealers are willing to buy dollars(base currency) in terms of yen (quote currency) and users of our trading platform can sell dollars in terms of yen.3.The order remains active until the end of the trading day (5:00 PMEST), unless it is executed or canceled by the trader.4. A GTC order remains active until it is canceled by the currencytrader or until the order is executed. It is the trader's responsibility to cancel a GTC order.5.The Foreign Exchange Market is where the majority of buying andselling of world currencies takes place.6.When placing a limit order, the trader also specifies the durationfor which the order is to remain active while it is not executed.Ⅲ Translate the follow ing sentences and passage into English:1.外汇交易市场，也称为"Forex"或"FX"市场，是世界上最大的金融市场，平均每天超过1兆美元的资金在当中周转 -- 相当于美国所有证券市场交易总和的30倍。

金融英语_刘文国第二版课后练习Exercises01Exercises oneⅠ Answer the following questions in English:1.What is finance?Finance is the set of activities dealing with the management of funds. More specifically, it is the decision of collection and use of funds. It is a branch of economics that studies the management of money and other assets. Finance is also the science and art of determining if the funds of an organization are being used properly. Through financial analysis, companies and businesses can take decisions and corrective actions towards the sources of income and the expenses and investments that need to be made in order to stay competitive.2. What is insurance?Insurance is the undertaking of one party to indemnify another, in exchange for a premium, against a certain eventuality.3. What is cash budget?Cash Budget is an estimation of the cash inflows and outflows for a business or individual for a specific period of time. Cash budgets are often used to assess whether the entity has sufficient cash to fulfill regular operations and/or whether too much cash is being left in unproductive capacities.4. What is capital?Capital, in the financial sense, is the money that gives the business the power to buy goods to be used in the production of other goods or the offering of a service.5. What is quantitative behavioral finance?Quantitative Behavioral Finance is a new discipline that uses mathematical and statistical methodology to understandbehavioral biases in conjunction with valuation.6. What is corporate finance?Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions.7. What is financial mathmatics?Financial mathematics is a main branch of applied mathematics concerned with the financial markets.8.What is personal finance?Personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit.Ⅱ Fill in the each blank with an appropriate word or expression:1.The primary goal of corporate finance is to maximize corporate value while managing the firm's financial risks.2. Financial mathematics is the study of financial data with the tools of mathematics, mainly statistics.3. Capital, in the financial sense, is the money that gives the business the power to buy goods to be used in the production of other goods or the offering of a service.4. A cash budget is extremely important, especially for small businesses, because it allows a company to determine how much credit it can extend to customers before it begins to have liquidity problems.5. A bank aggregates the activities of many borrowers and lenders. A bank accepts deposits from lenders, on which it pays the interest.6.Capital investment decisions are long-term choices about which projects receive investment, whether to finance that investment with equity or debt, and when or whether to paydividends to shareholders.Ⅲ Translate the following sentences and passage into English:1. 金融管理是商业管理的重要方面之一，没有合适的金融计划企业是不可能成功的。

Exercises 9Ⅰ Answer the following questions in English: e1.Stocks are also referred to as?a. Securitiesb. Equitiesc. Sharesd. Dividendse. A, B, and C2. Which type of stock typically pays a higher dividend, but whose share price appreciates slower? ca. Common Stockb. Stock Optionsc. Preferred Stockd. Commoditiese. None of the above3. All of these are stock markets except? ca. NYSEb. Nasdaqc. LEAPd. AMEX4. What is the fundamental thing that drives stock prices? da. Gravityb. Hypec. Cash Flowd. Earnings5. If someone is considered to be bearish, where do they think the stock market is heading? ba. Higherb. Lowerc. Stagnant (flat)d. None of the Above6. A market order that executes after a specified price level has been reached is called? ba. Market Orderb. Stop Orderc. Fill or Kill Orderd. Day Order7.Historically, what asset has always performed the best over the long term? ea. Bondsb. Optionsc. Mutual Fundsd. Index Fundse. Stocks8. Does preferred stock holder can get more benefits than common stock holder?. da.yesb.no.c.they are samed.no answerⅡ Fill in the each blank with an appropriate word or expression:1.Risk investors would like their returns to be as possible; however,this objective is subject to constraints, primary risk.2.In 1982 the stock market had a very good year, with total returns inexcess of 20 percent on a broad cross-section of common stocks.Nevertheless, several professionally managed funds managed to lose money that year. As this example shows, marketable securitiesoffering variable returns across time are risk.3.The investment decision, therefore, must always be considered interms of both risk and return.4.The risks associated _with stocks can vary widely, and they usuallydepend on the company. Purchasing stock in a well-established and profitable company means there is much_ less risk you'll lose your investment, whereas purchasing a penny stock increases your risks substantially.5.If you use margin, you can also dramatically increase your leveragein a stock, but this is only recommended for experienced investors.6.We assume that investors are interested only in the monetary benefitsto be obtained from investing, as opposed to such factors as thepsychic income to be derived from impressing one’s fri ends withone’s financial prowess.Ⅲ Translate the following sentences and passage into English:1.组合投资原则，即将风险资金按一定比例投向不同行业、不同企业（项目），或联合几个风险投资公司共同向一家企业投资。