英语考试剑桥商务英语bec金融英语之银行利率部分

Interest Rate 利 率 *1Chen Jianhui Part One: What is interest rate? The owner of an asset who does not need it at the moment can (1) sell it and surrender possession permanently or (2)rent it and regain possession at the maturity of the rental period. Date2Chen Jianhui In the absence of a psychological preference for owning an asset per se, the owner (or buyer of the services would be indifferent between selling (buying) or renting the asset if the sum of the expected rental fees over its expect life, discounted to the present by the market rate of inter (the present value), were equal to the price of the asset. 如果资产有效期内的预期租金按市场 利率（现有价值）打折后，与资产的 价格相等，资产的所有者（或劳务的 购买者）假如不是心理上对拥有个人 财产的偏爱，可能对卖（或买）资产 或租赁资产反映冷淡。 Date3Chen Jianhui If the price exceeds the sum of the discounted expected rental values, the owner would prefer to sell the asset and the buyer would prefer to rent it. The price and rental fees would adjust until they were in equilibrium again. equilibrium: 平衡 Date4Chen Jianhui Of course, many of us get a psychological kick out of owning an asset rather than renting one. Owning our own home, automobile, or even book gives us a sense of pride and success that cannot be obtained from renting their counterparts. 4get kick out of be excited because of 由于.感到兴奋 Date5Chen Jianhui This value of ownership can be converted into monetary terms and added to the ownership price. Ownership pride is less important to business firms, which are motivated more highly by monetary values. 所有权价值可以转换成货币单位，并增 加所有权的价值。所有权的自豪感对于 商业公司来说不太重要，这些公司所追 求的是货币值。 Date6Chen Jianhui The annual rental tee may be viewed as the owners return on the asset. Assume that you required transportation services for the next year that could be provided only by an automobile. You have the option of buying an automobile and selling it after one year or of leasing the automobile for the year. Date7Chen Jianhui If you rented, the market rental fee would be the sum of two component fees - the pure rental price and depreciation. During the duration of the rental contract, the rental agency would not be able to use the services of the automobile. Date8Chen Jianhui As a result, you would have to compensate the agency for the value of the services it could not use. This fee may be viewed as the pure rental price. Date9Chen Jianhui As you use the automobile , you consume transportation services and use up part of the automobiles ability to generate additional services, which reduces its market value. This reduction represents depreciation of the automobile, for which the lender must also be compensated. Date10Chen Jianhui The greater the cost of either component, the greater the overall rental fee is. Money is an asset and may be analyzed in a similar way. The service money generates is purchasing power. Temporary control over purchasing power may be obtained by renting money. Date11Chen Jianhui As with the automobile rental, money owners must be compensated both for not using the purchasing-power services themselves during the rental period and for any depreciation in the purchasing-power value of the money. Date12Chen Jianhui If $1 could purchase ten market- basket units at the beginning of a loan and only nine a year later, the depreciation is one unit, or 10 percent. If the price level were perfectly stable between the beginning and the maturity of a loan, there would be no depreciation, and the total rental fee would be equal to the pure rental fee. Date13Chen Jianhui Thus, the pure rental fee of money is the constant purchasing-power fee and is referred to as the real rental fee. The faster the rate of inflation, the greater the depreciation, and the higher would be the overall or market rental fee for money above the real fee. 4 purchasing-power 购买力 4 depreciation 折旧 Date14Chen Jianhui If prices decline, the market rental fee would be less than real rental fee. For money, the rental fee is called interest and is frequently expressed as a percentage based on $ 100 per year. This is the interest rate. 4 rental fee: 租金 4 market rental fee 市场租金 4 real rental fee 实际租金 Date15Chen Jianhui The interest rate is the rental price of money. In the words of Keynes, “The rate of interest is the reward for parting with liquidity for a specified period. “ The rental of money is also referred to as credit, so that the interest rate is also the price of credit. 4 part with: 分离 4 liquidity: 流动资金 4 credit: 贷款，信贷 Date16Chen Jianhui When money is lent, the borrower creates an IOU stipulating the repayment date, the amount and timing of any periodic cash interest payments, and the other terms of the agreement. IOU=I Owe You 借据 stipulate: 规定，确定 periodic cash interest payments 定期现金支 付利息 terms of the agreement 合约条款 Date17Chen Jianhui If there is a firm commitment to pay the lender specific amounts at specific intervals, the IOU is called a bond. The market value of a bond is related to the interest rate promised by the borrower. a firm commitment to pay 明确的支付 承诺 bond 债券 Date18Chen Jianhui EXERCISES Choose the best answer according to the text: 1) The owner of an asset would prefer to sell it if the sum of the rental fees were _. A. equal to the price of his asset B. less than the price of his asset C. more than the price of his asset D. as much as the price of his asset B Date19Chen Jianhui 2) Business firms always want to turn the ownership pride into _. A. a sense of pride and success B. more important ownership C. the ownership price only D. monetary terms and value D Date20Chen Jianhui 3) If you required transportation services and rented an automobile, the rental fee would be _. A. the pure rental price and depreciation B. the market rental fee and the pure renal fee C. the annual rental fee D. the component fee A Date21Chen Jianhui 4) If the cost of either component is greater, the rental fee will be certainly _. A. reduced B. generated C. discounted D. greater D Date22Chen Jianhui 5) People can obtain temporary control over purchasing power by _. A. renting money B. an automobile C. discounting D. transportation services A Date23Chen Jianhui 6) The total rental fee would be equal to the pure rental fee _. A. if the money owners were compensated for any depreciation in the purchasing- power value of the money B. if the price level were stable during the duration of the rental contract C.if the market rental fees were less at the beginning of a loan D. if the purchasing-power value were greater on the maturity of a loan B Date24Chen Jianhui A. the real rental fee B. the depreciation of an automobile C. the rental price of money D. the total rental fee of a loan C7) The interest rate is _. Date25Chen Jianhui 8) Which of the following items can never be forgotten when creating an IOU? _. A. the maturity of the loan B. the amount of cash interest payments C. the name of the borrower written by himself D. date of the repayment C Date26Chen Jianhui 3. Turn the following into Chinese: rental fee market rate rental contract price level real rental fee market value rental price 租赁金 市场利率 租赁合同 实际租金 市场价值 租赁价格 Date27Chen Jianhui inflation bond compensate stipulate repayment commitment IOU monetary terms 通货膨胀 债券 补偿 规定 偿还 承诺，债务 借据 货币单位 Date28Chen Jianhui Part 2: the Fractional Reserve 4fractional reserve (部分准备金) 指 银行只需保有其存款负债的某一比例 作为准备的规定。这是中央银行为保 护存款人的权利所要求的规定，以避 免银行信用过度扩张，引起流动性不 足，损害存款人的权益。 4reserve 准备金，储备金 指银行为预 防万一而提存的准备基金。准备金分 发行准备金和存款准备金。 Date29Chen Jianhui Some banks may pay no interest or only a minimal rate of interest on deposits. Date30Chen Jianhui Banks may lend more money than they have on deposit, just as traders used to do when they issued more receipts for coins than they had in safekeeping. Date31Chen Jianhui Strictly enforced government regulations control how many of the deposited dollars must be held in reserve to support loans. Loans made against this fractional reserve are a key factor in banking and current fractional reserve deposit money expansion activities. fractional reserve deposit money expansion activities 部分准备金存 款扩张业务 a Date32Chen Jianhui Lets assume the fractional reserve ratio is 12 percent. Thus, when you deposit $1,000 in your local bank, it may immediately set aside $120 as a reserve. 4set aside: save or keep for 留出，拨出 e.g. I set aside some money every month to buy a car. fractional reserve ratio 部分准备金 比率 西方国家的中央银行规定商 业银行缴存准备金占自身吸收存 款的比率。其公式如下： 准备金比率缴存法定准备金额 存款余额100% Date33Chen Jianhui The bank deposits the reserve in the Federal Reserve Bank or branch that services your geographical area of the United States. After setting aside the $120 reserve, your bank is free to loan out $880. Another bank customer comes to borrow the $880 and deposits the money with the bank. Date34Chen Jianhui Note that the money supply has increased by $880, as your $1,000 remains on deposit and the bank has lent 880 new dollars to another client. After deducting 12 percent of $880 ($105.60) as a reserve, the bank loans out the remainder or $774.40 to a third client. money supply 货币供应量 指某一时期 一国经济中流通的货币量。是各国中 央银行（或国家银行）编制和公布的 主要经济统计指标之一。货币供应量 的现实水平是一国货币政策调节的对 象；预测货币供应量的增长、变动情 况，则是一国制定货币政策的依据。 根据货币内涵的不同，货币供应量指 标有M1、M2、M3、M4和M5之分。 Date35Chen Jianhui Again the money supply rises. If this process continues to its limit, a total of $8,333.33 circulates in the system. After deducting your original $1,000 deposit, $7,333.33 of new money is being used in the community and represents a net increase in the money supply. Date36Chen Jianhui A simple way to calculate the maximum possible expansion with a 12 percent reserve requirement is to divide your original $1,000 by 0.12 (percentage of deposit to be set aside in reserve), which equals $8,333.33. What happens if the Fed wishes to rein in the money supply by increasing reserve requirements? reserve requirements 准备金要求量， 法定存款准备金规定 在美国，银行 法规定商业银行须将其部分存款另外 保管，作为对存款的准备金。联邦储 备委员会董事会有权在法律规定的限 度内提高或降低对成员银行准备金的 要求。准备金条件起着控制贷款的作 用（降低准备金要求，就可允许银行 更多地借出款项；如提高要求，贷款 额就会减少）。 Date37Chen Jianhui Suppose the Fed issues a change requiring that 15 percent of deposits be set side as a reserve instead of the 12 percent used in the example. The new maximum number of dollars in circulation becomes $6,666.66 ($1,000 divided by 0.15). Date38Chen Jianhui If your bank has lent all of its available funds based on a reserve of 12 percent, it must immediately attract new deposits to build its reserves to 15 percent or call in enough loans to meet the new 15 percent reserve requirement. call sth. in: order or request the return of sth. 下令 或请求收回某物 a Date39Chen Jianhui When this happens, the availability of money for businesses is said to be “tight. Conversely, the Fed can lower the reserve requirement to increase the money supply. Date40Chen Jianhui Exercises Turn the following into Chinese: 1) fractional reserve 2) fractional reserve deposit money expansion activities 3) fractional reserve ratio 4) reserve requirement 5) money supply Date41Chen Jianhui 6) interest rate 7) set aside some money 8) Federal Reserve Bank 9) loan out an amount of money 10) Fed Date42Chen Jianhui Multiple choice: 1) Assume that the fractional reserve ratio is 12 percent. Thus, when a customer deposits $1,000 in a bank, it may immediately set aside _ as a reserve. A. $12 C. $100 B. $1000 D. $120 D Date43Chen Jianhui 2) If the fractional reserve ratio is 12 percent and the original deposit is $1000, how much new money will be created in the system? _. A. $8,333.33 B. $7,333.33 C. $6,666.66 D. $120 B Date44Chen Jianhui 3) Suppose the Fed issues a change requiring that 15 percent of deposits be set side as a reserve. The new maximum number of dollars in circulation will _. A.become less B.become more C.not change D.be the same as what we have learned A Date45Chen Jianhui 4) If your bank has lent all of its available funds based on a reserve of 12 percent and there is a new reserve requirement, it must immediately _ to build its reserves to meet the new reserve requirement. A.attract new deposits B.make new loans C.take bank deposits D.set aside more money A Date46Chen Jianhui 5) Strictly enforced government regulations control how many of the deposited dollars must be held in reserve _. A.to loan out more B.to attract new deposits C.to make more profits D.to support loans D Date47Chen Jianhui 6) Loans made against the _ are a key factor in banking and current fractional reserve deposit money expansion activities. A. requirement B. fractional reserve C. the amount of deposits D. banking regulations B Date48Chen Jianhui Part 3: The Three Ms The Federal Reserve System tracks three measures of the money supply and reports on them weekly. The three measures are conveniently labeled M1, M2, and M3. Date49Chen Jianhui the three Ms 指M1, M2 , M3, 三种货币 供应量。 M1是狭义的货币。在美国指商业银 行以外的市面上流通的通货，商业 银行中以支票存取的活期存款、可 转让提单帐户、股份汇款帐户、自 动转帐存款以及旅行支票之和。 Date50Chen Jianhui M2是定义范围较宽的一些货币。在 美国指M1加上不能以支票提取的储 蓄存款、10万美元以下的定期存款 、货币市场共同基金以及美国居民 与银行在美国境外银行持有的过夜 欧洲美元存款之和。 Date51Chen Jianhui M3是定义更宽的货币。在美国指M2 加上10万美元面值的定期存款单（ CDs）以及回买协议之和。 Date52Chen Jianhui M1 is a narrowly defined measure of money that includes currency, coins, and demand deposits (such as checking accounts) in commercial banks that are used primarily for transactions or as a medium of exchange. demand deposit 活期存款 checking accounts 支票帐户 medium of exchange 交换媒介 a Date53Chen Jianhui M2 is a broader measure of the money supply. In addition to the items in M1, M2 includes the amounts collected in savings and small time deposits (certificates of deposit), including money market deposit accounts (MMDA), non-institutional money market mutual funds (MMMF), and other short-term money market assets. savings n. 储蓄 time deposit 定期存款 certificate of deposit 大额存单；存款 证money market 货币市场 指一年或 不足一年到期的短期借贷市场。 money market deposit account货币市场 存款帐户，简称MMDA money market mutual funds (MMMF) 货币市场共同基金 指美国的一种小 额信托投资。 a Date54Chen Jianhui M2 is the most often used reference to money supply. M3 is an even broader definition of the money supply, as it includes all of the components of M1 and M2 plus a number of financial assets and instruments generally employed by large (jumbo) certificates of deposit. M2 is the most often used reference to money supply. M2是衡量货币供应量最 常用的参考值。 financial assets 金融资产 financial instruments n. 金融票据 jumbo certificates of deposit 大额存单 a Date55Chen Jianhui The Federal Reserve Board, known as the Fed, considers numerous factors when it defines the money supply. What ultimately matters is how the public uses the various forms of money. Date56Chen Jianhui For example, depositors can write checks on their money market deposit accounts or their money market mutual funds. Even so, the public uses these two forms of money mainly for savings and only secondarily for transactions. Date57Chen Jianhui Thus, the Fed places the MMDAs and MMMFs in M2 along with savings and time deposits. The Fed revised the Ms as necessary whenever financial innovations, such as the appearance of money market mutual funds, lead people to alter the forms in which they hold money. financial innovations 金融 创新 a Date58Chen Jianhui Technically, the three measures of the money supply are known as monetary aggregates, or totals. M2 is the most closely watched of the three. Changes for the week are noted each Thursday on the Nightly Business Report. As of June 8, 1992, the total for M2 was $3,487.1 billion - that is, nearly $3.5 trillion. monetary aggregate 货币总 量 a Date59Chen Jianhui The Fed reports to Congress twice a year on its target rates for growth of money. Although the Federal Reserve Board can and does change the elements affecting the money supply as often as every day, it cannot control the monetary aggregates precisely. Congress （ 美国）国会 a Date60Chen Jianhui Much attention is focused on the rate at which the money supply grows because money growth influences inflation, unemployment, and general economic activity. Date61Chen Jianhui Exercises Turn the following into Chinese: 1) money supply 2) demand deposit 3) medium of exchange 4) time deposit Date62Chen Jianhui 5) certificate of deposit 6) financial innovations 7) monetary aggregate 8) checking accounts 9) Federal Reserve Board 10) write checks Date63Chen Jianhui Multiple choice: 1) The Federal Reserve System tracks three measures of _ and reports on them weekly. A.the money supply B.the money market C.reserve rate D.interest rate A Date64Chen Jianhui 2) The Fed places the MMDAs and MMMFs in _ along with savings and time deposits in consideration of the two forms of money mainly used for savings and only secondarily for transactions. A. M1 C. M3 B. M2 D. reserves B Date65Chen Jianhui 3) Much attention is focused on the rate at which the money supply grows because money growth _ inflation, unemployment, and general economic activity. A.determines C.promotes B.encourages D.influences D Date66Chen Jianhui 4) Currency, coins, and demand deposits in commercial banks are used primarily for transactions or as _. A.a reserve of the loans B.a measure of money supply C.a medium of exchange D.a fixed asset C Date67Chen Jianhui 5) _ is the most closely watched of the three measures of the money supply. A. M1 B. M2 C. M3 D. Ms B Date68Chen Jianhui Part 4: Simple and Compound Interest The fee for borrowing money is known as (I). The fee is based on three elements: simple interest 单利 以本金计算利息 的方法。本金获得的利息不再产生利 息。 .compound interest 复利 定期将利息 加入本金，求得新的基数作为本金再 计算利息，按这种方法得出的利息即 为复利。 Date69Chen Jianhui 1. Principal amount (P), or the amount borrowed 2. Rate of interest (R), calculated as a percentage of the principal amount 3. Time (T), the period over which the interest is calculated As an equation or formula, simple interest is: I = P R T principal amount 本金金额 Date70Chen Jianhui Interest (I) is a ratio and is usually expressed as a percent. For example, consider an interest rate as the ratio of