金融英语.doc

1. Could you start with the explanation of some terms like “ a bull” and ”a bear” A bull is a situation in which share prices are rising. A bear is a situation in which share prices keep falling.2. Why the prices get rising or falling? If there are more buyers, the price will rise. Otherwise, the price will be lower and lower. Many factors will drive the price of the stock market up or down. Such as earnings of the company, inflation, interest rates, domestic political unrest, war or terrorism, 3. How can we make money in the stock market? If you believe the market will go up, you can buy in or hang on. If it turns out to be true, youcan make your profit. 4. How can you recognize that youre in a bear market? The market will be down at least 20% from its highs, stock market declines day by day, and new lows are established on a daily or weekly basis. 5. How can you make money in a bear market? A bear market can be the best time to buy stocks, if you can keep your emotions under control. Investors are ruled by two competing emotions - fear and greed .If you can keep your fear under control and continue to accumulate shares of quality stocks and mutual funds during a bear market, you can put yourself in an excellent position for when things turn around. A bear market also gives you a good opportunity to rebalance your portfolio and bring your asset allocation back in line with what you want it to be. If you are in the midst of a bear market, chances are the stock market portion of your portfolio now represents a much lower percentage than it did before. You can use that as an opportunity to move more money into stocks, until you have the percentage you intended. That allows you to buy stocks at bargain prices, and make money when the next bull market starts.6. What is the bottom of a bear market? Its very hard to predict the bottom, normally when the market decline is steady over at least 2 months, typically defined as a price decrease of 20% or more. Technical analysts identify a stock market bottom by drawing trend lines on charts 7. In the existing market, how many types of investments are there? Saving accounts (fixed deposit), mutual funds (This is a collection of stocks and bonds and involves paying a professional manager to select specific securities for you ), national bonds, stock market, real estate, commodities ( include oil, soybeans and metals) 8. In terms of those investments, how many types of investors are there? Generally three types. There are aggressive, moderate and conservative. These people in the conservative type are often interested in investing their money, but they do not want to spend their weekends studying financial statements, markets, and even weather reports , they are often happy to put their money in the hands of a broker. They prefer to invest low risk and low reward. Many of the low risk type of investments have the potential for growth over a long period. As for the moderate investors, they invest in things like bonds and cash. They may play a little of the stock market, but not a lot. Moderate investment, usually is a combination of low and moderate risks, many of these types of investors will invest in real estate as long as they see it as a low risk. Aggressive or active investors read everything on investing, study the stocks, and subscribe to magazines, associations, or newsletters. Whether driven by wealth or ego, this type of investor turns investing into their hobby and even passion.9. Which kind of investor would you like to be? 10. Why stock markets crash?Whenever banks are mentioned in China, it is natural to be associated with the Peoples Bank of China. This is because its branches can be found in the cities in this country, and this bank is commonly known as the leading body of the Chinese banking system which includes state commercial banks such as the Agricultural Bank of China, Bank of China, the Construction Bank of China, the Industrial and Commercial Bank of China, Bank of Communications, and other banking institutions.11. What is a bank? It may be advisable to define a bank as an institution for doing financial work A modern bank provides many services. One of the most important of these is regular passbook savings. If you go to a bank to open a savings account, first youll be asked to fill out a signature card. Credit cards are the convenient way of paying hotel bills and other expenses. All charges made on your card are sent to the bank, and you are billed once a month for the total amount. There is no charge (except for cash advances) if the payment is received promptly. To get a credit card, you must fill out an application, that requires you to supply such personal information as your monthly salary and other income, if your credit is not good, the bank will not issue such a credit card. Of course, this information is kept confidential. Most of the services, described above do not provide a major source of income for the bank. Its largest source of income is through loans. The majority of loans made are known as commercial loans, loans made to businesses. In addition, banks make real estate loans to individuals for the purchases of houses or land. And they also give personal loans to people who want to buy a new car or a new appliance. 12. What cause inflation? Inflation means the fall of purchasing power of a nation. a. When government prints an excess of money to deal with a crisis. The rising of price is to keep up with the currency surplus instead of a high demand. b. A rise in production costs, which leads to an increase in the price of final products. For example, raw materials increase in price, then the cost of production increases, which in turn leads to the company increasing prices to maintain steady profits. c. Rising labour costs also leads to inflation. Workers require high wages. d. Inflation can also be caused by international lending and national debts. As nations borrow money, they have to deal with interests, which in the end cause prices to rise as a way of keeping up with their debts. A deep drop of the exchange rate can also result in inflation, as governments will have to deal with differences in the import/export level.f. Increasing national taxes put on consumer products such as cigarettes or fuel. As the taxes rise, suppliers often pass on the burden to the consumer. g. War leads to a inflation 13. What are the influences of inflation?a. The purchasing power will be weaker, people prefer to save money instead of spending b. It undermines international competitiveness. If doing business in the vi was more costly than doing business in France, Germany or Italy (as the other large EU economies) then it would put the UK at a competitive disadvantage.c. Exports are more expensive and imports cheaper. This leads to a fall in exports and rise in imports. 14. Do we save money or spend them during the inflation? 15. Suppose you have a large amount of money, how do you manage it? 1. Set up a savings plan.While the economy remains fragile and many people are still out of work, signs of recovery are becoming more and more apparent. You