金融英语课件

1、Chapter 2,Financial system,The teaching purpose of this chapter,The student will learn about the functions of the financial system the participants in the financial system the financial intermediaries and their respective functions,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,2

2、,Financial system,The composition of Financial system:,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,3,Everyone has some contact with the financial system. We are all aware of financial institutions like banks, building societies, and insurance companies, each providing in its o

3、wn way for some of our everyday needs.,For example, payments facilities through banks, convenient savings and access to home loans from building societies, and car, house, or life insurance.,be aware of : 了解,Other financial institutions, such as investment trusts, venture capital companies, and disc

4、ount houses-to name only a few-are less well-known and carry out more specialized functions. investment trusts：信托投资公司 venture capital companies：风险投资公司,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,4,Most people also know something about financial markets, like the Stock Exchange

5、 where securities are bought and sold, though comparatively few are directly concerned with their activities.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,5,All these financial institutions and markets fit together into a network which comprises the financial system.,There are

6、other important but less familiar financial markets, like the money market in which large sums are borrowed and lent for very short periods, and the foreign exchange market in which dealings in foreign currencies take place.,Major functions: channel household savings to corporate sector allocate inv

7、estment funds among firms Allow smooth consumption by households and expenditures by firms enable households and firms to share risks,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,6,The participants in the financial system:,Copyright 2010 Pearson Education, Inc. Publishing as Pr

8、entice Hall,7,savers;,investors and other borrowers;,financial intermediaries;,brokers and advisers;,regulators,Savers and investors： The end-users of the financial system are the savers, whose current spending is less than their income and who have money available to lend to others;,Copyright 2010

9、Pearson Education, Inc. Publishing as Prentice Hall,8,and the investors, who want to borrow money in order to buy capital goods or increase the scale of their business, as well as other borrowers who want to spend more than their incomes.,In between lie the financial institutions and markets.,Ensuri

10、ng that money flows smoothly from savers through institutions and/or markets to investors is an important function of the financial system.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,9,It is the ultimate savers and ultimate borrowers who are, as it were, on the periphery of t

11、he financial system, whose needs it serves and who provide the rationale for its existence.,Periphery：外围，边缘； on the periphery of ：在 的外围，边缘 Rationale：（决定、信念、计划的）基本原理，理论基础,Financial intermediaries are institutions which attempt to serve the needs of both lenders and borrowers.,Copyright 2010 Pearson E

12、ducation, Inc. Publishing as Prentice Hall,10,Savers wish to hold their savings-for example bank deposits-frequently differ from the ways in which borrowers would like to obtain their funds-for example long-term loans.,Financial intermediaries are often able to reconcile these divergent requirements

13、.,In addition they provide a variety of specific services which savers and borrowers value in their own right. in their own right = based on their own needs Examples are money transmission facilities and advice on corporate finance in the case of banks, life assurance cover in the case of insurance

14、companies. corporate finance（公司理财）:Financial decisions regarding fund raising, business expansion, mergers and acquisitions ,financial planning, cash management and so on.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,11,brokers and advisers： In a competitive financial system (l

15、ike that in Britain) institutions compete for business in broadly construed “markets” for saving and lending business, they seek to attract funds from savers and supply funds to borrowers.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,12,But there are also organized markets whic

16、h provide facilities for economic agents to borrow and lend or to buy or sell securities. The main role of brokers and advisers is to help these organized markets to function properly.,1) Brokers and advisers provide information to participants in the markets, and attempt to ensure that lenders and

17、borrowers, buyers and sellers, have the facts they need to strike a fair bargain.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,13,2) They also perform the vital task of putting actual lenders and borrowers in touch with each other.,By obviating the need for individual borrowers

18、 or lenders to search out counterparts themselves, the brokers substantially reduce transactions costs.,For example, the money-market broker brings together the lender who has money to spare with the borrower who wants it temporarily.,=,In most organized markets there are also market makers, profess

19、ional dealers whose function is to ensure that lenders and borrowers are always able to find a counterpart for their deals. market makers：做市商,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,14,Regulators： Historical experience in many countries has shown that where large sums of m

20、oney are involved in financial markets there is a considerable danger of fraud or other malpractices.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,15,Most countries therefore need regulators, who control their financial institutions and regulate dealings in securities markets w

21、ith the objects of ensuring that the financial institutions are able to honor their commitments, that people have access to relevant information before they enter into contracts, and that dealing in securities is fair. These rules come under the general heading of prudential regulations.,Copyright 2

22、010 Pearson Education, Inc. Publishing as Prentice Hall,16,But more general economic controls are also needed.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,17,反义词：Expansion(contractions) Boom (slump),Compel: force； Curb: control or limit； expansion of credit: 信贷膨胀,Sharp expansi

23、ons or contractions of activity in financial markets are often associated with booms and slumps in the economy at large, and the intimate connection between money, credit and economic stability compels countries to curb the expansion of credit in some periods and to stimulate it in others.,Economic

24、controls may also be required to guard against monopolistic structures or practices in the financial system.,Financial instruments,The financial system deals in financial instruments. deal in = trade in 经营 These are mostly more or less sophisticated forms of IOUs or claims-they are an asset of one p

25、arty and a liability of another. In most instances the former party is entitled to repayment at a specified time, and receives a promise of some interest, share of profits, or other service as compensation for the loan. be entitled to sth.= to have the right to demand sth. Eg: Every citizen is entit

26、led to equal protection under the law. 每个公民都有权依法受同等保护。 as compensation for sth. 作为的补偿 Eg: He received one years salary as compensation for loss of office.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,18,For example, deposits are liabilities of banks or other institutions, are g

27、enerally repayable on demand or in the fairly near future, and usually bear interest. Loans are often liabilities of ultimate borrowers, are usually repayable by the end of some predetermined period, and carry an obligation to pay interest. And ordinary shares are liabilities of firms, which confer

28、on their owners the right to a share of the profits earned but, in contrast with loans, do not have to be repaid. repay on demand:随时偿还 bear interest= carry on obligation to pay interest Common stock(US)=ordinary shares(GB)； Confer=entitle,Copyright 2010 Pearson Education, Inc. Publishing as Prentice

29、 Hall,19,As well as claims there are also derivative instruments-contracts relating to the prices of securities, interest rates or foreign exchange rates at some date in the future. as well as = in addition to,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,20,Although a wide vari

30、ety of financial instruments exists, differing significantly in detail, the major distinctions rest on three characteristics-risk, liquidity, and real-value certainty (that is, their susceptibility to loss of value due to inflation). susceptibility: the ability to be influenced 敏感度,Copyright 2010 Pe

31、arson Education, Inc. Publishing as Prentice Hall,21,Risk： A distinction can be drawn between on the one hand deposits and loans, which are generally made only if repayment of capital and interest is confidently expected, and on the other company shares, which are claims to a share of the surplus in

32、come after prior claims have been met. A distinction can be drawn between A and B. capital = principle 本金；Confidently expected = guaranteed,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,22,People think of their deposits with financial institutions as safe, and loans are usually

33、secured on assets or made conditional on the borrowers financial performance, to give the lender added confidence in the safety of the funds, though there is usually some small chance of partial or total loss. to be secured on sth. 以为担保 To be made conditional on sth. 以为附加条件,Copyright 2010 Pearson Ed

34、ucation, Inc. Publishing as Prentice Hall,23,The risk of loss, and conversely the possibility of gain, is heavily concentrated on equity assets, mainly the ordinary shares of companies. The shareholder is entitled to a share of the companys profits but must also accept the chance of experiencing som

35、e loss. Indeed, the effects on the shareholders of success or failure of a company are magnified if the company has loans outstanding as well as ordinary shares. magnify = increase Loans outstanding 尚未偿还的贷款,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,24,Liquidity refers to the

36、 ease and speed with which savings in nonmonetary form can be turned into cash, and reflects both the maturity of financial instruments and their marketability. By maturity we mean the time which elapses before a deposit or loan is due to be repaid. Deposits which are repayable on demand have a shor

37、t maturity, mortgage loans due for repayment after 25 years a long one. savings in nonmonetary form= marketable securities 适销证券适销证券是指证券持有人在需要现金或希望将持有的证券转化为现金时，能够迅速地在证券市场上出售的证券。 marketability（适销性）,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,25,Thus maturity covers a very wide r

38、ange, and the shorter is the maturity of a deposit or loan the greater is its liquidity. But assets which are marketable may also be liquid, even if they are not automatically repayable in the near future. For example, ordinary shares in many companies can be sold at short notice and their value tur

39、ned into cash, though at a price which is uncertain. at short notice = without warning 随时,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,26,Real value certainty: Neither deposits nor loans, whose values are fixed in money (or nominal) terms, provide their holders with protection

40、against price level changes. Ordinary shares stand a good chance of doing better on this score, because profits can be expected in the end to rise roughly in line with the general price level, though there may be prolonged periods when this does not hold good. on this score = in this respect In line

41、 with = at the same time Prolonged = very long The same goes for property, where rents can be expected to mirror general price changes over long periods-though as with ordinary shares there may be considerable fluctuations in prices around any long-term trends.,Copyright 2010 Pearson Education, Inc.

42、 Publishing as Prentice Hall,27,Functions: Means of payments Store of value Transfer of risk,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,28,1) As store of value Bank loans-short/medium/long-term Bonds (债券) Secured bonds(担保债券) Unsecured bonds/debentures(无担保债券) Government bonds

43、Treasury notes and bonds(国债) Municipal bonds(市政债券) Equity(stock/share) Corporate bonds Common stock/ordinary shares Preferred stock/preference shares Convertible notes (quasi-equity instrument),Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,29,2) As transfer of risk Insurance con

44、tracts/policies Derivative securities/instruments: value based on /derived from value of underlying assets(基础资产) Forwards contract（远期合约） Futures contract（期货） Options contract（期权） Swaps agreement（互换）,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,30,Financial institutions,Financia

45、l institutions: financial intermediary, firm that provides access to financial markets, both to savers and borrowers. Roles: reduce transaction costs,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,31,Classification Depository institutions (存款金融机构) Commercial banks Services to fir

46、ms and individuals Major business: deposit taking, credit lending and so on. Savings banks: Services to households and individuals Depository credit union(信用社，互助会)：services to members Nondepository institutions（非存款金融机构） Investment banks（投资银行）; Factoring company; Leasing company; Finance company; Mor

47、tgage banks Venture capital co.; Discount house; Mutual fund; Insurance company; Pension fund; Building society,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,32,Types of bank deposits 1) Demand/checking/transaction deposit 活期存款 Demand deposit 个人的活期存款 transaction deposit 企业的活期存款

48、工具： Checkbook 支票簿 Debit card 借记卡 2) savings deposit储蓄存款 工具：passbook 银行存折 3) time/term deposit定期存款 工具：Passbook; Certificate of deposit,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,33,Interpretation of the concept,payment facilities支付工具: means of payment including credit cards, c

49、hecks, travelers checks, letters of credit, and payment orders such as documents against payment and documents against acceptance.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,34,investment trust (company)投资信托公司: a financial intermediary that pools the funds of individuals and

50、invests those funds in securities such as stock, bonds and money market instruments.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,35,venture capital company风险投资公司: a financial intermediary that supports and promotes investments and technological development in firms by temporar

51、ily holding shares in the capital of those firms.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,36,venture capital风险资本: is risk money, funds which are invested for the initial risks of a new and potentially rapidly growing company or a newly developed growth product. It is used

52、for the risk expenses which cannot usually be financed by a bank loan.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,37,discount house贴现行: a financial intermediary that specialize in buying and selling bills of exchange and other commercial papers at less than the face value. se

53、curities有价证券（常用复数）: documents that have some value or represent something of value, e.g. share certificate, bond certificate, life insurance policy, etc.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,38,money transmission facilities资金汇送工具: financial means that facilitate the flo

54、w of funds. Eg: Checks; Draft/bill of exchange; Money order Derivative instruments 衍生金融工具 :securities whose value is based on /derived from the value of equity and debt. forwards 远期(合同) Futures 期货 Options 期权 Swaps 互换/掉期,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,39,liquidity流

55、通性/变现力: the ease with which an asset can be converted into cash at close to the published market price. maturity偿还期: the date of scheduled repayment of an obligation.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,40,key sentences,A properly developed and smooth-running financial

56、 system raises the levels of saving and investment and provides incentives for the allocation of the available resources to those uses where they are likely to give the highest returns. the allocation of A to B 把A分配给B,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,41,Satisfactory

57、 payments facilities are something which we are inclined nowadays to take for granted, but productive economic activity is dependent on there existence ,and indeed on traders having reasonable access to short-term credit facilities.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,

58、42,Moreover, while there is nothing to prevent savers and investors from dealing directly with each other if they wish, the existence of financial institutions makes direct contact unnecessary, since both groups can deal with the intermediating institutions.,Copyright 2010 Pearson Education, Inc. Pu

59、blishing as Prentice Hall,43,By their very nature financial institutions attract criticism: bankers would not be doing their jobs if they did not turn down some requests for loans, and those who are denied funds sometimes feel hard done by and are vociferous in their complaints. Vociferous: 大叫大嚷（抱怨的时候） by their very nature =as a result of their own characteristics feel hard done by =have a feeling of being treated unequally 表示“拒绝”，意味从强到弱的四个词： 1) Reject: The British government is expected to reject the idea of State subsidy(补助金，津贴) for a new hig