金融英语名词解释

Chapter 1

The international money market trades short-term claims with an original maturity of

one year or less.

The

international

capital

market

trades

capital

market

instruments

with

an

original

maturity greater than one year.

The foreign exchange market is the one where foreign currencies are bought and sold

in the course of trading goods, services, and financial claims among countries.

Chapter 2

1.

Money

：

Economists

define

money

(also

referred

to

as

the

money

supply)

as

anything

that

is

generally

accepted

in

payment

for

goods

or

services

or

in

the

repayment of debts.

2.

Currency

：

One type of money

：

dollar bills and coins

3.

Medium of Exchange

：

In almost all market transactions in an economy, money in

the

form

of

currency

or

checks

is

a

medium

of

exchange;

it

is

used

to

pay

for

goods and services.

4.

Transaction Cost

：

The time spent trying to exchange goods and services is called a

transaction cost.

5.

Store

of

Value

：

Money

also

functions

as

a

store

of

value;

it

is

a

repository

of

purchasing power over time. A store of value is used to

save purchasing power

from the time income is received until the time it is spent.

6.

Liquidity

：

Liquidity is a measure of the ease with which an asset can be turned

into a means of payment, namely money.

7.

Inflation

：

Inflation is a sustained rise in the general price level

—

that is, the price

of everything goes up more or less at the same time.

8.

Money

aggregates: We

have drawn the line in

a number of different

places

and

computed several measures of money, called the money aggregates: M1, M2, and

M3.

M1=currency

currency and various deposit accounts on which people can write checks

+Traveler’s checks

+Demand deposits

+Other checkable deposits

M2=M1

M2 equals all of M1 plus assets that cannot be used directly as a means of

payment and are difficult to turn into currency quickly

+Small-denomination time deposits

+Savings deposits and money market deposit accounts

+Money market mutual fund shares (non-institutional)

M3=M2

M3

adds

to

M2

a

number

of

other

assets

that

are

important

to

large

institutions but not to individuals.

+Large-denomination time deposits

+Money market mutual fund shares (institutional)

+Repurchase agreements

+Eurodollars

Chapter 3

1.

Depository institutions

：

Depository institutions are financial institutions that accept

deposits

from

savers

and

make

loans

to

borrowers .W

e

use

the

term

“banks”

as

an

alternative.

2.

bank

：

A bank is a financial institution where you can deposit your money.

3.

Commercial Banks

：

A commercial bank is an institution that accepts deposits and

uses the proceeds to make consumer, commercial, and mortgage loans. Originally

established

to

meet

the

needs

of

businesses,

many

of

these

banks

now

serve

individual customers as well

4.

holding company

：

A holding company is a corporation that owns a group of other

firms.

5.

Community Banks

：

Small banks

—

those with assets of less than $$1 billion

—

that

concentrate on serving consumers and small businesses.

These are the banks that take deposits from people in the local area and lend them

back to local businesses and consumers.

6.

Regional

and

Super-Regional

Banks

：

larger

than

community

banks

and

much

less

local.

Besides

consumer

and

residential

loans,

these

banks

also

make

commercial and industrial loans.

7.

Money Center Banks

：

do not rely primarily on deposit financing. These banks rely

instead on borrowing for their funding

8.

Savings

Institutions

< br>：

Savings

institutions,

which

are

sometimes

referred

to

as

“thrift institutions” or “thrifts”, are financial intermediaries that were established

to serve households and individuals.

9.

Credit Union

：

Credit unions (CUs) are nonprofit organizations

They are composed of members with a common bond, such as an affiliation with a

particular labor union, church, university, or even residential area.

Chapter 4

Insurance

Companies

:

Insurance

companies

are

intermediaries

whose

primary

function

is

to

allow

households

and

businesses

to

shed

specific

risks

by

buying

contracts

called

insurance

policies

that

pay

cash

compensation

if

certain

specified

events occur.

1.

Insurance

:

Insurance

is

a

financial

arrangement

that

redistributes

the

costs

of

unexpected losses.

2.

Insurance

System

:

An

insurance

system

accomplishes

the

redistribution

of

the

cost

of

losses

by

collecting

a

premium

payment

from

every

participant

in

the

system.

Marine Insurance

—

The large majority of ship owners resort to marine insurance

for the protection of their ships, freight and other interests against marine perils.

Life Insurance

—

Life insurance pays a stated amount of money on the death of

the insured individual

Fire Insurance

—

Fire insurance covers losses due to fire

Property

Insurance

—

property

insurance

covers

damage

to

the

properties

of

the

assured subject to an agreed limit.

Motor

Insurance

—

a

legally

required

insurance

covering

the

driver

of

a

car

for

potential

damages

to

other

road

users

or

their

vehicles

from

accidents

caused

through their fault.

Accident Insurance

—

this type of insurance provides compensation in the event of

an accident causing death or injury.

Liability Insurance

—

this type of insurance is to protect the policyholder who is

sued for damages arising from negligence.

Property and casualty insurance--- Policies that cover accidents, theft, or fire are

called property and casualty insurance.

Health

and

disability

insurance---

Policies

that

cover

sickness

or

the

inability

to work are called health and disability insurance

Life insurance ---Policies that cover death are called life insurance

3.

Premiums

:

Payments made to insurance companies for the insurance they provide

are called premiums.

4.

Reinsurance

:

Insurance

companies

commonly

obtain

reinsurance,

which

effectively

allocates

a

portion

of

their

return

and

risk

to

other

insurance

companies.

（

1

）

Pension Funds

:

Like an insurance company, a pension fund offers people the

ability

to

make

premium

payments

today

in

exchange

for

promised

payments

under certain future circumstances.

（

2

）

Pension

plan

:

A

pension

plan

is

an

asset

pool

that

accumulates

over

an

individual’s working years and is paid out during the nonworking years.

5.

Installment

Loans

:

Consumer

finance

firms

provide

small

installment

loans

to

individual consumers.

This kind of consumer credit allows people without sufficient savings to purchase

appliances such as television sets, washing machines, and microwave ovens

6.

Mutual

Funds

:

A

mutual

fund

is

a

portfolio

of

stocks,

bonds,

or

other

assets

purchased

in

the

name

of

a

group

of

investors

and

managed

by

a

professional

investment company or other financial institution.

7.

Open-end

mutual

funds:

Open-end

mutual

funds

are

willing

to

repurchase

the

shares they sell from investors at any time.

8.

Closed end: Closed-end mutual funds do not repurchase the shares they sell.

9.

Investment Bank:

It is a financial institution that helps corporations raise funds.

10.

Securities

Brokers:

Securities

brokers

and

dealers

conduct

trading

in

secondary

markets.

11.

Brokers:

Brokers

are

pure

intermediaries

who

act

as

agents

for

investors

in

the

purchase or sale of securities.

12.

Securities Dealers:

Security dealers

link buyers

and sellers by standing ready to

buy and sell securities at given prices.

13.

Organized Exchange: An organized exchange actually functions as a hybrid of an

auction

market

(in

which

buyers

and

seller

trade

with

each

other

in

a

central

location

14.

dealer market: A dealer market (in which dealers make the market by buying and

selling securities at given prices)

Chapter 5

1.

Interest rate

：

The willingness to postpone purchases into the future is a function of

the reward.

2.

Future

Values:

future

value

is

the

value

on

some

future

date

of

an

investment

made today.

3.

Present

Value:

Present

value

is

the

value

in

the

present

of

a

payment

that

is

promised to be made in the future.

4.

Nominal Interest Rates: interest rate that is adjusted for expected changes in the

price level so that it more accurately reflects the true cost of borrowing.

补：

The interest rate before taking inflation into account. The nominal interest rate is

the rate quoted in loan and deposit agreements. The equation that links nominal and

real interest rates is:

(1 + nominal rate) = (1 + real interest rate) (1 + inflation rate).

It can be approximated as nominal rate = real interest rate + inflation rate.

5.

Real Interest Rates:

（补）

An interest rate that has been adjusted to remove the

effects

of inflation to

reflect

the real

cost

of funds to

the borrower, and the real

yield

to

the

lender.

The

real

interest

rate

of

an

investment

is

calculated

as

the

amount by which the nominal interest rate is higher than the inflation rate.

Real Interest Rate = Nominal Interest Rate - Inflation (Expected or Actual)

Chapter 6

Money Market

：

Money market is the market for short- term credit

Money market provides short term debt financing and investment.

1.

Treasury Bills

：

A short- term debt obligation backed by the U.S. government with

a maturity of less than one year. T-bills are sold in denominations of $$1,000 up to

a maximum purchase of $$5 million and commonly have maturities of one month

(four weeks), three months (13 weeks) or six months (26 weeks).

2.

Negotiable Certificates of Deposit (CDs)

：

The term CD stands for Certificate of

Deposit. A CD is simply a short- to medium-length investment. Most CDs have a

maturity of 1-12 months.

3.

Commercial Paper

：

Commercial paper securities are unsecured promissory notes,

issued by corporations that mature in no more than 270 days.

4.

Banker’s

Acceptance

：

Banker’s

acceptances

are

money

market

instruments

created in the course of financing international trade.

An acceptance is a financial instrument designed to shift the risk of international

trade to a third party willing to take on that risk for a known cost.

5.

Repurchase

Agreements

：

Repurchas e

agreements

(repos)

are

short-term

agreements

in

which

the

seller

sells

a

government

security

to

a

buyer

and

simultaneously

agrees

to

buy

the

government

security

back

on

a

later

date

at

a

higher price.

6.

Money Market Mutual Funds

：

MMMFs are funds that aggregate money from a

group of small investors and invest it in money market instruments.

7.

open-ended fund

：

An open-ended fund is one that invests in securities and sells

direct claims on the securities to investors.

Chapter 7

1.

Central Bank

：

The central bank is the financial institution designed to regulate

and

control

the

money

supply

of

a

nation,

with

the

goal

of

fostering

economic

growth without inflation

.

2.

expansionary policy

：

lower interest rates, raises both growth and inflation over the

short run

3.

restrictive policy

：

Higher interest rates, reduces both growth and inflation.

4.

Dollar hegemony: dollar hegemony means that managing the US dollar therefore

not only affects the US economy but all economies.

Chapter 8

1.

Monetary

policy

：

Defined

as

the

use

of

various

tools

by

the

central

bank

to

control the availability of loanable funds in an effort to achieve national economic

goals, such as full employment and reasonable price stability.

2.

Reserve

Requirements:

Reserve

requirements

are

a

percentage

of

depository

institutions' demand deposit liabilities that must be kept on deposit at the central

bank as a requirement of banking regulations.

3.

Discount Rate

：

Discount rate is the interest rate charged by a central bank on loans

to commercial banks.

4.

Open Market Operations

：

Open market operations, the central bank’s

purchase or

sale of bonds in the open market

Open

market

purchases

：

Open

market

purchases

expand

reserves

and

the

monetary base, thereby raising the money supply and lowering short-term interest

rates.

Open

market

sales

：

Open

market

sales

shrink

reserves

and

the

monetary

base,

lowering the money supply and raising short-term interest rates.

Chapter 9

Capital Market

：

The capital market is the market in which long-term debt (generally

those with original maturity of one year or greater) and equity instruments are traded.

1.

The primary market

：

The primary market is where new issues of stocks and bonds

are

introduced.

Investment

funds,

corporations,

and

individual

investors

can

purchase all securities offered in the primary market

.

2.

Organized

Securities

Exchanges

< br>：

Exchange

rules

govern

trading

to

ensure

the

efficient and legal operation of the exchange, and the exchange’s board constantly

reviews these rules to ensure that they result in competitive trading

.