金融学名词解释

一、名词解释

e of payments

The

set

of

accounts

recording

all

flows

of

the

value

between

a

nation

’

s

residents

and

the

residents of the rest of the world during a period of time.

t account

The current account includes all debit and credit items that are exports and imports of goods

and services, income receipts and income payments, and gifts.

ial account balance

The net value of flows of financial assets and similar claims(excludes official international

serve asset)is the private financial account balance.

ational investment position

Is a statement of the stocks of a nation

’

s investment assets and foreign liabilities at a point in

time, usually at the end of the year.

n exchange

Foreign exchange is the act of trading different nation

’

s moneys.

ge rate

An exchange rate is the price of one nation

’

s money in terms of another nation

’

s money.

exchange rate

The spot exchange rate is the price for

“

immediate

”

exchange.

d exchange rate

The forward exchange rate is the price set now for an exchange that will take place sometime

in the future.

n exchange swap

A

foreign

exchange

swap

is

a

package

trade

that

includes

both

a

spot

exchange

of

two

currencies and an agreement to the reverse forward exchange of the two currencies.

age

Arbitrage is the process of buying and selling to make a riskless pure profit.

ge rate risk

A person(or an organization like a firm)is exposed to exchange rate risk if the value of the

person

’

s income, wealth, or net worth changes when exchange rate changes unpredictably in the

future.

g

Hedging is the act of reducing or eliminating a net asset or liability position in the foreign

currency.

ating

Speculating is the act of taking a net asset position (

“

long

”

) or a liability p osition(

“

short

”

)in

some asset class, here a foreign currency.

d foreign exchange contract

A forward foreign exchange contract is an agreement to exchange one currency for another

on some date in the future at a price set now.

cy futures

Currency futures are contracts that are traded on organization exchanges. By entering into a

currency futures contract, you can effectively lock in the price at which you buy or sell a foreign

currency at a set data in the future.

cy option

A currency option gives the buyer(or holder)of the option the right ,but not the obligation, to

buy foreign currency (a call option) or to sell foreign currency (a put option) at some time in the

future at a price set today.

cy swap

A

currency

swap

is

an

agreement

that

two

parties

agree

to

exchange

flows

of

different

currencies during a specified period of time.

d interest arbitrage

Covered

interest

arbitrage

is

buying

a

country

’

s

currency

spot

and

selling

the

country

’

s

currency

forward,

to

make

a

net

profit

from

the

combination

of

the

difference

in

interest

rates

between countries and the forward premium on the country

’

s currency.

sing power parity (PPP)

The

PPP

contains

our

core

understanding

of

the

relationship

between

product

price

and

exchange rate in the long run.

te purchasing power parity

The absolute PPP posits that a basket or bundle of tradable products will have the same cost

in different countries if the cost is stated in the same currency.

ve purchasing power parity

The

relative PPP posits

that

the

difference

between

changes

over

time

in

product-levels

in

two countries will be offset by the change in the exchange rate overtime.

law of one price