英语信函-公鸭嗓
考试题型以及分数分布：
一、 选择题：1’*20=20’
二、
名词解释：4’*5=20’
三、 简答题：8’*5=40’
四、
论述题：20’*1=20’
重点制作思路：
1.考虑到时间关系，抓大放小
2.结合老师提及复习内容进行预测
3.以理顺书本架构为主，看到一个知识点猜一下可能会出什么题
The
economics of money,banking and financial markets
----by Kyle
Chapter1：Why Study Money,
Banking, and Financial Markets？
（本章了解一下这个问题即可，最多考一下选择）
Answer：
?
To examine how
financial markets
such as
bond and stock markets work
? To examine
how
financial institutions
such as banks
work
? To examine the role of
money
in the economy
Chapter2：An
Overview of the Financial System
1.
Function of Financial Markets
? Perform the
essential function of
channeling funds
from economic players that
have saved surplus
funds to those that have a shortage of funds
?
Direct finance:
borrowers borrow funds
directly from lenders in financial
markets by
selling them securities.
?
Promotes
economic efficiency
by producing an efficient
allocation（分配）
of capital（资金）, which increases
production
? Directly
improve the well-
being of consumers
by allowing them to time
purchases better
ure of Financial Markets
? Debt and Equity （普通股） Markets
? Primary
and Secondary Markets
? Exchanges and Over-
the-Counter (OTC不通过交易所而直接售给顾客的) Markets
?
Money and Capital Markets（货币和资本市场）
3.
Financial Market Instruments(要能举出例子，很可能考选择)
Money markets deal in
short-term
debt instruments
Capital markets deal
in
longer-term
debt and equity
instruments.
ationalization of Financial
Markets（重点，选择、名词解释都有可能）
? Foreign Bonds &
Eurobond?
? Eurocurrencies &
Eurodollars
?
? World Stock Markets
5．Function of Financial Intermediaries:
Indirect Finance
（记一下金融中介机构的功能，交易成本很可能考名词解释）
? Lower
transaction costs
(time and
money spent in carrying out financial
transactions).
?
Reduce
the
exposure of investors to
risk
? Deal
with
asymmetric
不对称
information
problems
? Conclusion:
Financial
intermediaries allow “small” savers and borrowers
to benefit
from the existence of financial
markets.
6. Types of Financial
Intermediaries（会分类即可）
Depository
institutions
Contractual saving
institutions
Investment intermediaries
7. Regulation of the Financial System
? To
increase the
information
available to
investors:
? To ensure the
soundness
健康稳固of financial intermediaries
Chapter3：What Is Money?
1. Meaning of
Money（即definition，必考名词解释！！）
? Money (or the
“money supply”): anything that is generally
accepted in
payment for goods or services
or in the
repayment of debts.
2.
Functions of Money（重点）
? Medium of Exchange:
? A medium of exchange must
? Unit of
Account:
? Store 储藏 of Value:
3.
Evolution of the Payments System
?
Commodity 商品 Money
? Fiat 法定 Money
?
Checks 支票Electronic Payment (e.g. online bill
pay).
? E-Money (electronic money):
4.
Measuring Money （重中之重，M1M2都很有可能考名词解释）
?
Construct monetary aggregates using the
concept of liquidity
:
（构建货币总量使用流动性的概念）
?
M1 (most liquid assets)
= currency +
traveler’s checks + demand deposits
+ other
checkable deposits.
?
M2 (adds to M1
other assets that are not so liquid)
= M1 +
small denomination
time deposits + savings
deposits and money market deposit accounts + money
market mutual fund shares.
Chapter
4：Understanding Interest Rates
1.
measuring interest rates:Present Value(很可能考察名词解释)
A dollar paid to you one year from now is
less valuable
than a dollar paid
to
you today
Simple Present Value：PV=CF(1+i)n次方
2. Four Types of Credit Market
Instruments
? Simple Loan
? Fixed Payment
Loan
? Coupon Bond 附票债券
? Discount Bond
贴现债券
to Maturity（重点，很可能名词解释）
? The
interest rate that equates the present value
of
cash flow payments
received from a debt
instrument
with
its value today
计算4种不同信用工具外加Consol or Perpetuity（金边债券或永久债券）的YM
4. Yield on a Discount Basis（了解即可）
Current
Yield当期收益率
Yield on a Discount Basis 折价收益率
Rate of Return 收益率
of Return and Interest
Rates（收益率与利息率的distinction）
? The return
equals
the yield to maturity only if the
holding period equals
the time to maturity
? A rise in interest rates is
associated with a fall in bond prices, resulting
in a capital loss if time to maturity is
longer than the holding period
? The more
distant a bond’s maturity, the greater the size
of the percentage
price change associated with
an interest-rate change
? The more distant a
bond’s maturity, the lower the rate of return the
occurs
as a result of an increase in the
interest rate
? Even if a bond has a
substantial initial interest rate, its return can
be
negative if interest rates rise
6.
Interest-Rate Risk
? Prices and returns for
long-term bonds are more volatile than those for
shorter-term bonds
? There is no interest-
rate risk for any bond whose time to maturity
matches
the holding period
7. Real and
Nominal Interest Rates（重点，很可能考察简答题）
? Nominal
interest rate makes no allowance for inflation
? Real interest rate is adjusted for changes
in price level so it more
accurately reflects
the cost of borrowing
? Ex ante real interest
rate is adjusted for expected changes in the price
level
? Ex post real interest rate is
adjusted for actual changes in the price level
8. Fisher Equation（重点考察）
Chapter5：The
Behavior of Interest Rates
1. Determining
the Quantity Demanded of an Asset
? Wealth:
the total resources owned by the individual,
including all assets
? Expected Return: the
return expected over the next period on one asset
relative to alternative assets
? Risk: the
degree of uncertainty associated with the return
on one asset
relative to alternative assets
? Liquidity: the ease and speed with which an
asset can be turned into cash
relative to
alternative assets（流动性很有可能考名词解释）
of Asset
Demand（必考，死活都得背下来）
Holding all other
factors constant:
1. The quantity demanded
of an asset is positively related to wealth
2.
The quantity demanded of an asset is positively
related to its expected
return relative to
alternative assets
3. The quantity demanded of
an asset is negatively related to the risk
of its returns relative to alternative
assets
4. The quantity demanded of an asset is
positively related to its
liquidity relative
to alternative assets
3. Supply and Demand for
Bonds（见到看一下图）
Market Equilibrium
4. Shifts
in the Demand for Bonds
? Wealth: in an
expansion with growing wealth, the demand curve
for bonds shifts
to the right
? Expected
Returns: higher expected interest rates in the
future lower the
expected return for long-term
bonds, shifting the demand curve to the left
?
Expected Inflation: an increase in the expected
rate of inflations lowers
the expected return
for bonds, causing the demand curve to shift to
the left
? Risk: an increase in the riskiness
of bonds causes the demand curve to shift
to
the left
? Liquidity: increased liquidity of
bonds results in the demand curve shifting
right
5．Shifts in the Supply of Bonds
? Expected profitability of investment
opportunities: in an expansion, the
supply
curve shifts to the right
? Expected
inflation: an increase in expected inflation
shifts the supply curve
for bonds to the right
? Government budget: increased budget deficits
shift the supply curve to the
right
6. The
Liquidity Preference Framework（重中之重）
for
Money in the Liquidity Preference Framework
?
As the interest rate increases:
– The
opportunity cost of holding money increases…
–
The relative expected return of money decreases…
? …and therefore the quantity demanded of
money decreases.
in the Demand for
Money（都很重要）
? Income Effect: a higher level of
income causes the demand for money at each
interest rate to increase and the demand curve
to shift to the right
? Price-Level Effect: a
rise in the price level causes the demand for
money
at each interest rate to increase and
the demand curve to shift to the right
? Liquidity preference framework leads
to the conclusion that an increase in
the
money supply will lower interest rates: the
liquidity effect.
? Income effect finds
interest rates rising because increasing the money
supply
is an expansionary influence on the
economy (the demand curve shifts to the
right).
Chapter9:Banking
Bank
Balance Sheet
? Liabilities
– Checkable
deposits
– Nontransaction deposits
–
Borrowings
– Bank capital
? Assets
–
Reserves(准备金)
– Cash items in process of
collection
– Deposits at other banks
–
Securities
– Loans
– Other assets
Banking:
? Cash Deposit：Opening of a
checking account leads to an increase in the
bank’s
reserves equal to the increase in
checkable deposits
Check Deposit
3．Inter-
business
? Bank settlement
? Finance
lease
? Fiduciary business
? Safe deposit
box
4. Off-Balance-Sheet Activities
? Loan
sales (secondary loan participation)
?
Generation of fee income. Examples:
Chapter12:Central Banks and the Federal
Reserve System
(此章省略很多)
1. Structure of the
Fed(了解即可)
Board of Governors（7人）
12 FRBs（9人） Member Banks
FOMC
(7+1+4人)
Federal Advisory Council （12人）
2.
（3+3+3人）
Federal Reserve
Bank
Functions：
Clear checks
Issue new
currency
Withdraw damaged currency from
circulation
Administer and make discount loans
to banks in their districts
Evaluate proposed
mergers and applications for banks to expand their
activities
Act as liaisons between the
business community and the Federal Reserve System
Examine bank holding companies and state-
chartered member banks
Collect data on local
business conditions
Use staffs of
professional economists to research topics related
to the conduct
of monetary policy
Chapter13&14：The Money Supply Process:
1. Players in the Money Supply Process
Central bank (Federal Reserve System)
Banks (depository institutions; financial
intermediaries)
Depositors (individuals and
institutions)
2．Fed’s Balance Sheet
Federal Reserve System
Assets Liabilities
Government
securities
Currency in
circulation
Discount loans Reserves
ry
Base
Market Purchase
? The effect
of an open market purchase on reserves depends on
whether the seller
of the bonds keeps the
proceeds from the sale in
currency or in
deposits
? The effect of an open market
purchase on the monetary base always
increases
the monetary base
by the amount of the
purchase
Open Market Sale
? Reduces the
monetary base by the amount of the sale
?
Reserves remain unchanged
The effect of open
market operations on the monetary base is much
more certain
than the effect on reserves
5.
Base
Fed’s Ability to Control the
Monetary
Split the monetary base into two
components :
MBn= MB - BR
the non-
borrowed monetary base :MBn
borrowed
reserves:BR
Formula for Multiple Deposit
Creation（很重要！必考,记住公式）
7. Factors that
Determine the Money Supply
Changes in the
nonborrowed monetary base MBn
Changes in
borrowed reserves from the Fed
Changes in the
required reserves ratio
Changes in currency
holdings
Changes in excess reserves
8. The
Money Multiplier(重点)
Assume that the desired
holdings of currency C and excess reserves ER grow
proportionally with checkable deposits D.
Then,
c = {CD} = currency ratio
e = {ERD}
= excess reserves ratio
The monetary base
MB
equals currency
(C)
plus
reserves
(R)
:
MB = C + R = C + (r x D)
+ ER
M=m*MB=m*(MBn+BR)
M=1+cr+e+c
Chapter 15：Tools of Monetary Policy
1. Tools of Monetary Policy
Open
market operations
Changes in borrowed reserves
Changes in reserve requirements
Federal
funds rate: the interest rate on overnight loans
of reserves from one bank
to another
in
the Market for Reserves
Supply in the Market
for Reserves
ing the Federal Funds Rate
Market Operations（超级重点）
Advantages：
The
Fed has complete control over the volume
Flexible and precise
Easily reversed
Quickly implemented
nt Policy（超级重点）
Advantages：
Used to perform role of
lender of last resort
disadvantages：
Cannot be controlled by the Fed; the decision
maker is the bank
e Requirements（超级重点）
Advantages：
? No longer binding for most
banks
disadvantages：
? Can cause liquidity
problems
? Increases uncertainty for banks
7. Monetary Policy Tools of the European
Central Bank
? Open market operations
?
Lending to banks
? Reserve Requirements
Chapter16：The Conduct of Monetary Policy:
Strategy and Tactics
1. Goals of Monetary
Policy
（1）The Price Stability Goal
? Low and stable inflation
? Inflation
? Nominal anchor to contain inflation
expectations
? Time-inconsistency problem
（2）Other Goals of Monetary Policy
? High
employment
? Economic growth
? Stability
of financial markets
? Interest-rate stability
? Foreign exchange market stability
2.
Monetary Targeting
? Advantages
– Almost
immediate signals help fix inflation expectations
and produce
less inflation
– Almost
immediate accountability
?
Disadvantages
– Must be a strong and reliable
relationship between the goal variable
and the
targeted monetary aggregate
3. Inflation
Targeting
? Public announcement of medium-
term numerical target for inflation
?
Institutional commitment to price stability as the
primary, long-run goal
of monetary policy and
a commitment to achieve the inflation goal
?
Information-inclusive approach in which many
variables are used in making
decisions
?
Advantages
? Does not rely on one variable to
achieve target
? Easily understood
?
Reduces potential of falling in time-inconsistency
trap
? Stresses transparency and
accountability
? Disadvantages
? Delayed
signaling
? Too much rigidity
?
Potential for increased output fluctuations
?
Low economic growth during disinflation
ry
Policy with an Implicit Nominal Anchor
There
is no explicit nominal anchor in the form of an
overriding concern for the
Fed.
Forward
looking behavior and periodic “preemptive strikes”
The goal is to prevent inflation from getting
started.
? Advantages
– Uses many sources
of information
– Avoids time-inconsistency
problem
? Disadvantages
– Lack of
transparency and accountability
– Strong
dependence on the preferences, skills, and
trustworthiness of
individuals in charge
–
Inconsistent with democratic principles
5.
Tactics: Choosing the Policy Instrument
? Tools
– Open market operation
– Reserve requirements
– Discount rate
? Policy instrument (operating instrument)
– Reserve aggregates
– Interest rates
– May be linked to an intermediate target
? Interest-rate and aggregate targets are
incompatible (must chose one or the
other).
es Between Central Bank Tools, Policy
Instruments, Intermediate Targets,
and Goals
of Monetary Policy(中间目标是超级重点，死活都要背下来)
Chapter19:The Demand for Money
1.
Exchange
Velocity of Money and The
Equation of
V=P*YM
M*V=P*Y
ty
Theory of Money Demand
SO: Demand for money is
determined by:
The level of transactions
generated by the level of nominal income PY
The institutions in the economy that affect
the way people conduct transactions
and thus
determine velocity and hence k
’s
Liquidity Preference Theory
Transactions
motive
Precautionary motive
Speculative
motive
Velocity is not constant:
4.
Friedman’s Modern Quantity Theory of
Money(记住该公式及其含义)
5. Differences between
Keynes’s and Friedman’s Model (cont’d)
?
Friedman
– Includes alternative assets to
money
– Viewed money and goods as substitutes
– The expected return on money is not
constant; however,
r
b
– r
m
does stay
constant as interest
rates rise
– Interest rates have little effect
on the demand for money
? Friedman (cont’d)
– The demand for money is stable ?
–
velocity is predictable
– Money is the primary
determinant of aggregate spending
Chapter23：Transmission Mechanisms of Monetary
Policy: The Evidence
ork
(1)Structural
Model
whether one variable affects another
? Transmission mechanism
– The change in
the money supply affects interest rates
–
Interest rates affect investment spending
–
Investment spending is a component of aggregate
spending (output)
Advantages and Disadvantages
(2)Reduced-Form
? Analyzes the
effect of changes in money supply on aggregate
output (spending)
to see if there is a high
correlation
Advantages and Disadvantages
2. Transmission Mechanisms of Monetary Policy
(1) Asset Price Effects
Traditional
interest rate effects
Exchange rate effects on
net exports
...
(2)Credit View
Chapter24: Money and Inflation
g of
inflation(死活背下来)
extremely high for a
sustained period of time, its rate of money supply
growth is
also extremely high
? Money
Growth
– High money growth produces high
inflation
? Fiscal Policy
–
Persistent high inflation cannot be driven by
fiscal policy alone
? Supply Shocks
–
Supply-side phenomena cannot be the source of
persistent high
inflation
? Conclusion:
always a monetary phenomenon
2. Origins of
Inflationary Monetary Policy
? Cost-push
inflation
–
policy
Cannot occur
without monetary authorities pursuing an
accommodating
? Demand-pull inflation
?
Budget deficits
– Can be the source only if
the deficit is persistent and is financed
by
creating money rather than by issuing bonds
?
Two underlying reasons
– Adherence of
policymakers to a high employment target
–
Presence of persistent government budget deficits
3. The Discretionary (Activist)
Nondiscretionary (Nonactivist) Policy Debate
（1）Advocates of discretionary policy：
regard the self-correcting mechanism as slow
Policy lags slow activist policy
（2）Advocates of nondiscretionary policy:
believe government should not get involved
Discretionary policy produces volatility in
both the price level and output