金融英语术语

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8. Stock markets：issuance of shares or common stock. Bond markets: issuance of bonds. Commodity markets: trading of commodities. Money markets: short term debt financing and investment. Derivatives markets: instruments for the management of financial risk. Futures markets: standardized forward contracts Insurance markets: redistribution of various risks. Derivative products are financial products which are used to control risk or

paradoxically exploit risk. It is also called financial economics.

9. The international capital market trades capital market instruments with an

original maturity greater than one year.

10. 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.

11. ★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.

12. Currency : currency, consisting of dollar bills and coins, clearly fits money’s definition and is

one type of the money.

13. ★Transaction cost ：The time spent trying to exchange goods and services is called a

transaction cost

14. ★Liquidity ：Liquidity is a measure of the ease with which an asset can be turned into a

means of payment, namely money.

15. ★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.

16. M1: currency and various deposit accounts on which people can write checks.

17. M2 ：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.

18. M3：M3 adds to M2 a number of other assets that are important to large institutions but not to

individuals.

19. Demand deposits at commercial banks, which are standard checking accounts that pay no

interest

20. ★Depository institutions are financial institutions that accept deposits from savers and

make loans to borrowers; Normally, we use the term “banks” as an alternative

21. ★Bank : A bank is a financial institution where you can deposit your money.

22. A commercial bank is an institution that accepts deposits and uses the proceeds to make

consumer, commercial, and mortgage loans.

23. A holding company is a corporation that owns a group of other firms.

24. Community Banks: Small banks—those with assets of less than $1 billion—that concentrate

on serving consumers and small businesses.

25. 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.

26. Money Center Banks do not rely primarily on deposit financing. These banks rely instead

on borrowing for their funding

27. Savings institutions, which are sometimes referred to as “thrift institutions” or “thrifts”, are

financial intermediaries that were established to serve households and individuals

28. Savings Banks They raise funds by accepting deposits and use them primarily to make

mortgage loans

29. Central banks are normally government-owned and charged with

quasi-regulatory responsibilities, such as supervising commercial banks, or controlling the cash interest rate.

30. 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.

31. Dividends ：The deposits are called shares, and interest paid on the deposits is called

dividends.

32. ★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.

33. property and casualty insurance :Policies that cover accidents, theft, or fire are called

property and casualty insurance.

34. health and disability insurance :Policies that cover sickness or the inability to work are

called health and disability insurance,

35. life insurance :Policies that cover death are called life insurance.

36. premiums :Payments made to insurance companies for the insurance they provide are called

37. reinsurance :Insurance companies commonly obtain reinsurance, which effectively allocates

a portion of their return and risk to other insurance companies.

38. ★a offers people the ability to make premium payments today in exchange for

promised payments under certain future circumstances.

39. A pension plan is an asset pool that accumulates over an individual’s working years and is

paid out during the nonworking years.

40. ★A 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.

41. An is not a bank in the ordinary sense. It is a financial institution that helps

corporations raise funds.

42. are pure intermediaries who act as agents for investors in the purchase or sale of

securities.

43. link buyers and sellers by standing ready to buy and sell securities at given

prices.

44. auction market in which buyers and seller trade with each other in a central location.

45. A prices.

46. the interest rate: The willingness to postpone purchases into the future is a function of the

reward —that is, the interest rate.

47. ★future value is the value on some future date of an investment made today.

48. ★is the value in the present of a payment that is promised to be made in the

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69. future. ★nominal interest rate is What we have up to now been calling the interest rate makes no allowance of inflation. ★real interest rate is adjusted for expected changes in the price level so that it more accurately reflects the true cost of borrowing. Money market is the market for short-term credit. ★Treasury bills：To finance the national debt, the treasury department issues a variety of debt securities ★A CD (Negotiable Certificates of Deposit) is simply a short- to medium-length investment and is a debt instruments sold by a depository institution that pays annual interest payments equal to a fixed percentage of the original purchase price. In addition, at maturity the original purchase price is also paid back. ★Commercial paper securities are unsecured promissory notes, issued by corporations that mature in no more than 270 days. Banker’s acceptances are money market instruments created in the course of financing international trade. Repurchase 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. The money markets are wholesale markets where most securities trade in large denominations. MMMFs are funds that aggregate money from a group of small investors and invest it in money market instruments. ★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. Monetary policy may be 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. All depository institutions offering selected kinds of deposits are required to hold a small percentage of those deposits in an asset account of the central bank known as ★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. ★Discount rate is the interest rate charged by a central bank on loans to commercial banks. 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. The primary market is where new issues of stocks and bonds are introduced. When firms sell securities for the first time, the issue is an initial public offering (IPO). A secondary market is where the sale of previously issued securities takes place. ★Bonds are securities that represent a debt owed by the issuer to the investor, similar to an I.O.U. Municipal bonds:These are issued by state and local governments or their agencies to pay

for public improvements, reducing debt, or other purposes.

70. Corporate bonds :These are issued by corporations that want to raise money for their

business venture, ranging from balancing their cash flow to buying new equipment, building new facilities, or spending on new research.

71. Government bonds :Issued by the Federal government or one of the its agencies. From a

credit perspective, theses are the safest of all investments because they are backed by the “full faith and credit ” of the US government; so unless the US goes bankrupt, you are guaranteed to get your money back.

72. Treasuries bills, notes and bonds are collectively called “Treasuries ”.

73. Bonds can be issued by either governments or corporations.

74. A bond’s coupon rate refers to the amount of interest that will be paid based on the face

value of the bond.

75. the coupon rate is tied to market rates through an index such as the rate on treasury bills.

76. The yield is the discount rate or interest rate that an investor wants from investing in a bond.

77. A share of stock in a firm represents ownership. A stockholder owns a percentage interest in

a firm, consistent with the percentage of outstanding stock held.

78. A bear market indicates the continuous downward movement of the stock market.

79. a bull market indicates the constant upward movement of the stock market.

80. Financial derivatives are financial contracts, or financial instruments, whose values are

derived from the value of something else ( known as the underlying).

81. ★Exchange-traded derivatives (ETD) are those derivatives products that are traded via

specialized derivatives exchanges or other exchanges.

82. ★Over-the counter (OTC) derivatives

83. They are contracts that are traded ( and privately negotiated) directly between two parties,

without going through an exchange or other intermediary.

84. ★Derivatives are complex instruments devised as a form of insurance, to transfer risk

among parties based on their willingness to assume additional risk, or hedge against it.

85. ★A forward, or forward contract , is an agreement between a buyer and a seller to

exchange a commodity or financial instrument for a specified amount of cash on a prearranged future date.

86. The forward price is defined as the delivery price that makes the current market value of the

contract zero. No money is paid in the present by either party to the other.

87. The face value of the contract is the quantity of the item specified in the contract times the

forward price.

88. initial margin represents a good faith deposit that serves to cover losses if prices move

against the trader.

89. ★Options are contracts that give the purchaser the right to buy or sell the underlying

financial instrument at a specified price within a specific period of time.

90. ★A swap is an agreement between two parties to exchange sequences of cash flows for a set

period of time.

91. Interest rate swaps involve the exchange of one set of interest payments for another set of

interest payments, all denominated in the same currency. The most common type of interest rate swap specifies:

92. Currency swap :It involves exchanging principal and fixed interest payments on a loan in

one currency for principal and fixed interest payments on a similar loan in another currency.

93. ★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.

94. foreign exchange rates : The prices of foreign currencies expressed in terms of other

currencies are called foreign exchange rates.

95. A foreign exchange transaction is still a shift of funds, or short-term financial claims, from

one country and currency to another.

96. The OTC market is a country’s portion of an international OTC network of major dealers

—mainly but not exclusively banks—operating in financial centers around the world, trading with each other and with customers, via computers, telephones, and other means.

97. ★A spot transaction is a straightforward (or “outright ”) exchange of one currency for

another. (This trade represents a “direct exchange ” between two currencies and has the shortest time frame.

98. ★An outright forward transaction , like a spot transaction, is a straightforward single

purchase/sale of one currency for another.

99. A swap is an agreement between two parties to exchange payments based on identical

notional principle.

100. A currency swap is structurally different from the FX swap described above.

101. a foreign exchange futures contract is an agreement between two parties to buy/sell a

particular (non-U.S. dollar) currency at a particular price on a particular future date, as specified in a standardized contract common to all participants in that currency futures exchange.

102. The option buyer—who has no further financial obligation after he has paid the premium—

is not required to make margin payments.

103. The option writer—who has all of the financial risk —is required to put up initial margin

and to make additional (maintenance) margin payments if the market price moves adversely to his position.

104. ★A country ’s balance of payments is commonly defined as the record of transactions

between its residents and foreign residents over a specified period.

105. The balance of payments has two major accounts—the current account, and the capital and

financial account.

106. An export of any of the tangible goods is a credit in this account, because this would result

in a payment from abroad.

107. An import of any of the tangible goods is a debit in this account, as this would result in a

payment made to abroad.

108. A balance-of-payments deficit refers to a situation in which the official settlements balance

is positive.

109. A balance-of-payments equilibrium refers to a situation where the sum of the debits and

credits in the current account and capital and financial account is zero, and thus the official settlements balance is zero.

110. A letter of credit is an international bank’s future promise to pay for goods stored overseas

or for goods shipped between two countries.

111. ★Bankers ’ acceptances are time drafts used mainly to finance the shipment of goods or

commodities.