金融英语刘文国第二版课后练习Exercises05.doc

Exercises fiveI. Answer following questions in English1. How do central banks earn money?Central banks generally earn money by issuing currency notes and "selling" them to the public for interest-bearing assets, such as government bonds.2. What is primary responsibility of central bank?Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized-loan interest rates, and acting as a lender of last resort to the banking sector during times of financial crisis (private banks often being integral to the national financial system).3. What is central banks primary liability? Central bank's primary liabilities are the currency outstanding, and these liabilities are backed by the assets the bank owns.4.What is open market operations? Open market operations are the means of implementing monetary policy by which a central bank controls its national money supply by buying and selling government securities, or other financial instruments. 5.What are the function of legal reserve requirements? The function of legal reserve requirements is to reduce the risk of banks overextending themselves and suffering from bank runs, as this could lead to knock-on effects on other banks.6.What is mean about M1 and M2?M1: currency in circulation + checkable deposits (checking deposits, officially called demand deposits, and other deposits that work like checking deposits) + traveler's checks. M1 represents the assets that strictly conform to the definition of money: assets that can be used to pay for a good or service or to repay debt. Although checks linked to checking deposits are gradually becoming less popular, debit cards linked to these deposits are becoming more popular. Like checks, debit cards, as a means to complete a transaction through their links to checkable deposits, can also be considered as a form of money. M2: M1 + savings deposits, time deposits less than $100,000 and money market deposit accounts for individuals. M2 represents money and "close substitutes" for money. M2 is a key economic indicator used to forecast inflation. 7.Why do central banks establish reserve requirements for other banks? The reserve requirements can limit the money supply.8.Does the lower interest rate stimulate economy development?The lower interest rate stimulates investment because it declines apital cost.II.Fill in blank with suitable words and expressions1. Through open market operations, a central bank influences the money supply in an economy directly. Each time it buys securities, exchanging money for the security, it raises the money supply. Conversely, selling of securities lowers the money supply.2. Central banks generally earn money by issuing currency notes and "selling" them to the public for interest-bearing assets, such as government bonds. 3. Typically a central bank controls certain types of short-term interest rates. These influence the stock and bond markets as well as mortgage and other interest rates. 4. All banks are required to hold a certain percentage of their assets as capital, a rate which may be established by the central bank or the banking supervisor.5. The mechanism to move the market towards a 'target rate' is generally to lend money or borrow money in theoretically unlimited quantities, until the targeted market rate is sufficiently close to the target.6. Most countries control bank mergers and are wary of concentration in this industry due to the danger of groupthink and runaway lending bubbles based on a single point of failure, the credit culture of the few large banks. Translate the following sentences and passage into English:1. 中国人民银行运用的货币政策工具包括准备金率，中央银行基准利率，再贴现率，中央银行贷款，公开市场操作和其他由国务院规定的政策工具。The monetary policy instruments applied by the PBC include reserve requirement ratio, central bank base interest rate, rediscounting, central bank lending, open market operation and other policy instruments specified by the State Council.2. 货币政策与银行监管两者的关系是既相互独立,又相互联系。The relations between monetary policy and banking supervision are mutual independence and mutual influence. 3. 1942年起，中央银行垄断了货币发行，成为中国历史上第一个真正的中央银行。From 1942, the Central Bank of China centralized the banknote issue and became the first central bank in the history of China. 4. 随着银行不良资产绝对数量的增加,央行加强对商业银行提高存款准备金率、加强资产流动性和分散资金风险的管理,以及银行贷款利率空间的扩大,我国商业银行等金融机构推行资产证券化的呼声越来越高。Along with the increase of absolute quantity of banks' harmful property, the Central Bank of China strengthens the management on commercial bank in the aspects of increasing deposit reserve rate, enhancing property liquidity and scattering funds risk, and the widening of the space of bank loan interest rate, the voice of promoting the property stock certificate is higher and higher。5. 1984年国家将商业银行的职能从中国人民银行中剥离出去，成立了独立的四大国家银行，并决定中国人民银行专门行使国家中央银行的职能，主要控制货币政策，调控各金融机构。In 1984, the government separated the supervisory responsibilities of the commercial bank from the Peoples Bank of China and then made the decision that the Peoples Bank of China is a central bank mainly to control the monetary policy and all financial institutions.6. 每个有完整金融体系的国家都有中央银行，广义而言，中央银行是政府的银行。某些国家的货币制度过去一直是金本位的。Every country with an established banking system has a central bank, which acts as banker to the Government in the widest sense. The monetary system of certain countries used to be based on gold。 Translate the following sentences and passage into Chinese: 1. A central banks primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling loan interest rates. 中央银行的首要责任是维护国家的货币和货币供应量稳定的，但更为积极的职责包括控制贷款利率。2. To enable open market operations, a central bank must hold foreign exchange reserves (usually in the form of government bonds) and official gold reserves. 为了使公开市场操作可行，中央银行必须拥有外汇储备（通常的形式是政府债券）和官方黄金储备。3. In some countries, central banks may have other tools that work indirectly to limit lending practices and otherwise restrict or regulate capital markets. 在一些国家，中央银行可以有其他的工具来间接限制贷款的做法和限制或管制资本市场。4. Central banks actions affect interest rates, the amount of credit, and the money supply, all of which have direct impacts not only on financial markets but also on aggregate output and inflation. 中央银行的行动会影响利率，信贷，货币的供应，所有这些不仅直接影响金融市场而且影响了总产量，造成通货膨胀。5. The central bank acts as an adviser to the government，particularly in the area of international finance, many governments rely strongly on the advice of their central banks. 中央银行作为政府顾问，在很大程度上特别在国际金融领域中许多政府都非常依赖于中央银行的指导。6. In an extraordinary move that reflects the gravity of the financial turmoil, the worlds central banks Wednesday announced coordinated interest rate cuts as they try to restore confidence in the economy. The Peoples Bank of China said that it also lowered its key rates in coordination with the other central banks. 在一场反映金融动荡的引力的特别行动中，世界央行周三宣布，将联合降息，以努力恢复经济信心。中国人民银行称也与将其它央行一道降息。