货币和资本市场(1)erku.pptx

Money and Capital Markets1 1C h a p t e rEighth EditionFinancial Institutions and Instruments in a Global MarketplacePeter S.RoseMcGraw Hill/IrwinSlides by Yee-Tien(Ted)FuFunctions and Roles of the Financial Functions and Roles of the Financial System in the Global EconomySystem in the Global Economy 2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-2 Learning Objectives wTo understand the functions performed and the roles played by the system of financial markets and institutions in the global economy.wTo explore several key terms and concepts of the money and capital markets.wTo discover how important the financial system is in increasing our standard of living,generating new jobs,and building our savings to meet tomorrows financial needs.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-3IntroductionwThe financial system is the collection of markets,institutions,laws,regulations,and techniques through which bonds,stocks,and other securities are traded,interest rates are determined,and financial services are produced and delivered around the world.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-4IntroductionwThe primary task of the financial system is to move scarce loanable funds from those who save to those who borrow to buy goods and services and to make investments in new equipment and facilities,so that the global economy can grow and the standard of living can increase.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-5Flows within the Global Economic SystemwThe basic function of the economic system is to allocate scarce resources land,labor,management skill,and capital to produce the goods and services needed by society.wThe global economy generates a flow of production in return for a flow of payments.wThe circular flow of production and income is interdependent and never ending.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-6Flows within the Global Economic SystemLand and other natural resourcesLabor and managerial skillsCapital equipmentFlow of productionFlow of paymentsGoods and services sold to the public 2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-7Flows within the Global Economic SystemProducing units(mainly business firms and governments)Consuming units(mainly households)2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-8The Role of Markets in the Global Economic SystemwIn most economies around the world,markets carry out the complex task of allocating resources and producing goods and services.wThe marketplace determines what goods and services will be produced and in what quantities through their prices.wMarkets also distribute income by rewarding superior producers with increased profits,higher wages,and other economic benefits.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-9Types of MarketswThere are essentially three types of markets within the global economic system.wThe factor markets allocate the factors of production to the owners of productive resources.wConsuming units use most of their income from factor markets to purchase goods and services in product markets.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-10Types of MarketsThe financial markets channel savings to those individuals and institutions needing more funds for spending than are provided by their current incomes.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-11Types of MarketsProducing units(mainly business firms and governments)Flow of productionFlow of paymentsConsuming units(mainly households)Flow of funds(savings)Flow of financial services,income,and financial claimsFinancial marketsProduct marketsFactor marketsFlow of incomesProductive services Goods and servicesFlow of payments forconsumption and taxesFlow of incomesProductive services 2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-12The Financial Markets and the Financial System:Channel for Savings and InvestmentwThe financial markets make possible the exchange of current income for future income and the transformation of savings into investment so that production,employment,and income can grow.wThe suppliers of funds to the financial system can expect not only to recover their original funds but also to earn additional income as a reward for waiting and for assuming risk.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-13The Global Financial SystemDemanders of funds(mainly business firms and governments)Flow of loanable funds(savings)Flow of financial services,incomes,and financial claimsSuppliers of funds(mainly households)2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-14Functions Performed by the Global Financial System and the Financial MarketswSavings function.The global system of financial markets and institutions provides a conduit for the publics savings.wWealth function.The financial instruments sold in the money and capital markets provide an excellent way to store wealth.wLiquidity function.Financial markets provide liquidity for savers who hold financial instruments but are in need of money.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-15Functions Performed by the Global Financial System and the Financial MarketswCredit function.Global financial markets furnish credit to finance consumption and investment spending.wPayments function.The global financial system provides a mechanism for making payments for goods and services.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-16Functions Performed by the Global Financial System and the Financial MarketswRisk protection function.The financial markets around the world offer businesses,consumers,and governments protection against life,health,property,and income risks.wPolicy function.The financial markets are a channel through which governments may attempt to stabilize the economy and avoid inflation.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-17Types of Financial MarketsWithin the Global Financial SystemwThe money market is for short-term(one year or less)loans,while the capital market finances long-term investments by businesses,governments,and households.wIn particular,governments borrow from commercial banks in the money market,while in the capital market,insurance companies,mutual funds,security dealers,and pension funds supply the funds for businesses.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-18Types of Financial MarketsWithin the Global Financial SystemwThe money market may be subdivided into Treasury bills,certificates of deposit(CDs),bankers acceptances,commercial paper,federal funds and Eurocurrencies.wThe capital market may be subdivided into mortgage loans,tax-exempt(municipal)bonds,consumer loans,Eurobonds and Euronotes,corporate stock,and corporate notes and bonds.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-19Types of Financial MarketsWithin the Global Financial SystemwIn open markets,financial instruments are sold to the highest bidder,and they can be traded as often as is desirable before they mature.In negotiated markets,the instruments are sold to one or a few buyers under private contract.wFinancial capital is raised when newly issued securities are sold in the primary markets.Security trading in the secondary markets then provides liquidity for the investors.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-20Types of Financial MarketsWithin the Global Financial SystemwIn the spot market,assets or financial services are traded for immediate delivery(usually within two business days).wContracts calling for the future delivery of financial instruments are traded in the futures or forward market.wContracts granting the right to buy or sell certain securities at specified prices within a certain period are traded in the options market.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-21wCredit,the Common Commodity.The shifting of borrowers among markets helps to weld the parts of the global financial system together and to bring the credit costs in the different markets into balance with one another.wSpeculation and Arbitrage.Speculators who watch for profitable arbitrage opportunities help to maintain consistent prices among the markets.Factors Tying All Financial Markets Together 2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-22Factors Tying All Financial Markets TogetherwPerfect and Efficient Markets.There is some research evidence suggesting that financial markets are closely tied to one another due to their near perfection and efficiency.wIn the real world however,market imperfection and information asymmetry exist.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-23The Dynamic Financial SystemwThe global financial system is rapidly changing.wIn particular,there are trends toward the deregulation of financial institutions and services,the harmonization of regulations,and global integration,leading to more intense competition as well as the development of new financial services.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-24The Plan of This BookwPart One provides an overview of the global financial system its role in the worlds economy and its basic characteristics.wPart Two examines the forces that shape interest rates and the prices of financial instruments.wPart Three draws our attention to the money market and its principal instruments and institutions(including the central bank).2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-25The Plan of This BookwPart Four gives a closer look at commercial banks,credit unions,savings and loan associations,money market funds,insurance companies,pension funds,mutual funds,and other financial-service firms.wPart Five turns to the role of governments federal,state,and local within the global financial system.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-26The Plan of This BookwPart Six focuses on the financial activities of nonfinancial business firms and consumers.wPart Seven is devoted to the international financial system and future trends in global finance.2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-27Money and Capital Markets in Cyberspace 2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-28Money and Capital Markets in Cyberspace 2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-29Money and Capital Markets in Cyberspace 2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-30Chapter ReviewwIntroductionwThe Global Economy and the Financial SystemFlows within the Global Economic SystemThe Role of Markets in the Global Economic SystemTypes of MarketsThe Financial Markets and the Financial System:Channel for Savings and Investment 2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-31Chapter ReviewwFunctions Performed by the Global Financial System and the Financial MarketsSavings FunctionWealth FunctionLiquidity FunctionCredit FunctionPayments FunctionRisk Protection FunctionPolicy Function 2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-32Chapter ReviewwTypes of Financial Markets Within the Global Financial SystemThe Money Market versus the Capital MarketDivisions of the Money and Capital MarketsOpen versus Negotiated MarketsPrimary versus Secondary MarketsSpot versus Futures,Forward,and Option MarketsFactors Tying All Financial Markets TogetherThe Dynamic Financial System 2003 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw Hill/Irwin1-33Chapter ReviewwThe Plan of This Book