Financial English 《金融英语》内容结构.docVIP

Chapter 2   ‘ Chapter 1 Commodity Money: is money whose value comes from a commodity out of which it is made. (2)Representative Money :representative full –bodied money refers to paper money fully backed by a precious metal. Types Credit Money: is issued is based on the credit of its issuer and credit process. (4)Electronic Money :refers to depository money that is stored and processed through computer system or electronic payment system. (1)Medium of exchange: eliminates and overcomes the difficulty of barter system. (2)Unit of account :providing a common numerical measure of the value of goods and services exchanged. Functions (3)Store value :have some functions :save purchasing power, depreciates with inflation, more liquid, standard of deferred payment (1)Simple interest: refers to interest earned only on the principal of the initial investment. Formula: I = P R n S = P + I = P(1+Rn) I得到的利息 P本金 R每年利息率 n付息频率 S:本息和 (2) Compound interest: Interest for previous periods is added to principal for the calculation of interest. Formula: s = P (1+r) ^ n I=S-P Money Interest and Interest Rate is generally accepted in the payment for goods and services or in the repayment of debt. Interest is a fee paid on borrowed assets. Interest Rate Interest Rate refers to the ratio of the interest formed during the period of borrowing and lending to the principal of the granted loan. (3)Nominal and real interest rates. Real interest rates is approximately the nominal interest rate minus the inflation rate. (4)Official and market interest rates. The former is set by the central banks or monetary authorities.Market interest rate is wholly determined by the demand and supply of funds. (1)Narrow measure of money :M0 and M1 Include currency and demand deposit used for everyday expenditures. Money Supply refers to the collection of money in an economy including the volume of currency in circulation and the volume of deposits at any point of time. Broa