2015金融英语第二节课要点.ppt

Conclusion The banking system’s excess reserves ratio e is negatively related to the market interest rate i. Conclusion The excess reserves ratio e is positively related to expected deposit outflows. Overview of the Money Supply Process We now have a model of the money supply process in which all four of the players— the Federal Reserve System, depositors, banks, and borrowers from banks—directly influence the money supply. 2.1. Overview of Credit 2.2. Forms of Credit Definition of credit Development of credit Features of credit Commercial credit Banker’s credit Private credit Consumer’s credit Public credit 2.2. Forms of Credit 2.3 money creation Oversimplified money multiplier is only accurate under very particular circumstances: Every recipient of cash must redeposit the cash into another bank rather than hold it. Every bank must hold reserves no larger than the legal minimum. Summary 1, Credit is a behavior of borrowing and lending with the conditions of repayment of principals with interests. In essence the relationship of credit is that of debt and credit. 2, Each form of credit has its own feature, but all these forms are interrelated and interacted meanwhile. Among different forms of credit centralized is banker’s credit. Key terms Usurious credit commercial credit banker’s credit public credit consumer’s credit private credit default risk yield to maturity commercial paper bills of exchange derivatives Negotiable CDs repurchase agreements T-bills Section 2 Credit and Money Creation 2.1. Overview of Credit 2.1.1.Definition of credit Credit refers to a behavior of borrowing and lending with the feature of repayment of the principals plus interests . subject（~主体）: creditor and debtor Four elements: object（~客体）: lender’s assets credit carrier （~载体）: credit conditions ( terms and interest rates)： 1. Temp