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1、The economics of money,banking and financial market考试题型以及分数分布： 一、 选择题：1*20=20 二、 名词解释：4*5=20 三、 简答题：8*5=40 四、 论述题：20*1=20 重点制作思路： 1.考虑到时间关系，抓大放小 2.结合老师提及复习内容进行预测 3.以理顺书本架构为主，看到一个知识点猜一下可能会出什么题 The economics of money, banking and financial markets-by Kyle Chapter1：Why Study Money, Banking, and Financi
2、al Markets？ Answer： To examine how financial markets such as bond and stock markets work To examine how financial institutions such as banks work To examine the role of money in the economy Chapter2：An Overview of the Financial System 1. Function of Financial Markets Perform the essential function o
3、f channeling funds from economic players that have saved surplus funds to those that have a shortage of funds Direct finance: borrowers borrow funds directly from lenders in financial markets by selling them securities. Promotes economic efficiency by producing an efficient allocation of capital, wh
4、ich increases production Directly improve the well-being of consumers by allowing them to time purchases better 2.Structure of Financial Markets Debt and Equity Markets Primary and Secondary Markets Exchanges and Over-the-Counter (OTC不通过交易所而直接售给顾客的) Markets Money and Capital Markets 3. Financial Mar
5、ket Instruments(要能举出例子，很可能考选择) Money markets deal in short-term debt instruments Capital markets deal in longer-term debt and equity instruments. 4.Internationalization of Financial Markets Foreign Bonds & Eurobond? Eurocurrencies & Eurodollars? World Stock Markets 5Function of Financial Intermediar
6、ies: Indirect Finance Lower transaction costs (time and money spent in carrying out financial transactions). Reduce the exposure of investors to risk Deal with asymmetric 不对称 information problems Conclusion: Financial intermediaries allow “small” savers and borrowers to benefit from the existence of
7、 financial markets. 6. Types of Financial Intermediaries Depository institutions Contractual saving institutions Investment intermediaries 7.Regulation of the Financial System To increase the information available to investors: To ensure the soundness 健康稳固of financial intermediaries Chapter3：What Is
8、 Money? 1.Meaning of Money Money (or the “money supply”): anything that is generally accepted in payment for goods or services or in the repayment of debts. 2.Functions of Money Medium of Exchange: A medium of exchange must Unit of Account: Store 储藏 of Value: 3.Evolution of the Payments System Commo
9、dity 商品 Money Fiat 法定 Money Checks 支票Electronic Payment (e.g. online bill pay). E-Money (electronic money): 4.Measuring Money Construct monetary aggregates using the concept of liquidity: M1 (most liquid assets) = currency + travelers checks + demand deposits + other checkable deposits. M2 (adds to
10、M1 other assets that are not so liquid) = M1 + small denomination time deposits + savings deposits and money market deposit accounts + money market mutual fund shares. Chapter 4：Understanding Interest Rates 1. measuring interest rates:Present Value(很可能考察名词解释) A dollar paid to you one year from now i
11、s less valuable than a dollar paid to you today Simple Present Value：PV=CF/(1+i)n次方 2. Four Types of Credit Market Instruments Simple Loan Fixed Payment Loan Coupon Bond 附票债券 Discount Bond 贴现债券 3.Yield to Maturity The interest rate that equates the present value of cash flow payments received from a
12、 debt instrument with its value today 计算4种不同信用工具外加Consol or Perpetuity的YM 4. Yield on a Discount Basis Current Yield当期收益率 Yield on a Discount Basis 折价收益率 Rate of Return 收益率 5.Rate of Return and Interest Rates The return equals the yield to maturity only if the holding period equals the time to matur
13、ity A rise in interest rates is associated with a fall in bond prices, resulting in a capital loss if time to maturity is longer than the holding period The more distant a bonds maturity, the greater the size of the percentage price change associated with an interest-rate change The more distant a b
14、onds maturity, the lower the rate of return the occurs as a result of an increase in the interest rate Even if a bond has a substantial initial interest rate, its return can be negative if interest rates rise 6.Interest-Rate Risk Prices and returns for long-term bonds are more volatile than those fo
15、r shorter-term bonds There is no interest-rate risk for any bond whose time to maturity matches the holding period 7.Real and Nominal Interest Rates Nominal interest rate makes no allowance for inflation Real interest rate is adjusted for changes in price level so it more accurately reflects the cos
16、t of borrowing Ex ante real interest rate is adjusted for expected changes in the price level Ex post real interest rate is adjusted for actual changes in the price level 8.Fisher Equation i=ir+pe i = nominal interest rateir = real interest ratepe = expected inflation rateWhen the real interest rate
17、 is low,there are greater incentives to borrow and fewer incentives to lend.The real interest rate is a better indicator of the incentives toborrow and lend.Chapter5：The Behavior of Interest Rates 1. Determining the Quantity Demanded of an Asset Wealth: the total resources owned by the individual, i
18、ncluding all assets Expected Return: the return expected over the next period on one asset relative to alternative assets Risk: the degree of uncertainty associated with the return on one asset relative to alternative assets Liquidity: the ease and speed with which an asset can be turned into cash r
19、elative to alternative assets 2.Theory of Asset Demand Holding all other factors constant: 1. The quantity demanded of an asset is positively related to wealth 2. The quantity demanded of an asset is positively related to its expected return relative to alternative assets 3. The quantity demanded of
20、 an asset is negatively related to the risk of its returns relative to alternative assets 4. The quantity demanded of an asset is positively related to its liquidity relative to alternative assets 3.Supply and Demand for Bonds Market Equilibrium 4.Shifts in the Demand for Bonds Wealth: in an expansi
21、on with growing wealth, the demand curve for bonds shifts to the right Expected Returns: higher expected interest rates in the future lower the expected return for long-term bonds, shifting the demand curve to the left Expected Inflation: an increase in the expected rate of inflations lowers the exp
22、ected return for bonds, causing the demand curve to shift to the left Risk: an increase in the riskiness of bonds causes the demand curve to shift to the left Liquidity: increased liquidity of bonds results in the demand curve shifting right 5Shifts in the Supply of Bonds Expected profitability of i
23、nvestment opportunities: in an expansion, the supply curve shifts to the right Expected inflation: an increase in expected inflation shifts the supply curve for bonds to the right Government budget: increased budget deficits shift the supply curve to the right 6.The Liquidity Preference Framework Ke
24、ynesian model that determines the equilibrium interest rate in terms of the supply of and demand for money. There are two main categories of assets that people use to store their wealth: money and bonds. Total wealth in the economy = Bs+ Ms = Bd+ MdRearranging: Bs- Bd = Ms - Md If the market for mon
25、ey is in equilibrium (Ms = Md), then the bond market is also in equilibrium (Bs = Bd). 7.Demand for Money in the Liquidity Preference Framework As the interest rate increases: The opportunity cost of holding money increases The relative expected return of money decreases and therefore the quantity d
26、emanded of money decreases. 8.Shifts in the Demand for Money Income Effect: a higher level of income causes the demand for money at each interest rate to increase and the demand curve to shift to the right Price-Level Effect: a rise in the price level causes the demand for money at each interest rat
27、e to increase and the demand curve to shift to the right Liquidity preference framework leads to the conclusion that an increase in the money supply will lower interest rates: the liquidity effect. Income effect finds interest rates rising because increasing the money supply is an expansionary influ
28、ence on the economy (the demand curve shifts to the right). Chapter9:Banking 1.The Bank Balance Sheet Liabilities Checkable deposits Nontransaction deposits Borrowings Bank capital Assets Reserves(准备金) Cash items in process of collection Deposits at other banks Securities Loans Other assets 2.Basic
29、Banking: Cash Deposit：Opening of a checking account leads to an increase in the banks reserves equal to the increase in checkable deposits Check Deposit 3Inter-business Bank settlement Finance lease Fiduciary business Safe deposit box 4.Off-Balance-Sheet Activities Loan sales (secondary loan partici
30、pation) Generation of fee income. Examples: Chapter12:Central Banks and the Federal Reserve System(此章省略很多) 1. the Fed(了解即可) Board of Governors 12 FRBs Member Banks FOMC (7+1+4人) Federal Advisory Council 2. Federal Reserve Bank Functions： Clear checks Issue new currency Withdraw damaged currency from
31、 circulation Administer and make discount loans to banks in their districts Evaluate proposed mergers and applications for banks to expand their activities Act as liaisons between the business community and the Federal Reserve System Examine bank holding companies and state-chartered member banks Co
32、llect data on local business conditions Use staffs of professional economists to research topics related to the conduct of monetary policy Structure of Chapter13&14：The Money Supply Process: 1. Players in the Money Supply Process Central bank (Federal Reserve System) Banks (depository institutions;
33、financial intermediaries) Depositors (individuals and institutions) 2Feds Balance Sheet Federal Reserve System Assets Government securities Discount loans Liabilities Currency in circulation Reserves 3.Monetary Base High-powered moneyMB = C + RC = currency in circulationR = total reserves in the ban
34、king system4.Open Market Purchase The effect of an open market purchase on reserves depends on whether the seller of the bonds keeps the proceeds from the sale in currency or in deposits The effect of an open market purchase on the monetary base always increases the monetary base by the amount of th
35、e purchase Open Market Sale Reduces the monetary base by the amount of the sale Reserves remain unchanged The effect of open market operations on the monetary base is much more certain than the effect on reserves 5. Feds Ability to Control the Monetary Base Split the monetary base into two component
36、s : MBn= MB - BR the non-borrowed monetary base :MBn borrowed reserves:BR 6.The Formula for Multiple Deposit Creation Assuming banks do not hold excess reserves Required Reserves (RR) = Total Reserves (R)RR = Required Reserve Ratio (r) times the total amount of checkable deposits (D) Substituting r
37、D = R Dividing both sides by r 1D = R rTaking the change in both sides yields 1 DD = DRr 7.Factors that Determine the Money Supply Changes in the nonborrowed monetary base MBn Changes in borrowed reserves from the Fed Changes in the required reserves ratio Changes in currency holdings Changes in exc
38、ess reserves 8.The Money Multiplier(重点) Assume that the desired holdings of currency C and excess reserves ER grow proportionally with checkable deposits D. Then, c = C/D = currency ratio e = ER/D = excess reserves ratio The monetary base MB equals currency (C) plus reserves (R): MB = C + R = C + (r
39、 x D) + ER M=m*MB=m*(MBn+BR) M=1+c/r+e+c Chapter 15：Tools of Monetary Policy 1. Tools of Monetary Policy Open market operations Changes in borrowed reserves Changes in reserve requirements Federal funds rate: the interest rate on overnight loans of reserves from one bank to another 2.Demand in the M
40、arket for Reserves Supply in the Market for Reserves 3.Affecting the Federal Funds Rate 4.Open Market Operations Advantages： The Fed has complete control over the volume Flexible and precise Easily reversed Quickly implemented 5.Discount Policy Advantages： Used to perform role of lender of last reso
41、rt disadvantages： Cannot be controlled by the Fed; the decision maker is the bank 6.Reserve Requirements Advantages： No longer binding for most banks disadvantages： Can cause liquidity problems Increases uncertainty for banks 7. Monetary Policy Tools of the European Central Bank Open market operatio
42、ns Lending to banks Reserve Requirements Chapter16：The Conduct of Monetary Policy: Strategy and Tactics 1. Goals of Monetary PolicyThe Price Stability Goal Low and stable inflation Inflation Nominal anchor to contain inflation expectations Time-inconsistency problem Other Goals of Monetary Policy Hi
43、gh employment Economic growth Stability of financial markets Interest-rate stability Foreign exchange market stability 2.Monetary Targeting Advantages Almost immediate signals help fix inflation expectations and produce less inflation Almost immediate accountability Disadvantages Must be a strong an
44、d reliable relationship between the goal variable and the targeted monetary aggregate 3.Inflation Targeting Public announcement of medium-term numerical target for inflation Institutional commitment to price stability as the primary, long-run goal of monetary policy and a commitment to achieve the i
45、nflation goal Information-inclusive approach in which many variables are used in making decisions Advantages Does not rely on one variable to achieve target Easily understood Reduces potential of falling in time-inconsistency trap Stresses transparency and accountability Disadvantages Delayed signal
46、ing Too much rigidity Potential for increased output fluctuations Low economic growth during disinflation 4.Monetary Policy with an Implicit Nominal Anchor There is no explicit nominal anchor in the form of an overriding concern for the Fed. Forward looking behavior and periodic “preemptive strikes”
47、 The goal is to prevent inflation from getting started. Advantages Uses many sources of information Avoids time-inconsistency problem Disadvantages Lack of transparency and accountability Strong dependence on the preferences, skills, and trustworthiness of individuals in charge Inconsistent with democratic principles 5.Tactics: Choosing the Policy Instrument Tools Open market operation
