Unit One Money, Monetary Policy and the Function of Money 1
Part A Text 1
Ⅰ. The Meaning of Money 1
Ⅱ. The Origins and Kinds of Money 2
Ⅲ. The Functions of Money 6
Ⅳ. The Monetary Policy and Money Supply 7
Part B Words & Phrases 11
Part C Terminology Practice 12
Part D Exercises 14
Part E Supplementary Reading 16
Unit Two Foreign Exchange, Exchange Rate and Foreign Exchange Market 19
Part A Text 19
Ⅰ. Foreign Exchange 19
Ⅱ. Exchange Rate 20
Ⅲ. Foreign Exchange Market 21
Ⅳ. Elements Influencing Exchange Rates 22
Ⅴ. Types of Foreign Exchange Transactions 24
Part B Words & Phrases 24
Part C Terminology Practice 25
Part D Exercises 28
Part E Supplementary Reading 30
Unit Three Financial Instruments 33
Part A Text 33
Ⅰ. Definition of Financial Instruments 33
Ⅱ. Categorization 34
Ⅲ. Traditional Financial Instruments 35
Part B Words & Phrases 39
Part C Terminology Practice 40
Part D Exercises 41
Part E Supplementary Reading 43
Unit Four Commercial Banks 49
Part A Text 49
Ⅰ. What is a Commercial Bank? 49
Ⅱ. The History of Commercial Banks 50
Ⅲ. The Operations of Commercial Banks 51
Ⅳ. The Commercial Banks in China 53
Part B Words & Phrases 56
Part C Terminology Practice 56
Part D Exercises 58
Part E Supplementary Reading 60
Unit Five Central Bank 63
Part A Text 63
Ⅰ. Brief Introduction of Central Banks 63
Ⅱ. The History of Central Bank 64
Ⅲ. The Functions of the Central Bank 65
Ⅳ. The Central Bank and Monetary Policy 67
Ⅴ. The People's Bank of China (PBC) 68
Part B Words & Phrases 70
Part C Terminology Practice 71
Part D Exercises 72
Part E Supplementary Reading 75
Unit Six Financial Markets 77
Part A Text 77
Ⅰ. Functions of Financial Markets 77
Ⅱ. The Major Players in Financial Markets 78
Ⅲ. Types of Markets 80
Ⅳ. Types of Investment Risk 82
Part B Words & Phrases 83
Part C Terminology Practice 84
Part D Exercises 85
Part E Supplementary Reading 87
Unit Seven Insurance 91
Part A Text 91
Ⅰ. Insurable Interest 92
Ⅱ. Insurance Premium 92
Ⅲ. Insurance Policy or Certificate 93
Part B Words & Phrases 97
Part C Terminology Practice 97
Part D Exercises 98
Part E Supplementary Reading 100
Unit Eight Inflation 103
Part A Text 103
Ⅰ. Measuring Inflation 104
Ⅱ. Effects of Inflation 104
Ⅲ. Causes of Inflation 105
Ⅳ. Controlling Inflation 106
Part B Words & Phrases 109
Part C Terminology Practice 110
Part D Exercises 111
Part E Supplementary Reading 113
Unit Nine Balance of Payments 115
Part A Text 115
Ⅰ. What is the Balance of Payments (BOP)? 115
Ⅱ. Current Account 116
Ⅲ. Capital Account 116
Ⅳ. Financial Account 116
Ⅴ. Official International Reserves 117
Ⅵ. Net Errors and Omissions 117
Ⅶ. Balance of Payments Equilibrium 117
Ⅷ. BOP Adjustment 118
Part B Words & Phrases 120
Part C Terminology Practice 121
Part D Exercises 123
Part E Supplementary Reading 125
Unit Ten The International Monetary System 127
Part A Text 127
Ⅰ. The Gold Standard System 128
Ⅱ. The Bretton Woods System 130
Ⅲ. The Floating Exchange Rate System 136
Ⅳ. The European Monetary System 137
Part B Words & Phrases 138
Part C Terminology Practice 139
Part D Exercises 142
Part E Supplementary Reading 144
Unit Eleven Payment in International Trade 147
Part A Text 147
Ⅰ. Modes of International Payment 148
Ⅱ. Remittance 149
Ⅲ. Collection 150
Ⅳ. Letter of Credit 152
Part B Words & Phrases 155
Part C Terminology Practice 156
Part D Exercises 158
Part E Supplementary Reading 160
Unit Twelve International Finance Organization 163
Part A Text 163
Ⅰ. The International Monetary Fund (IMF) 163
Ⅱ. The World Bank 170
Ⅲ. The Asian Development Bank (ADB) 175
Part B Words & Phrases 177
Part C Terminology Practice 178
Part D Exercises 180
Part E Supplementary Reading 182