Part One Money and Economics 2
Chapter 1 Money 2
Learning Objectives 2
Key Topics 2
Section 1.1 What is Money？ 2
1.1.1 History of money 2
1.1.2 Meaning of Money 4
Section 1.2 Functions of Money 5
1.2.1 Medium of Exchange 5
1.2.2 Unit of Account 7
1.2.3 Store of Value 7
1.2.4 Standard of Deferred Payment 8
Section 1.3 Evolution of the Payment System 8
1.3.1 The forms of money 8
1.3.2 Are we moving to a cashless society？ 13
Section 1.4 Measuring Money 14
1.4.1 Theoretical and Empirical Definition of Money 15
1.4.2 The federal reserve’s monetary aggregates 15
1.4.3 Money supply 16
Section 1.5 Money Policy 18
Notes 20
Exercises 21
Additional Readings 23
Chapter 2 Financial Markets 26
Learning Objectives 26
Key Topics 26
Section 2.1 What is Financial Market？ 26
2.1.1 Definition of financial market 26
2.1.2 Constituents of financial market 27
Section 2.2 Functions of Financial Markets 28
2.2.1 Intermediary Functions 28
2.2.2 Financial Functions 29
Section 2.3 Currency （Money）markets 29
2.3.1 Participants 30
2.3.2 Functions of the money market 31
2.3.3 Common money market instruments 32
Section 2.4 Capital markets 33
2.4.1 Deeply view to capital market 33
2.4.2 Examples of capital market transactions 34
2.4.3 Raising Capitals 36
Section 2.5 Derivative products market 38
2.5.1 Future Contracts 39
2.5.2 Forward Contracts 40
2.5.3 Optional contracts 41
Notes 42
Exercises 43
Additional Readings 45
Chapter 3 Polities and Economics 47
Learning Objectives 47
Key Topics 47
Section 3.1 Macroeconomics ＆Polities 47
3.1.1 Games between policy makers and voters 48
3.1.2 Games between Policy Makers 50
Section 3.2 An General Perspective on the Political Economy of “Big Change” 51
3.2.1 The Social-Political Context and Co-Evolution 52
3.2.2 Embeddedness 52
3.2.3 The Dilemma of Knowledge as a Product and a Resource 53
3.2.4 The Global perspective on the evolution 53
3.2.5 Evolutionary Social-Economic“intricacy” 54
3.2.6 The Initiation of Self Re-Enforcing Growth 55
Section 3.3 Explosive Change of evolution and Communitarian Collective Ownership 55
3.3.1 The Fall - Variety Constraining Order 56
3.3.2 Self Organization and Economics 56
3.3.3 Communitarian［12］ Collective Ownership and Strategic Networks 57
Notes 60
Exercises 61
Additional Readings 63
Part Two Banking Industry in China 66
Chapter 4 Central Bank PBC 66
Learning Objectives 66
Key Topics 66
Section 4.1 The Reform of PBC 66
4.1.1 Definition of ‘Central Bank’ 67
4.1.2 Transformation of the PBC 67
4.1.3 Reform the Current Financial Structure 68
Section 4.2 The Functions of PBC 70
4.2.1 The Reason for Transformation 70
4.2.2 The Biggest Change of the Functions of the PBC 71
4.2.3 The Functions of PBC 73
Section 4.3 The Instruments of Central Banking 76
4.3.1 Open Market Operation 76
4.3.2 Reserve Requirements 79
4.3.3 Rediscount 81
Notes 82
Exercises 82
Additional Readings 85
Chapter 5 Commercial Banks 88
Learning Objectives 88
Key Topics 88
Section 5.1 Introduction 88
Section 5.2 What a Bank Is？ 90
5.2.1 The Role of the Banking Sector in China 91
5.2.2 Vigorous Development of the Banking Sector 92
5.2.3 Increased Openness of the Banking Sector 93
Section 5.3 Intermediary Services 94
5.3.1 Settlement-Payments and Funds Transfer 94
5.3.2 Plastic Money 95
5.3.3 International Settlement 96
Section 5.4 Loans 96
5.4.1 Definition and Categories of Loans 96
5.4.2 The Credit Process 98
5.4.3 Post-Disbursement Management 100
Section 5.5 Banking on the Internet 102
5.5.1 Backgrounds 102
5.5.2 On-Line Banking Products 103
5.5.3 The Future Prospects of On-Line Banking 103
Notes 105
Exercises 106
Additional Readings 108
Chapter 6 Supervision of Banking and Financial Institutions 110
Learning Objectives 110
Key Topics 110
Section 6.1 Importance and Objectives of Banking Supervision 110
6.1.1 The Role of Banks and Importance of Banking Supervision 110
6.1.2 Objectives of Banking Supervision 111
6.1.3 Preconditions for Effective Banking Supervision 112
Section 6.2 Licensing Process 113
6.2.1 Phases of the Process 113
6.2.2 Factors Evaluated by the Chartering Authorities 114
6.2.3 Basel Committee’s Requirements on Bank Licensing 114
Section 6.3 Arrangements for Ongoing Banking Supervision 115
6.3.1 Risks in Banking 115
6.3.2 Key Prudential Issues 117
6.3.3 Off-site Surveillance 122
6.3.4 On-site Examinations 123
Section 6.4 Dealing with Weak Banks 124
6.4.1 Symptoms and Cause of Bank Problems 124
6.4.2 Principles for Dealing with Weak Banks 124
6.4.3 Corrective Actions 125
6.4.4 Resolution Issues and Exit 125
6.4.5 Closure of the Bank： Depositor pay off 126
Notes 127
Exercises 128
Additional Readings 131
Part Three Financial Instruments and Foreign Exchange 134
Chapter 7 Securities 134
Learning Objectives 134
Key Topics 134
Section 7.1 Stock 134
7.1.1 History 135
7.1.2 Shares 136
7.1.3 Types of stock 136
7.1.4 Rule 144 stock 137
7.1.5 Shareholder 137
7.1.6 Stock derivatives 138
7.1.7 Share price determination 139
7.1.8 Stock price fluctuations 140
Section 7.2 Bond 140
7.2.1 Issuance 141
7.2.2 Main Features of Bond 142
7.2.3 The kinds of Bond 143
7.2.4 Bond market 145
7.2.5 Bond market participants 146
Section 7.3 Fund 146
7.3.1 What is fund？ 146
7.3.2 Fund Constitution 147
7.3.3 Unit or share class 148
7.3.4 Investment aims 149
7.3.5 Types of risk 149
7.3.6 Kinds of Fund 150
Notes 154
Exercises 155
Additional Readings 157
Chapter 8 Foreign Exchange 161
Learning Objectives 161
Key Topics 161
Section 8.1 Foreign Exchange Rate 161
8.1.1 Quotations 162
8.1.2 Bilateral vs.effective exchange rate 163
8.1.3 Exchange rate regime 164
8.1.4 Fluctuations in exchange rates 164
Section 8.2 Foreign Exchange Market 165
8.2.1 Market participants 166
8.2.2 Characteristics 169
8.2.3 Determinants of exchange rates 169
8.2.4 Forex signals 170
Section 8.3 Foreign Exchange Operation 171
8.3.1 Spot or Foreign exchange spot 171
8.3.2 Forward 171
8.3.3 Swap 172
8.3.4 Future or Currency future 173
8.3.5 Option or Foreign exchange option 175
Section 8.4 Foreign Exchange Exposure 176
8.4.1 Types of exposure 177
8.4.2 Measurement at risk 178
8.4.3 Management at risk 179
Notes 180
Exercises 181
Additional Readings 182
Chapter 9 Futures＆Options 187
Learning Objectives 187
Key Topics 187
Section 9.1 Futures trading 187
9.1.1 What is Futures ？ 187
9.1.2 Margins 189
9.1.3 Settlement-physical versus cash-settled futures 190
9.1.4 Futures traders 191
Section 9.2 Futures exchange 192
9.2.1 History of futures exchanges 192
9.2.2 Clearing and settlement 193
9.2.3 Central counterparty 193
9.2.4 Mark-to-Market 194
Section 9.3 Options 194
9.3.1 Contract specifications 195
9.3.2 Types 195
9.3.3 Option styles 197
9.3.4 Trading 197
Notes 198
Exercises 199
Additional Readings 200
Part Four Insurance 204
Chapter 10 To Understand Insurance 204
Learning Objectives 204
Key Topics 204
Section 10.1 What Is Insurance 204
10.1.1 Modern insurance 205
10.1.2 Societal effects 206
Section 10.2 Insurance policy 206
10.2.1 General features 207
10.2.2 Parts of an insurance contract 208
10.2.3 Industry standard forms 209
Section 10.3 Most Important Principles of Insurance 209
Section 10.4 Insurance Market 212
10.4.1 Insurance Companies 212
10.4.2 Reinsurance Companies 213
10.4.3 Insurance Intermediaries 214
Section 10.5 Insurance Business 214
10.5.1 Product Development 214
10.5.2 Distribution Channels 216
10.5.3 Underwriting 216
10.5.4 Loss Settlement 217
10.5.5 Reserve 219
10.5.6 Investment 220
Notes 220
Exercise 222
Additional Readings 223
Chapter 11 Types of Insurance 227
Learning Objectives 227
Key Topics 227
Section 11.1 Personal Insurance 227
11.1.1 What is Life Insurance？ 227
11.1.2 Health Insurance 229
11.1.3 Accident Insurance 230
Section 11.2 Property Insurance 231
11.2.1 History 232
11.2.2 Types of Coverage 232
11.2.3 Specific types 233
11.2.4 US Property Insurance Claims 234
Section 11.3 Liability insurance 235
11.3.1 What is liability insurance？ 235
11.3.2 Types of liability insurance 236
11.3.3 Insurable risks 237
Section 11.4 Reinsurance 238
11.4.1 Definition 238
11.4.2 Methods of reinsuring 238
11.4.3 Forms of reinsurance 239
Notes 241
Exercises 241
Additional Readings 243
Part Five Financial Letters 246
Chapter 12 The Introduction of Financial Letters 246
Learning Objectives 246
Key Topics 246
Section 12.1 What is Financial Letter？ 246
Section 12.2 Basic Principles of Financial Letter 249
Section 12.3 The Format of Financial Letter 250
12.3.1 Standard Parts 250
12.3.2 Optional Parts 253
12.3.3 Letter Style 256
12.3.4 Envelope Addressing 259
Notes 261
Exercises 262
Additional Readings 264
Chapter 13 The Types of Financial Letters 269
Learning Objectives 269
Key Topics 269
Section 13.1 Letters concerning bankrelationship 269
Section 13.2 Letters Concerning Bank Accounts and Bank Accounting 272
Section 13.3 Letters concerning Remittance 273
Section 13.4 Letters concerning Documentary Collection 276
Section 13.5 Letters concerning Letter of Credit 279
Section 13.6 Other Financial Letters 282
Notes 285
Exercises 285
Additional Readings 287
Special Terms 293
主要参考文献 304
配套资料索取说明 305