Chapter 1 Money and Monetary System 1
Structure of Chapter1 1
Learning Objectives 1
Opening Vignette 2
Text 2
1.1 The Origin and Definition of Money 2
1.2 The Function of Money 5
1.3 The Evolution of Payment System 6
1.4 Monetary System 9
Summary of Chapter 1 11
Reading Material 11
Professional Words and Expressions 12
Test Yourself 12
Chapter 2 Credit 15
Structure of Chapter 2 15
Learning Objectives 15
Opening Vignette 15
Text 16
2.1 An Overview of Credit 16
2.2 The Forms of Credit 18
Summary of Chapter 2 24
Reading Material 24
Professional Words and Expressions 25
Test Yourself 25
Chapter 3 Interest and Interst Rate 28
Structure of Chapter 3 28
Learning Objectives 28
Opening Vignette 29
Text 30
3.1 An Overview of Interest and Interest Rate 30
3.2 Calculation of Interest and Discounting 34
3.3 The Theory of Term Structure of Interest Rates 38
3.4 The Risk Structure of Interest Rates 43
Summary of Chapter 3 46
Reading Material 47
Professional Words and Expressions 47
Test Yourself 47
Chapter 4 Foreign Exchange and Foreign Exchange Rates 50
Structure of Chapter 4 50
Learning Objectives 50
Opening Vignette 50
Text 51
4.1 Introduction to Foreign Exchange and Exchange Rates 51
4.2 Foreign Exchange Market 54
4.3 Theories of Exchange Rate Determination 57
Summary of Chapter 4 59
Reading Material 59
Professional Words and Expressions 60
Test Yourself 60
Chapter 5 Financial Market 63
Structure of Chapter 5 63
Learning Objectives 63
Opening Vignette 63
Text 64
5.1 An Overview of Financial Market 64
5.2 Money Market 68
5.3 Capital Market 72
5.4 Financial Derivatives Markets 75
Summary of Chapter 5 78
Reading Material 79
Professional Words and Expressions 79
Test Yourself 80
Chapter 6 Financial Institutions 83
Structure of Chapter 6 83
Learning Objectives 83
Opening Vignette 83
Text 84
6.1 Economic Basis for Financial Institution 84
6.2 Functions of Financial Institution 86
6.3 Types of Financial Institution 88
Summary of Chapter 6 92
Reading Material 92
Professional Words and Expressions 92
Test Yourself 93
Chapter 7 The Central Bank 96
Structure of Chapter 7 96
Learning Objectives 96
Opening Vignette 96
Text 97
7.1 An Overview of the Central Bank 97
7.2 The Functions of the Central Bank 99
7.3 The Independence of the Central Bank 101
7.4 The People's Bank of China 102
Summary of Chapter 7 104
Reading Material 105
Professional Words and Expressions 106
Test Yourself 106
Chapter 8 Money Demand 109
Structure of Chapter 8 109
Learning Objectives 109
Opening Vignette 109
Text 110
8.1 The Implication of Money Demand 110
8.2 The Factors that Determine Demand for Money 112
8.3 Theories of Money Demand 113
Summary of Chapter 8 121
Reading Material 121
Professional Words and Expressions 122
Test Yourself 122
Chapter 9 Money Supply 125
Structure of Chapter 9 125
Learning Objectives 125
Opening Vignette 125
Text 126
9.1 The Quantity of Money Supply 126
9.2 The Mechanism of Money Supply 127
9.3 The Theories of Money Supply 137
Summary of Chapter 9 139
Reading Material 140
Professional Words and Expressions 140
Test Yourself 140
Chapter 10 Monetary Policy 143
Structure of Chapter 10 143
Learning Objectives 143
Opening Vignette 143
Text 144
10.1 The Targets of Monetary Policy 144
10.2 The Instruments of Monetary Policy 145
10.3 The Transmission Mechanism of Monetary Policy 149
10.4 The Potency of Monetary Policy 151
Summary of Chapter 10 153
Reading Material 154
Professional Words and Expressions 156
Test Yourself 156
Glossary 159
Bibliography 164