金融431复试专业英语.pdf

1.Howtodefinetheaggregatepricelevel?

Threemeasuresoftheaggregatepricelevelarecommonlyencounteredineconomicdata.

(1)ThefirstistheGDPdeflator(GDP),whichisdefinedasnominalGDPdividedbyreal

GDP.

(2)AnotherpopularmeasureoftheaggregatepricelevelistheProducerPriceIndex(

)whichisameasureofthecostofabasketofgoodsandservicesboughtbyfirms.

(3)Themeasureoftheaggregatepricelevelthatismostfrequentlyreportedinthepressisthe

ConsumerPriceIndex(),whichismeasuredbypricingabasketofgoodsand

servicesboughtbyatypicalurbanhousehold.

2.What’sthedisadvantageandadvantageofholdingequityratherthandebt?

(1)Themaindisadvantageofowningacorporation’sequitiesratherthanitsdebtisthatanequity

holderisaresidualclaimant(),thatis,thecorporationmustpayallitsdebtholders

beforeitpaysitsequityholders.

(2)Themainadvantageofholdingequitiesisthatequityholdersbenefitdirectlyfromanyincreases

inthecorporation’sprofitabilityorassetvaluebecauseequitiesconferownershiprightsonthe

equityholders.Debtholdersdonotshareinthisbenefit,becausetheirpaymentsarefixed.

3.What’sthedifferencebetweenprimaryandsecondarymarket?

(1)Aprimarymarketisafinancialmarketinwhichnewissuesofasecurity,suchasabondora

stock,aresoldtoinitialbuyersbythecorporationorgovernmentagencyborrowingthefunds.

(2)Asecondarymarketisafinancialmarketinwhichsecuritiesthathavebeenpreviouslyissuedcan

beresold.

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4.What’sthedifferencebetweenforeignbondandEurobond?

(1)Foreignbondsaresoldinaforeigncountryandaredenominatedinthatcountry’scurrency.For

example,abondissued