定的咨询文件》所引起的。与市场参与者的讨论导致了公众咨询，这表示许多人都期望在更多的主题上看到相应的指导。作为回应，联交所编撰了这些指导材料。
Unit 4 Financial Institutions
1. Answer the following questions based on the text
(1) A commercial bank is a financial institution that accepts deposits, makes loans, and offers related services. It raises funds primarily by issuing checkable deposits, savings deposits, and time deposits.
(2) The difference between a savings and loan association and a savings bank lies in the corporate structure. The savings and loan associations are always structured as “mutuals” or cooperatives.
(3) Life insurance companies sell annuities and provide people with protection against the possibility of untimely death, illnesses and retirement. Property insurance involves insurance coverage related to the loss of real and personal property. Casualty insurance concerns protection against legal liability exposures. (4) The author divides the securities industry into three tiers. The first tier is the largest firms, the so-called national full-line firms, which serve as broker-dealers for retail customers and underwriters for corporate customers. The second tier is the national full-line firms that specialize more in corporate finance and are highly active in trading securities. The third tier is those firms which are specialized investment bank subsidiaries of commercial bank holding companies, specialized discount brokers that effect trades for customers without offering investment advice or tips, and regional securities firms that concentrate on servicing customers in a particular region.
(5) An open-end fund is a mutual fund that has no limit on the number of shares it issues. It issues and redeems shares on demand. The net asset value of shares is determined solely by the changes in prices of the stocks or bonds the fund owns, not the size of the fund itself.
(6) There are three types – sales finance institutions, personal credit institutions, and business credit institutions. Sales finance institutions specialize in making loans to the customers of a particular retailer or manufacturer. Personal credit institutions specialize in making installment and other loans to consumers. Business credit institutions are companies that provide financing to corporations, especially through equipment leasing and factoring, in which finance company purchases accounts receivable at a discount from their value from corporate customers.
2. Translate the following into English
(1) The financial tsunami emerged in the second half of 2008 annihilated the five largest investment banks in the Wall Street. The Bear Stearns Cos, the fifth largest investment bank in the Wall Street and with a history of 85 years, was sold to J.P. Morgan Chase & Co at low price. The 94-year-old Merrill Lynch was purchased by the Bank of America. The 158-year-old Lehman Brothers declared a bankruptcy. The 139-year-old Goldman Sachs and the 73-year-old Morgan Stanley were both turned from investment banks into bank holding companies. (2) China Banking Regulatory Commission (CBRC) was established on April 28, 2003. It is from this year that the Industrial and Commercial Bank of China, the Bank of China, China Construction Bank, and the Bank of Communications consecutively started all-round joint-stock reforms and successfully listed with stock exchanges. These banks kept constantly narrowing the gap with international advanced banks in corporate governance, development strategy, operating performance, etc. By the end of December 2007, the total assets of financial institutions in the banking industry had increased from RMB 23.7 trillion yuan at the end of 2002 to RMB 52.6 trillion yuan. The ratio of non-performing loans of major commercial banks had decreased from 23.6% at the end of 2002 to 6.7%. The number of banks meeting the capital adequacy requirement had increased from 8 at the end of 2003 to 136 at the end of September 2007. Accordingly, the ratio of these banks’ capital to the total capital of the banking sector had increased from 0.6% to 78.9%. 3. Translate the following passages into Chinese
(1) 联邦存款保险公司(FDIC)不接受国会拨款，其资金来源于银行和储蓄机构缴纳的存款保险费和投资美国财政部证券所获得的收益。联邦存款保险公司仅对存款进行保险。它不对银行和存款机构所提供的证券、投资基金以及其他类似的投资进行保险。在这些机构倒闭时，联邦存款保险公司会提供多种解决方案，其中最常用的一种方法就是将破产机构的存款和贷款出售给另外一家机构。破产机构的客户就自动转变为购买存款和贷款机构的客户。在大多数情况下，这种过渡从客户的角度来看是无缝对接。
(2) 欧盟委员会于周四（7月23日）发布了一项关于银行接受政府资助的新的指导方针，其目的在于防止银行部门内部竞争造成的扭曲。自去年9月雷曼兄弟倒闭以来，欧盟成员国内就有大约30家银行接受了政府的资助得以存活，但条件是这些银行要在6个月内提交重组计划。这些接受政府资助的银行同时也要面对一系列的行为限制，以保证国家资助资金不会被用来与其它银行竞争以提供像低价的抵押贷款这样的金融产品。
Unit 5 Money Market
1. Answer the following questions based on the text
(1) Treasury bills, also called T-bills, are short-term obligations backed by U.S.
government with maturities less than one year. Treasury bill is quoted on a discount basis because of the short maturity. For such short maturity, it will be inconvenient and expensive to set up the arrangements for paying interest in the normal way.
(2) Commercial paper is an unsecured, short-term loan issued by a corporation,
typically for financing accounts receivable and inventories. Due to the easy bank lending market, the highly developed discount market, and the Bank of England’s standing ready to buy many bills, the UK commercial paper market has remained comparatively underdeveloped.
(3) Negotiable certificate of deposit is a time deposit issued by a bank and can be
traded to other investors prior to maturity. It can be redeemed by whoever owns them at maturity.
(4) Federal funds are funds deposited to regional Federal Reserve Banks by
commercial banks, including funds in excess of reserve requirements. The interest rate associated with the overnight loans between banks is known as the Federal funds rate.
(5) Repo is the abbreviation of repurchase agreement. It is an agreement whereby one
firm sells some of its financial assets to another firm with a promise to repurchase the securities at a higher price later. Firms are the major participants in the repo market.
2. Translate the following passages into English
(1) Money market is a market where short-term fund is raised. Money market consists of interbank market, repurchase agreement market, commercial paper market, banker’s acceptance market, short-term government bond market, and certificate of deposit market.
(2) When a security holder has a temporary shortage of funds and if he does not want to give up his security, he or she may sell the security by repurchase contract and at the same time sign a contract with the buyer to maintain his right to buy the security back at the promised price in a period of time with interest. (3) Mutual fund is a financial organization that pools money from many small investors. The fund is run by professional managers and allocates profits according to the holding time and the number of shares. Money market mutual funds are funds mainly operated in money market.
3. Translate the following passages into Chinese
(1) LIBOR即伦敦银行同业拆放利率是世界上最活跃的利率市场。它是由各个银行在伦敦货币市场上相互间借贷短期存款的利率所决定的。LIBOR也被用来确定许多其他金融衍生品的价格，包括利率期货、互换和欧洲美元。鉴于伦敦作为全球金融中心的重要性，LIBOR不仅仅适用于英镑，同时适用于世界其他主要货币如美元、瑞士法郎、日元以及加元。
(2) 个人、公司以及机构用来存放现金的货币市场基金是这场金融危机的另一个受害者。随着利率的下降和成本的上升，一些金融公司抽回了资金。这令投资者争先恐后地为他们的资金寻找其他安全且高收益的投资。
Unit 6 Bond Market
1. Answer the following questions based on the text
(1) Foreign bond is a bond that is issued in a domestic market by a foreign entity. For example, Yankee bond is a bond denominated in U.S. dollars but issued in the United States by foreign banks and corporations.
(2) Individual investors are people, while institutional investors are mutual funds, brokers, and corporations. Institutional investors have far more impact on the market since they buy and sell much large volumes of stock.
(3) The major difference lies in the maturities of the instruments. The maturity of Treasury bill is less than one year, the maturity of Treasury note is from one to ten years, and the maturity of Treasury bond is over ten years.
(4) Both of them are municipal bonds. The difference is whether there are specific assets or projects as security. General obligation bonds do not have such assets or projects but are backed by the government ability to tax its citizens. Revenue bonds are used to raise funds for projects that generate revenues and backed by the cash flow of the particular revenue-generating project.
(5) Mortgage bond is backed by fixed assets as security, while debentures are long-term unsecured bonds that are backed only by the general creditworthiness of the issuer.
(6) In the event of bankruptcy, subordinated debt has claims on assets only after senior debt has been paid off.
(7) Bonds above Moody’s Baa or Standard & Poor’s BBB rating are considered of investment grade.
(8) A sinking fund is a pool of money set aside by a corporation to help repay a bond issue. Bond agreement usually requires a company to make periodic interest payments to bondholders throughout the life of the bond, and then repay the principal amount of the bond at maturity. In this way, the sinking fund provision is
beneficial to the bondholder.
2. Translate the following passages into English
(1) Municipal bonds are bonds issued by local governments or their authorized institutions or agencies, including general obligation bonds and revenue bonds. General obligation bonds are secured by all the future taxes of the local
government as a source of repayment, while revenue bonds are secured by the fees collected from the users of the infrastructure and the fees are calculated based on the construction cost.
(2) Sinking fund is a pool of money that is set aside periodically before the maturity by the bond issuer to ensure the company to have enough money to repay the principal to the creditors at maturity. The money is deposited with a selected bank which serves as a trustee to use the money to invest, and the investment returns will add to the fund.
3. Translate the following passages into Chinese
(1) 投资者利用债券互换来实现各种收益。互换，即同时售出一项资产和买入另一项资产，可以用来改变到期日，提升资产组合的信用质量，以及增加货币收入，或者可以用来实现许多其他的目标。最常用的互换是用来节省税款。任何拥有债券的人，以低于债券购买价卖出债券且同时获得资本收益或其他的收入，而这些收益或收入可能部分或全部由税收损失所抵消，因而可以从税收互换中获益。在这两个步骤中，投资者以低于之前购买价的价格卖出债券，并且同时以相同的价格买入类似的债券。
(2) 赎回条款是诸多债务协议的重要组成部分，它赋予发行者在债券到期前的某一点提前赎回或偿还债券的权利。赎回条款的目的是在合理的程度上保护贷款人在贷款之后不受因借款人引起的不利情况的影响。贷款人通常不会使用赎回条款，除非借款人很快便不能够履行贷款合同的条款。在行使赎回条款时，贷款人经常先控制用于担保贷款的抵押品，至少可以用抵押品来清偿部分欠款。
Unit 7 Stock Market
1. Answer the following questions based on the text
(1) The differences between common stock and preferred stock are as follows: a) Common stock represents an ownership interest in the firm and its holders vote and receive dividends. The preferred stock is a security with characteristics in-between a bond and a common stock and its holders do not usually vote unless the firm has failed to pay the promised dividend. b) Preferred stockholders have a greater claim to a company’s assets and earnings. When there are distributions to be made, preferred stockholders must be paid before common stockholders. In the