技术和应对措施，并促进它们在全球范围内采取和执行适当的措施。在这些活动中，金融行动特别工作组与其他进行反洗钱和恐怖分子融资的国际组织进行合作。
(2) 在企业财务报告中，损益表总结了公司每个季度和会计年度的收入和支出。
表中最后的净值及许多其他的数据是投资界最感兴趣的。损益表有两种基本格式：多步法和单步法。在多步法中，四种盈利方法由企业经营的四个重要环节所揭示——总收入、营业收入、税前及税后利润。在单步法中，总收入与营业收入在表中没有被给出，但是可以通过表中的数据计算出来。
Unit 14 Financial Crisis
1. Answer the following questions based on the text
(1) The four types of financial crises refer to currency crisis, banking crisis, foreign debt crisis, and systemic financial crisis.
(2) A banking crisis is usually in the form of bank run. A bank run occurs when a large number of bank customers withdraw their deposits because they believe the bank is, or might become, insolvent. The resulting chain of bankruptcies can cause a long-term economic recession. A currency crisis occurs when the value of a currency changes quickly, undermining its ability to serve as a medium of exchange or a store of value. Currency crises can be especially destructive to small open economies or bigger but not sufficiently stable ones.
(3) It started with the Wall Street crash on October 29, 1929. The causes of the Great Depression are still a matter of active debate among economists, although the popular belief is that the Great Depression was caused by the crash of the stock market. The Depression became a worldwide business downturn of the 1930s that affected almost all countries. International commerce declined quickly. There was a sharp reduction in tax revenues, profits and personal incomes. It affected both countries that exported raw materials and industrialized countries. It led to a sharp decrease in world trade as each country tried to protect their own industries and products by raising tariffs on imports. Governments reduced their spending, which led to decreased consumer demand. Construction came to a standstill in many nations. Some nations changed their heads and their type of government. World trade collapsed with trade in 1939 still below the 1929 level.
(4) The US subprime mortgage crisis was one of the first indicators of the 2007-2010 financial crisis, characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed mortgages. Approximately 80% of U.S. mortgages issued to subprime borrowers were adjustable-rate mortgages. After U.S. house prices peaked in mid-2006 and began
their steep decline thereafter, refinancing became more difficult. As
adjustable-rate mortgages began to reset at higher rates, mortgage delinquencies soared.
(5) Because the result has been a large decline in the capital of many banks and U.S. government sponsored enterprises, tightening credit around the world. 2. Translate the following passages into English
(1) The first-generation model of currency crisis implies that expansionary macroeconomic policies lead to huge deficits, and, in order to cover the deficits, the government has to increase money supply and at the same time continue to sell foreign exchange reserves to maintain the exchange rate stability. Once the foreign exchange reserves reduce to a critical point, speculators will attack the currency of the country and make the foreign exchange reserves exhausted in the short run. Then, the government either floats or devalues its currency. At last, the fixed exchange rate regime collapses and hence the currency crisis.
(2) Be it currency crisis, banking crisis, or external debt crisis, when the crisis breaks out, there exist some similar macroeconomic reasons, such as the high inflation rate, the expanding current account deficits, the excessive expansion of domestic borrowing, and the inflation of asset prices. The three types of crises may sometimes occur simultaneously, such as the 1997 Asian Crisis and the Argentine Crisis of 2000-2007.
3. Translate the following passages into Chinese
(1) 国际货币基金组织应其成员国的要求提供政策建议和财政支持。国际货币基金组织的成员小分队会到达该国分析那些受影响的部门（例如，政府财政、金融机构、企业部门）并同该国当局讨论应对政策。讨论的内容包括估算该国（不能被私营部门满足的）融资规模。一旦在政策和融资方案方面达成共识，他们就会建议国际货币基金组织的执行董事会批准该项目并提供贷款。此程序可以在货币基金组织的“紧急筹资程序”下加急办理。
(2) 一项针对国际货币基金组织的批评在于他们的援救努力加剧了经济学家称之为道德风险的问题。当人们认为事情出错时总是有人解救他们，那么他们就会行事鲁莽，由此产生道德风险。批评者指出，在上世纪九十年代的繁荣时期，许多日本和西方银行过于乐意借出大量资金给亚洲的公司，致使这些公司超杠杆借贷。批评者认为，这些银行现在要为他们鲁莽的借款政策付出代价，即使这意味着某些银行必须倒闭。
Unit 15 Financial Regulation
1. Answer the following questions based on the text
(1) Regulation refers to the action of controlling firms to make their private decisions
to consider the public interest. Financial regulation means that the government may intervene in the financial market to preserve the order and soundness of the market. Specifically, the government may enforce applicable laws, prosecute cases of market misconduct, license providers of financial services, protect clients and investigate complaints and maintain public confidence in the financial system. (2) It may protect against monopolies by laws to promote or maintain market competition and regulation on anti-competitive conduct.
(3) Systemic hazard, or systematic risk, refers to the risk of collapse of an entire financial system or entire market, as opposed to the risk associated with any one individual entity, group or component of a system. This type of risk has the potential to impact an entire market segment or even the whole market, and cannot be avoided with the use of various investment strategies.
(4) Prudential regulation is a form of regulation by which the supervising authority seeks to ensure that depositors remain protected by requiring regulated entities to hold a minimum amount of capital to offset its risks. Conduct of business regulation is designed to establish rules and guidelines about appropriate behaviors and business practices in dealing with customers.
(5) The three pillars of the New Basel Capital Accord are: minimum capital requirements, supervisory review, and market discipline.
(6) According to the text, the New Basel Capital Accord may increase the costs of external financing for many developing countries. The procyclicality of capital flows to developing countries can increase with the use of internal ratings by international active banks.
2. Translate the following passages into English
(1) The separate regulation mode is to set up a regulatory body responsible for
prudential regulation and conduct of business regulation in each of the sectors of banking, securities and insurance respectively. The unified regulation mode is to set up a unified regulatory body to monitor all the financial sectors, financial institutions, and businesses. The uniform regulatory body can be the central bank or other institutions. At present, our country adopts the separate regulation mode. The People’s Bank of China, China Securities Regulatory Commission, and China Insurance Regulatory Commission respectively supervise the sectors of banking, trust, securities, and insurance. Among them, the People’s Bank of China is not only the central bank, but also responsible for the development and implementation of monetary policy.
(2) The so-called “New Capital Accord”, the “New Basel Capital Accord” formally
issued by the Basel Committee on Banking Supervision, is relative to the 1988
promulgation of the “Basel Agreement”. The New Basel Capital Accord proposed three pillars for effective regulation of banks – minimum capital adequacy requirements, external supervision, and market discipline. According to the timetable of the implementation of the New Capital Accord made by China Banking Regulatory Commission, large domestic banks will implement the new Capital Accord in advance by the end of 2009, and all the other domestic banks will fully implement it no later than 2013. 3. Translate the following passages into Chinese
(1) 巴塞尔银行监管委员会为银行监管事宜的常规合作提供了一个讨论平台。其目的是提高对关键的监管问题的认识，改善全球银行监管的质量。它通过在国家监管事项、方法以及技术间的信息交流达成此目的，以期促进共同理解。有时，委员会使用该共识在他们认为合适的地区发展指导方针和监管标准。在这方面，委员会因以下三个方面而著名：资本充足率的国际标准、有效银行监管的核心原则、以及跨境银行监管的协约。
(2) 很多年来大多数中央银行都集中精力用单一工具利率来达成单一的目标，即物价稳定。他们忽略了或者说是没有意识到巨大的资产泡沫和银行的神风行为。如今，很明显中央银行家们不仅要考虑经济而且要考虑经济背后的金融监测情况。通过使用银行资本规则以及信贷控制等工具，中央银行可以预防再次出现资产泡沫的过度积累。
Unit 16 Insurance
1. Answer the following questions based on the text
(1) Insurance company is a financial institution that sells insurance. An insurance broker is not the agent or representative of the insurance company. An insurance broker finds sources for (brokers) contracts of insurance on behalf of their customers.
(2) The three major components of an insurance company are: home office, investment, and distribution or sales.
(3) Outsourcing means contracting a process, such as product design or
manufacturing, to a third party. Insurance companies are increasingly outsourcing parts of their investment portfolio or even the entire portfolio to external independent investment managers.
(4) The differences between a stock insurance company and a mutual insurance company include: a) A stock insurance company is owned by independent shareholders and has the objective of making profits; Mutual insurance companies have no stock and external owners. b) The shareholders care only about the performance of their shares; the policyholders care primarily or even solely about
the performance on their insurance policies, notably the company’s ability to pay on the policy. c) A shareholder’s holding period may be short; the policyholder’s view may be of long term.
(5) Annuity refers to a regular stream of income paid to an individual usually by the company they worked for or income derived from their insurance policies. It is often used as income during retirement. A fixed annuity is an insurance product designed to provide long-term, tax deferred savings. It can provide a guaranteed rate of return but may have few investment options. A variable annuity is a long-term investment designed to create guaranteed income in retirement, but investment returns will fluctuate and the principal value, when redeemed, may be worth more or less than the original investment. 2. Translate the following passages into English
(1) Insurable risks are confined to pure risks. The so-called pure risk refers to the uncertainty that there are only loss possibilities but no profit opportunities. However, not all the pure risks are insurable risks. Pure risk becoming insurable risk must meet the following requirements: a) High losses. Once it happens, it will bring people great economic hardship. b) Low probability. c) Certain probability distribution. d) A great number of insurance objects with homogeneous risks. e) Accidental occurrence. f) Determinable and measureable, i.e., the reason, the time, and the place of loss occurrence can be determined and the loss amount can be estimated. g) Losses cannot occur simultaneously.
(2) Annuity is a supplementary pension insurance system voluntarily set up by an enterprise and its employees based on the basic pension insurance. The enterprise and its employees jointly contribute to the annuity. The contributions by the enterprise are usually no more than one-twelfth of the total wages of the first half of the year, and the total contributions by the enterprise and its employees are no more than one-sixth of the annual payrolls of the first half of the year. (3) Our country’s enterprise annuity system has developed rapidly since its establishment, with the accumulated amount reaching RMB 100 billion yuan. As early as 2004, the annuity of the Industrial and Commercial Bank of China had entered the inter-bank bond market. After that, the annuities of all financial institutions have been allowed to enter the inter-bank bond market. By the end of 2006, the amount of annuities trusted to the Industrial and Commercial Bank of China and China Merchants Bank had amounted to over RMB 21.5 billion yuan, and in the same year, the amount of bond trusted in the inter-bank bond market had reached to RMB 9.25 trillion yuan. On February 28, 2007, hundreds of billions yuan of annuities was allowed to invest in the inter-bank bonds.