【PPT精品课件】货币金融学7版英文课件--2-大学课件20

Chapter2AnOverviewoftheFinancialSystem©2005PearsonEducationCanadaInc.©2005PearsonEducationCanadaInc.2-2FunctionofFinancialMarkets1.Allowstransfersoffundsfrompersonorbusinesswithoutinvestmentopportunitiestoonewhohasthem2.Improveseconomicefficiency©2005PearsonEducationCanadaInc.2-3ClassificationsofFinancialMarkets1.DebtMarketsShort-term(maturity1year)MoneyMarketLong-term(maturity1year)CapitalMarket2.EquityMarketsCommonstocks1.PrimaryMarketNewsecurityissuessoldtoinitialbuyers2.SecondaryMarketSecuritiespreviouslyissuedareboughtandsold1.ExchangesTradesconductedincentrallocations(e.g.,TorontoStockExchangeandNewYorkStockExchange)2.Over-the-CounterMarketsDealersatdifferentlocationsbuyandsell©2005PearsonEducationCanadaInc.2-4InternationalizationofFinancialMarketsInternationalBondMarket1.Foreignbonds2.EurobondsNowlargerthanU.S.corporatebondmarketWorldStockMarketsU.S.stockmarketsarenolongeralwaysthelargest:Japansometimeslarger©2005PearsonEducationCanadaInc.2-5FunctionofFinancialIntermediariesFinancialIntermediaries1.Engageinprocessofindirectfinance2.Moreimportantsourceoffinancethansecuritiesmarkets3.NeededbecauseoftransactionscostsandasymmetricinformationTransactionsCosts1.Financialintermediariesmakeprofitsbyreducingtransactionscosts2.Reducetransactionscostsbydevelopingexpertiseandtakingadvantageofeconomiesofscale©2005PearsonEducationCanadaInc.2-6FunctionofFinancialIntermediariesRiskSharing1.Createandsellassetswithlowriskcharacteristicsandthenusethefundstobuyassetswithmorerisk(alsocalledassettransformation).2.Alsolowerriskbyhelpingpeopletodiversifyportfolios©2005PearsonEducationCanadaInc.2-7AsymmetricInformation:AdverseSelection,andMoralHazardAdverseSelection1.Beforetransactionoccurs2.PotentialborrowersmostlikelytoproduceadverseoutcomesareonesmostlikelytoseekloansandbeselectedMoralHazard1.Aftertransactionoccurs2.Hazardthatborrowerhasincentivestoengageinundesirable(immoral)activitiesmakingitmorelikelythatwon’tpayloanbackFinancialintermediariesreduceadverseselectionandmoralhazardproblems,enablingthemtomakeprofits2-8FinancialIntermediaries©2005PearsonEducationCanadaInc.©2005PearsonEducationCanadaInc.2-9SizeofFinancialIntermediaries2-10RegulatoryAgencies©2005PearsonEducationCanadaInc.2-11RegulatoryAgencies©2005PearsonEducationCanadaInc.©2005PearsonEducationCanadaInc.2-12RegulationofFinancialMarketsTwoMainReasonsforRegulation1.IncreaseinformationtoinvestorsA.DecreasesadverseselectionandmoralhazardproblemsB.Securitiescommissionsforcecorporationstodiscloseinformation2.EnsuringthesoundnessoffinancialintermediariesA.PreventsfinancialpanicsB.Chartering,reportingrequirements,restrictionsonassetsandactivities,depositinsurance,andanti-competitivemeasures