文档介绍：Chapter 5
Moneyand Capital Markets
Government Bond Market
when the government runs a deficit, it has to get the
funds.
There are three ways for the government to get funds.
v printing new dollar bills
v borrowing:selling government securities to individuals, to
banks ,to foreigners,etc.
v increasing tax
types of securities
treasury bills: the shortest-term government securities with
original maturities of 3 months, 6 months or one year.
treasury notes: securities with an original maturity of between
one year and ten years.
treasury bonds: which may be issued with any maturity longer
than ten years.
repurchase agreements(回购协议 repos)
The sale of securities with mitment to buy
them back at a specified date and at a specified
price.
vRepurchase agreements market is closely related to
the market for borrowing and lending reverses owned
by banks ,called the federal funds market.
vfederal funds (银行间的日拆贷款):An unsecured loan
between banks where the funds that are lent are
transferred the same day the loan is made.
Bank-related Securities:
CDs
ØBanks can raise funds by issuing certificates of
deposit, which are called CDs.
ØLarge-sized CDS ,which can be traded, transferred,
are negotiable certificates of deposit.
ØThe differences between negotiable certificates of
deposit mon time certificatesdeposit.
EURODOLLARS(欧洲美元)
Eurodollars are dollars-denominated time deposits
held abroad in foreign bank or in foreign branches
of US banks.
ØA number of large banks in London act as dealers in
Eurodollars, they quote rates at which they are willing
to borrow and lend..
ØThe rate they will lend at is called LIBOR(London
interbankoffered rate).
ØThe rate they will borrow at is called LIBBIDID(London
interbankbid rate).
The Eurodollar market has e so active in recent years
that LIBOR is now the reference rate in many financial
contracts。