Module5MoneyandFinanceGdutLOGO
LOGO Module 5 Money and Finance Gdut
Functions of MoneyMediumofexchangeAunit of account:measuringthe value ofgoodsandservicesAtemporarystoreofvalue
Functions of Money ▪ Medium of exchange ▪ A unit of account: measuring the value of goods and services ▪ A temporary store of value
FinanceThemanagementofmoney财务管理：财政MinistryofFinance;Money usedto supportanundertakingfund:资金[finances]themoneythatanorganizationor person has, and the way that theymanageit财源，财力，财务状况 V: fund, to providemoney for a project
Finance ▪ The management of money 财务管理；财 政 Ministry of Finance; ▪ Money used to support an undertaking, fund: 资金 ▪ [finances] the money that an organization or person has, and the way that they manage it 财源，财力，财务状况 ▪ V：fund，to provide money for a project
ContentsMoneyexpressionAbankloanAcultureofdebt- Choosing an investmentCompanyfinanceBusinesscosts
Contents ▪ Money expression ▪ A bank loan ▪ A culture of debt ▪ Choosing an investment ▪ Company finance ▪ Business costs
MoneyexpressionMoneyoftencoststoomuch.RalphWaldoEmerson,Essayist1.It's expensiveto borrow money2. Pursuing money only makes you neglectthemoreimportantthings in life
Money expression ▪ Money often costs too much. Ralph Waldo Emerson, Essayist 1. It’s expensive to borrow money. 2. Pursuing money only makes you neglect the more important things in life
Invoiceinvoicesb(for sth)invoicesth(tosb/sth)to write or send abill forwork youhavedone or goods you have providedBeinvoicedforthegoodsN.listof goodssoldorservicesprovidedwith the price(s) charged, esp sent as a billCompare:bill,check,receipt,voucher
Invoice ▪ invoice sb (for sth) | invoice sth (to sb/sth) ▪ to write or send a bill for work you have done or goods you have provided ▪ Be invoiced for the goods ▪ N. list of goods sold or services provided with the price(s) charged, esp sent as a bill ▪ Compare: bill, check; receipt, voucher
AbankloanA loan isa type of debt.Like all debt instrumentsaloan entails theredistribution offinancial assetsover time, between the lenderand the borrower.In a loan,the borrowerinitially receives orborrows an amount of money,called the principal（本金),fromthelender,andisobligatedtopaybackorrepayanequalamountof moneytothelender at a later time.Typically,the money is paidback in regularinstallments,orpartialrepayments.The loan is generally provided at a cost, referredto as interest on the debt, which provides anincentive for the lender to engage in the loan
A bank loan ▪ A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. ▪ In a loan, the borrower initially receives or borrows an amount of money, called the principal (本金), from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments. ▪ The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan
Types of loansSecured loan:a loan in which the borrower pledges someasset(e.g.a carorproperty)ascollateral(抵押物)fortheloan.Eg:mortgageloanUnsecured loan: monetary loans that are not securedagainst the borrower's assets.Eg:credit card debtDemand loan: short term loans (typically no more than180 days) that are atypical in that they do not have fixeddates for repayment and carry a floating interest ratewhich varies according to the primerate. They canbe"called" for repayment by the lending institution at anytime.Demandloansmaybe unsecured or secured
Types of loans ▪ Secured loan: a loan in which the borrower pledges some asset (e.g. a car or property) as collateral(抵押物) for the loan. ▪ Eg: mortgage loan ▪ Unsecured loan: monetary loans that are not secured against the borrower's assets. ▪ Eg: credit card debt ▪ Demand loan: short term loans (typically no more than 180 days) that are atypical in that they do not have fixed dates for repayment and carry a floating interest rate which varies according to the prime rate. They can be "called" for repayment by the lending institution at any time. Demand loans may be unsecured or secured
Security fora loanMortgagedpropertyAcar/house:mortgageloan Borrowers do not havea cleartitleoveritand cannotsellit without the lender'sconsent.Aguarantor- A person, the guarantor, agrees to paybackthe debtif theborrower can't or won't
Security for a loan Mortgaged property ▪ A car / house: mortgage loan ▪ Borrowers do not have a clear title over it and cannot sell it without the lender's consent. A guarantor ▪ A person, the guarantor, agrees to pay back the debt if the borrower can't or won't
UsefulTermsOutgoing（日常开支）:themoneythatyouhavetospendregularly,forexampleonrentorfoodSecurity（抵押品）:jewelryinsurancepolicies，realestate，etcthatcanbeusedtoguaranteethatonewill paybackborrowedmoneyorkeepapromise,e.g.lendmoneyonsecurityCivilService（政府机关）/CivilorPublicServant（公务员）：Bodyofgovernmentemployeesentrustedwiththeadministrationofthe country,and mandatedto carryoutthepolicyofthegovernment.Blue-chipstocks（蓝筹股）：Stocksissuedbylargecompaniesarecalledbluechipstocks.Becausethecompaniesarewellestablished,withsomewhatpredictableearnings,theirstockpricestendtofluctuatelessthanotherequities andthushave relativelystableprices.Thesecompaniesoftenpaysteadydividends,givingtheinvestorincomeinadditionto thepotentialfor capitalappreciation
Useful Terms ▪ Outgoing (日常开支): the money that you have to spend regularly, for example on rent or food ▪ Security (抵押品): jewelry, insurance policies, real estate, etc that can be used to guarantee that one will pay back borrowed money or keep a promise, e.g. lend money on security. ▪ Civil Service (政府机关)/Civil or Public Servant (公务员): Body of government employees entrusted with the administration of the country, and mandated to carry out the policy of the government. ▪ Blue-chip stocks (蓝筹股): Stocks issued by large companies are called blue chip stocks. Because the companies are well established, with somewhat predictable earnings, their stock prices tend to fluctuate less than other equities and thus have relatively stable prices. These companies often pay steady dividends, giving the investor income in addition to the potential for capital appreciation