Chapter 3 Financial instruments Markets and institutions
Chapter 3 Financial Instruments, Markets, and Institutions
What does the finance mean
What does the finance mean？
3. 1 flow of funds 3.1.1 the flow of funds from saver-lender to borrower-spenders saver-lender -r--borrower-spenders getting interest, Ividends Investment hc olsen business firms usiness tirms governments governments households
3.1 flow of funds 3.1.1 the flow of funds from saver-lender to borrower-spenders saver-lender-------------------------------borrower-spenders getting interest, dividends investment households business firms business firms governments governments households
3. 1.2 Two types of financing Funds flow directly through financial markets -direct finance (f 接金融、直接融资) direct securities直接证券 Funds flow indirectly through financial intermediaries -indirect finance(间接金融、间接融资) indirect securities间接证券 What advantages and disadvantages do the two types of financing possess?
3.1.2 Two types of financing Funds flow directly through financial markets -direct finance（直 接金融、直接融资） direct securities 直接证券 Funds flow indirectly through financial intermediaries -indirect finance (间接金融、间接融资） indirect securities 间接证券 What advantages and disadvantages do the two types of financing possess?
3.1.3 Advantages and disadvantages of the two types of fi Financing 1. direct finance 2. indirect finance
3.1.3 Advantages and disadvantages of the two types of financing 1. direct finance 2. indirect finance
Informational Asymmetries in Financial Market(信息不对称) nformational Asymmetries:指某些市场参与者拥有另一些市 场参与者所不拥有的信息。 Asymmetry can create many difficulties in the availability and distribution information cause two problems
Informational Asymmetries in Financial Market(信息不对称) Informational Asymmetries：指某些市场参与者拥有另一些市 场参与者所不拥有的信息。 Asymmetry can create many difficulties in the availability and distribution information cause two problems
今 adverse selection逆向选择 a problem of asymmetric information that occurs in the case of a debt contract, at the origination stage because lenders can not differentiate between high and low quality borrowers 过高的利率使逆向选择的概率增加。为升么?
vadverse selection 逆向选择 A problem of asymmetric information that occurs, in the case of a debt contract, at the origination stage because lenders can not differentiate between high and low quality borrowers. 过高的利率使逆向选择的概率增加。为什么？
☆ Moral hazard道德风险 a problem of asymmetric information occurring after a loan is made In particular, the borrower may become riskier without being detected by the lender
vMoral hazard 道德风险 A problem of asymmetric information occurring after a loan is made. In particular, the borrower may become riskier without being detected by the lender
防范风险的根本措施就是保证信息的 Availabilit可得性 Transparency透明度 accountability可靠性 Sound financial decisions require adequate and accurate financial information
防范风险的根本措施就是保证信息的 Ø Availability可得性 Ø Transparency透明度 Ø Accountability 可靠性 Sound financial decisions require adequate and accurate financial information
3.2 financial instruments and markets 3.2.1 Financial instruments:是以货历计值的,载有 金融交易杀件、金融交冕双方各自权利义參的詹用 工具,或金融合约。是偾权偾參关系并誉以选行货 币资金交易的法律凭证
3.2.financial instruments and markets 3.2.1 Financial instruments：是以货币计值的，载有 金融交易条件、金融交易双方各自权利义务的信用 工具，或金融合约。 是债权债务关系并借以进行货 币资金交易的法律凭证