Money and Banking Examination Questions (A Volume)
"Money and Banking" test questions (A volume)
Teacher: Reviewer:
1. Multiple choice questions (1 point for each sub-question, 20 points in total)
1. The difference between the value scale and the price standard is that ( )
A. Internal and external B. Purpose and means C. Spontaneous and artificial D. Different changes
2. Which of the following statements is not a feature of credit currency ( )
A. It can replace metal currency B. It is a credit certificate
C. Relying on bank credit and government credit to circulate D. It is a currency of sufficient value.
3. Which of the following statements about the currency system is correct ( )
A. Under the parallel standard system, there will be a phenomenon of "bad money driving out good money"
B. The phenomenon of "double price" is prone to appear under the dual standard system
C. Gold and silver bistandard is an unstable monetary system
D. Under the dual standard system, gold coins are used as the main currency, and silver coins are used as the auxiliary currency
4. In the division of currency levels in my country, cash is generally classified into ( ) levels:
A、M0 B、M1 C、M2 D、M3
5. The main features of the single central bank system are ( ).
A. Many branches B. Few branches
C. There is only one central bank in the country D. Power is relatively dispersed
6. Under the business model of division of labor, compared with other financial institutions, only ( ) can absorb current deposits using checks.
A. Savings bank B. Merchant bank
C. a commercial bank D. a credit union
7. At present, the most flexible and effective monetary policy tool used by western countries is ( ).
A. Statutory deposit reserve B. Rediscount policy
C. Open market business D. Window guidance
8. When the central bank lowers the statutory deposit reserve ratio, commercial banks ( ).
A. A decrease in the amount of loanable funds B. An increase in the amount of loanable funds
C. The amount of loanable funds is not affected D. The amount of loanable funds is uncertain
9. ( ) is the first self-run bank in China, and its establishment marks the beginning of China's modern banking industry.
A. China Commercial Bank B. China Bank of Communications
C. Household Bank D. Industrial Bank of China
10. The monetary policy tool that does not directly affect the movement of the base currency to achieve regulation is ( ).
A. Statutory deposit reserve policy B. Open market business
C. rediscount policy D. neither
11. The business object of the central bank is ( ).
A. Industrial and commercial enterprises B. Urban and rural residents C. Government D. Financial institutions
12. The credit union belongs to ( ).
A. Depository financial institutions B. Contractual financial institutions
C. Investment financial institutions D. Policy financial institutions
13. The following are general monetary policy tools ( ).
A. Consumer credit control B. Securities market credit control
C. window guidance D. moral advice
E. Rediscount Mechanism
14. The financial derivatives that are nominally forward loan contracts but are actually hedging interest rate risk are: ( )
A. Interest rate futures contract B. Stock index futures contract
C. Interest rate swap contract D. Forward rate agreement
15. When determining the quantity of currency M1, the factors mainly controlled by the public are ( )
A. Statutory deposit reserve ratio B. Base currency
C. The ratio of deposits to currency D. The ratio of excess reserves
16. The basic idea of classical interest rate theory is ( )
A. The interest rate is determined by the supply and demand of capital;
B. The interest rate is determined by the supply and demand of money;
C. The interest rate is determined by the supply and demand of funds;
D. Think that the interest rate is determined by the size of the income.
17. Investors do not go through brokers, but directly trade securities over-the-counter, resulting in: ( )
A．Over the counter market B. third market c. Fourth market D．fifth market
18. Which of the following is neglected in traditional quantity theory? ( )
A. Money velocity; B. Interest rate; C. Money quantity; D. Price
19. Which of the following statements about Keynes' liquidity preference theory is incorrect ( )
A. "Liquidity preference" is essentially a psychological law
B. Keynes believed that the interest rate is only related to speculative demand, but has nothing to do with precautionary demand and transaction demand
C. Keynes' policy advocated a free economy
D. Keynes believed that only fiscal policy is the most effective
20. Among the following motivations, those are not people’s money demand motivations that Keynes believed ( )
A. Transaction motive; B. Precautionary motive; C. Speculative motive; D. Consumption motive
2. Multiple-choice questions (1 point for each sub-question, 10 points in total)
1. The assets that can be used as the secondary reserve of commercial banks are ( )
A. Deposits at the central bank B. CD certificates of deposit
C. Interbank lending funds D. Treasury bills
E. Time deposit
2. Investment funds can be divided into ( ) according to different realization methods.
A. Corporate Fund B. Contract Fund
C. Open-end funds D. Closed-end funds
E. Cooperative Fund
3. The establishment of the Bank of England marked the rise of modern banking and the breaking of the monopoly of usury. The formation of modern banks mainly includes ( ).
A. Transformed from the original usury bank B. Established with government funding
C. Established in the form of a joint-stock system D. Jointly organized by the government and the private sector
E. The private sector is free to set up
4. The so-called "government bank" refers to ( ).
A) The central bank is owned by the state
B. The central bank acts as an agent for the treasury
C. The central bank handles various financial affairs on behalf of the country
D. The central bank provides credit to the government
5. The main manifestations of commercial credit are: ( ).
A. Merchandise on credit B. Advance deposit or payment for goods
C. Currency loan D. Installment payment
6. The asset items in the balance sheet of the central bank mainly include ( ).
A. Rediscount and refinancing B. Government bonds C. Foreign exchange gold reserves D. Currency in circulation
7. Among the following monetary policy operations, the one that causes the money supply to increase is ( ).
A. Increase the statutory deposit reserve ratio B. Increase the rediscount rate
C. Lower the rediscount rate D. The central bank sells bonds
8. The most basic requirement for selecting intermediary indicators of monetary policy is ( ).
A. Anti-interference B. Testability
C. Correlation D. Controllability
E. Adaptability
9. The central bank adjusts the statutory deposit reserve ratio, which has the following characteristics: ( )
A. Affecting excess deposit reserves of commercial banks
B、 Affect the money supply of the whole society
C. Affecting the level of interest rates
D. to be flexible
E. Affect the credit creation ability of commercial banks
10. Which of the following is an intermediate goal of monetary policy is ( ).
A. Base money B. Economic growth C. Full employment D. Price stability
3. True or False Questions (1 point for each sub-question, 10 points in total, T for correct ones, F for wrong ones)
1. Commercial credit is the same as bank credit, and its scale can exceed the debtor's capital limit. ( )
2. Bill discounting is a liability business of commercial banks. ( )
3. The goal of my country's monetary policy is to "maintain the stability of the currency value and promote economic growth", of which economic growth is the main one and put it in the first place. ( )
4. There are many factors that affect the level of interest rates, among which the important ones include the relationship between supply and demand of funds, the monetary policy of the central bank, the level of social average profit rate and the structure of the capital market. ()
5. When the central bank buys securities in the open market, it only invests the base currency in an equal amount, rather than injecting the money supply in an equal amount. ( )
6. Currency in the form of cash functions as a means of circulation, while currency in the form of deposits functions as a means of payment. ( )
7. The financial market has a certain "depth" means that the market structure is multi-level and three-dimensional. ( )
8. Stock price average and stock price index are stock market price indicators calculated by different statistical methods. ( )
9. The Central Bank, as an integral part of the state machinery, shall not establish branches in foreign countries. ( )
10. The adjustment of the statutory deposit reserve ratio reflects the policy intention of the central bank to a certain extent, exerts the notice effect, and has a limited regulating effect. ( )
4. Calculation questions (5 points for each small question, 10 points in total)
1. Buy a call option that expires in March with a strike price of US$7.5 and pay an option premium of US$0.20. At the same time, buy a put option that expires in March with a strike price of US$7.5 and pay an option premium of US$0.30 U.S. dollars. At what price does the option buyer or seller profit at the price of the underlying asset due in March? What is the maximum possible loss or maximum profit?
2. There is a financial asset with an initial value of USD 1 million. It is held for an investment period. The expected return on investment during the holding period is 10%. The standard deviation of the return on investment is 2%. The state distribution requires the VaR of the financial asset at the 95% confidence level.
5. Short answer questions (6 points per question, 30 points in total)
1. Briefly describe the functions of the central bank.
2. Compare the similarities and differences between futures and options trading.
3. Briefly describe the development of commercial bank asset-liability management theory.
4. What are the main factors affecting the effect of monetary policy?
5. Briefly describe Friedman's money demand theory and its policy propositions.
6. Essay questions (20 points for this question)
What is the current international trend of financial regulation? Compared with the international trend of financial supervision, talk about the current financial supervision system in my country.
Currency and Banking Exam Questions (B Paper)
Wuhan University 20××----20×× Academic Year XX Semester Final Exam
School of Economics and Management 20×× grade ×× major
"Money and Banking" test questions (B paper)
Teacher: Reviewer:
1. Multiple choice questions (1 point for each sub-question, 20 points in total)
1. When currency performs functions, it can be conceptual currency.
A. Medium of exchange B. Store of value C. Means of payment D. Measure of value
2. Which of the following statements is not a feature of credit currency.
A. It can replace metal currency B. It is a credit certificate
C. Relying on bank credit and government credit to circulate D. It is a currency of sufficient value.
3. Which of the following statements about the currency system is correct.
A. Under the parallel standard system, there will be a phenomenon of "bad money driving out good money"
B. The phenomenon of "double price" is prone to appear under the dual standard system
C. Gold and silver bistandard is an unstable monetary system
D. Under the dual standard system, gold coins are used as the main currency, and silver coins are used as the auxiliary currency
4. In the division of currency levels in my country, cash is generally classified into levels:
A、M0 B、M1 C、M2 D、M3
5. The U.S. federal funds rate refers to: ( )
A. U.S. Central Government Bond Rate B. U.S. Commercial Bank Interbank Offered Rate
C. The Fed's rediscount rate D. Bank of America statutory deposit reserve ratio
6. A purchased a European call option on the stock of Company A. The agreed price was 20 yuan per share, the contract period was 3 months, and the option price was 1.5 yuan per share. If the market price of company A's stock is 21 yuan per share on the maturity date, then A will: ( )
A．If the option is not exercised, there is no loss B. Exercise the option and get a profit
C．The option is exercised and the loss is less than the option premium D. If the option is not exercised, the loss is equal to the option premium
7. Stock index futures are mainly used for hedging ( )
A．credit risk b. country risk c. stock market systemic risk d. Unsystematic risk in the stock market
8. If a securities company adopts ( ) method to underwrite stocks for a certain company, the securities company does not need to bear the issuance risk.
A．Balance underwriting B．Consignment C．Full underwriting D. Guaranteed sales
9. Which of the following statements about bills is correct.
A. A bill of exchange, also known as a promissory note, is an unconditional repayment guarantee
B. A promissory note is an unconditional commitment to pay
C. Commercial drafts and bank drafts are bills issued by the payee
D. Commercial acceptance drafts and bank acceptance drafts can only be paid by the debtor
10. Most of the development banks belong to a country's policy bank, whose purpose is to promote the country's economic construction and development by financing long-term funds. The characteristics of this kind of bank's business operation are ( ).
A. Do not take profit as the business goal B. Take profit as the business goal
C. Make profits for investors D. Create fiscal revenue for the country
11. The important events that marked the birth of the modern central banking system were.
A. The birth of the Bank of Venice in 1587 B. The birth of the Swedish National Bank in 1656
C. The establishment of the Bank of England in 1694 D. The promulgation of the Bill Bill in 1844
12. In 1995, my country legally determined that the ultimate goal of my country's central bank is ( ).
A. Taking economic growth as the primary goal
B. The main goal is to stabilize the currency value
C. To maintain price stability and thereby promote economic growth
D. Keep the currency value stable and promote economic growth in this way
13. Among the following monetary policy operations, the one that causes the money supply to increase is ( ).
A. Increase the statutory deposit reserve ratio B. Increase the rediscount rate
C. Lower the rediscount rate D. The central bank sells bonds
14. The central bank sells a large number of securities in open market operations, which means monetary policy ( ).
A, relaxed B, tightened C, unchanged D, not necessarily
15. During the evolution of commercial bank management theory, the ( ) theory puts the management emphasis on asset liquidity.
A. asset management B. liability management
C. Asset and liability management D. Comprehensive management
16. In 1694, British merchants established ( ), marking the rise of modern banking and the breaking of the monopoly of usury.
A. HSBC B. Liru Bank
C. Bank of England D. Standard Chartered Bank
17. The following ( ) are not cash assets of commercial banks.
A. cash on hand B. reserves
C. Deposits from other banks D. Accounts payable
18. Commercial banks will face various risks in the process of operation, among which, the risk of the possibility of the lender suffering losses due to the borrower's failure to repay the lender's principal and interest on time is ( ).
A. country risk B. credit risk
C. Interest rate risk D. Exchange rate risk
19. There are contradictions among the four goals of monetary policy, and it is very difficult for any country to achieve them at the same time, but ( ) are consistent.
A. Full employment and economic growth B. Economic growth and balance of payments
C. Price stability and economic growth D. Price stability and economic growth
20. The same thing between the theory of cash transaction and the theory of cash balance lies in ( )
A. Changes in prices are the cause of changes in the quantity of money
B. Use the quantity of money as the cause of price changes
C. Both believe that the price level changes in the same proportion as the money stock in the opposite direction
D. Both recognize the quantity of money as the velocity of money flow in a certain period
2. Multiple-choice questions (1 point for each sub-question, 10 points in total)
1. In the following economic activities, money performs the function of payment.
A. Salary payment B. Tax payment C. Bank loan D. Installment payment
2. The characteristics that must be possessed by the goods selected as currency in the form of physical currency:
A. High value B. Easy to preserve C. Easy to divide D. People are willing to accept
3. The main flaws of the gold and silver compound standard system are:
A. Causes multiplicity of value scales B. Violates exclusivity and exclusivity
C. Causes fluctuations in the exchange rate D. Causes a shortage of currency materials
4. The characteristics of the repurchase transaction are: ( )
A．Essentially mortgage financing B. The repo party is the borrower, and the reverse repo party is the lender
C．The reverse repo party is the borrower, and the repo party is the lender D. essentially securities trading
5. The main forms of modern credit are: .
A. Commercial credit B. Usury credit C. Private credit
D. Bank credit E. National credit
6. The main function of financial derivatives trading is.
A. Provide means to transfer risks B. Provide more investment opportunities
C. Provide a price discovery mechanism D. Provide more trading varieties
7. The following ( ) are deposit-taking financial institutions.
A. Commercial bank B. Savings bank C. Credit union D. Trust company
8. The main constituents of my country's current commercial banking system are ( ).
A. Wholly state-owned commercial bank B. Foreign-funded commercial bank
C. Joint-stock commercial bank D. City commercial bank
E. Rural Commercial Bank
9. The most fundamental function of a central bank is to
A. The issuing bank B. The bank's bank C. The profitable bank D. The government's bank E. The bank that manages finance
10. my country's financial asset management companies have the characteristics of typical policy-based financial institutions, which are specially established to accept and deal with non-performing assets of state-owned financial institutions, mainly in ( ).
A. Cinda B. Huaxia
C. Huarong D. Great Wall E. Oriental
3. True or False Questions (1 point for each sub-question, 10 points in total, T for correct ones, F for wrong ones)
1. In the gold and silver parallel standard system, the exchange rate of gold and silver is determined by the market price comparison, so the phenomenon of "bad money driving out good money" has emerged in the market. ( )
2. Non-bank financial institutions and industrial and commercial enterprises can also participate in interbank lending. ( )
3. The basic difference between commercial banks and other financial institutions is that commercial banks are the only financial intermediaries that accept demand deposits and open checking deposit accounts. ( )
4. Financial swaps can be a "positive-sum game" in which both parties to the transaction are mutually beneficial, while forward, futures, and option transactions are "zero-sum games." ( )
5. When market interest rates rise, bond trading prices also rise. ( )
6. Government bonds can be exempted from national and local income taxes, so it is also called "tax-exempt bonds". ( )
7. The central bank is a special financial institution not for profit. ( )
8. Depository financial institutions are of particular concern to regulators because they create deposits, which are an important component of the money supply. ( )
9. The independence of the central bank refers to the power of the central bank to formulate and implement monetary policy independently without government intervention. ( )
10. The operating principles of commercial banks, that is, the "three natures" principles, are a whole with complete internal unity. ( )
4. Calculation questions (5 points for each small question, 10 points in total)
1. Suppose a certain bond has a face value of 100 yuan, a term of 5 years, and an annual interest rate of 8%. An investor buys the bond at the market price of 98 yuan at the end of the first year, and sells the bond at the price of 102 yuan at the end of the third year. Sell, calculate the investor's holding period rate of return.
2. Assuming that the UK and the US have different interest rates, the annual interest rate in the UK is 10%, while the annual interest rate in the US is only 8%, and the US investors decide to arbitrage. The investor borrows USD 1.8 million from a bank at an interest rate of 8%, and converts it to GBP 1 million in the spot exchange market at the exchange rate of GBP 1 = USD 1.8 for a one-year investment in the UK. Shortly after the investment, the investor was worried that the exchange rate of the British pound would fall one year later, and the arbitrage would outweigh the gains, so he decided to sell British pound futures for value preservation. He sold 16 British pound futures contracts in March of the following year, and the standard unit of each British pound contract was 62,500 pounds. The exchange rate For: £1 = $1.79. If in March of the second year, 1 pound = 1.75 US dollars, try to calculate the investor's profit and loss.
5. Short answer questions (6 points per question, 30 points in total)
1. Briefly describe the characteristics of the credit currency system.
2. Briefly describe the characteristics of the European money market.
3. Briefly describe the main ideas and policy propositions of Keynes' money demand theory.
4. Discuss the necessity of maintaining the independence of the central bank
5. Try to compare the three major monetary policy tools of the central bank.
6. Essay questions (20 points for this question)
Under the current background of my country's full opening to foreign banks, what are the challenges and impacts that my country's commercial banks are facing? How should we deal with it?
Currency and Banking Exam Questions Paper A Answers
1. Single choice
1. C 2.D 3.C 4.A 5.C 6.C 7.C 8.B 9.C 10.C 11.D 12.A 13.E 14.D 15.C 16.B 17.C 18.B 19.C 20.D
Two, multiple choice
1. BD 2.CD 3.AC 4.BCD 5.ABD 6.ABC 7.C
8.BCD 9.ABE 10.A
3. Judgment
1. F 2.F 3.F 4.F 5.T 6.F 7.F 8.T 9.F 10.T
4. Calculation
1. The option buyer loses when the price of the underlying asset is 7-8 yuan, and the maximum loss is 0.5 yuan; the option buyer makes a profit when the price of the underlying asset is lower than 7 yuan or higher than 8 yuan, and the profit margin is unlimited; When the profit is 7-8 yuan, the maximum profit is 0.5 yuan; if the price of the underlying asset is lower than 7 yuan or higher than 8 yuan, the option seller will lose money, and the loss space is unlimited.
2. VaR=-100*2%*1.645=-$32,900
4. Short answer questions
1. answer points
Bank of issue, bank of government, bank of banks, and bank that manages finance
2. answer points
(1) The rights and obligations of both parties to an option transaction are not equal. The buyer of an option contract has the option to decide whether to exercise its call or sell option, while the seller of an option contract only has the obligation to perform the contract at the buyer's request, and has no right to choose. The rights and obligations of both parties to the futures contract are equal; (2) The risks and benefits of both parties to the option transaction are asymmetric. The risk borne by the option buyer is limited to the loss of the option premium, while the profit may be unlimited (such as buying a call option) or limited (such as buying a put option). An option seller may have a limited profit, the premium he receives, and a risk of loss that may be unlimited (such as selling an uncovered call option) or limited (such as selling a put option or a covered call option options). The profit and loss risks of both parties in futures trading are the same, and one party's profit is the other's loss; (3) option contracts can not only be traded on exchanges, but also have a considerable scale of off-exchange markets. Options contracts traded over the counter are non-standardized. All futures contracts are traded on exchanges and are standardized; (4) When option contracts are traded on an exchange, the seller must pay a deposit in accordance with the regulations of the exchange (except for the sale of covered call options). The buyer's loss is only limited by the option premium, so there is no need to pay a margin. In futures trading, both parties must pay margin.
3. answer points
(1) In the 1930s and 1940s, the Pool Funds Approach was a management method commonly used in fund allocation. Its basic content is: take deposits and funds from other sources as a conceptual fund collection library, and then prioritize and allocate funds in the fund collection library. The order of priority is: liquid assets; loans; income investment; (2) In the 1950s, The Funds Allocation Approach (The Funds Allocation Approach) was widely recognized as an improvement of the fund pooling method. The main content of the fund allocation method is: when allocating existing funds to various assets, the circulation velocity or turnover rate (turnover) of these sources of funds should be adapted to the corresponding asset period, that is, the repayment period of bank assets and liabilities The repayment period should maintain a high degree of symmetry. Those deposits with a low turnover rate should be allocated to relatively long-term, high-yield assets; conversely, deposits with a high turnover rate should be allocated to short-term, high-liquidity asset items. Therefore, this method is also called the term symmetric method; (3) The basic idea of Liability Management is that, according to the established target asset growth and development strategy, the bank adjusts the liability-side items of the balance sheet, or , to meet the bank's goals and policies by "purchasing" funds in the money market; (4) After the 1970s, the method of commercial bank fund management turned to asset-liability management (Asset-Liability Management), and some expressed it as "camera Discretionary Fund Management. The basic idea of this method is to strategically use funds that are sensitive to interest rate changes during the financing planning period and decision-making, and to coordinate the relationship between funding sources and fund utilization, regardless of whether these projects are on the liability side or on the asset side.
4. answer points
(1) The time lag of monetary policy; (2) The offsetting effect of reasonable expectations of economic subjects; (3) The impact of the velocity of money circulation; (4) The impact of other economic and political factors.
5. answer points
(1) In 1956, Friedman published a paper entitled "The Quantity Theory of Money—A Restatement". This marks the revival of the quantity theory of money. Friedman believes that the quantity theory of money is not a theory about output, money income or price level, but a theory of money demand, that is, a theory of what factors determine money demand, and regards money as a kind of asset Therefore, when people decide to keep their wealth, they decide to use currency or other asset choices. In this way, the consumer demand and choice theory can be used to analyze people's demand for money; (2) According to the above analysis, the final wealth holder's personal money demand function can be obtained. Since the actual income of various assets depends on the price level, the money demand function can be divided into nominal and real money demand functions. The real money demand is the physical quantity that can be controlled by the actual money held. The real money demand function is:
(3) On the one hand, Friedman's money demand theory is based on the traditional quantity theory of money (MV=PT ⇒ , =KY), but Friedman does not regard K and V as a fixed constant, but As a variable, in addition, Y is not current income, but permanent income; on the other hand, Friedman is a further development on the basis of Keynes' money demand function Md=L(Y, r). Therefore, Friedman's money demand function is a mixture of the traditional quantity theory of money and Keynes' liquidity preference theory.
Money and Banking Exam Questions Paper B Answers
Question reference answer:
1. Single choice
1. D 2.D 3.C 4.A 5.B 6.C 7.C 8.B 9.B 10.A 11.D 12.D 13.C 14.D 15.A 16.C 17.D 18.B 19.A 20.B
Two, multiple choice
1. ABCD 2.ABCD 3.ABC 4.AB 5.ADE 6.AC 7.ABC
8.ABCD 9.ABDE 10.ACDE
3. Judgment
1. F 2.F 3.T 4.T 5.F 6.F 7.T 8.F 9.F 10.F
4. Calculation
1. The formula for calculating the holding period yield of a bond is as follows:
2. In the spot market cost = 180 × 1.08 = 194.4
Profit = 100 x (1 + 10%) x 1.75 = 192.2
Profit = -1.9
Profit in the futures market = (1.79-1.75) × 100 = 4
The investor's total profit or loss is then $21,000.
4. Short answer questions
1. answer points
(1) Non-cash banknotes are used as the standard currency, which are generally issued by the state; (2) Non-cash banknotes do not represent any precious metals and cannot be exchanged for precious metals such as gold; (3) Non-cash settlements dominate; (4) Government controls currency quantity.
2. answer points
(1) Not subject to any laws and regulations, and free to trade; (2) Consisting of a worldwide and extensive international banking network; (3) The loan currency is an overseas currency, and the borrower can choose the currency; (4) All deposits All have interest rates, and there is no restriction on statutory deposit reserves; (5) the term is mostly short-term; (6) credit loans, no contract is signed, and there is no guarantee.
3. answer points
(1) Keynes believes that money has complete liquidity, and people hold non-interest-bearing money because of their psychological preference for liquidity. And people's psychological "liquidity preference" or people's currency demand is determined by three motivations: transaction motivation-people hold currency to meet the needs of daily transactions; precautionary motivation-people cope with unexpected, Currency held for temporary or urgently needed expenditures; speculative motives - due to the uncertainty of future interest rates, people will speculate on buying securities at favorable times based on expectations of changes in interest rates; ( 2) The money demand of transaction motivation and precautionary motivation mainly depends on income, which is an increasing function of income, and has no direct relationship with interest rate. If L1 represents the transaction demand and prevention demand of money, and Y represents income, then its functional formula is: L1=L1(Y), the money demand of speculative motivation mainly depends on the interest rate, which is a decreasing function of interest rate, if expressed by L2 The money demand of speculative motives, r represents the interest rate, then its functional formula is: L2=L2(r), so, the total demand for money of these three motives is: L= L1(Y)+L2(r); (3) A major breakthrough in Keynes' monetary theory is the speculative motive for money demand. Keynes believed that the key to speculative motivation lies in the uncertainty of future interest rates. When the interest rate is high, people expect that the interest rate will fall in the future. Since the bond price is inversely proportional to the change of the interest rate, that is, people expect the bond price to rise, so buying bonds at a low price now will make a profit in the future. Therefore, people will sell money and buy bonds, that is, people's money demand will decrease, and the speed of money circulation will be accelerated; (4) Due to the existence of "liquidity trap", monetary policy cannot be an effective tool to achieve full employment, and The only effective way is to directly increase fiscal expenditure and expand investment to directly stimulate the growth of effective demand. Therefore, only fiscal policy can bring about full employment. It is on this basis that Keynes proposed that the state must directly regulate and intervene in the economy.
4. answer points
(1) To avoid the emergence of political and economic fluctuations; (2) To avoid the emergence of monetization of fiscal deficits; (3) To meet the needs of the special business status of the central bank.
5. answer points
(1) The adjustment of the statutory deposit reserve ratio has a strong notice effect. The adjustment of the reserve ratio by the central bank is a public and well-known action, and immediately affects the reserve positions of all commercial banks. The adjustment of the statutory deposit reserve ratio has a mandatory impact, and the adjustment of the statutory deposit reserve ratio is mandatory by law. , once adjusted, any depository financial institution must implement it. The adjustment of the statutory deposit reserve ratio has a significant impact on the money supply. Due to the effect of the money multiplier, a small change in the reserve requirement ratio will lead to a huge change in the money supply. The policy effect is violent, and the impact on financial institutions and even the social economy is dramatic. The adjustment of the statutory deposit reserve ratio lacks due flexibility. It is precisely because this policy tool has a strong notification effect and influence effect. Therefore, it cannot be used frequently by the central bank as a daily adjustment tool; (2) The role of the rediscount policy tool: As a means of adjusting money supply, it acts as a "gearbox". Rediscount indirectly adjusts the money supply by affecting the borrowing costs of financial institutions and the increase or decrease of their deposit reserve positions. Its action process is gradual and not as violent as the statutory deposit reserve policy; it has a "notice effect" on market interest rates . It heralds the trend of the central bank's monetary policy, thereby affecting the expectations of financial institutions and the public; it acts as a "safety valve" for financial institutions with financial difficulties; it sets the flow of funds by reviewing some restrictive measures when applying for rediscounting , support or restrict the development of some industries, and achieve the purpose of adjusting the national industrial structure. Limitations of the rediscount policy: In the process of implementing the rediscount policy, the central bank is in a passive waiting position. Whether commercial banks or other financial institutions are willing to apply for rediscount or borrowing from the central bank is completely up to the financial institution itself; the adjustment of the rediscount rate by the central bank usually only affects the level of interest rates and cannot change the structure of interest rates. The rediscount tool is less elastic. Frequent adjustments to the rediscount rate will cause regular fluctuations in market interest rates, making the public and commercial banks at a loss, and it is not suitable for the central bank to flexibly adjust the market money supply. In western countries, there are different estimates and views on the role of rediscount policy. Some advocate that the rediscount policy should be strengthened, and some advocate that the rediscount policy should be completely abandoned and replaced by an open market policy. Nevertheless, the adjustment of the rediscount rate still has a wider effect on the currency market; (3) the advantages of open market operations: the use of this tool by the central bank is to "actively attack" the financial market instead of "passively waiting", which is One point is clearly superior to a rediscount policy; the central bank can, based on its daily analysis of financial market information, Decide on the type and scale of buying and selling securities at any time, and constantly adjust its business, so as to control the business effect and reduce the fluctuations brought by the implementation of monetary policy to the economy. This is much superior to the "one size fits all" statutory deposit reserve ratio; the "notification effect" is not obvious, and it has high operational flexibility. Since the central bank conducts a large number of securities transactions in the open market every day, it is impossible for the market to understand the central bank's operational intentions, which is conducive to the central bank's tentative operations and rapid reverse operations.