金融英语：银行业务重点归纳（二）

第二章 Money, banking¹ and the economy

1）Function of money
　　1. Medium of exchange
　　2. Store of value

3. A unit of account (standard of value)

4. Standard of deferred² payment

2）Characteristic of money
　　1. Portability
　　2. Divisibility

3. Homogeneity and identifiability
　　4. Durability³
　　5. Scarcity⁴

6. Purchasing power stability

3）Type of money
　 1. Token money
　 2. Cheque account deposits
　 3. Commodity money

4）Cheque itself is not “money”; it is only the amount of money in the relevant account, which is considered to be “money”.

5）A required reserve ratio is a fraction of the deposits of the public that a bank hold in reserves; that is, the minimum amount of reserves a bank must, by law, keep either in currency or in deposits with the central bank.

6）Money multiplier=1/R

7） M1: the sum of legal tender coins and notes held by the public +the customers’ demand deposits placed with licensed bank
M2: the sum of M1+customer’s saving and time deposits with licensed banks + negotiable certificates of deposits (NCDs) issued by licensed banks held outside the banking sector
M3: the sum of M2+customer deposits with restricted license bank (RLB) and deposit-taking companies (DTCs) +negotiable certificate of deposits (NCDs) issued by these institutions held outside the banking sector