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Finance and financial digital currency

Publish: 2021-05-20 06:54:22
1. Finance refers to an economic department of the state (or government), that is, the financial department. It is a comprehensive Department of the state (or government). Through its revenue and expenditure activities, it raises and supplies funds and funds to ensure the realization of the functions of the state (or government). From the perspective of economics, finance is an economic category. As an economic category, finance is an economic behavior with the state as the main body. It is a revenue and expenditure activity in which the government concentrates Part of the national income to meet the public needs, so as to achieve the goal of optimizing resource allocation, fair distribution and economic stability and development; It can also be understood that finance is a distribution activity with the state as the main body, but the "distribution" here should be understood as a broad distribution, including the distribution of proction factors and personal income. Finance is a kind of revenue and expenditure activity with the state as the main body, which is generally speaking about finance. However, the financial activities of any society and country reflect the interest relationship between the government and other economic subjects, and this interest relationship has different nature in different social systems and countries, which is the financial particularity of different societies and countries. A complete concept of finance should be the unity of general finance and special finance

Finance is financing. Finance is the general term of currency circulation, credit activities and related economic activities. In a broad sense, finance generally refers to all economic activities related to the issuance, custody, exchange, settlement and financing of credit currency, even including the trading of gold and silver. In a narrow sense, finance specifically refers to the financing of credit currency.
2. 1、 Financial conditions: economic conditions and social conditions
economic conditions refer to the surplus procts available for financial distribution in the society
social conditions refer to the emergence of the state
2) the definition of Finance
Finance is a historical category, which is a social relationship with the emergence of a country; Finance is also an economic category. It is a kind of distribution relationship with the state as the main body. It has become an important part of social reproction distribution in a certain form. The definition of finance can be expressed as follows: finance is a distribution activity and distribution relationship formed by the state's centralized distribution of a part of social procts to meet social public needs by virtue of political power< Second, the development of Finance
the characteristics of the economic foundation and political system of the feudal society determine that the finance of the feudal state serves the fundamental interests of the feudal landlord class and the functions of the feudal state
in capitalist society, finance is used to serve the competition of monopoly organizations in the country and to maximize profits< It is a powerful tool for the state to raise, supply and manage social funds and carry out socialist modernization construction. It embodies the characteristics of state enterprises, enterprises and enterprises The socialist distribution relationship among the three indivials on the basis of consistent fundamental interests< Thirdly, the characteristics of Finance
1) finance is a distribution relationship with the state as the main body
2) the objects of financial distribution are mainly surplus procts
3) the form of financial distribution is generally monetary distribution
4) the purpose of financial distribution is to meet the public needs of society
4 Financial function
1) resource allocation function
that is to change the allocation of resources through financial revenue and expenditure, realize the rationalization of resource structure, make efficient use of social human, material and financial resources, and obtain the maximum economic and social benefits
it can adjust the allocation of resources among regions; Adjust the allocation of resources among instrial sectors; Adjust the allocation of social resources between government departments and non-government departments
2) the function of income distribution
means that the national finance regulates the distribution of income and wealth in the society through centralized revenue and expenditure, so as to achieve a fair and just distribution
it can adjust the profit level of enterprises; Adjust the level of personal income of residents
3) economic stability
means to achieve the goal of stable and coordinated economic development through fiscal revenue and expenditure and fiscal policy
this function can adjust the general balance of social supply and demand; Adjust the balance of social supply and demand structure; Through fiscal revenue and expenditure, play the role of fiscal "internal stabilizer"< Chapter II General introction of fiscal revenue first, fiscal revenue can be classified into tax revenue and non tax revenue according to the form of revenue< Second, according to the composition of social proct value
1) the value of means of proction consumed in proctive labor is represented by C
2) the new value created by workers is represented by V
3. Analysis of the scale of fiscal revenue
the scale of fiscal revenue refers to the quantitative limit of fiscal revenue
1) the lower limit index of fiscal revenue scale
refers to the minimum fiscal revenue required by the government to perform various functions
2) the upper limit index of fiscal revenue scale
this index is restricted by three factors: national income problem; Total amount of surplus procts m; M is the total amount left for the enterprise to control< Fourth, the calculation method of fiscal revenue scale
1) empirical data method
that is, through the analysis and comparison of relevant data at home and abroad in a certain period, to determine a reasonable fiscal revenue scale, so as to determine the reasonable proportion of fiscal revenue in national income
2) factor analysis method
that is to analyze and study the factors that affect and determine the value rate of surplus procts and the financial concentration rate, so as to determine the reasonable limit of the scale of fiscal revenue and its appropriate proportion in the national income< The third chapter is tax revenue. First, the concept of tax revenue. Tax revenue is a form of compulsory and free distribution of social procts by the state with political power to obtain financial revenue< Second, the formal characteristics of tax
1) compulsory
means that the collection of tax depends on the political power of the state. Generally speaking, it has no direct relationship with the possession of the means of proction
2) gratuitous
refers to the fact that the state does not need to repay the tax revenue, nor does it need to pay any price to the taxpayer
3) fixity
refers to the pre-determined quantitative proportion between the object of tax collection and the amount of tax collection, which can not be changed without the approval of the state< Third, tax system elements
1) taxpayers are the units and indivials who are directly liable to pay taxes according to the tax law. It is the main body of paying taxes
2) the object of Taxation, also known as the object of Taxation, is the basis of Taxation, that is, the object of taxation. It defines the scope of Taxation and is the main symbol of determining the types of taxes
3) tax rate is the ratio between the amount of tax payable and the number of tax objects
4) addition, addition and rection
addition is the abbreviation of local addition, which is a part of the additional tax collected by the local government in addition to the regular tax
mark up is the abbreviation of mark up tax, which is a tax increase measure for specific taxpayers
tax rection is to rece part of the tax; Tax exemption is the exemption of all taxes
5) violation of regulations
is the disposal of violations of tax law, which is of great significance to maintain the mandatory and seriousness of national tax law< According to the classification of tax objects, it can be divided into turnover tax, income tax, resource tax, property tax and behavior tax
2) according to the tax calculation standard, it can be divided into ad valorem tax and specific tax
3) according to the relationship between tax and price, it can be divided into in price tax and out of price tax
4) according to whether the tax burden can be transferred, it can be divided into direct tax and indirect tax
5) according to the tax management authority, it can be divided into central tax, local tax and central local sharing tax< 5. Turnover tax (1) object and characteristics, also known as commodity tax, is a tax category with turnover amount as tax object. It has the following characteristics:
first, it takes commodity exchange as the premise, and the levy is universal
secondly, tax is closely related to price
thirdly, except for a few kinds of taxes, the proportional tax rate is generally adopted
fourthly, the levy is simple
2) main taxes
value added tax is a kind of tax which takes the legal value-added of commodity value as the tax object
consumption tax is a kind of tax that takes the sales income of some consumer goods as the tax object
business tax is a kind of tax that takes the turnover (Sales) of taxpayers engaged in business activities as the tax object
tariff is a kind of tax levied by a country on goods and articles entering or leaving its own border or customs< Income tax is also called income tax, which is a kind of tax with income as the object of tax. Income refers to the share of the total national income of the whole society allocated by units and indivials in a certain period of time through various ways. It has the following characteristics:
first, the tax burden is not easy to pass on< Second, there is no double taxation and the tax burden is fair
thirdly, the source of tax is universal and the tax is flexible
fourthly, the tax calculation method is complex and the tax collection management is difficult
2) there are three main types of taxes: enterprise income tax, foreign investment enterprise income tax and foreign enterprise income tax, and indivial income tax< 7. Other taxes
resource tax is a kind of tax that takes natural resources as the tax object
property tax is a kind of tax that takes the property owned or controlled by the taxpayer as the tax object
behavior tax refers to a kind of tax that takes a specific behavior of the taxpayer as the tax object<

Chapter 4 national debt
1. The concept of national debt
national debt is the abbreviation of national debt, which is the national debt formed when the state raises financial funds in a paid way in order to maintain its existence and meet the needs of its functions< Second, the characteristics of national debt
1) compensability: it means that the financial funds raised by the government through issuing national debt must be paid as debt on time
2) voluntariness: it means that the issuance or subscription of treasury bonds is based on the voluntary acceptance of the subscribers. Whether the subscribers buy or not, and how much they buy, are entirely decided by the subscribers themselves according to the indivial or unit situation, and the state can not assign specific buyers
3) flexibility: it refers to whether or not to issue treasury bonds and how much to issue. Generally, it is determined by the government according to the abundance of national financial funds, and cannot be prescribed in advance by law< Third, the function of national debt
1) to make up the fiscal deficit and balance the fiscal revenue and expenditure
2) to raise construction funds
3) to regulate the development of national economy
4. National debt system
1) classification of national debt:
according to the region of national debt issuance, it can be divided into domestic debt and foreign debt
according to the repayment period, it can be divided into short-term treasury bonds, medium-term treasury bonds and long-term treasury bonds
according to whether the bonds are in circulation, they can be divided into negotiable bonds and non-negotiable bonds
according to the interest rate, it can be divided into fixed rate treasury bonds, market rate treasury bonds and hedging treasury bonds
according to the method of borrowing, it can be divided into compulsory national debt, patriotic national debt and free national debt
according to the measurement unit of national debt, it can be divided into currency national debt, physical national debt and discount national debt
2) national debt system, including classification, issuance, repayment and market of national debt< (5) the issue of treasury bonds
1) the issue price of treasury bonds:
parity issue, that is, the issue price is equal to the face value of the securities
discount issue means that the issue price is lower than the price indicated on the face of the securities
premium issue means that the issue price is higher than the price indicated on the face of the securities
2) issuance of treasury bonds:
public offering method: also known as public offering auction method and public offering bidding method, that is, issuing treasury bonds through public bidding in the financial market
bearing method: that is, the financial institutions take off all the Treasury bonds and then turn to the society to sell them, and the difference that cannot be sold is borne by the financial institutions themselves
selling method: that is, the government entrusts the sales agencies to sell the Treasury bonds directly in the financial market
payment issuance method: that is, the government should pay cash instead of bonds
compulsory apportionment method: that is, the state uses political power to force its citizens to buy treasury bonds< (6) repayment of national debt
1) there are five repayment methods of national debt, such as graal repayment by stages, drawing lots in turn, one-time repayment at maturity, market purchase and sale repayment, and replacing the old with the new
2) the main sources of debt repayment funds are setting up debt repayment fund, relying on financial balance, disbursing through budget, borrowing new debt and so on< According to the function of financial expenditure in social reproction, it can be divided into compensatory expenditure, consumption expenditure and accumulation expenditure
2) according to the economic nature of fiscal expenditure, it can be divided into purchasing expenditure and transferring expenditure< Second, the comparison of the economic impact of purchasing expenditure and transfer expenditure
3.

"Finance and finance" includes two aspects of Finance and finance, focusing on the basic knowledge, basic theory and related practice of Finance and finance. The financial part mainly expounds the emergence and development of finance, the theory of public finance, the function and function of finance, financial expenditure, financial revenue, public debt, national budget management, etc; The financial part mainly expounds the financial foundation, credit, interest rate, money supply and demand, financial institution system, commercial bank, financial market, international finance, etc., and also expounds the macro-control of Finance and finance

4. There are still a few chapters that can't be written down in the following
review materials of Finance and finance at the end of the term
Chapter I overview of Finance
I. conditions for the emergence of Finance: economic conditions and social conditions
economic conditions refer to the surplus procts that can be allocated by finance in the society
social conditions refer to the emergence of the state
2) the definition of Finance
Finance is a historical category, which is a social relationship with the emergence of a country; Finance is also an economic category. It is a kind of distribution relationship with the state as the main body. It has become an important part of social reproction distribution in a certain form. The definition of finance can be expressed as follows: finance is a distribution activity and distribution relationship formed by the state's centralized distribution of a part of social procts to meet social public needs by virtue of political power< Second, the development of Finance
the characteristics of the economic foundation and political system of the feudal society determine that the finance of the feudal state serves the fundamental interests of the feudal landlord class and the functions of the feudal state
in capitalist society, finance is used to serve the competition of monopoly organizations in the country and to maximize profits< It is a powerful tool for the state to raise, supply and manage social funds and carry out socialist modernization construction. It embodies the characteristics of state enterprises, enterprises and enterprises The socialist distribution relationship among the three indivials on the basis of consistent fundamental interests< Thirdly, the characteristics of Finance
1) finance is a distribution relationship with the state as the main body
2) the objects of financial distribution are mainly surplus procts
3) the form of financial distribution is generally monetary distribution
4) the purpose of financial distribution is to meet the public needs of society
4 Financial function
1) resource allocation function
that is to change the allocation of resources through financial revenue and expenditure, realize the rationalization of resource structure, make efficient use of social human, material and financial resources, and obtain the maximum economic and social benefits
it can adjust the allocation of resources among regions; Adjust the allocation of resources among instrial sectors; Adjust the allocation of social resources between government departments and non-government departments
2) the function of income distribution
means that the national finance regulates the distribution of income and wealth in the society through centralized revenue and expenditure, so as to achieve a fair and just distribution
it can adjust the profit level of enterprises; Adjust the level of personal income of residents
3) economic stability
means to achieve the goal of stable and coordinated economic development through fiscal revenue and expenditure and fiscal policy
this function can adjust the general balance of social supply and demand; Adjust the balance of social supply and demand structure; Through fiscal revenue and expenditure, play the role of fiscal "internal stabilizer"< Chapter II General introction of fiscal revenue first, fiscal revenue can be classified into tax revenue and non tax revenue according to the form of revenue< Second, according to the composition of social proct value
1) the value of means of proction consumed in proctive labor is represented by C
2) the new value created by workers is represented by V
3. Analysis of the scale of fiscal revenue
the scale of fiscal revenue refers to the quantitative limit of fiscal revenue
1) the lower limit index of fiscal revenue scale
refers to the minimum fiscal revenue required by the government to perform various functions
2) the upper limit index of fiscal revenue scale
this index is restricted by three factors: national income problem; Total amount of surplus procts m; M is the total amount left for the enterprise to control< Fourth, the calculation method of fiscal revenue scale
1) empirical data method
that is, through the analysis and comparison of relevant data at home and abroad in a certain period, to determine a reasonable fiscal revenue scale, so as to determine the reasonable proportion of fiscal revenue in national income
2) factor analysis method
that is to analyze and study the factors that affect and determine the value rate of surplus procts and the financial concentration rate, so as to determine the reasonable limit of the scale of fiscal revenue and its appropriate proportion in the national income< The third chapter is tax revenue. First, the concept of tax revenue. Tax revenue is a form of compulsory and free distribution of social procts by the state with political power to obtain financial revenue< Second, the formal characteristics of tax
1) compulsory
means that the collection of tax depends on the political power of the state. Generally speaking, it has no direct relationship with the possession of the means of proction
2) gratuitous
refers to the fact that the state does not need to repay the tax revenue, nor does it need to pay any price to the taxpayer
3) fixity
refers to the pre-determined quantitative proportion between the object of tax collection and the amount of tax collection, which can not be changed without the approval of the state< Third, tax system elements
1) taxpayers are the units and indivials who are directly liable to pay taxes according to the tax law. It is the main body of paying taxes
2) the object of Taxation, also known as the object of Taxation, is the basis of Taxation, that is, the object of taxation. It defines the scope of Taxation and is the main symbol of determining the types of taxes
3) tax rate is the ratio between the amount of tax payable and the number of tax objects
4) addition, addition and rection
addition is the abbreviation of local addition, which is a part of the additional tax collected by the local government in addition to the regular tax
mark up is the abbreviation of mark up tax, which is a tax increase measure for specific taxpayers
tax rection is to rece part of the tax; Tax exemption is the exemption of all taxes
5) violation of regulations
is the disposal of violations of tax law, which is of great significance to maintain the mandatory and seriousness of national tax law< According to the classification of tax objects, it can be divided into turnover tax, income tax, resource tax, property tax and behavior tax
2) according to the tax calculation standard, it can be divided into ad valorem tax and specific tax
3) according to the relationship between tax and price, it can be divided into in price tax and out of price tax
4) according to whether the tax burden can be transferred, it can be divided into direct tax and indirect tax
5) according to the tax management authority, it can be divided into central tax, local tax and central local sharing tax< 5. Turnover tax (1) object and characteristics, also known as commodity tax, is a tax category with turnover amount as tax object. It has the following characteristics:
first, it takes commodity exchange as the premise, and the levy is universal
secondly, tax is closely related to price
thirdly, except for a few kinds of taxes, the proportional tax rate is generally adopted
fourthly, the levy is simple
2) main taxes
value added tax is a kind of tax which takes the legal value-added of commodity value as the tax object
consumption tax is a kind of tax that takes the sales income of some consumer goods as the tax object
business tax is a kind of tax that takes the turnover (Sales) of taxpayers engaged in business activities as the tax object
tariff is a kind of tax levied by a country on goods and articles entering or leaving its own border or customs< Income tax is also called income tax, which is a kind of tax with income as the object of tax. Income refers to the share of the total national income of the whole society allocated by units and indivials in a certain period of time through various ways. It has the following characteristics:
first, the tax burden is not easy to pass on< Second, there is no double taxation and the tax burden is fair
thirdly, the source of tax is universal and the tax is flexible
fourthly, the tax calculation method is complex and the tax collection management is difficult
2) there are three main types of taxes: enterprise income tax, foreign investment enterprise income tax and foreign enterprise income tax, and indivial income tax< 7. Other taxes
resource tax is a kind of tax that takes natural resources as the tax object
property tax is a kind of tax that takes the property owned or controlled by the taxpayer as the tax object
behavior tax refers to a kind of tax that takes a specific behavior of the taxpayer as the tax object<

Chapter 4 national debt
1. The concept of national debt
national debt is the abbreviation of national debt, which is the national debt formed when the state raises financial funds in a paid way in order to maintain its existence and meet the needs of its functions< Second, the characteristics of national debt
1) compensability: it means that the financial funds raised by the government through issuing national debt must be paid as debt on time
2) voluntariness: it means that the issuance or subscription of treasury bonds is based on the voluntary acceptance of the subscribers. Whether the subscribers buy or not, and how much they buy, are entirely decided by the subscribers themselves according to the indivial or unit situation, and the state can not assign specific buyers
3) flexibility: it refers to whether or not to issue treasury bonds and how much to issue. Generally, it is determined by the government according to the abundance of national financial funds, and cannot be prescribed in advance by law< Third, the function of national debt
1) to make up the fiscal deficit and balance the fiscal revenue and expenditure
2) to raise construction funds
3) to regulate the development of national economy
4. National debt system
1) classification of national debt:
according to the region of national debt issuance, it can be divided into domestic debt and foreign debt
according to the repayment period, it can be divided into short-term treasury bonds, medium-term treasury bonds and long-term treasury bonds
according to whether the bonds are in circulation, they can be divided into negotiable bonds and non-negotiable bonds
according to the interest rate, it can be divided into fixed rate treasury bonds, market rate treasury bonds and hedging treasury bonds
according to the method of borrowing, it can be divided into compulsory national debt, patriotic national debt and free national debt
according to the measurement unit of national debt, it can be divided into currency national debt, physical national debt and discount national debt
2) national debt system, including classification, issuance, repayment and market of national debt< (5) the issue of treasury bonds
1) the issue price of treasury bonds:
parity issue, that is, the issue price is equal to the face value of the securities
discount issue means that the issue price is lower than the price indicated on the face of the securities
premium issue means that the issue price is higher than the price indicated on the face of the securities
2) issuance of treasury bonds:
public offering method: also known as public offering auction method and public offering bidding method, that is, issuing treasury bonds through public bidding in the financial market
bearing method: that is, the financial institutions take off all the Treasury bonds and then turn to the society to sell them, and the difference that cannot be sold is borne by the financial institutions themselves
selling method: that is, the government entrusts the sales agencies to sell the Treasury bonds directly in the financial market
payment issuance method: that is, the government should pay cash instead of bonds
compulsory apportionment method: that is, the state uses political power to force its citizens to buy treasury bonds< (6) repayment of national debt
1) there are five repayment methods of national debt, such as graal repayment by stages, drawing lots in turn, one-time repayment at maturity, market purchase and sale repayment, and replacing the old with the new
2) the main sources of debt repayment funds are setting up debt repayment fund, relying on financial balance, disbursing through budget, borrowing new debt and so on< According to the function of financial expenditure in social reproction, it can be divided into compensatory expenditure, consumption expenditure and accumulation expenditure
2) according to the economic nature of fiscal expenditure, it can be divided into purchasing expenditure, financial expenditure and financial expenditure
5. Affected by the global financial crisis, China entered a loose double policy cycle in the second half of 2008. The purpose is to expand domestic demand and ensure growth - GDP guarantees 8.
2008 monetary policy:
(1) on September 16, the people's Bank of China (PBOC) cut interest rates for the first time this year, the loan interest rate reced by 0.27%, and the deposit interest rate remained unchanged
this monetary policy announced that the interest rate rection cycle is about to start, that is, from tight monetary policy to loose monetary policy. As the deposit interest rate has not been reced, it will have an impact on the banking instry - because the interest margin of banks will be reced, and the profits will be reced. In recent days, bank stocks should not be optimistic
but in the adverse situation, there will always be opportunities to make profits - bond funds. The bond market and interest rate change in a reverse way, and the expectation of interest rate rection increases, which leads to a bull market in the bond market. In September, many debt bases achieved more than 4% of the actual monthly income (calculated by this month, the annualized income is 4% * 12, which is very high)
(2) on October 9, the central bank cut the interest rate for the second time by 0.27 percentage points respectively
(3) since October 30, the benchmark interest rate of one-year deposits has been adjusted from the current 3.87% to 3.60%, down by 0.27 percentage points; The benchmark interest rate of one-year loan was adjusted from the current 6.93% to 6.66%, down by 0.27 percentage point; The benchmark interest rates of deposits and loans of other grades shall be adjusted accordingly< (4) from November 27, the one-year RMB deposit and loan benchmark interest rates of financial institutions will be reced by 1.08 percentage points respectively, and the benchmark interest rates of other term classes will be adjusted accordingly. At the same time, the central bank's interest rates for refinancing and rediscount will be lowered
the fourth interest rate cut is quite large, because of the decrease of loan interest rate + the increase of enterprise credit risk = banks are reluctant to lend. This year, the financial procts of commercial banks mainly focus on loan financing. However, after the interest rate cut cycle, many financial procts are terminated ahead of time (enterprises repay in advance, and then use the current low loan interest rate), and no new loan financing is listed<

2008 fiscal policy: mainly including tax rection and exemption, increasing government expenditure, promoting exports, etc
(1) from October 9, the State Council decided to temporarily exempt personal income tax on interest income from savings deposits (previously 5%)—— Tax cuts< (2) on November 10, it was reported that the state plans to spend 4 trillion on domestic demand to protect the economy—— Investment
"expanding domestic demand and ensuring growth" is the most commonly heard word at present. In the future, 4 trillion yuan will be invested in infrastructure, such as railways. This policy will stimulate the economic growth of many instries, such as steel instry; At the same time, it will expand jobs and rece the unemployment rate. Although the four trillion yuan is only a proposed document, its effect on the market cannot be underestimated. The stock market has been singing all the way up to now (December 10). Of course, there are other factors
(3) the rection and exemption of various customs export taxes can be found on Shanghai Customs website. Anyway, it is also through tax cuts to increase exports, reflecting the loose fiscal policy.
6. Finance refers to financing, mainly involving banks, securities and insurance. Banks mainly provide loans and finance. Securities mainly include monetary investment (Securities within one year) or capital investment (securities over one year). Insurance is property insurance and life insurance. Finance refers to the Department that the government arranges the use of funds, and is also responsible for the supervision of enterprise tax and other affairs. Financial supervision needs the cooperation of financial departments, and financial macro-control also includes financial means.
7. Market economy (also known as free market economy or free enterprise economy) is an economic system, in which the proction and sales of procts and services are completely guided by the free price mechanism of the free market, rather than by the state as in the planned economy
market failure refers to the situation that the market is unable to allocate goods and services efficiently. The two main reasons of market failure are: the inappropriate transmission of cost or profit price, which affects the market decision-making mechanism of indivial economy; Second best market structure
market economic activities are based on reciprocal transactions, so people's interest relationship in the market is essentially an interest relationship related to money. For example, if Party A provides goods or services to Party B, Party A has the right to claim compensation from Party B. When people engage in such economic activities that need to pay or obtain money, they may also have some other effects on others, which can be beneficial or harmful to others. However, whether it is beneficial or harmful, it is not a trading relationship. These influences on others outside the trading relationship are called external influences, also known as externalities of economic activities
because the participants in economic activities have different information, some people can use the information advantage to cheat, which will damage the legitimate transaction. When people's fear of fraud seriously affects trading activities, the normal role of the market will be lost, and the function of the market in allocating resources will also fail. At this time, the market can not completely solve the problem by itself. In order to ensure the normal operation of the market, the government needs to formulate some laws and regulations to restrain and stop the fraud.
8. The scope of financial research includes banks and securities markets. Or financial markets
finance studies the economic behavior of the government.
9. Question 1:
first, judge whether arbitrage is feasible:
the method is arbitrage comparison method: from GBP / FFR = 9.6530/40, GBP / USD = 1.4325/35
we can get: in London and Paris markets, USD / FFR = (9.653 / 1.4335) / (9.654 / 1.4325) = 6.7339/6.7393, because there is a price difference compared with USD / FFR = 7.0800/15 in New York market, so arbitrage can be carried out
the arbitrage route is as follows: suppose you have US $100 in your hand. First, you can sell US $100 in the New York market and get 708.15 francs. Then you can sell these francs in Paris market and get pounds (708.15 / 9.654 * 1.4325). Finally, you can get us $105.78 and make a net profit of US $5.78
question 2: if the bank quotation method is small / large, the small number in front is the price that the bank buys pounds, that is, the unit price in US dollars that you can get when you sell pounds to the bank. In the same way, the following number, the large number, is the unit price for the bank to sell pounds, that is, the unit price for you to buy pounds and sell dollars to the bank.
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