【正文】 berspace ? Most central banks maintain prehensive websites. Visit, for example, ? ? ? ? ? ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 32 Chapter Review ? Introduction ? The Roles of Central Banks in the Economy and Financial System ? Control of the Money Supply ? Stabilizing the Money and Capital Markets ? Lender of Last Resort ? Supervisor of the Banking System ? Maintaining and Improving the Payments Mechanism ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 33 Chapter Review ? The Goals and Channels of Central Banking ? The History of the Federal Reserve System ? Problems in the Early . Banking System ? Creation of the Federal Reserve System ? The Early Structure of the Fed ? Goals and Policy Tools of the Fed ? How the Fed is Organized ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 34 Chapter Review ? Roles of the Federal Reserve System Today ? The Clearing and Collection of Checks and Other Means of Payment ? Issuing Currency and Coin ? Maintaining a Sound Banking and Financial System ?Serving as the Federal Government’s Fiscal Agent ? Providing Information to the Public ? Carrying Out Moary Policy ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 35 Chapter Review ? The Key Focus of Central Bank Moary Policy: Interest Rates, Reserves and Money ? The Composition of Reserves for Depository Institutions ? The Deposit Multiplier ? The Money Multiplier ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 36 ? Learning Objectives ? ? To discover the important roles that large corporations, government agencies and banks play in the money market. ? To explore the nature and characteristics of mercial paper. ? To learn how federal agencies aid various economic sectors in finding lowcost credit. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 37 ? Learning Objectives ? ? To see the trend toward the internationalization of the money market, and examine how bankers’ acceptances and Eurodeposits are employed in aiding both domestic and international trade. ? To understand how the transfers of money from one spending unit to another across international boundaries can impact a nation’s economy. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 38 Commercial Paper ? Commercial paper consists of shortterm, unsecured promissory notes issued by wellknown and financially strong panies. ? Commercial paper is traded mainly in the primary market. Opportunities for resale in the secondary market are more limited. ? Commercial paper is rated prime, desirable, or satisfactory, depending on the credit standing of the issuing pany. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 39 Types of Commercial Paper ? There are two major types of mercial paper. ? Direct paper is issued mainly by large finance panies and bank holding panies directly to the investor. ? Dealer paper, or industrial paper, is issued by security dealers on behalf of their corporate customers (mainly nonfinancial panies and smaller financial panies). ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 40 Structure of the Commercial Paper Market Investors in mercial paper Money market funds Banks Insurance panies Pension funds Industrial panies Other investors Demand Side Supply Side Issuers of mercial paper Finance panies Bank holding panies Nonfinancial firms Direct or finance paper Paper dealer houses Dealer or industrial paper ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 41 Maturities amp。 growth of borrowing amp。 A cce p t a n ce sBa n k Pri m e L o a n sT re a s u ry Bi l l s% ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 44 Commercial Paper Advantages ?Relatively low interest rates ?Flexible interest rates choice of dealer or direct paper ?Large amounts may be borrowed conveniently ?The ability to issue paper gives considerable leverage when negotiating with banks ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 45 Commercial Paper Disadvantages ?Risk of alienating banks whose loans may be needed when an emergency develops ?May be difficult to raise funds in the paper market at times ?Commercial paper must generally remain outstanding until maturity does not permit early retirement without penalty ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 46 Continuing Innovation in the Paper Market ? Innovations and extensions of the paper market include: ? Master note – the investing firm agrees to take some paper each day up to an agreedupon maximum amount ? Mediumterm notes – 9month to 10year notes ? Assetbacked mercial paper – loans or credit receivables are pooled and paper is then issued as a claim against that pool ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 47 Federal Agency Securities ? Certain sectors of the economy, such as agriculture, housing, small businesses, and college students, appear to have an unusually difficult time raising funds in the money and capital markets. ? Beginning in 1916, the . federal government created special agencies to make direct loans or guarantee private loans to these “disadvantaged” borrowers. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 12 48 Types of Federal