moneymarketinstruments∶treasurybills,repurchaseagreements,federalfunds,andbankcds(编辑修改稿)

moneymarketinstruments∶treasurybills,repurchaseagreements,federalfunds,andbankcds(编辑修改稿)内容摘要：

table currencies.  The Eurocurrency market represents the largest of all money markets worldwide, with total funds probably in excess of $4 trillion.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 28 Eurocurrency Deposits  Eurodollars are deposits of . dollars in banks located outside the .  The large majority of Eurodollar deposits are held in Europe, although Europe’s share of the total is declining.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 29 Eurocurrency Deposits  Eurodollars and other Eurocurrency deposits are continually on the move in the form of loans.  They are employed to finance the import and export of goods, to supplement government tax revenues, to provide working capital for the foreign operations of multinational corporations, and to provide liquid reserves for the largest banks.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 30 Eurocurrency Deposits  When a dollar deposit is moved to a bank located outside the ., that bank then holds claim to the original dollar deposit in the .  When a Eurodollar loan is made, the borrower receives a claim against dollars deposited in . banks. Funds are merely passed from one . bank to another. The total amount of dollar deposits and . bank reserves remains unchanged.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 31 Eurocurrency Maturities and Risks  Most Eurocurrency deposits are shortterm deposits ranging from overnight to one year, although a small percentage are longterm time deposits.  Eurocurrency deposits are known to be volatile and highly sensitive to fluctuations in interest rates and currency prices. They also carry political risk and default risk.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 32 The Supply of Eurocurrency Deposits Eurocurrency deposits e from …  foreign investment  tourism  balance of payments (trade) settlements  interbank funds  government funds large corporations’ cash balances  central banks supplying or absorbing funds from the banking system  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 33 Eurodollars in . Domestic Bank Operations  Since the late 1960s, . banks have drawn heavily on Eurodollar deposits as a means of adjusting their domestic reserve positions.  Eurodollars usually carry higher reported interest rates than many other sources of bank reserves. However, there are fewer legal restrictions on the borrowing of Eurodollars.  . banks also aid their customers in acquiring Eurocurrency deposits and loans.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 34 Interest Rates on Eurodollar Deposits 33 . 544 . 555 . 566 . 51991 1993 1995 1997 1999 2020T re a s u ry Bi l l sC e rt i f i ca t e s o f D e p o s i tF e d e ra l F u n d sEu ro d o l l a r D e p o s i t s (L o n d o n )Data Source: Board of Governors of the Federal Reserve System %  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 35 Benefits and Costs of the Eurocurrency Markets Benefits  Makes possible an efficient mobilization of funds around the globe.  Encourages international cooperation among nations.  Creates a cashmanagement source to aid the financial operations of corporations and governments around the globe.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 36 Benefits and Costs of the Eurocurrency Markets Costs  The capacity to mobilize massive amounts of funds may contribute to instability in currency values.  Moary and fiscal policies designed to cure domestic economic problems may not achieve their desired impact.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 37 Money and Capital Markets in Cyberspace  More information about the various money market instruments can be found at:  rket/       2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 38 Chapter Review  Commercial Paper  What Is Commercial Paper?  Types of Commercial Paper  Structure of the Commercial Paper Market  Maturities amp。 Rate of Return on Commercial Paper  Growth of Commercial Paper  Market Yields on Commercial Paper  Advantages amp。 Disadvantages  Continuing Innovation in the Paper Market  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 39 Chapter Review  Federal Agency Securities  Types of Federal Credit Agencies  The Roles of Federal Credit Agencies  Growth of the Agency Market  Terms on Agency Securities  The Marketing of Agency Issues  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 40 Chapter Review Bankers’ Acceptances  Why Acceptances Are Used in International Trade  How Acceptances Arise  The Growth and Decline of Acceptance Financing  Acceptance Rates  Investors in Acceptances  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 41 Chapter Review  Eurocurrency Deposits  What is a Eurodollar?  The Creation of Eurocurrency Deposits  Eurocurrency Maturities and Risks  The Supply of Eurocurrency Deposits  Eurodollars in . Domestic Bank Operations  Benefits and Costs of the Eurocurrency Markets  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 11 42  Learning Objectives   To examine the characteristics of Treasury bills and the workings of the government securities marke。