What are the three purposes of money?(金钱的目的是什么)
1.Medium of exchange(媒介,中介)
2. Store of value(存储)
3. uint of account(算钱单位)
Besides cash and coins, what are the alternative forms of money?
Anything that can be used to change can be the alternative forms of money.For example, in the ancient times ,people may use gold to get what they want. Some animals such as pigs ,sheep,goat and cows. Some food such as corns ,rice and so on. Nowadays, bitcoins.
What are the three key players of financial markets?
1. investors (lenders)
2. banks
3. borrowers(companies or government)
What are the two types of financial markets?
money market(short term eg. 12months)
capital market(long term gr. 10years)
Money market是货币市场 Capitial market是资本市场
What are the two types of capital markets?
equity market(股票市场)
debt market(债券市场)
Discuss debt and equity financing, their advantages and disadvantages.
debt market(优点)
1. full control of business
2. tax benefit for interest payment because companies don't need to pay tax for the interests
3. enhance creditworthiness(提高信誉)
debt market(缺点)
1. payment of interests and principle
2. need to pledge assests(需要抵押资产)
3. difficult for companis like startups
4. affects the growth of a company due to the debt
equity markets (优点)
1. less risk for company owners
2. reach investors and enhance creditability
3. help in company managemant
equity markets (缺点)
1. ownerships by shareholders and profit sharing