A: At the 5th meeting of the Interim Committee on January 8, 1976, an agreement was reached on the exchange rate system, the gold issue, the expansion of the fund loan amount, and the increase of the share of member countries in the IMF. The meeting was held in Kingston, Jamaica, so it is also called Jamaica Meeting, and the agreement reached is called "Jamaica Agreement"

2. Option

A: Option, also called option, is a derivative financial instrument based on futures. In essence, the option is to price the rights and obligations separately in the financial field, so that the transferee of the right can exercise his rights on whether to trade or not within a specified time, and the obligor must perform it. In the transaction of options, the party who buys options is called the buyer, while the party who sells options is called the seller; The buyer is the transferee of the right, and the seller is the obligor who must perform the buyer's right.

3. Financial innovation

A: Breaking through the traditional management situation of the financial industry for many years, making innovations and changes in financial instruments, financial methods, financial technologies, financial institutions and financial markets.

4. International capital flow

A: It refers to the international transfer of capital, or the one-way, two-way or multi-way flow of capital between different countries or regions, including: loans, assistance, export, import, investment, debt increase, acquisition of creditor's rights, interest payments, buyer's credit, seller's credit, foreign exchange trading, securities issuance and circulation, etc.

5. Moral advice

A: Moral advice means that the central bank often issues notices and instructions to commercial banks and financial institutions or holds interviews with the heads of various financial systems to advise them to abide by government policies and take some corresponding measures automatically.

second, questions and answers

1. Why should we maintain a moderate scale of foreign exchange reserves?

a: foreign exchange reserves refer to foreign convertible currencies held by a country's monetary authorities and can be used for external payments. Too little, which hinders the expansion of international trade, attracts foreign investment, can not effectively reduce the financing cost of domestic enterprises, and can not prevent and resolve international financial risks; Too much will increase the pressure of inflation and increase the difficulty of monetary policy. In addition, holding too much foreign exchange reserves may also suffer losses due to the depreciation of foreign exchange rates. The appropriate level of foreign exchange reserves depends on many factors, such as the import and export situation, the scale of foreign debt, and the actual use of foreign capital. We should keep the foreign exchange reserves at a moderate level according to the income, cost comparison and these conditions. To increase foreign exchange, we need to issue RMB to buy RMB, and the supply will increase, and the RMB will depreciate, so the exchange rate will fall.

2. Why is the independence of the central bank relative to the government?

a: the central bank is not completely controlled by the government, and it implements monetary policy independently. if it is completely controlled by the government, it is difficult to control the operation of the economy according to the operation of the market. the government implements fiscal policy, and usually the two policies cooperate with each other to ensure the normal operation of the economy.

1. Since September 28, China's monetary policy authorities have changed the tight monetary policy and started to gradually reduce interest rates. What are the reasons for China's monetary policy authorities to reduce interest rates? What are the effects of lowering interest rates on all aspects of the economy?

A: Before September 28, the Shanghai Composite Index of China's stock market rose from more than 1,8 points to more than 6,5 points, mainly due to the influx of international hot money, which quickly heated up the China stock market and contained a lot of bubbles. Once the bubble burst, it would definitely hit China's economy, so the monetary policy at that time was always tight, raising the basic interest rate twice and increasing the deposit reserve ratio. In September, 28, there were several major emergencies in the world, including Lehman Brothers, the third largest investment bank in the United States, which also announced its application for bankruptcy protection, causing the China stock market bubble to burst in an instant, and the stock index fell all the way. Shareholders had already expected a collapse and the economy declined rapidly. In order to curb the speed of decline as soon as possible, control the economic chaos and ensure the stability of the national economy, China's monetary policy authorities quickly introduced policies such as lowering interest rates.

the reduction of interest rate will help to stimulate loans, so that all industrial sectors can borrow money and resume production. At the same time, the lower interest rate makes people reluctant to deposit their funds in banks, so they can only use them for consumption or investment if they don't deposit them in banks. In short, lowering interest rates is to stimulate production and consumption.

Impact: On the one hand, it has an impact on residents' savings. It is reflected in the substitution effect of interest rates on savings. Generally, savings increase with the increase of interest rates and decrease with the decrease of interest rates, and the reduced savings are used for consumption or investment. When the global financial crisis broke out in 28, all economic sectors suffered losses to varying degrees, and residents' original investment projects were shrinking, so most residents recovered their investments and deposited them in banks. In addition, the expected income was reduced, the future living security was reduced, and consumer spending was also greatly reduced. After this situation formed a scale effect, it formed a more fatal blow to the economy. Therefore, the impact of the timely reduction of interest rates by the state on the economy is mainly to increase consumption, expand domestic demand, and effectively alleviate the domestic economic pressure in the case of serious setbacks in foreign trade. On the other hand, the change of interest rate also plays a great role in investment, which is mainly formed by the comparison between the marginal benefit of capital and market interest rate by manufacturers. If the marginal benefit of capital is greater than the market interest rate, manufacturers can be induced to increase investment, and vice versa. Therefore, when the interest rate is lowered, the marginal benefit of capital is greater than the market interest rate, which will promote manufacturers to increase investment in enterprises, and then increase employment opportunities, so that residents can keep a relatively stable job opportunity when the economy is depressed and their income declines, which can play a very good role in stabilizing the people's hearts, and then stabilize the economy and gradually embark on a virtuous circle model.