1. Glossary questions

1) Credit transactions

The so-called credit transactions, also known as "margin transactions" and margin transactions, refer to the parties involved in securities transactions. When buying and selling securities, only a certain margin is paid to the securities company, or only a certain amount of securities is delivered to the securities company, and the securities company provides financing or securities lending for the transaction. Therefore, credit transactions are specifically divided into two types: financing buying and securities lending selling. That is to say, when a customer buys or sells securities, he or she only pays a certain amount of deposit to the securities company or delivers part of the securities. If the price to be paid and the securities to be delivered are insufficient, the securities company will advance the payment and conduct the securities buying and selling transactions as an agent. Among them, buying securities with margin financing is "short buying", and selling securities with margin financing is "short selling".

2) Derived deposits

Derived deposits refer to the deposits created by banks by issuing loans. It is the symmetry of the original deposit, the derivation and expansion of the original deposit. It refers to deposits derived from commercial banks’ business activities such as issuing loans, handling discounts, or investing. The process of generating derivative deposits is the process in which commercial banks absorb deposits, issue loans, and form new deposits, which ultimately leads to an increase in the total amount of deposits in the banking system. Expressed by the formula: Derived deposits = original deposits × (1÷statutory reserve rate-1).

3) Gresham's Law

Gresham's Law means that under the conditions of gold and silver bimetallism, gold and silver have a certain exchange ratio. When the market price of gold and silver is inconsistent with the legal price, , the metal currency (good currency) whose market price is higher than the legal price will gradually decrease, while the metal currency (bad currency) whose market price is lower than the legal price will gradually increase, forming a phenomenon where good coins are withdrawn from hiding and bad coins are flooded.

4) Intermediary business of commercial banks

Intermediary business refers to the intermediary business engaged in by commercial banks that is not included in the balance sheet according to accounting standards and does not affect its total assets and liabilities, but can affect Bank's current profit and loss, operating activities that change the bank's return on assets

II

1) 1. Low risk, low return 2. Short term, high liquidity 3. Large transaction volume

2) Monetary policy transmission mechanism The central bank uses monetary policy tools to influence intermediary indicators, and then ultimately achieves the transmission path and mechanism of established policy goals. The monetary policy transmission mechanism refers to the process from the application of monetary policy to the realization of monetary policy goals. Whether the monetary transmission mechanism is perfected and improved directly affects the implementation effect of monetary policy and its contribution to the economy. Since 1998, in response to prominent problems such as the decline in domestic economic growth, weak domestic consumer demand, and the emergence of deflation, the central government has continued to appropriately increase the money supply, lower interest rates and other expansionary monetary policies, which have achieved certain results. But overall, it failed to achieve the expected goals.

3) The ultimate goal of monetary policy refers to the starting point and destination of the central bank’s organization and regulation of currency circulation. It reflects the objective requirements of the social economy for monetary policy. There are generally four ultimate goals of monetary policy: stabilizing prices, achieving full employment, promoting economic growth and balancing the international balance of payments. However, it should be pointed out that the goals of my country's monetary policy are only to maintain currency value stability and promote economic growth. Article 3 of the "People's Bank of China Law" stipulates that the "monetary policy goal of the People's Bank of China is to maintain the stability of the currency value and thereby promote economic growth." Relationship: There are generally four ultimate goals of monetary policy, but it is very difficult to achieve them simultaneously. In specific implementation, using a certain monetary policy tool to achieve a certain monetary policy goal often interferes with the realization of other monetary policy goals. In other words, the measures adopted to achieve a certain monetary policy goal are likely to be inconsistent with the realization of another monetary policy goal. The policy objectives should be contradictory to the measures that should be taken. Therefore, in addition to studying the consistency of monetary policy objectives, it is also necessary to study the contradictions between monetary policy objectives and measures to alleviate the contradictions.