ECON 1BB3 Lecture Notes - Lecture 8: Credit Union, Financial System, Loanable Funds

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: Bridget O' Shaughnessy

Document Summary

Chapter 8 saving, investment, and the financial system. Financial system: the group of institutions in the economy that help to match one" person"s savings with another person"s investment. Gov. t regulators oversee financial institutions that help coordinate savers and borrowers and set rules that guide their operations. Office of superintendent of financial institutions (osfi) independent agency of fed gov. t that reports to dept. of finance canada primary regulator of banks, insurance companies, pension plans. Provincial gov. t regulates credit unions, caisses populaires, securities dealers, mutual funds. Financial markets: institutions through which a person who wants to save can directly supply funds to a person who wants to borrow bond markets and stock markets. Buyer of a bond gives money to an organization in exchange for this promise of interest or eventual repayment of amount borrowed (the principal) eg. intel selling bonds to people to finance a new factory.