MCS 2100 Lecture Notes - Lecture 3: Canada Deposit Insurance Corporation, Money Market Fund, Credit Union

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 2100
• Professor: Rosemary Vanderhoeven

Document Summary

Are in business of taking money on deposit and are primary source of funds for consumer loans. Banks divided into different classes: schedule i are canadian owned, schedule ii and iii are foreign owned. Trust companies function similar to a bank and are also allowed to act as a trustee: can manage the assets of corporations and individuals, most trust companies owned by banks. Credit unions are an alternative to banks and type of cooperative: members own it and have a say in running of it, any profits are returned to members. Include life insurance companies, investment companies, mortgage and loan companies, finance, and leasing companies, pawnshops and cheque-cashing outlets. Some life insurance and investment companies have merged with big banks. Want to avoid finance and leasing companies, pawnshops and cheque-cashing outlets: last resort for people seeking loans and therefore charge high rates of interests. Purchasing things through rent-to-own centre is also very expensive.