MGTA02H3 Lecture : Chapter 10 StudyGuide
29 Apr 2011
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MGTA02H3 Full Course Notes
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Money: any object generally accepted by people as payment for goods and services. Features of money: portability, divisibility, durability, stability. Functions of money: medium of exchange, store of value, unit of account www. notesolution. com. Money substitutes: serve as a temporary medium of exchange but are not a store of value. Credit cards are very convenient and profitable through either annual fees to holders and charges paid by merchants who let customer use their cards. The financial community in canada is divided into four pillars: 3 life insurance companies and specialized lending and saving intermediaries like finance companies. Chartered bank: a privately owned, profit- seeking firm that serves individuals, non-business organizations, and businesses as a financial intermediary. Trust services: the management of funds left in the bank"s trust. (pay your bills or manage your portfolio for a small fee) Letter of credit: a promise by a bank to pay money to a business firm if certain conditions are met.
