ACC 117 Lecture Notes - Lecture 8: Financial Intermediary, Government Debt, Life Insurance
Document Summary
Bank core activities is to act as a deposit takers and lenders. Banks are the most important financial intermediaries but insurance companies are as well; Pensions are a financial intermediary as well. Largest pensions is the caisse de depot et placement du qu bec. Banks, insurance and pensions are the 3 most important financial intermediaries; they all change the nature of the financial contract. Mutual funds are not; because they are just a convenient way for people to invest; they perform 2 major functions. Pool small sums of money to make investments that cannot be made by each individual small investment. Offer professional expertise in the management of those funds. It has grown dramatically over the years. Also crown corporations (owned by the government) that provide goods and. Government debt market plays a very important role in the financial system. Ontario"s debt to provincial gdp is rising. Government has a strong power of getting money from citizens.
