BU111 Study Guide - Final Guide: Comparative Advantage, Double Taxation, Asia-Pacific
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BU111 Full Course Notes
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Balance of trade: value difference between a countries exports and imports: surplus: more exports than imports (favourable balance of trade, deficit: more imports than exports (unfavorable balance of trade) Financial institutions: provide services to individuals and businesses, main function is to facilitate flow of money from sectors with surpluses to those with deficits by attracting funds into chequing and saving accounts. Four financial pillars: 1) chartered banks. Largest and most important financial institution in canada. Main source of short-term loans for business firms: 2) alternate banks. Trust companies & credit unions: 3) life insurance companies and other specialized lending and saving intermediaries. Finance companies, venture capital firms, factors, mutual funds, pension funds: 4) investment dealers. Primary distributors of new stock and bond issues. Crumbling of four financial pillars began in 1980 with changes made to the bank. Services offered by banks: pension services, trust services, international services, financial advice, electronic funds transfer.