BU111 Study Guide - Final Guide: Working Capital, United States Treasury Security, Preferred Stock
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BU111 Full Course Notes
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Document Summary
Four pillar of canadian financial system: financial institutions facilitate the flow of money from surpluses to deficits. Canada trust (largest trust company) merged with toronto-dominion bank td. Act allows foreign-controlled banks to increase competition; but still limit the extent to which the foreign competitors to come in, to prevent population investing money in foreign banks. Determines what banks can or cannot do: major source of short-term loans for business (up to 5 years) Secured loans: when you go to the bank and take out the loan, you give them the right to sell your personal belongings if you do not pay them back lower interest than unsecured. Unsecured loans: backed only by the borrower"s promise to repay it. Only the most credit-worthy borrowers can get unsecured loans: expand money supply through deposit expansion. They do not make money, but by taking deposits and making loans, they.
