MGTA02H3 Lecture Notes - Guaranteed Investment Certificate, Financial Intermediary, Smart Card
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MGTA02H3 Full Course Notes
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Document Summary
Money: any object generally accepted by people as payment for goods and services has portability, divisibility, durability, and stability. Money is used as a medium of exchange, store of value (stores value), and is a unit of account (allows thing to be valued) Financial institutions: main function is to ease the flow of money from sectors with surpluses to those with deficits. Banks can issue financial claims against itself by making available funds for chequing and savings accounts. Four financial pillars in canada: chartered banks, investment dealers, life insurance companies and alternate banks. Chartered bank: privately owned profit seeking firm that serves individuals, non-business organizations, and businesses as a financial intermediary. Offer chequing, savings accounts, loans, and other services main source for short term business loans. Canada has branched banking system and there are a few banks with hundreds of branches largest=rbc, bon, td, bmo, etc.
