BU111 Study Guide - Final Guide: Risk Premium, Compound Interest, Market Trend
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BU111 Full Course Notes
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Regulated by government and the bank charters them. In order to grow, banks invest in other areas. Td bought a trust union and it is now td canada trust. It can now open trading accounts and invest. Lines between pillars have been blurred due to reregulation. Five largest account for 90% of total bank assets. Bank act limits foreign controlled banks to <8% of total domestic bank assets. Foreign banks can only limitedly compete in canada. A mortgage is a secured loan you pledge your house to the bank. Deposit expansion take your money and loan it to others. Banks have consumers by the throat but can"t raise the rates they charge of they will become regulated by the government which the banks do not want. Bank of canada is where banks go to get loans they set the interest rate. Venture capitalist lend your money to risky businesses that will prosper. First place companies go to start new stocks.
