ECON 105 Chapter Notes - Chapter 8: Mutual Fund, Credit Risk, Department Of Finance Canada

• School: Simon Fraser University
• Department: Economics
• Course: ECON 105
• Professor: Junjie Liu

Document Summary

8 - saving, investment, and the financial system. Financial system: the group of institutions in the economy that help to match one person"s savings with another person"s investment. The nancial systems mores the economy"s scarce resources from savers to borrowers. The of ce of the superintendent of financial institutions: an independent agency of the federal government that reports to the department of finance canada. Financial markets - the institutions through which a person who wants to save can directly supply funds to a person who wants to borrow. The bond market: bond: a certi cate of indebtedness. It identi es the time when the buyer will be repaid, (date of maturity) and the rate of interest that will be paid periodically. The buyer of a bond gives their money in exchange for this promise of interest and eventual payment of the previously stated amount (the principal)