RSM100Y1 Chapter Notes - Chapter 16: Open Market Operation, Debenture, United States Treasury Security
14 Apr 2016
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Chapter 16: the financial system: canadians are financially conservative relative to americans buyers as well as lenders, the canadian financial system is much more regulated than the. Mortgages interest is a tax reduction in the. U. s: financial system is the mechanism by which money flows from savers (who have excess funds) to users (who need additional funds), canadian household, as a whole, save more than they spend and are therefore net savers. Governments may also acquire funds through selling bonds to corporations and vise versa. Bonds are issued in various dominations and their face value usually ranges from ,000 to ,000. Bondholders of a firm are its creditors and therefore hold priority over shareholders in terms of the business"s assets should the firm liquidate or declare bankruptcy. A bond"s price depends on its interest rate (yield) and its risk. These usually mature in two, five, 10, and.
