Management and Organizational Studies 1023A/B Chapter Notes - Chapter 6: Financial Institution, Government Debt, Savings Account

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

All parts of he financial system are interrelated. Finance is the study of how and under what terms savings are allocated between lenders and borrowed. Whenever funds are transferred, a financial contract comes into existence called financial securities economy: This shows the assets and liabilities of three major domestic groups in our. Shows where the majority of canada"s assets and liabilities are and whether: individuals (referred to as the household sector, businesses, government or not they are in debt. Finance is essentially the management of an entity"s balance sheet: on the asset side: decisions on buying new assets, asset acquisition , on the liability side: ways to finance these expenditures. This is a claim that one individual or institution has on another. National balance sheets accounts (nbsa): basic idea is to collect financial data on the major agents in the financial system and then track all the borrowing and lending between these agents.