Chapter 18 Financial Services Industry in Canada Flashcards
Trust Company
A financial institution that can administer estates, pension plans and agency contracts, in addition to other activities conducted by banks
Non-Banks
Financial organizations that accept no deposits but offer many services provided by regular banks
Pension Funds
Amounts of money put aside by corporations,non-profit organizations or unions to cover part of the financial needs of their members when they retire
Money
Anything that people generally accept as payment for goods and services
Barter
The trading of goods and services for other goods and services
Money Supply
The amount of money the Bank of Canada makes available for people to by goods and services
Prime Rate
The interest rate that banks charge their most creditworthy customers
Commercial Bank
A profit-seeking organization that receives deposits from individuals and corporations in the form of cheqing and savings accounts and then uses some of these funds to make loans
Demand Deposit
The technical name for cheqing account, the money in the demand deposit can be withdrawn anytime on the demand from the depositer
Time Deposit
The technical name for savings account, the bank can require prior notice before the owner withdraws money from a time deposit
Certificate of Deposit
A time deposit account that earns interest to be delivered at the end of the certificated maturity date
Securities Dealer
A firm that trades securities for its clients and offers investment services
Prospectus
A condensed version of economic and financial information that a company must make available to investors before they purchase a security
Securities Commision
A government agency that administers provincial securities legislation
Stock Exchange
An organization whose members can buy and sell securites for companies and investors
