Chapter 5 - Banks

Question 1

what are depository insitutions? what are the three types?

Answer 1

financial institutions that accept deposits from and provide loans to individuals and businesses

1. chartered banks
2. trust and loan companies
3. credit unions

Question 2

what are non-depository institutions?

Answer 2

institutions that do not offer federally insured deposit accounts but provide other financial services

Question 3

what are caisses populaires/credit unions?

Answer 3

provincially incorporated co-operative financial institutions that are owned and controlled by their member

Question 4

what are CSBs?

Answer 4

canada savings bonds

short term to medium term high quality debt securities issues by the gov of canada

Question 5

what are GICs?

Answer 5

guaranteed investment certificates

an instrument issued by a depository institution that specifies a minimum investment, an interest rate and a maturity date

Question 6

can you withdraw GIC prior to the maturity date?

Answer 6

no