Financial Terms and Acronyms Exam Review Flashcards
Financial Institution
Provide a range of financial products and services like checking and saving accounts as well as loans. mortgages, and other investment opportunities.
Bank
A larger corporation that is nation wide and provides financial services typically for profit.
Credit Union
A smaller financial institution that usually serves a specific region or community. They also provide financial services, but, they are not for-profit.
Canada Banks
-Bank of Montreal (BMO)
-Royal Bank of Canada (RBC)
-Scotia Bank
-Canadian Imperial Bank of Commerce (CIBC)
-Toronto-Dominion Bank (TD)
Saskatchewan Credit Unions
-Affinity Credit Union
-Conexus Credit Union
-Innovation Credit Union
There are 32 credit unions in Saskatchewan.
Checking Account
An everyday bank account that can be used for day-to-day transactions such as bills, direct deposits, purchases, and money transfers.
Saving Account
Designed to hold money that you don’t intend on spending immediately.
Account Balance
The amount of money that is in your bank at any given moment.
Debit Card
Gives you access to your bank accounts and can be used to withdraw funds directly from your accounts.
Cheques
A financial tool that tells the bank to pay a specific amount from one bank account to an individual or business.
E-Transfer
A funds transfer service between personal or business accounts that allow a person to send money through email or text to another person or business with a bank account in Canada
Pre-Authorized-Payment
Are securing payments that come out of your bank account automatically.
Direct Deposit
A way to receive payments int your account without having to deposit a cheque.(ex. having your pay cheque go directly to your bank account).
Loan
A sum of money that an individual or company borrows from a bank/financial institution with a promise of paying it back within a certain time period.
Personal Loan
An unsecured loan meaning they do not require security and could either have a fixed or variable interest rate that is paid back within a certain time period.
Auto Loan
When you buy a vehicle, an auto loan lets you borrow the price of the car, minus any down payment or trade in. They generally range from 36 to 73 months (3 to 6 years).
Student Loan
Loans available through the provincial and federal government to help students pay for post-secondary schooling. The loan is paid back overtime and usually at lower interest rates.
Pay Day Loans
A small loan usually between $50 and $1,000 that must be paid in full by your next pay cheque.
Line of Credit
A flexible loan from a bank or financial institutions. Similar to a credit card with a set credit limit, a line of credit is a specific amount of money that you can access as needed and use as you wish.
Mortgage
A loan from the bank that is secured for real estate. You take out a mortgage when a house.
Down Payment
The amount of money you put towards the purchase of a home. Purchase price minus down payment is the amount you need to borrow
Mortgage Term/Amortization Period
Th length of the current mortgage loan agreement associated with your interest-rate. Basically, how long you agree to pay off the mortgage by usually 20 or 25 years.
Interest
The amount you pay to borrow money, or the return earned on those investments.
Interest Rate
A pre-determined percentage that can change from day to day or is a fixed rate that is influenced by the stock market and state of the world.
Compound Interest
Involves owing or earning interest on your interest. Helps sum of money grow faster than if just a single interest were calculated on the principle alone.
Budgeting
The process of calculating how much money you must earn or save during a particular period of time, and planning how you will spend it/what you need to spend it on.
Stock Market
A trading network that connects investors looking to but and sell stocks and their by products.
Insurance
Is a contract between you (or a business) and an insurance company to help you and your loved ones from financial loss due to an unexpected event, like an accident, illness, natural disaster, or the unexpected events.
Mutual Fund
It is a trust that collects money from a number of investors who share a common investment objective. Your money is pooled with the money of other investors and invested on your behalf by the fund manager.
TFSA (Tax Free Savings Account)
-Allows you to save tax-free to reach any financial goal (home, car, vacation, retirement, etc).
RESP (Registered Education Savings Account)
Helps you save for your child’s post-secondary education, also deferring tax while in the plan and offering government grant contributions to help grow your savings faster.
RRSP (Registered Retirement Savings Plan)
Is an account registered with the federal government that you can use to save for retirement or other financial goals.
APR (Annual Percentage Rates)
Refers to the yearly interest generated by a sum that’s charged to borrowers or paid investors. (the yearly interest rate you’ll pay if you carry a balance on your credit card. )
NOA (Notice of Assessment)
Is an annual statement by the Canadian Revenue Agency to taxpayers detailing the amount of income tax they owe, as well as the amounts of their tax refund, tax credit, income tax already paid, and more.
OAS (Old Age Security)
A type of pension that you can get over the age of 65.
CPP (Canadian Pension Plan)
Monthly taxable benefit that replaces part of your income wen you retire.
EI (Employment Insurance)
Provides temporary icon support to unemployed workers while they look for employment or to upgrade their skills.
CFP (Certified Financial Planner)
The most widely recognized financial planning designation in Canada standard for financial planners around the world.
GIC (Guaranteed Investment Certificate)
Saving account that you can open to ensure that the amount you invest is the amount you get back at the end of your term.
CRA (Canada Revenue Agency)
Is the revenue service of Canadian federal government, and most provincial and territorial government. They collect taxes, administers tax, law and policy, and delivers benefit programs and tax credit.
MER (Management Expense Ratio)
Is the fee that must be paid by shareholders of a mutual fun or exchange-trade fin (ETF). Goes to the total expenses used to run such funds.
FHSA (First Home Savings Account)
Is a registered plan which allows you, if you re a first time home buyer, to save to buy or build a qualifying first home, tax-free.
HBP (The Home Buyers Plan)
Is a program, that allows you to withdraw from your registered retirement savings plan to buy or build a qualifying home for yourself or for a specified disabled person.
TDSR (Total Dept Service Ratio)
Includes all your outstanding personal dept (mortgage, car loans, credit card, lines of credit, etc) and calculates how much debt that person has at a particular time.
