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C200 Credit Union System March 2015 > M1 > Flashcards

M1 Flashcards

0
Q

How do you credit union acts influence the corporate governance of credit unions

A

It addresses issues such as who qualifies to be a director, who can vote, quorum, notice requirements and certain committees a board to be created.

CREDIT UNIONS

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1
Q

What is the significance of the corporate credit association act for credit unions (CCA)

A

Governs the activities of credit Union Central of Canada. Restricts centrals to providing financial, administrative, educational, promotional, technological and consulting services to members only.

CREDIT UNION CENTRAL

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2
Q

The legislation which provides for the establishment of credit union centrals is called?

A

The cooperative credit association act(CCA)

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3
Q

True or False

Credit unions are subject to federal legislation, provincial legislation and provincial legislation places certain restrictions on credit unions.

A

True

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4
Q

Federal legislation acts

A 
Cooperative credit association act (CCA)
Income tax act
Bankruptcy Act
Interest Act
National housing act
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5
Q

What is the largest financial institution system asset wise?

A

Chartered Banks. NOT credit Unions

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6
Q

Which products were developed as a result of collaboration between credit Union Central credit Union?

A

Ethical Funds Inc., Procuron, CuNet & NoCurves Leasing.

Interac was NOT developed by credit unions

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7
Q

T or F

Credit union sell derivatives to members with sufficient equity

A

False

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8
Q

Which of the following methods are often used by financial institutions to increase financial margin?

A

Increase the rate loans and or increased the return on investment

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9
Q

A credit union matching the mature maturities of its assets and liabilities is likely attempting to protect itself against what?

A

Interest rate risk

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10
Q

Which of the following options available to deposit protection agency for dealing with an insolvant CU is considered the most serious?

A

Liquidation

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11
Q

Which of the following service innovations is multifunctional and includes special purpose applications?

A

Smart Card

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12
Q

What type of ratio incorporates information from both the balance sheet and income statement

A

Return ratio

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13
Q

Concenta Financial

A

It is a national trust company

It provides a wide range of banking services for credit unions

It provides estate planning services for credit union members

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14
Q

Strategic planning for credit unions strategies

A
  • a low priced approach is still A popular growth strategy for credit unions
  • recruiting and retaining employees is becoming increasingly difficult
  • older employees are likely to become increasingly important
  • New technology will not solve the credit unions organizational problems
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15
Q

What is the leverage or Capital adequacy test?

A

The leverage test requires that credit unions have capital equal to 5% of assets. Which means for every $100 in assets they must find an additional $5 dollars to meet the capital adequacy requirement.

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16
Q

Place the credit union by law, credit union policies, the provision of a credit union act and the regulations issued under that act hierarchical order from top to bottom.

A
  1. The Credit union act - provincial
  2. Provincial regulations
  3. By-laws and policy and procedure
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17
Q

Credit unions are provincially regulated. Do federal status affect cu’s?

A

Yes. Federal status such as the bankruptcy act governs the actions of credit unions and to the extent that’s the statue such as the Bank Act governs credit union competitors

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18
Q

List three types of shares that could be issued by credit unions in some provinces to raise capital

A
  1. Member Shares
  2. Bonus, Patronage or member contributed equity shares
  3. Preferred Shares
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19
Q

What are the BIS rules and how do they affect credit unions?

A

The bank of international settlement established rules set out the amount of capital an international bank should maintain as a percentage of its assets. They adopted a risk-weighted approach to establishing levels of capital adequacy. Government guaranteed deposits were 0% and personal loans were 100%. Deposits at Central would be 100% risk-weighted under the BIS risk rated rules.

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20
Q

What is a standing committee?

A

A standing committee is one that is always in place.

Executive, audit, credit committee

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21
Q

The deposit is sure or guarantor duties are

A
  1. Monitory and inspect
  2. Legislative compliance
  3. Credit union solvency
  4. Deposit protection
    5 sound business practices
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22
Q

Who were the members of the Rochdale society of Equitable Pioneers?

A

They were displaced lace workers who opened the first successful consumer cooperative in Rochdale, England in 1844.

They wrote the first set of cooperative values which essentially still adhered to today.

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23
Q

What is the difference between a close bond credit union and open bond credit union?

A

Close bond credit unions share a common bond of association such as a particular house of worship, ethnic origin, employees at a particular company, and people with similar occupations.
And open bonded credit union is open to anyone in the geographic area.

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24
Q

What are credit union preferred shares?

A

Preferred shares are shares which promised the holder a rate of return. It can be fixed or variable and is paid as a dividend. Dividends on preferred shares are not guaranteed.they also must be paid out first before member shares

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25
Q

The regulations of government are

A
  1. Incorporation
  2. Regulation
  3. Public protection
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26
Q

In French what is the credit union called

A

The credit unions called Caisse Poulaire and the system is referred to as le Mouvement Desjardins. It is the dominant financial institution in Quebec with assets more than the entire system in all the other provinces.

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27
Q

Who was Alphonse Desjardins?

A

He was a journalist who founded the first credit union in Canada in Levis, Quebec in 1900

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28
Q

The six core cooperator values adopted by the international alliance in 1995

A 
1 mutual self-help
2 self responsibility
3  democracy 
4 equality
5 equity 
6 Solidarity
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29
Q

Social objectives

A

Enhance the quality of life for community residents (eg creating employment). Provide greater opportunities for member involvement. But still corporate citizenship obligations

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30
Q

Business objectives

A

Develop new market sector, marketing opportunities and position, develop new products, provide learning opportunities for staff, improve social and economic returns a community involvement

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31
Q

List at least five trade association functions engaged by centrals. What to provincial centrals do for us?

A
  • develop promotional materials
  • Central purchasing
  • advertising campaigns
  • New products and services
  • legal advice
  • Government relations
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32
Q

Which provinces have 2 centrals?

A

Ontario Manitoba and New Brunswick

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33
Q

What are two main functions of the credit union Central

A

Central banking, trade association

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34
Q

Who arranges interest rate swaps?

A

tier 2 - the provincial central

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35
Q

Explain accured interest

A

Interest that has been earned but not yet paid. Liability to the credit union since it is owed to the member

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36
Q

Explain equity

A

Is the capital invested by its owner of the company. Credit union equity is typically made up of members shares and retained earnings

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37
Q

Explaine retained earnings

A

Retained earnings represent the total accumulated earnings of the credit union less any amounts distributed to the members as dividends in any amount transferred to other capital accounts. Over the years all net income is added to retained earnings

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38
Q

ROA - return on assets

A

Credit union profit after taxes

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39
Q

ROE - return on equity

A

This is credit union after taxes profit expensed as a percentage of members equity. How much profit is generated per dollar of equity

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40
Q

Executing a will is an example of which of the following functions

A

Fiduciary

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41
Q

What is the relationship between net income and profit?

A

Net income and profit are the same thing

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42
Q

What was the Antigonish Movement?

A

The movement was started in 1930 in Nova Scotia by father Moses Cody and Jim Thompkins. The movement emphasized the need for a wide range of cooperative enterprises to ensure the economic health of the residents of that area in 1932 the first credit union in Nova Scotia was formed. The Antigonish movement was the cradle of the credit union system outside of Quebec.

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43
Q

What is unique about credit unions that make it more difficult for them to manage credits and liquidy risk that it is for bags and trust companies

A

The members of credit you often have a common bond, like geographic location, employer, our profession. This makes credit unions especially vulnerable to downturns in a social location, our layout by specific employer, which could lead to a large number of customers defaulting on loans are withdrawing their savings.

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44
Q

Which products or credit union innovations

A

Consumer loans, daily interest accounts, debit cards, telebanking, Flexible mortgage payment plans, internationally connected ATM

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45
Q

What are the five C’s of credit

A

capacity, capital, collateral, conditions, and character

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46
Q

Interest rate risk

A

Risk of mismatch in interest rate between payment on deposits(liabilities ) and payment earned and borrowers (assets)

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47
Q

What is financial margin

A

Financial margin is the difference between interest received from loans and investments less the interest paid on deposits another inter-bearing liabilities and dividends paid members. Martin is important to the credit union because it is the primary source of a credit unions revenue profit

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48
Q

Credit risk

A

Risk a borrower defaults

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49
Q

What are two common techniques for managing interest-rate risk?

A

Maturity matching an interest-rate swaps

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50
Q

Derivatives risk

A

Risk of hedge going the wrong way

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51
Q

Liquidity risk

A

Risk of mismatch between demands by members and funds available

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52
Q

Investment

A

Risk of the company in which you invest becoming insolvent

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53
Q

Three primary areas of focus in preventing and liquidy and insolvency

A
  1. Capital adequacy requirement
    2 Liquidy asset requirement
  2. Restriction on loans and investments
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54
Q

Uncorrelated versus correlated

A

If the return to investments is negative correlated then one of the investment is likely to do well only if the other is doing poorly

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55
Q

Financial margin

A 
Interest income from loans 
\+
 interest from investments 
-
interest expense (interest paid to depositors and on other liabilities and dividends paid) = financial margin
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56
Q

Consumer protection

A

Regulation of how debits are collected, deposit insurance, interest-rate disclosure regulations, lost governing use of depositors personal information

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57
Q

What level of government has primary regulatory authority for credit unions, for banks, for trust companies?

A

The level of government that has primer regulatory authority for credit unions is provincial; for banks, it is federal; for trust companies, federal or provincial but the majority of trust companies are regulated federally

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58
Q

Insurance ability of financial institutions

A

Static for liquidy, requirements for sound business practice, requiring licenses to engage in certain types of lending, standard of capital adequacy

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59
Q

Enhancing competition and efficiency

A

Trent towards harmonize in regulations between provinces

Restrictions on banks from selling life insurance in their branches

Read regulation of the financial service industry

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60
Q

The two main reglet Tory bodies for financial institutions are?

A

Government regulatory and deposit insurer/guarantor

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61
Q

What is OS F I

A

Office of the superintendent a financial institutions it is a federal regulatory response for banks, insurance and federally incorporate a trust companies

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62
Q

What is CD I C

A

Canadian deposit insurance Corporation, the federal deposit insurer.

ROLLS:

  • assist the institution
  • assist merge or amalgamation
  • operate themselves
  • liquidate FI
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63
Q

Are credit unions governed by OSFi and CD I C regulations?

A

No. Credit unions are provincially regulatory OS F I and CDIC or federal organizations.

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64
Q

line of defence against insolvency

A
  1. Sound business practices
  2. CDIC
  3. Government
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65
Q

The primary forces driving change in the financial services industry are:

A

Technology, telecommunication, demographic change, changing consumer

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66
Q

Cash value card

A

For transactions that require small bills are quoins; value downloaded it ATMs; cards are refillable and or disposable and are available in prescribed amounts

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67
Q

Relationship pricing

A

Designed to encourage greater service usage

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68
Q

Targeted cross-selling

A

Allows the customization of services

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69
Q

Loyalty building

A

Involves knowing what the members value

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70
Q

Integrated marketing

A

Integrated marketing communication ensures that members receive the same message from the credit union whether they are dealing face-to-face, reading a newsletter or receiving a direct mail package

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71
Q

Which credit union service or product innovation is fundamental for credit unions?

A

Consumer lending is fundamental to credit unions

72
Q

What is relationship marketing?

A

It refers to a program that serves to bind the member to the credit union it’s such a way that he or she is not likely to leave solely on the basis of more comp competitive loan or savings rate.
The four components of relationship marketing are:relationship pricing, target cross-selling, loyalty building and marketing communications

73
Q

What’s on the income statement

A

The income statement consists of revenues, expenses [including financial expenses, operating expenses and income tax] and profit-alsocalled net income or net earnings.
The income statement shows revenue and expenses, net earnings, net profit or loss, provides a measure of firms liquidy; Records only results for the under review.

Employee training costs
Depreciation of fixed assets
Interest paid on RRSP deposits
Property taxes

74
Q

How is capital calculated for deposit taking financial institutions?

A

Capital = assets - liabilities [excluding liabilities to shareholders]

75
Q

What is meant by the term benchmarking?

A

Benchmarking refers to the process of comparing a credit union’s performance to that of a peer group

76
Q

What are fixed assets?

A

Computer, furniture, buildings owned

77
Q

What are receivables,?

A

Loan interest do but not yet received

78
Q

Retained earnings

A

If a member leave a credit union the member will be able to withdraw the value of her shares, but she would not have no claim on retained earnings

79
Q

What does Amortization mean?

A

Credit unions physical assets, such as furniture, are recorded as assets on the balance sheet. As the furniture gets older it’s worth declines

80
Q

What to national corporate financial institutions provide insurance services to credit unions and credit union members?

A

The cooperators group and Cumis

81
Q

What three major services does it Concentra financial offer credit unions?

A

Trustee services, estate planning, mortgage funds and mortgage funds

82
Q

Which five companies owned by cooperatives and credit union system provide investment related services to credit union members?

A 
Credential financial Inc.
Credential asset management Inc.
Credential securities Inc.
Credential direct
Prudential insurance services Inc.
83
Q

What is the Canadian cooperative Association

A

The Canadian corporate association is the national trade association for anglophone cooperatives in Canada

84
Q

What is the world Council of credit unions(WOCCU)?

A

It is the international Association of credit unions form to assist in the development, organization, expansion, improvement and intricate Gratian of credit unions and related institutions around the world

85
Q

CUMIS

A
  • Market insurance products to credit unions
  • Was originally of subsidiary of CUNA mutual of the US it is been a Canadian controlled since 1980
  • offer the range of non-financial products such as training
  • is wholly owned by corporate is in Canada and CUNA of the US
86
Q

Concentra Financial

A

Is under federal legislation and is it operates nationally

Made service up in such a financial to credit unions are trustee services, estate planning, And the provision of mortgage funding

It is 100% owned by the Cooperative system

It has existed for over 50 years has over 17 billion in assets

87
Q

Explain Ethical funds:

A

It is an example of cooperative innovation, as it was pioneered by Van city and since 1992 operates nationally

Credit union Receives free income from ethical funds

The general public can purchase through their stockbroker

Funds must be ethical in nature

88
Q

Supply cooperatives

A

To make merchandise available to members. Can be very small very large such as Federated co-op with billion-dollar

89
Q

Production cooperative

A

The wheat pool are examples of production cooperatives.

90
Q

Service cooperatives

A

Corporate is involved in healthcare, housing and travel

91
Q

What are three main parts of a credit unions balance sheet

A 
Liabilities, assets, and members equity
Deposit at credit union Central
Depreciation of fixed assets
RRSP deposits
Mortgage loans to members
92
Q

Credit unions in the US

A

Credit unions in the US are closed bonded

Credit unions in the US have a big advantage over banks in that they are not taxed on profits

29% of the US population are members of credit union

206 credit unions in the US assets in excess of$500 mil

93
Q

What is CUIS?

A

Credit union insurance services is a joint marketing project of the Cooperatives and Cumis. It is not a Merger or a new company, but rather allows for a comprehensive portfolio of insurance services to be made available to credit union is a credit union members

94
Q

What is CDF?

A

Cooperative development foundation. Is a national charitable organization that links people think co-ops who wish assistance with volunteers with expertise in coops development

95
Q

What is loaned securitization?

A

It is the process of selling pools of loans or mortgages into a program to provide the credit union with cash that I can reinvest in additional mortgages and loans assets to need to borrow and amounts of its members. It can also assist a credit union with acid/liabilities matching problems

96
Q

What is SME?

A

Small to medium size enterprise market and increased 40% of the new jobs in Canada

97
Q

What is RFID?

A

Radio frequency the dedication microchip.

98
Q

What is the yield curve?

A

The yield curve. Is the relationship between the yield on a debit instrument issued by the same issue her and the term to maturity of these instruments

99
Q

Prime interest rate

A

The rate lender charge their best customers

100
Q

Administered rates

A

Rates adjusted from time to time by financial institutions

101
Q

Nominal interest rates

A

The stated rate being paid for deposits

102
Q

Real interest rate

A

The resulting rate when you allow for inflation

103
Q

Overnight rate target

A

The rate the Bank of Canada charges the chartered banks for short-term funds

104
Q

Money market

A

Cash; T-bills; short term GICs; commercial papers; bankers acceptance

105
Q

Who arranges interest rate swaps?

A

tier 2 - the provincial central

106
Q

Explain accured interest

A

Interest that has been earned but not yet paid. Liability to the credit union since it is owed to the member

107
Q

Explain equity

A

Is the capital invested by its owner of the company. Credit union equity is typically made up of members shares and retained earnings

108
Q

Explaine retained earnings

A

Retained earnings represent the total accumulated earnings of the credit union less any amounts distributed to the members as dividends in any amount transferred to other capital accounts. Over the years all net income is added to retained earnings

109
Q

ROA - return on assets

A

Credit union profit after taxes

110
Q

ROE - return on equity

A

This is credit union after taxes profit expensed as a percentage of members equity. How much profit is generated per dollar of equity

111
Q

Executing a will is an example of which of the following functions

A

Fiduciary

112
Q

Which products or credit union innovations

A

Consumer loans, daily interest accounts, debit cards, telebanking, Flexible mortgage payment plans, internationally connected ATM

113
Q

What is financial margin

A

Financial margin is the difference between interest received from loans and investments less the interest paid on deposits another inter-bearing liabilities and dividends paid members. Martin is important to the credit union because it is the primary source of a credit unions revenue profit

114
Q

What is unique about credit unions that make it more difficult for them to manage credits and liquidy risk that it is for bags and trust companies

A

The members of credit you often have a common bond, like geographic location, employer, our profession. This makes credit unions especially vulnerable to downturns in a social location, our layout by specific employer, which could lead to a large number of customers defaulting on loans are withdrawing their savings.

115
Q

What is the relationship between net income and profit?

A

Net income and profit are the same thing

116
Q

What are the five C’s of credit

A

Capacity, capital, collateral, conditions, and character

117
Q

What are two common techniques for managing interest-rate risk?

A

Maturity matching an interest-rate swaps

118
Q

And interest rate swap is a form of_______?

A

Derivative

119
Q

Uncorrelated versus correlated

A

If the return on investments is negative correlated then one of the investment is likely to do well only if the other is doing poorly

120
Q

Interest rate risk

A

Risk of mismatch in interest rate between payment on deposits(liabilities ) and payment earned and borrowers (assets)

121
Q

Credit risk

A

Risk a borrower defaults

122
Q

Derivatives risk

A

Risk of hedge going the wrong way

123
Q

Liquidity risk

A

Risk of mismatch between demands by members and funds available

124
Q

Investment

A

Risk of the company in which you invest becoming insolvent

125
Q

Financial margin

A 
Interest income from loans 
\+
 interest from investments 
-
interest expense (interest paid to depositors and on other liabilities and dividends paid) = financial margin
126
Q

How is capital calculated for deposit taking financial institutions?

A

Capital = assets - liabilities [excluding liabilities to shareholders]

127
Q

Three primary areas of focus in preventing and liquidy and insolvency

A
  1. Capital adequacy requirement
    2 Liquidy asset requirement
  2. Restriction on loans and investments
128
Q

Consumer protection

A

Regulation of how debits are collected, deposit insurance, interest-rate disclosure regulations, lost governing use of depositors personal information

129
Q

Insurance ability of financial institutions

A

Static for liquidy, requirements for sound business practice, requiring licenses to engage in certain types of lending, standard of capital adequacy

130
Q

Enhancing competition and efficiency

A

Trent towards harmonize in regulations between provinces

Restrictions on banks from selling life insurance in their branches

Read regulation of the financial service industry

131
Q

The two main reglet Tory bodies for financial institutions are?

A

Government regulatory and deposit insurer/guarantor

132
Q

What is OS F I

A

Office of the superintendent a financial institutions it is a federal regulatory response for banks, insurance and federally incorporate a trust companies

133
Q

What is CD I C

A

Canadian deposit insurance Corporation, the federal deposit insurer.

ROLLS:

  • assist the institution
  • assist merge or amalgamation
  • operate themselves
  • liquidate FI
134
Q

Consumer cooperatives

A

Sell items that support production; that if I with agriculture sector such as a grocery store

135
Q

The primary forces driving change in the financial services industry are:

A

Technology, telecommunication, demographic change, changing consumer

136
Q

Cash value card

A

For transactions that require small bills are quoins; value downloaded it ATMs; cards are refillable and or disposable and are available in prescribed amounts

137
Q

Targeted cross-selling

A

Allows the customization of services

138
Q

Loyalty building

A

Involves knowing what the members value

139
Q

Integrated marketing

A

Integrated marketing communication ensures that members receive the same message from the credit union whether they are dealing face-to-face, reading a newsletter or receiving a direct mail package

140
Q

Which credit union service or product innovation is fundamental for credit unions?

A

Consumer lending is fundamental to credit unions

141
Q

What is relationship marketing?

A

It refers to a program that serves to bind the member to the credit union it’s such a way that he or she is not likely to leave solely on the basis of more comp competitive loan or savings rate.
The four components of relationship marketing are:relationship pricing, target cross-selling, loyalty building and marketing communications

142
Q

What are three main parts of a credit unions balance sheet

A 
Liabilities, assets, and members equity
Deposit at credit union Central
Depreciation of fixed assets
RRSP deposits
Mortgage loans to members
143
Q

What’s on the income statement

A

The income statement consists of revenues, expenses [including financial expenses, operating expenses and income tax] and profit-alsocalled net income or net earnings.
The income statement shows revenue and expenses, net earnings, net profit or loss, provides a measure of firms liquidy; Records only results for the under review.

Employee training costs
Depreciation of fixed assets
Interest paid on RRSP deposits
Property taxes

144
Q

What is the significance of the word balance in the name balance sheet?

A

The two sides of the balance sheet months always equal each other. Total assets must be equal to total liabilities plus members equity.
A balance sheet is a statement of assets and liabilities; provides a measure of a company’s solvency; The number shown on the balance sheet are the cumulative results of all transactions for the time the business opened its doors up to the including the date specified

145
Q

What is meant by the term benchmarking?

A

Benchmarking refers to the process of comparing a credit union’s performance to that of a peer group

146
Q

What are fixed assets?

A

Computer, furniture, buildings owned

147
Q

What are receivables,?

A

Loan interest do but not yet received

148
Q

Retained earnings

A

If a member leave a credit union the member will be able to withdraw the value of her shares, but she would not have no claim on retained earnings

149
Q

What does Amortization mean?

A

Credit unions physical assets, such as furniture, are recorded as assets on the balance sheet. As the furniture gets older it’s worth declines

150
Q

What to national corporate financial institutions provide insurance services to credit unions and credit union members?

A

The cooperators group and Cumis

151
Q

What three major services does it Concentra financial offer credit unions?

A

Trustee services, estate planning, mortgage funds and mortgage funds

152
Q

Which five companies owned by cooperatives and credit union system provide investment related services to credit union members?

A 
Credential financial Inc.
Credential asset management Inc.
Credential securities Inc.
Credential direct
Prudential insurance services Inc.
153
Q

What is the Canadian cooperative Association

A

The Canadian corporate association is the national trade association for anglophone cooperatives in Canada

154
Q

What is the world Council of credit unions(WOCCU)?

A

It is the international Association of credit unions form to assist in the development, organization, expansion, improvement and intergation of credit unions and related institutions around the world

155
Q

CUMIS

A
  • Market insurance products to credit unions
  • Was originally of subsidiary of CUNA mutual of the US it is been a Canadian controlled since 1980
  • offer the range of non-financial products such as training
  • is wholly owned by corporate is in Canada and CUNA of the US
156
Q

Concentra Financial

A

Is under federal legislation and is it operates nationally

Made service up in such a financial to credit unions are trustee services, estate planning, And the provision of mortgage funding

It is 100% owned by the Cooperative system

It has existed for over 50 years has over 17 billion in assets

157
Q

Explain Ethical funds:

A

It is an example of cooperative innovation, as it was pioneered by Van city and since 1992 operates nationally

Credit union Receives free income from ethical funds

The general public can purchase through their stockbroker

Funds must be ethical in nature

158
Q

Supply cooperatives

A

To make merchandise available to members. Can be very small very large such as Federated co-op with billion-dollar

159
Q

Production cooperative

A

The we pool our examples of production cooperatives.

160
Q

Consumer cooperatives

A

Sell items that support production; that if I with agriculture sector such as a grocery store

161
Q

Service cooperatives

A

Corporate is involved in healthcare, housing and travel

162
Q

Credit unions in the US

A

Credit unions in the US are closed bonded

Credit unions in the US have a big advantage over banks in that they are not taxed on profits

29% of the US population are members of credit union

206 credit unions in the US assets in excess of$500 mil

163
Q

What is CUIS?

A

Credit union insurance services is a joint marketing project of the Cooperatives and Cumis. It is not a Merger or a new company, but rather allows for a comprehensive portfolio of insurance services to be made available to credit union is a credit union members

164
Q

What is CDF?

A

Cooperative development foundation. Is a national charitable organization that links people think co-ops who wish assistance with volunteers with expertise in coops development

165
Q

What is loaned securitization?

A

It is the process of selling pools of loans or mortgages into a program to provide the credit union with cash that I can reinvest in additional mortgages and loans assets to need to borrow and amounts of its members. It can also assist a credit union with acid/liabilities matching problems

166
Q

What is SME?

A

Small to medium size enterprise market and increased 40% of the new jobs in Canada

167
Q

What is the yield curve?

A

The yield curve. Is the relationship between the yield on a debit instrument issued by the same issue her and the term to maturity of these instruments

168
Q

Administered rates

A

Rates adjusted from time to time by financial institutions

169
Q

Nominal interest rates

A

The stated rate being paid for deposits

170
Q

Real interest rate

A

The resulting rate when you allow for inflation

171
Q

Overnight rate target

A

The rate the Bank of Canada charges the chartered banks for short-term funds

172
Q

Money market

A

Cash; T-bills; short term GICs; commercial papers; bankers acceptance

173
Q

line of defence against insolvency

A
  1. Sound business practices
  2. CDIC
  3. Government
174
Q

Our credit unions governed by OS FY and CD I C regulations?

A

No. Credit unions are provincially regulatory OS F I and CDIC or federal organizations.

175
Q

Relationship pricing

A

Designed to encourage greater service usage

176
Q

Smartcard

A

Multipurpose; can be used for higher value transactions and for other purposes that simply payment

177
Q

And interest rate swap is a form of_______?

A

Derivative

C200 Credit Union System March 2015 (1 decks)

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