Week 13 Slides Flashcards
What is a financial system
How money moves with ppl who save and use
What are the 3 categories for securities
Money market instruments
Bonds
Stocks/Shares
What are securities
Borrower must make returns on funds invested or loaned.
What the heck is a money market instrument
Issued by government, financial places
Canadian Treasury bills, commercial paper, and bank certificates of deposit
What is a goverment bond
Bonds sold by the goverment
What is a municipal bond
Bond sold by municpal/local goverment
What is a corporate bond
Bond sold by various
What are common shares
Most basic form of corporate ownership
What is a primary market
Firms and governments make securities and sell them to the general public (IPO)
What is a secondary market
Collection of financial markets where previously issued securities are traded among investors
What is a financial institution
Savers and borrowers collect funds from savers and then give funds individuals, businesses, and governments
Financial system vs Financial institution
Financial system is connected
Financial institution is global
