Chapter 5 - Managing your money Flashcards
What are the types of depository instutions?
*Chartered Banks
*Trust and Loan companies
*credit unions
*Caisses populaires
What are the types of non-depository institutions?
*Finance and Lease companies & Mortgage companies
*Investment dealers & Mutual fund companies
*Insurance companies
*Payday loan companies & cheque cashing outlets
*Pawnshops
Chartered banks
Accept deposits and use the funds to provide business and personal loans
Schedule I Banks
Domestic banks that are authorized to accept deposits (e.g. RBC, Scotia bank, Tangerine, FNBC)
Schedule II Banks
Foreign banks that have subsidiaries operating in canada (e.g. ICICI Bank Canada, HSBC Bank Canada)
Schedule III Banks
Subsidiaries of foreign banks that are restricted in their authority to accept deposits (e.g. Capital one bank)
Trust and loan companies
financial institutions provides services similar to a bank; also provides financial planning services (e.g. RBC Estate and Trust Services)
Credit unions/caisses populaires
Provincially incorporated co-operated financial institutions that are owned and controlled by their members
Finance and Lease companies
Specialize in providing personal loans or leases to individuals
Mortgage companies
Specialize in providing mortgage loans to individuals
Investment dealers
facilitate the purchase or sale of various investments by firms or individuals by providing investment banking and brokerage services.
Insurance companies
sell insurance to protect individuals or firms from risk that can result in financial loss
mutual fund companies
sell units to individuals and use the proceeds to invest in securities to create mutual funds
Whats a GIC?
Guaranteed Investment Certificate an instrument issued by a depository institution that specifies a minimum investment, an interest rate, and a maturity date
