Ch. 18 Study Guide Test.

Ch. 18 Study Guide Test. Traditional Banks (Commercial Banks) - correct answer -Five very large banks in Canada, RBC, BMO, CIBC, TD, BNS -Most own subsidiaries in the other parts of the financial services industry Credit Union - correct answer non-profit, member-owned financial co-operatives that offer a full variety of banking services to their members. Caisses populaires - correct answer a form of credit union, are located predominantly in Quebec. Trust Company - correct answer is a financial institution that conducts activities like a bank. Non-banks - correct answer are financial organizations that accept no deposits but offer many services provided by regular banks. Examples include pension funds, insurance companies, commercial finance companies, consumer finance companies, and brokerage houses. Pension funds - correct answer are amounts of money put aside by corporations, non-profit organizations, or unions to cover part of the financial needs of their members when they retire. Life insurance - correct answer -companies provide financial protection for policyholders, who periodically pay premiums. -In addition, insurers invest the funds they receive from policyholders in a variety of vehicles, including corporate and government bonds. Federally - correct answer -Office of Superintendent of Financial Institutions -Canada Deposit Insurance Corporation -Financial Consumer Agency of Canada Provincially - correct answer -Securities dealers, credit unions, and caisses populaires are provincially regulated. federally and/or provincially - correct answer Insurance, trust, and loan companies and co-operative credit associations may be federally and/or provincially regulated, depending on the jurisdiction under which the company is incorporated or registered. Canada Deposit Insurance Corporation (CDIC) - correct answer is a federal Crown corporation that was created to provide deposit insurance and contribute to the stability of Canada's financial system. -CDIC insures eligible deposits at member institutions (e.g., banks and trust companies) against these institutions' failure or collapse. -CDIC guarantees deposits up to $100,000 (principal and interest) in each member institution. Barter - correct answer is trading goods and services for other goods and services. -Barter requires two people to have something that their trading partner wants -Money holds the value and allow people to trade the money with someone else Standards for good money - correct answer 1.Portability 2. Divisibility 3.Stability 4. Durability 5. Uniqueness