MGM101H5 Lecture Notes - Lecture 6: Interest Rate

• School: UTM
• Department: Management
• Course: MGM101H5
• Professor: Dave Swanston

Document Summary

This is important because as conditions change, it results in a change of balance(win lose situation with stakeholders) i. e. good for manufacturers because their income is increasing but affects customers more because they are spending more i. e. us vs canada. Bank of canada financial systems associated with canadas economic activity. Canadas economy was able to outperform many of the economies of the world due to their very stable system. Has the following core areas of responsibility: managing inflating and currency supply if inflation gets too high; boc decides to reduce interest rates; leads to less borrowing of money. Chartered banks are financial institutions regulated under the bank of canada: four pillars of economic activity: Expenditures (things we spend money on and consume) + investment if economic conditions are good, you make investment now; if theyre not we wait for the right time to make the investment so that incase we borrow money we can pay it back.