Management and Organizational Studies 2277A/B Lecture Notes - Lecture 4: Cash Machine, Overdraft, Financial Institution

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2277A/B
• Professor: Barry Hawn

Document Summary

Methods of payment: point-of-sale systems (pos): debit cards, personal identification number (pin) required, store-valued cards: prepaid (phone, transit) smart cards have microchip for data storage, chequing account: fee for activity, minimum balance, atm machines. Opportunity cost of financial services: higher rate of return for lower liquidity, convenience of 24hr atm vs. service charges, no-fee account that requires a minimum deposit. Interest rates : long term loans take advantage of current low rates, short term savings take advantage of higher rates when they mature. Interest rates :if refinancing loans, use short term loans, long term savings lock in earnings at higher rate. Types of financial institutions: deposit type institutions, chartered banks (schedule i full domestic, schedule ii subsidiaries of foreign banks in. Canada, schedule iii branches of foreign institutions: trust companies, credit unions/caisse populaires, non-deposit type institutions, life insurance, mortgage/loan cos.