COMM231 Chapter Notes - Chapter 25: E-Commerce Payment System, Negotiable Instrument, Cheque
14 Feb 2016
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Document Summary
Every business has a relationship with a financial institution. This chapter deals with the nature of that relationship. It covers the relationship between banks and their customers, electronic banking and new challenges this type of banking creates, and methods of payment including negotiable instruments. You are not expected to memorize the entire chapter but rather understand the general concepts. Be guided by what we focus on in class. So, for example, we would expect you to understand what a negotiable instrument is, but not all the detailed rules as to how they operate etc. Regulation of banks: canadian financial services industry had 4 distinct sectors: banks, trust companies, stockbrokerages, insurance companies. In the past, institutions in one sector were prohibited from conducting business beyond that sector. In 1987, canadian legislation allowed banks to go beyond traditional banking and participate in other sectors. Key remaining limit on bank"s business is prohibition against selling or promoting insurance products in their branches.
