Management and Organizational Studies 2277A/B Chapter Notes - Chapter 5: Hsbc Bank Canada, Credit Union, Credit Card Interest

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

Document Summary

Chapter 5: banking services and managing your money describes the decisions you make over a st period regarding your income and expenses focuses on maintaining st investments to achieve both liquidity and an adequate return on your investments. Liquidity refers to your access to ready cash, including savings and credit to cover st and unexpected expenses. Main adv of line of credit vs credit card = interest rate on a line of credit is much lower rule of thumb to have between 3 to 6 months" worth of expenses in an emergency fund. Types of financial institutions two major types of financial institutions: depository and non-depository. Depository: financial institutions that accept deposits from and provide loans to individuals and businesses: pay interest on savings deposits and charge interest on loans, use this difference to cover expenses and to generate earnings for shareholders. Interest rate charged on loans exceeds interest rate paid on deposits.