COMM 101 Chapter Notes - Chapter 17: Mutual Fund, Financial Institution, Life Insurance
Document Summary
Money: anything that is acceptable as payment for goods and services, called the lubricant for the machinery of our economic system, banking system was developed to ease the handling the money. Scarcity - can"t be too widely available: durability - lasts for a long time, portability - easily moved around, can"t be too large, divisibility - capable of being divided into smaller parts. Functions of money: as a medium of exchange, as a standard of value, as a store of value. Includes all currency (bank notes and coins) plus demand deposits (personal chequing accounts) and other current accounts at banks: other forms of currency include: traveller"s cheques, cashier"s cheques, and money orders. Includes all deposits at non-bank deposit institutions, such as money-market mutual funds and the life insurance companies. Is the sole issuer of bank notes in canada: promotes the economic and financial welfare of canada.
