Term
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Definition
| The management of cash and near cash (liquid) assets. |
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Term
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Definition
| Cash and investments that can easily be converted into cash, such as chequing accounts, money market instruments, and GIC's. |
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Term
| Deposit - type financial institutions |
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Definition
| Financial institutions that provide traditional chequing and savings accounts; commonly referred to as institutions that provide banking services. |
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Term
| Non-deposit-type financial institutions |
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Definition
| Financial institutions, such as insurance companies, that do not provide chequing and saving accounts or banking services. |
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Term
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Definition
| They traditionally offer the widest variety of financial services. Also, they have more branch offices, and they hold the highest dollar value of assets. |
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Term
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Definition
| The ability to perform banking operations through the internet, using your PC. |
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Term
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Definition
| Is a shareholder-owned financial institution. It provides all the services of a chartered bank, plus it can manage funds on your behalf. |
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Term
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Definition
| They are cooperatives made up of members with some type of common bond or common geographic location. All depositors must be shareholders, and each has one vote, regardless of how big their account is. The advantage: often they give higher interest rates and lower costs. |
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Term
| Government-run banking institutions |
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Definition
| Several provinces have government-run financial institutions that provide banking services. |
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Term
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Definition
| An investment fund that raises funds from investors, pools the money, and invests it in stocks, bonds, and other investments. Investors own shares proportionate to the amount of their investment level. |
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Term
| Guaranteed investment account |
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Definition
| An account that provides a specified interest rate for a specified period. You get penalized if you withdraw money early. |
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Term
| Money market mutual funds (MMMFs) |
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Definition
| Mutual funds that invest in short-term (generally with a maturity date of 91 days or fewer) investments of very high denomination. |
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Term
| Government of Canada treasury bills (T-bills) |
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Definition
| Short-term notes of debt issued by the federal government, with terms to maturity ranging from 3 to 12 months. they are very secure and very liquid. |
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Term
| Annual Percentage Yield (APY) |
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Definition
| The simplest annual percentage yield that converts interest rates compounded for different periods into comparable annual rates; it allows you to easily compare rates. |
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Term
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Definition
| The actual return you earn on taxable investments once taxes have been paid; it is equal to the taxable return (1 - marginal tax rate) + the nontaxable return. |
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Term
| Canada Deposit Corporation (CDIC) |
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Definition
| The federal agency that insures deposits at federally incorporated financial institutions. |
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Term
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Definition
| The depositing of payments, such as payroll cheques, directly into your chequing account (done electronically). |
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Term
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Definition
| A storage unit at a bank or other financial institution in which valuables and important documents are stored for safekeeping. |
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Term
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Definition
| Provision of an automatic loan to your chequing account whenever sufficient funds aren't available to cover cheques that have been written against the account. |
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Term
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Definition
| A potential loan available from a depository financial institution, which may have specific coloration or not; it provides credit up to a specified limit at a rate slightly above the prime rate with flexible repayments. |
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Term
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Definition
| An order you can give your bank to stop payment on a cheque that you have written. |
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Term
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Definition
| A cheque drawn on a bank's account. |
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Term
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Definition
| A personal cheque which has been certified by the bank as having enough funds. After the bank certifies the cheque, the cheques amount of funds will be frozen in your account until the cheque has been cashed. |
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Term
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Definition
| A cheque similar to a bank draft except that Canada Post or some other non-banking institution can issue it. |
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Term
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Definition
| Cheques written by large financial institutions, such as banks and American Express, that are sold through local banking institutions and outlets. They are similar to bank drafts except that they do not specify a specific payee and they come in specific amounts. |
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Term
| Electronic funds transfer (EFT) |
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Definition
| any financial transaction that takes place electronically. |
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Term
| Automated teller machine (ATM) |
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Definition
| machines found at most financial institutions that can be used to make withdrawals, deposits, transfers, and account inquiries. |
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Term
| Personal identification number (pin) |
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Definition
| A four digit (or more) pin assigned to your credit account or chosen by you. |
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Term
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Definition
| A card that allows you to access the money in your accounts electronically. |
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Term
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Definition
| similar to debit cards, but these cards magnetically store their own accounts. Funds are transferred into the cards, which can then be used in the same way as a debit card. When funds run out, more funds need to be transferred. |
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