Banking Glossaries-F

Finance Canada

Federal department responsible for Canada's economic performance and regulation of financial institutions.

Fiscal Deficit

When the government spends more money than it receives in revenue over the course of one year.

Fiscal Policy

The use of government spending and taxation policies to influence the economy.

Fiscal Surplus

When the government receives more in revenue than it spends over the course of the year.

Fixed assets

Assets like machinery, land, buildings, or property used in operating a business that will not be consumed or converted into cash during the current accounting period.

Fixed expenses

Fixed business costs that do not change with the volume of business, such as rent for business premises, insurance payments, utilities, etc.

Fixed-Return Instruments or Vehicles

Instruments that pay a fixed rate of interest for an agreed-upon length of time such as term deposits, Treasury bills and Guaranteed Investment Certificates.

Foreign Currency

Paper money and coins from other countries.

Foreign Exchange

Various instruments used to settle payments for transactions between individuals or organizations using different currencies (e.g., notes, cheques, etc.).

Foreign Exchange Rate

The value of a nation's currency in terms of another nation's currency.

Four Pillars

A term used to describe the main types of financial institutions: banking, trust, insurance and securities.

Franchise

The right to sell products or services under a corporate name or trade mark (established by someone else). This right is usually purchased for cash in addition to a royalty fee on, or a percentage of, all sales.

Futures

Contracts to buy something in the future at a price agreed upon in advance. They first developed in the agriculture commodity markets but often involve foreign exchange, Eurodollar deposits and government bonds.

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