SS1: ECONOMICS - 3RD TERM
Mining | Week 13 Topics|1 Quiz
Financial Institution I | Week 27 Topics|1 Quiz
Financial Institutions II | Week 35 Topics|1 Quiz
Financial Institutions III | Week 45 Topics|1 Quiz
Business Organisation | Week 53 Topics
Money | Week 65 Topics|1 Quiz
Channels of Distribution I | Week 75 Topics|1 Quiz
Channels of Distribution II | Week 86 Topics|1 Quiz
Some Reasons that May Warrant the Termination of the Middleman in the Channel of Distribution
Ways of Improving the System of Distribution of Consumer Goods in West Africa
Why there are Relatively Fewer Manufacturing Activities in Africa Compared with Advanced Countries
The Role of Co-operative Societies in Distribution of Goods
The Role of Government Agencies in Product Distribution in Nigeria
Problem of Distributive Trade
- Some Reasons that May Warrant the Termination of the Middleman in the Channel of Distribution
Business Finance | Week 97 Topics|1 Quiz
The money market is the market for short term loans. The loans granted can be demanded at short notice.
The money market is composed of the commercial bank, the central bank, discount house, bill brokers, acceptance house or merchant banks, and the foreign exchange market. It is controlled by the central bank. The money market is a market for short-term instruments bought and sold.
Institutions Involved in Money Market:
The Institutions involved in the money market include:
- Central Bank.
- Commercial banks.
- Discount houses.
- Acceptance houses.
- Finance Houses.
- Insurance Companies.
Instruments used in the Money Market:
The instruments used in the money market include:
- Bills of exchange.
- Treasury Bills or Notes.
- Call Money Funds.
- Promissory Note.
- Commercial Paper.
Treasury Bills: When the government goes to the money market to raise money, it does so by issuing treasury bills. Treasury bills are issued when the government needs money for a short period. These bills are issued only by the central bank, and the interest on them is determined by market forces.
Bill of Exchange: A bill of exchange is a binding agreement or promising note by one party to pay a fixed amount of cash to another party as of a predetermined date or on-demand, normally ninety (90) days.
Call Money Funds: Call money is minimum short-term finance repayable on demand, with a maturity period of one to fourteen days or overnight to a fortnight. It is used for inter-bank transactions.
Advantages of Money Market:
1. Promotion of Economic Development: The growth and development of the economy is enhanced through borrowing from the money market.
2. Extra Income is Created: There is a possibility of making extra income when money is invested in the money market.
3. Provision of Finance: Entrepreneurs and investors are able to raise enough finance, through borrowing from the money market, to run their various businesses.