STRUCTURE AND FUNCTIONS OF MONEY MARKET
Definition: Money market can be defined as a market for short- term loan. The market consists of institutions or individuals who either have money to lend or wish to borrow on a short-term basis.
cc
Define money and capital market.
Identify the types and functions of the institutions.
Explain the types and features of securities.
Explain the process of and requirements for accessing the capital market
List the benefits of the capital market.
Demonstrate the understanding of the meaning, transaction and trading methods in the secondary market.
Instruments used in the money market
- Treasury bills: Treasury bill is normally issued by the central bank of a country, which assists the government to borrow money from the money market on short term basis.
- Bill of exchange: Bill of exchange refers to a promisory note which shows the acknowledgement of indebtedness by a debtor to his creditor and his intention to pay the debt on demand or at an agreed time in future, normally ninety (90) days.
- Call money funds: The call money fund or market is a special arrangement in which the participating institutions invest surplus money for their immediate requirement on an overnight basis with the interest and withdrawal on demand. The call money has an advantage of early return and at the same time are withdraw able on demand. It provides solution to the immediate stock of liquidity pressures in the money market.
Institutions involved in the money market
Institutions involved in the money market include:
- Central bank
- Commercial banks
- Acceptance houses
- Finance houses
- Discount houses
- Insurance companies
Advantages of money market
- Provision of finance: Money market enables entrepreneurs and investors to raise enough finance through borrowing to run their businesses.
- Creation of extra income: The money invested in money market is capable of yielding extra income in form of interest.
- Promotion of economic development: Economic growth and development is enhanced through borrowing from money market.
- Ability to recall invested funds: Funds invested in the money market are very easy to recall.
- It enhances savings: Money market provides opportunity for those having surplus fund to invest thereby enhancing savings.
- economic tools for nation building
- budgeting
- factors affecting the expansion of industries
- mineral resources and the mining industries
- demand and supply
- types of demand curve and used
- advertising industry
- factors of production
- entrepreneur
- joint stock company
- public enterprises
- private enterprises
- limited liability companies
- migration
- population
- market concept
- money market
- shares
- how companies raises funds for expansion
WEED AND THEIR BOTANICAL NAMES
1. ENVIRONMENTAL FACTORS AFFECTING AGRICULTURAL PRODUCTION
2. DISEASES
3. 52. SOIL MICRO-ORGANISMS
4. ORGANIC MANURING
5. FARM YARD MANURE
6. HUMUS
7. COMPOST
8. CROP ROTATION
9. GRAZING AND OVER GRAZING
10. IRRIGATION AND DRAINAGE
11. IRRIGATION SYSTEMS
12. ORGANIC MANURING
13. FARM YARD MANURE
14. HUMUS
15. COMPOST
16. CROP ROTATION
c49. FORAGE CROP AND PASTURE
50. FORAGE GRASSES
5
check out these recent posts
- loans for businesses
- how to establish enterprises
- what is a firm
- price equilibrium
- scale of preference
- concept of economics
- economic tools for nation building
- budgeting
- factors affecting the expansion of industries
- mineral resources and the mining industries
- demand and supply
- types of demand curve and used
- advertising industry
- factors of production
- entrepreneur
- joint stock company
- public enterprises
- private enterprises
- limited liability companies
- migration
- population
- market concept
- money market
- shares
- how companies raises funds for expansion
- BALANCED DIETS
141. LACTATION DIETS
142. MALNUTRITION - RINDER PESTS
148. NEWCASTLE DISEASE
149. BACTERIA DISEASES
150. ANTHRAX
151. BRUCELLOSIS
152. TUBERCULOSIS
153. FUNGAL DISEASES - PROTOZOAN DISEASES
155. TRYPONOSOMIASIS
159. TAPE WORM
160. ROUND WORM OF PIGS
161. LIVER FLUKE
162. ECTO PARASITES
163. TICK