Fabioclass knowledge home
Fabioclass knowledge home
Fabioclass knowledge home
This is a text field

MONEY MARKET

 MONEY MARKET, STRUCTURE AND FUNCTIONS OF MONEY MARKETING, 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. The exchange of goods and services in markets is among the most universal activities of human life. To facilitate these exchanges, people settle on something that will serve as a medium of exchange—they select something to be money.

jtypes of response

define money in relation to money market

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are as a medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment.

Money was historically an emergent market phenomenon that possess intrinsic value as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for “all debts, public and private”

https://en.wikipedia.org/wiki/Money

We can understand the significance of a medium of exchange by considering its absence. Barter occurs when goods are exchanged directly for other goods. Because no one item serves as a medium of exchange in a barter economy, potential buyers must find things that individual sellers will accept. A buyer might find a seller who will trade a pair of shoes for two chickens

https://open.lib.umn.edu/principleseconomics/chapter/24-1-what-is-money/

ccMoney market, SUPPLY OF MONEY, meaning of economics

Define money and capital market.

conomic 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 use

dadvertising i

ndustryf

actors of production

entrepreneur

joint stock company

public enterprises

private enterprises

limited liability companies

migration

population

  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

  1. Treasury bills: Treasury bill is normally issued by the central bank of a country, which assists the government to borrow money from the money markets on short term basis.
  2. 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 markets.

Institutions involved in the money market

Institutions involved in the money markets include:

  1. Central bank
  2. Commercial banks
  3. Acceptance houses
  4. Finance houses
  5. Discount houses
  6. Insurance companies

Advantages of money market

  1. Provision of finance: Money markets enables entrepreneurs and investors to raise enough finance through borrowing to run their businesses.     
  2. Creation of extra income: The money invested in money market is capable of yielding extra income in form of interest.
  3. Promotion of economic development: Economic growth and development is enhanced through borrowing from money market.
  4. Ability to recall invested funds: Funds invested in the money markets are very easy to recall.
  5. It enhances savings: Money markets provides opportunity for those having surplus fund to invest thereby enhancing savings.
  1. economic tools for nation building
  2. budgeting
  3. factors affecting the expansion of industries
  4. mineral resources and the mining industries
  5. demand and supply
  6. types of demand curve and used
  7. advertising industry
  8. factors of production
  9. entrepreneur
  10. joint stock company
  11. public enterprises
  12. private enterprises
  13. limited liability companies
  14. migration
  15. population
  16. market concept
  17. money market
  18. shares
  19. how companies raises funds for expansion
  20.  

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

  1. IRRIGATION AND DRAINAGE
    19. IRRIGATION SYSTEMS
    v
  2.  

c49. FORAGE CROP AND PASTURE
50. FORAGE GRASSES
5

check out these recent posts

  1. B

    let us know what you think

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    %d bloggers like this: