Money is defined as anything that is generally acceptable as a medium of exchange and in the settlement of debts Money can also be defined as anything that is generally acceptable as a means of payment. money, a commodity accepted by general consent as a medium of economic exchange. It is the medium in which prices and values are expressed; as currency, it circulates anonymously from person to person and country to country, thus facilitating trade, and it is the principal measure of wealth.
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.
DEFINITION OF MONEY
Money is defined as anything that is generally acceptable as a medium of exchange and in the settlement of debts. Monies can also be defined as anything that is generally acceptable as a means of payment. A medium of exchange that is centralized, generally accepted, recognized, and facilitates transactions of goods and services, is known as mony. Money is a medium of exchange for various goods and services in an economy
Define monies 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.
FUNCTIONS OF MONEY
The basic function of monies is to enable buying to be separated from selling, thus permitting trade to take place without the so-called double coincidence of barter. In principle, credit could perform this function, but, before extending credit, the seller would want to know about the prospects of repayment. That requires much more information about the buyer and imposes costs of information and verification that the use of money avoids. A medium of exchange that is centralized, generally accepted, recognized, and facilitates transactions of goods and services, is known as money.
Money may make the world go around, as the song says. And most people in the world probably have handled monies, many of them on a daily basis. But despite its familiarity, probably few people could tell you exactly what money is, or how it works.
types of money
Bank money consists of the book credit that banks extend to their depositors. Transactions made using checks drawn on deposits held at banks involve the use of bank monies which most financial institutions view differently
Fiat money or currency isn’t virtual as it has to be tangible but recent innovation has seen the creation of virtual currency or virtual monies. Virtual currency or virtual mone, is a type of unregulated digital currency, which is issued and usually controlled by its developers and used and accepted among the members of a specific virtual community. This type was the beginning of cryptocurencies and crypto mining like bitcoin, etheron and the rest of their likes
Commodity money is a good whose value serves as the value of monies. Gold coins, silver coins etc are an example of commodity money. In most countries, commodity mone has been replaced with fiat money. In commodity monies, the what of what you want to buy or purchase is equal to the value of the commodity money you are holding which almost look like trade by barter
Fiat money is a good, the value of which is less than the value it represents as monetary tender. dollar bill notes are an example of fiat mone because their value as slips of printed paper is less than their value as monies
Importance of production and factors of production
Production is important because of the following:
- Availability of goods and services: Production helps to ensure that goods and services are made available for use by human beings.
- Improvement in standard of living: Production helps to ensure adequate improvement in the standard of living of many people.
- Provision of employment: Continuous production ensures the employment of many people.
- Increase in wealth of people: Production assists people to accumulate wealth as a result of continuous employment.
- Increase in export potential: Production also assists a state or nation to boost her export of goods and services to other nations.
- Acquisition of skills: The engagement of people in production leads them to acquire special skills
FACTORS OF PRODUCTION
Factors of production refer to agents, components or resources which are combined together to produce goods and services. There are four factors of production. These are:
- economic tools for nation building
- factors affecting the expansion of industries
- mineral resources and the mining industries
- demand and supply