{"id":3431,"date":"2023-10-05T09:03:51","date_gmt":"2023-10-05T09:03:51","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=3431"},"modified":"2023-10-05T09:05:02","modified_gmt":"2023-10-05T09:05:02","slug":"week-2-ss2-third-term-economics-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-2-ss2-third-term-economics-notes\/","title":{"rendered":"Week 2 &#8211; SS2 Third Term Economics Notes"},"content":{"rendered":"<p><strong>WEEK TWO<br \/>\n<\/strong><strong>FINANCIAL INSTITUTIONS<br \/>\n<\/strong><strong>CONTENT<br \/>\n<\/strong><\/p>\n<ul>\n<li>\n<div>Money Market (Meaning, Functions and Instruments Used)\n<\/div>\n<\/li>\n<li>\n<div>Capital Market (Meaning, Functions and Instruments Used)\n<\/div>\n<\/li>\n<\/ul>\n<p>\u00a0<strong>MONEY MARKET<\/strong><br \/>\n\tMoney market is a market where short term securities are traded in.  The market comprises of institutions or individuals who either have money to lend or wish to borrow on a short-term basis.<\/p>\n<p>\u00a0<strong>INSTRUMENTS USED IN THE MONEY MARKET<br \/>\n<\/strong><\/p>\n<ol>\n<li>Treasury Bills\n<\/li>\n<li>Treasury Certificate\n<\/li>\n<li>Bill of exchange\n<\/li>\n<\/ol>\n<p>       iv. Call money funds<\/p>\n<ol>\n<li><strong>Treasury Bill<\/strong> \u2013 This is issued by the central Bank.  It enables the government to raise capital for ninety days.\n<\/li>\n<li>\n<div><strong>Treasury Certificate <\/strong>\u2013 is also a means by which the government raises short \u2013 term loans. Unlike a treasury bill, however, a treasury certificate falls due for repayment in twelve to twenty-four months. Because of its longer maturation, it earns a higher rate of discount than the treasury bills\n<\/div>\n<p>      C.  <strong>Bill of Exchange<\/strong> \u2013 This is a promissory note where the debtor acknowledges its debt and intend to pay within ninety days (90days).<br \/>\n      D.\u00a0\u00a0\u00a0\u00a0<strong>Call Money Funds<\/strong> \u2013 The surplus are often invested through a special arrangement in which participating institutions invest surplus money for their immediate requirement on an overnight basis with the interest and withdrawal on demand.  This enhances the liquidity of the money market.<\/p>\n<p>\u00a0<strong>INSTITUTIONS INVOLVED IN THE MONEY MARKET.<br \/>\n<\/strong>i.\u00a0\u00a0\u00a0\u00a0Central Bank<br \/>\nii.\u00a0\u00a0\u00a0\u00a0Commercial Banks<br \/>\niii.\u00a0\u00a0\u00a0\u00a0Acceptance House<br \/>\niv.\u00a0\u00a0\u00a0\u00a0Finance House<br \/>\nv.\u00a0\u00a0\u00a0\u00a0Discount House<br \/>\nvi.\u00a0\u00a0\u00a0\u00a0Insurance companies\n<\/li>\n<\/ol>\n<p>\u00a0<strong>FUNCTIONS OF MONEY MARKET<br \/>\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Money market helps to provide capital (working capital) for day to day running of the business.<br \/>\n2.\u00a0\u00a0\u00a0\u00a0Through investing in call money extra income is generated.<br \/>\n3.\u00a0\u00a0\u00a0\u00a0Money market helps to mobilize savings.<br \/>\n4.\u00a0\u00a0\u00a0\u00a0Money market helps to promote economic growth and development<br \/>\n5.        It enhances good saving habit by those having surplus funds<br \/>\n6.        Money invested in the money market is very easy to recall<\/p>\n<p>\u00a0<strong>EVALUATION<br \/>\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Write a short note on: i money market, ii treasury bill, iii call money\u00a0\u00a0\u00a0\u00a0<br \/>\n2.\u00a0\u00a0\u00a0\u00a0Outline the functions of money market.<\/p>\n<p>\u00a0<strong>CAPITAL MARKET<br \/>\n<\/strong>Funds are needed by entrepreneur, government and business firm on a long term basis.<br \/>\nMoney market cannot provide these needed funds.  Hence capital market bridges this gap.  Capital market is a market where long term securities are traded.  <\/p>\n<p>\u00a0<strong>INSTRUMENTS USED IN CAPITAL MARKET<br \/>\n<\/strong>Securities such as shares, stocks, development stock, bond, debenture<\/p>\n<ol>\n<li>\n<div><strong>Share<\/strong>&#8211; is a unit of capital measured by a sum of money which is an individual portion of the company&#8217;s capital owned by a shareholder. It is a means of raising long-term loans for company through the stock exchange market.\n<\/div>\n<\/li>\n<li>\n<div><strong>Stock-<\/strong> is the bundle of shares or mass capital which can be transferred in fractional amounts. Stocks are always fully paid, for example stocks can be quoted per N100 nominal value. They are collections of shares into a bundle. Stocks are not issued but converted from share issued.\n<\/div>\n<\/li>\n<li>\n<div><strong>Development Stock-<\/strong> is a debt instrument through which governments get long-term loans or borrowing for a period of up to five years and above.\n<\/div>\n<\/li>\n<li>\n<div><strong>Bond-<\/strong> is an interest bearing or discounted government or corporate security that obliges the issuers to pay the bondholder on specified sum of money annually at a specific interval and to repay the principal amount of the loan at maturity.\n<\/div>\n<\/li>\n<li>\n<div><strong>Debenture-<\/strong> is an instrument or a loan certificate for raising a long-term loan from the public by a limited company. A debenture is a debt and a debenture holder is not a co-owner of the business but a creditor.\n<\/div>\n<\/li>\n<\/ol>\n<p>\u00a0<strong>INSTITUTIONS INVOLVED IN CAPITAL MARKET<br \/>\n<\/strong>i.\u00a0\u00a0\u00a0\u00a0Issuing houses<br \/>\nii.\u00a0\u00a0\u00a0\u00a0Insurance companies<br \/>\niii.\u00a0\u00a0\u00a0\u00a0Development Banks<br \/>\niv.\u00a0\u00a0\u00a0\u00a0Building Societies<br \/>\nv.\u00a0\u00a0\u00a0\u00a0National Provident Fund (NPF)<br \/>\nvi.\u00a0\u00a0\u00a0\u00a0Stock Exchange<\/p>\n<p>\u00a0<strong>FUNCTIONS OF CAPITAL MARKET<br \/>\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Capital market provides long term loan for purpose of investment.<br \/>\n2.\u00a0\u00a0\u00a0\u00a0Capital market serves a forum through which public sector takes part in running of the economy.<br \/>\n3.\u00a0\u00a0\u00a0\u00a0Capital market helps to mobilize savings for investment purpose.<br \/>\n4.\u00a0\u00a0\u00a0\u00a0It provides means through which merchant banks can grow and develop.<br \/>\n5.     It gives opportunity to the general public to participate in the running of the economy of the country<\/p>\n<p>\u00a0<strong>EVALUATION<br \/>\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0What is capital market?  Mention any three securities traded in the stock exchange.<br \/>\n2.\u00a0\u00a0\u00a0\u00a0Outline three functions of capital market.<\/p>\n<p>\u00a0<strong>READING ASSIGNMENT<br \/>\n<\/strong>Amplified and Simplified Economics for SSS by Femi Longe page 327-330,335-337.<\/p>\n<p>\u00a0<strong>GENERAL EVALUATION<br \/>\n<\/strong><\/p>\n<ol>\n<li>\n<div>Highlight four objective of price control.<strong><br \/>\n\t\t\t\t<\/strong><\/div>\n<\/li>\n<li>\n<div>Explain the concept of of diminishing marginal utility.<strong><br \/>\n\t\t\t\t<\/strong><\/div>\n<\/li>\n<li>\n<div>What are those factors that can determine the size of a firm.<strong><br \/>\n\t\t\t\t<\/strong><\/div>\n<\/li>\n<li>\n<div>Define labour as a factor of production.<strong><br \/>\n\t\t\t\t<\/strong><\/div>\n<\/li>\n<li>\n<div>Explain five characteristics of labour.<strong><br \/>\n\t\t\t\t<\/strong><\/div>\n<\/li>\n<\/ol>\n<p>\u00a0<strong>WEEKEND ASSIGNMENT<br \/>\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0A government treasury bill is a form of debt instrument which falls due for repayment after. (a) 3 months\u00a0\u00a0\u00a0\u00a0   (b) 9 months\u00a0\u00a0\u00a0\u00a0      (c) 2 years    (d) 5 years    (e) 10 or more years<br \/>\n2.\u00a0\u00a0\u00a0\u00a0Long term loans can be secured from _______ (a) commercial banks (b) discount houses  (c) development banks    (d) acceptance house<br \/>\n3.\u00a0\u00a0\u00a0\u00a0In the money market, money can only be borrowed for ___________<br \/>\n\u00a0\u00a0\u00a0\u00a0(a) long term\u00a0\u00a0\u00a0\u00a0   (b) short term\u00a0\u00a0\u00a0\u00a0(c) capital projects     (d) public utilities<br \/>\n4. \u00a0\u00a0\u00a0\u00a0The debt instrument through which loan can be secured for a period up to five years and above&#8230;&#8230;&#8230;&#8230;&#8230; (a) debenture (b) share (c) stock (d) bond<br \/>\n5.\u00a0\u00a0\u00a0\u00a0Call money funds is a debt instrument being used in&#8230;&#8230;&#8230;&#8230;&#8230; (a) stock exchange market (b) money market (c) foreign exchange market (d) capital market.       <\/p>\n<p>\u00a0<strong>THEORY<br \/>\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0What is a capital market?<br \/>\n2.\u00a0\u00a0\u00a0\u00a0Describe any three instruments used in the money market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>WEEK TWO FINANCIAL INSTITUTIONS CONTENT Money Market (Meaning, Functions and Instruments Used) Capital Market (Meaning,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,272],"tags":[],"class_list":["post-3431","post","type-post","status-publish","format-standard","hentry","category-posts","category-third-term-ss2-economics"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3431","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/comments?post=3431"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3431\/revisions"}],"predecessor-version":[{"id":3432,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3431\/revisions\/3432"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=3431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=3431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=3431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}