SubjectPaid lesson
Types of financial institutions and their functions
CT
ClassNotes Team 3 MIN READUPDATED 4 JUL 2026Economics SSS 2 Third Term
WEEK 7
Types of financial institutions and their functions
Performance Objectives
Student should be able to:
- Define money market.
- Define capital market.
- Identify the types of financial institutions
- Identify their functions.
Content
Structure and functions of money market
Money market can be defined as a market for short-term. The market consists of individuals and institutions that either have money to lend or wish to borrow on a short term basis.
Instruments used in the money market
1. Bill of exchange: This refers to a promissory note which shows the acknowledgement of indebtedness by a debtor to pay his creditor and his intention to pay the debt on demand or at an agreed time in future,…