Types of financial institutions and their functions

Economics SSS 2 Third Term


Types of financial institutions and their functions

Performance Objectives

Student should be able to:

  1. Define money market.
  2. Define capital market.
  3. Identify the types of financial institutions
  4. Identify their functions.


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.... View More

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