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SubjectPaid lesson

Types of financial institutions and their functions ii

ClassNotes Team 2 MIN READUPDATED 22 JUN 2026

Economics SSS 2 Third Term

WEEK 8

Types of financial institutions and their functions ii

Performance Objectives

Student should be able to:

  1. List the benefits of the capital market
  2. Discuss how commodities are traded in the secondary market.
  3. Problems of trading in the secondary market.

Content    

Functions of capital market

1. Mobilization of savings: Savings are mobilized in the capital market.

2. General running of the economy: The existence of capital market encourages the general public to participate in the running of the economy of the country.

3. Provision of long term loans: Capital market provides long term loans to the private and public sectors for investments.

4. Growth of merchant banks: The existence of capital market helps the growth…