Podcast
Questions and Answers
What distinguishes mainframe banks from specialized banks?
What distinguishes mainframe banks from specialized banks?
What is a fundamental objective of Mortgage banks?
What is a fundamental objective of Mortgage banks?
How do community banks differ from microfinance banks?
How do community banks differ from microfinance banks?
Which of the following functions of money is NOT commonly recognized?
Which of the following functions of money is NOT commonly recognized?
Signup and view all the answers
Which characteristic is essential for something to be considered money?
Which characteristic is essential for something to be considered money?
Signup and view all the answers
What is the main characteristic of money according to the institutional definition?
What is the main characteristic of money according to the institutional definition?
Signup and view all the answers
Which of the following is NOT considered a primary function of money?
Which of the following is NOT considered a primary function of money?
Signup and view all the answers
What does 'money as a measure of value' refer to?
What does 'money as a measure of value' refer to?
Signup and view all the answers
According to the functional definition, what is one of the essential purposes of money?
According to the functional definition, what is one of the essential purposes of money?
Signup and view all the answers
Which of the following statements best describes the importance of acceptability in money?
Which of the following statements best describes the importance of acceptability in money?
Signup and view all the answers
Study Notes
Distinguishing Banks
- Differentiate between mainframe banks and specialized banks
- Explain the similarities and differences between community and microfinance banks
- Define the objectives of mortgage banks
Money Development
-
Module 2: The Development of Money
-
Unit 1: The Concept of Money
- Introduction
- Objectives
- Definition of Money
- Unit 2: The Evolution of Money
- Unit 3: The Nigerian Money Market
-
Unit 1: The Concept of Money
Money Concept
-
Unit 1: The Concept of Money
- 1.0 Introduction: Money is a recurring decimal in daily life, from markets to schools to homes
- 2.0 Objectives: Students should be able to state and explain the functions of money, discuss its distinguishing features, and explain reasons for demanding money
-
3.0 Main Content
- 3.1 What is Money?: Anything generally acceptable for purchasing goods and services. Economists define it as anything generally acceptable in payment, for goods and services or debts
- 3.2 Functions of Money: Medium of exchange, store of value, unit of account, standard of deferred payment
Characteristics of Money
- 3.3 Characteristics of Money: Includes general acceptability, scarcity, stability, divisibility, portability, cognizability, homogeneity, and durability.
- General Acceptability: Widely accepted within a community.
- Scarcity: Limited supply in relation to demand.
- Stability: Relatively stable value to be reliable store of value.
- Divisibility: Broken down into smaller units.
- Portability: Easily moved and transported; money should be easily recognizable, look alike and not easily faked.
- Cognisability: Easily recognized and verified.
- Homogeneity: Each unit is the same as any other unit.
- Durability: Relatively long lasting.
Demand for Money
- 3.4 Demand for Money: Motives for holding money; transaction, precaution, speculative
- Transaction Motive: Needed for everyday expenses
- Precaution Motive: Cover unforeseen circumstances.
- Speculative Motive: Take advantage of investment opportunities.
Summary
- Money facilitates transactions, serving as a medium of exchange, with certain properties of acceptability, homogeneity etc.
- Money's functions explained including its uses in settlement of debts and various instruments.
Conclusion
- Money is a critical part of business transactions and is important for everyday use.
References
- Akpan, I. (1999). Fundamentals of Finance. Uyo: Modern Business Press.
- Other cited authors and publications
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz explores the fundamental concepts of money, differentiating between various types of banks, including mainframe, specialized, community, and microfinance banks. It also addresses the evolution of money and the objectives of mortgage banks, providing a comprehensive overview of the Nigerian money market.
