Podcast
Questions and Answers
What distinguishes mainframe banks from specialized banks?
What distinguishes mainframe banks from specialized banks?
- Mainframe banks operate on a regional basis while specialized banks operate nationally.
- Mainframe banks often serve large corporate clients whereas specialized banks provide services to specific sectors. (correct)
- Mainframe banks focus on retail services while specialized banks cater to niche markets.
- Specialized banks offer a broader range of services compared to mainframe banks.
What is a fundamental objective of Mortgage banks?
What is a fundamental objective of Mortgage banks?
- To support small businesses with microfinance solutions.
- To provide personal loans at high interest rates.
- To offer savings accounts with competitive interest rates.
- To facilitate the purchase of real estate through financing. (correct)
How do community banks differ from microfinance banks?
How do community banks differ from microfinance banks?
- Community banks offer higher loan amounts compared to microfinance banks.
- Microfinance banks focus on small loans for low-income individuals while community banks serve a broader clientele. (correct)
- Community banks are government-owned while microfinance banks are private entities.
- Community banks primarily serve urban populations while microfinance banks serve rural areas.
Which of the following functions of money is NOT commonly recognized?
Which of the following functions of money is NOT commonly recognized?
Which characteristic is essential for something to be considered money?
Which characteristic is essential for something to be considered money?
What is the main characteristic of money according to the institutional definition?
What is the main characteristic of money according to the institutional definition?
Which of the following is NOT considered a primary function of money?
Which of the following is NOT considered a primary function of money?
What does 'money as a measure of value' refer to?
What does 'money as a measure of value' refer to?
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?
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?
Flashcards
Definition of Money
Definition of Money
Anything generally accepted for purchasing goods and services, or settling debts.
Functions of Money
Functions of Money
Money acts as a medium of exchange, a store of value, and a unit of account.
Characteristics of Money
Characteristics of Money
Money should be durable, portable, divisible, uniform, and limited in supply.
Demand for Money
Demand for Money
Signup and view all the flashcards
Mainframe vs Specialized Banks
Mainframe vs Specialized Banks
Signup and view all the flashcards
What are the two main ways to define money?
What are the two main ways to define money?
Signup and view all the flashcards
What makes money acceptable?
What makes money acceptable?
Signup and view all the flashcards
Medium of Exchange
Medium of Exchange
Signup and view all the flashcards
Units of Account
Units of Account
Signup and view all the flashcards
Store of Value
Store of Value
Signup and view all the flashcards
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.
