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  1. Money Market
  2. Capital Market
  3. The Stock Exchange Market


Money Market

Meaning of Money Market

Money Market: The market is a financial market for trading in short term financial assets. It consists of individuals (and organizations) who wish to lend out money on a short term and those who wish to borrow. It is therefore a market for short-term loans and investment.

Financial Institutions Which Operate in the Money Market

Financial institutions which operate in the money market include:

  1. Central Bank
  2. Commercial Bank
  3. Acceptance House
  4. Discount houses
  5. Hire-purchase companies
  6. Finance companies

Instruments Used in the Money Market

  1. Treasury Bills
  2. Call money funds
  3. A bill of exchange
  4. Treasury certificate

Functions or Advantages of the Money Market

  1. Provision of circulating capital for commerce and industry
  2. Offering investment opportunities on a short-term basis for people and organization to enable them earn interest
  3. Provision of investment advice to customer
  4. Provision of opportunity for the public to participate in the management of the economy.

Lesson tags: Economics Lesson Notes, Economics Objective Questions, SS2 Economics, SS2 Economics Evaluation Questions, SS2 Economics Evaluation Questions Third Term, SS2 Economics Objective Questions, SS2 Economics Objective Questions Third Term, SS2 Economics Third Term
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